Nationstar Mortgage Announces Record Second Quarter 2013 Financial Results

  Nationstar Mortgage Announces Record Second Quarter 2013 Financial Results

Business Wire

LEWISVILLE, Texas -- August 6, 2013

Nationstar Mortgage Holdings Inc. (NYSE: NSM):

  *Record GAAP EPS of $1.37 on net income of $123 million
  *Pro forma EPS of $1.50, excluding BofA ramp and other one-time expenses
    totaling $19 million
  *Well positioned for an improving economy
  *Affirm EPS guidance for ’13 of $4.05 - $4.75 and ’14 of $6.45 - $7.50
  *Ending servicing portfolio UPB of $318 billion; pro forma UPB of $435
    billion
  *Servicing: Profitability targets on track; over $400 billion bulk
    acquisition pipeline
  *Originations: Record funded volume of $7.1 billion and recapture rate of
    48%
  *Completed strategic acquisition of Greenlight Financial Services

Nationstar Mortgage Holdings Inc. (NYSE:NSM) (“Nationstar”), a leading
residential mortgage services company, today reported quarterly net income of
$123.4 million, or $1.37 per share, for the second quarter 2013 compared to
$62.6 million, or $0.70 per share, in the first quarter 2013 and $36.3
million, or $0.41 per share, in the second quarter 2012.

Pro forma Q2’13 EPS was $1.50, after adjusting for $19.4 million in platform
ramp and one-time transaction expenses related to the previously announced
servicing acquisition from Bank of America (“BofA”), the Greenlight
acquisition, and the non-agency advance securitization. Pro forma Q2’13 EPS
was up in comparison to both the prior quarter pro forma EPS of $0.85 and
Q2’12 pro forma EPS of $0.44.

On a Non-GAAP basis, adjusted EBITDA (“AEBITDA”) for operating segments grew
37% to $243.7 million, or $2.70 per share, for the current quarter versus
$178.2 million, or $1.98 per share, in the first quarter 2013. In the current
quarter AEBITDA margin was 40%.

Nationstar’s revenue grew 40% to $603.7 million in the second quarter from
$431.1 million in the prior quarter and was up 198% from $202.8 million in the
second quarter of 2012. Pre-tax income from operating segments for the second
quarter was $206.6 million, or $2.29 per share, up 90% from $108.7 million, or
$1.21 per share, in the first quarter of 2013 and up 266% from $56.4 million,
or $0.63 per share, in the second quarter of 2012. In the current quarter,
pre-tax income margin from operating segments was 34%. Pro forma Q2’13 pre-tax
income from operating segments was $226.0 million, or $2.50 per share.

Nationstar’s servicing portfolio, as measured by unpaid principal balance
(“UPB”), ended the second quarter at $318 billion. Q2’13 ending UPB was up 2%
from Q1’13 ending UPB of $312 billion, and up 65% over Q2’12 ending UPB of
$193 billion. Pro forma for the closing of the Bank of America PLS portfolios,
of which $47 billion closed in early July and the remainder is expected to
close in 2013, and other servicing under contract, Nationstar’s UPB is
approximately $435 billion.

“We generated strong sequential earnings across our entire platform in the
second quarter,” said Jay Bray, Chief Executive Officer of Nationstar. “We
successfully boarded the BofA GSE and Ginnie Mae portfolios, completed the
acquisition of Greenlight, and continue to make progress on building
Solutionstar into a high-margin, fee-based business. Our platforms are
strategically positioned to perform in an improving economy, and we continue
to see compelling opportunities in the marketplace that will deliver long-term
value to our shareholders.”

Chief Financial Officer David Hisey said, “We executed on our strategic plan
and delivered another quarter of strong financial results. Our servicing
segment continues to make progress on our previously identified profitability
initiatives which will generate increased earnings and higher margins. Our
origination segment experienced a strong quarter of profitability due to
record volume and our strategic focus on high margin channels. Solutionstar
continues to experience revenue growth and is focused on scaling and
diversifying its client and revenue base. We remain on track to hit our full
year 2013 and 2014 earnings guidance.”

               AFFIRM GUIDANCE: AEBITDA and EARNINGS PER SHARE

                      For the year ending December 31,
                         2013 Range         2014 Range
AEBITDA per Share        $ 10.10 - 11.75       $ 14.70 - 17.10
Earnings per Share       $ 4.05 - 4.75         $ 6.45 - 7.50
                                               

Business Segments

Servicing

Servicing fee income of $284.6 million was up 38% versus the prior quarter.
Servicing fee income before fair value adjustments increased 15% to $275.5
million in second quarter 2013 compared to $240.0 million in the prior
quarter.

The average portfolio UPB for the first quarter was $315 billion, a 21%
increase over the prior quarter average of $260 billion, primarily due to the
closing of the Agency and Government servicing portfolios from BofA that
occurred in the first quarter. Nationstar’s pipeline of bulk MSR purchase
opportunities is currently in excess of $400 billion in aggregate UPB.
Nationstar has executed on flow agreements that are expected to produce $20
billion of UPB in annual volume, with flow servicing annual potential in
excess of $55 billion of UPB as the program grows with additional clients.

Servicing pre-tax income increased 110% to $85.3 million from $40.7 million in
the prior quarter and was up significantly compared to the pre-tax loss of
$4.7 million in the year-ago quarter. Servicing pre-tax margin was 25% in the
current quarter. Pro-forma Q2’13 servicing pretax income was $99.7 million
after excluding BofA ramp and certain other one-time expenses of $14.4
million. BofA ramp expenses include the hiring of approximately 600 employees
in advance of the PLS portfolio acquisitions. Servicing operating
profitability as a percentage of UPB was 5 basis points excluding ramp
expenses and mark to market adjustments.

As shown in the servicing fee income table appended to this release, the net
change in the fair value of mortgage servicing rights and excess spread
financing due to mark to market adjustments was $59.9 million. The net change
in fair value due to other changes, amortization, was $50.8 million. Total
servicing portfolio Q2’13 prepayments as measured by CPR were approximately
18% annualized. Prepayments were partially offset by Nationstar’s record
origination volume and recapture rate.

Servicing AEBITDA in the current quarter was $109.4 million compared to $100.1
million in the first quarter 2013 and $37.4 million in the second quarter of
2012. Servicing AEBITDA margin was 33% in the current quarter, and servicing
AEBITDA as a percentage of UPB was 14 basis points.

Nationstar’s 60 day-plus delinquency rate decreased to 11.8% of UPB, down from
13.8% in the first quarter. This decrease reflects Nationstar’s continued
focus on improving portfolio performance which preserves homeownership,
increases value for credit owners, and lowers servicing costs.

Origination

Origination revenue increased 45% to $268.7 million in second quarter 2013 on
a 109% increase in fundings of $7.1 billion. Excluding correspondent,
quarterly origination volume from portfolio recapture, wholesale, and builder
channels increased 81% to $5.6 billion. Nationstar’s recapture rate during the
first quarter increased to 48% up from 45% in the first quarter. The total
application pipeline grew 56% from the prior quarter to $12.2 billion, and the
locked pipeline grew 34% to $8.6 billion. Nationstar continues to expect
origination volume to exceed $23 billion in 2013, and $31 billion in 2014.

In the current quarter, Nationstar originated $2.7 billion of loans under the
Home Affordable Refinance Program (“HARP”), or 38% of total origination
volume. Nationstar currently has more than $45 billion of HARP and refinance
opportunities within its servicing portfolio.

Of the $7.1 billion in fundings, 78% were from the consumer
direct/builder/wholesale channels, and 22% were from the correspondent
channel. Nationstar views the correspondent channel as a way to selectively
acquire servicing assets at attractive prices.

Origination pre-tax income for the quarter was a record $121.3 million, an
increase of 78% from $68.0 million in the prior quarter, and up 99% from $61.1
million in the year-ago quarter. Origination pre-tax income margin was 45% in
the current quarter up from 37% in the prior quarter. Pro-forma Q2’13
origination pre-tax income was $126.2 million after excluding BofA and
Greenlight ramp expenses of approximately $5.0 million. Q2’13 origination
pre-tax income, excluding correspondent, expressed as a percentage of funded
volume, was 219 basis points, consistent with the prior quarter.

Nationstar experienced some reduction in gain on sale margins due to reduced
premiums on HARP loans. Excluding correspondent, revenue as a percentage of
funded loans was 474 basis points. Operating leverage and efficiencies in the
quarter offset the decline in top-line gain-on-sale margins, as expenses
decreased by 107 basis points, or 30%. Loan officer productivity increased by
90% in the quarter, and Nationstar anticipates further productivity gains in
future periods.

Origination AEBITDA for the quarter was a record $134.3 million, an increase
of 72% from $78.2 million in the first quarter of 2013, and up 111% from $63.8
million in the second quarter of 2012. Origination AEBITDA margin was 50% in
the current quarter, up from 42% in the prior quarter.

Greenlight Financial Services Acquisition

In May, Nationstar completed the acquisition of the mortgage origination
business of Greenlight Financial Services (“Greenlight”) for up to $75
million. Greenlight, based in Irvine, California, utilizes a high-volume,
rapid turn time funding model with proven experience in television, radio, and
other media. The acquisition further diversifies Nationstar’s origination
channels and adds a low-cost, profitable source for servicing asset creation,
while also providing additional capacity for HARP, recapture, and purchase
money originations. Nationstar expects Greenlight to originate in excess of $8
billion annually.

Solutionstar

Solutionstar generated revenue of $38 million in the second quarter, an
increase of 15% over the first quarter. Solutionstar completed over 2,400 REO
dispositions in the second quarter, and expects to significantly expand the
REO management business, as property sale opportunities are expected to
significantly increase with the BofA private-label servicing acquisitions.
Solutionstar launched the Homesearch.com platform in May 2013, which provides
an online real estate marketplace for home buyers, sellers and investors to
connect and conveniently complete sales transactions. Solutionstar’s
settlement services business completed more than 29,000 appraisals in the
second quarter.

Non-GAAP Financial Measures

This disclaimer applies to every usage of “Adjusted EBITDA” or “AEBITDA”, “Pro
forma Earnings per Share” or “Pro Forma EPS”, “Pro forma Pre-Tax Income”, and
“Servicing Fee Income before fair value adjustments” in this release. Adjusted
EBITDA is a key performance metric used by management in evaluating the
performance of our segments. Adjusted EBITDA represents our Operating
Segments' income (loss), and excludes income and expenses that relate to the
financing of our senior notes, depreciable (or amortizable) asset base of the
business, income taxes, and exit costs from our restructuring and certain
non-cash items. Adjusted EBITDA also excludes results from our legacy asset
portfolio and certain securitization trusts that were consolidated upon
adoption of the accounting guidance eliminating the concept of a qualifying
special purpose entity.  Pro-forma EPS is a metric that is used by management
to exclude certain non-recurring items in an attempt to provide a better
earnings per share comparison to prior periods. Pro forma Q2’13 EPS excludes
certain expenses related to the acquisition of the $215 billion servicing
portfolio from Bank of America, expenses related to the acquisition of
Greenlight Financial Services, and expenses related to the non-agency advance
receivable securitization. These expenses include the advance hiring of
servicing and originations staff, recruiting expenses, travel, licensing,
legal expenses, and expenses related to the write-off of facility fees on
credit facilities that were retired as part of the non-agency advance
receivable securitization. Pro forma pre-tax income is a metric that is used
by management to exclude certain non-recurring items in an attempt to provide
a better earnings per share comparison to prior periods. Pro forma Q2’13
pre-tax income excludes certain expenses related to the acquisition of the
$215 billion servicing portfolio from Bank of America, expenses related to the
acquisition of Greenlight Financial Services, and expenses related to the
non-agency advance receivable securitization. These expenses include the
advance hiring of servicing and originations staff, recruiting expenses,
travel, licensing, legal expenses, and expenses related to the write-off of
facility fees on credit facilities that were retired as part of the non-agency
advance receivable securitization. This disclaimer applies to every usage of
pro-forma AEBITDA per share in this release. Pro-forma AEBITDA per share is a
metric that is used by management to exclude certain non-recurring items in an
attempt to provide a better AEBITDA per share comparison to prior periods. Pro
forma Q2’13 AEBITDA per share excludes certain expenses related to the
acquisition of the $215 billion servicing portfolio from Bank of America,
expenses related to the acquisition of Greenlight Financial Services, and
expenses related to the non-agency advance receivable securitization. These
expenses include the advance hiring of servicing and originations staff,
recruiting expenses, travel, licensing, legal expenses, and expenses related
to the write-off of facility fees on credit facilities that were retired as
part of the non-agency advance receivable securitization. Servicing fee income
before fair value adjustments is a metric that is used by management in an
attempt to provide a better sense of the servicing fee income prior to any
changes in the fair value of servicing assets. Servicing fee income before
fair value adjustments excludes fair value adjustment due to valuation inputs
or assumptions for mortgage servicing rights and excess spread financing, and
the fair value adjustment due to other changes in fair value for mortgage
servicing rights and excess spread financing.

Conference Call Webcast and Investor Presentation

Chief Executive Officer, Jay Bray, and Chief Financial Officer, David Hisey,
will host a conference call for investors and analysts to discuss Nationstar’s
second quarter 2013 results and other general business matters at 10:00 a.m.
(ET) on Tuesday, August 6, 2013. To listen to the event live or in an archive
which will be available for 14 days, visit Nationstar's website at
http://investors.nationstarholdings.com. The conference call will also be
accessible by dialing 800-299-9086, or 617-786-2903 internationally. Please
use the participant passcode 70733762 to access the live conference call. An
investor presentation will also be available at
http://investors.nationstarholdings.com.

Financial Tables

                          
NATIONSTAR MORTGAGE HOLDINGS INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(dollars and shares in thousands, except per share data)
                            
                            Three months ended
                            June 30, 2013   March 31, 2013   June 30, 2012
Revenues
Servicing fee income        $  263,309        $  197,596         $  88,327
Other fee income              57,795          44,879           12,087   
Total fee income               321,104           242,475            100,414
Gain on mortgage loans        282,561         188,587          102,345  
held for sale
Total revenues                 603,665           431,062            202,759
                                                                 
Total expenses and             339,851           268,571            130,372
impairments
                                                                 
Other income (expense)
Interest income                52,437            29,608             13,415
Interest expense               (117,911 )        (92,374  )         (35,913  )
Loss on equity investment      –                 –                  (477     )
Gain (Loss) on interest       789             1,268            (357     )
rate swaps and caps
Total other income             (64,685  )        (61,498  )         (23,332  )
(expense)
                                                                 
Income before taxes            199,129           100,993            49,055
Income tax expense            75,669          38,377           12,780   
Net income                    123,460         62,616           36,275   
Other comprehensive
income, net of tax
Change in value of
designated cash flow           1,819             –                  (423     )
hedge
Less: Net income
attributable to               –               –                –        
noncontrolling interests
Net income and
comprehensive income          125,279         62,616           35,852   
attributable to
Nationstar Inc.
                                                                 
Earnings per share:
Basic earnings per share    $  1.38          $  0.70           $  0.41     
Diluted earnings per        $  1.37          $  0.70           $  0.41     
share
Weighted average shares:
Basic                          89,462            89,293             88,500
Dilutive effect of stock      890             649              1,028    
awards
Diluted                       90,352          89,942           89,528   
Dividends declared per      $  –             $  –              $  –        
share
                                                                             

                                                             
NATIONSTAR MORTGAGE HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
                                                                   
                                  June 30,         March 31,       June 30,

                                  2013             2013            2012
Assets                            (unaudited)      (unaudited)     (unaudited)
Cash and cash equivalents         $ 385,938        $ 220,039       $ 15,892
Restricted cash                     405,462          360,467         119,512
Accounts receivable                 3,448,543        3,614,827       2,487,991
Mortgage loans held for sale        4,018,241        1,703,709       837,906
Mortgage loans held for
investment, subject to              257,168          235,915         238,173
nonrecourse debt - Legacy
Assets
Reverse mortgage interests          1,086,024        978,652         310,074
Mortgage servicing rights           1,627,330        1,300,584       604,819
Property and equipment, net         100,699          77,407          39,090
Derivative financial                383,210          182,589         53,193
instruments
Other assets                       275,766         211,376        189,580
Total assets                      $ 11,988,381     $ 8,885,565     $ 4,896,230
                                                                   
Liabilities and equity
Notes payable                     $ 6,168,937      $ 3,409,886     $ 2,412,364
Unsecured senior notes              1,969,163        1,669,146       555,938
Payables and accrued                1,222,063        1,529,898       639,839
liabilities
Derivative financial                46,745           26,895          18,911
instruments
Mortgage servicing liabilities      82,623           82,931          81,979
Nonrecourse debt - Legacy           95,729           98,388          106,271
Assets
Excess spread financing (at         570,497          498,906         266,693
fair value)
Participating interest             880,234         745,263        181,114
financing
Total liabilities                 $ 11,035,991     $ 8,061,313     $ 4,263,109
                                                                   
Total Nationstar Inc.               947,400          819,262         633,121
stockholders’ equity
Noncontrolling interest            4,990           4,990          –
Total equity                       952,390         824,252        633,121
Total liabilities and equity      $ 11,988,381     $ 8,885,565     $ 4,896,230
                                                                     

                          
SERVICING FEE INCOME BEFORE FAIR VALUE ADJUSTMENTS RECONCILIATION
(dollars in thousands)
                            
                            Three months ended
                            June 30, 2013   March 31, 2013   June 30, 2012
                            (unaudited)       (unaudited)        (unaudited)
Total servicing fee
income before MSR fair      $  275,460        $  240,010         $  111,448
value adjustments
Fair value adjustments
due to valuation inputs
or assumptions
Mortgage servicing rights      118,362           43,362             (11,504  )
Excess spread financing       (58,471  )       (41,961  )        125      
Net change in FV due to
valuation inputs or            59,891            1,401              (10,929  )
assumptions
Fair value adjustments
due to other changes in
fair value (amortization)
Mortgage servicing rights      (85,486  )        (53,021  )         (9,821   )
Excess spread financing       34,690          18,070           (2,537   )
Net change in FV due to
other changes in fair          (50,796  )        (34,951  )         (12,358  )
value (amortization)
                                                               
Servicing fee income          284,555         206,460          88,161   
                                                                 
Other fee income              50,301          39,065           6,446    
Total servicing fee         $  334,856       $  245,525        $  94,607   
income
                                                                             

                          
PRO-FORMA EARNINGS PER SHARE RECONCILIATION
(dollars in thousands)
                            
                            Three months ended
                            June 30, 2013   March 31, 2013   June 30, 2012
                            (unaudited)       (unaudited)        (unaudited)
Net income                  $  123,460        $  62,616          $  36,275
Income taxes                  75,670          38,377           12,780   
Income before taxes            199,130           100,993            49,055
Portfolio acquisition         19,392          22,228           4,136    
ramp expenses
Pro-forma pre-tax income       218,522           123,221            53,191
                                                                 
Income taxes (using
Q2’13, Q1’13 and Q2’12        (83,038  )       (46,823  )        (13,856  )
tax rate)
Pro-forma Income              135,484         76,397           39,335   
                                                                 
Average share count
(using Q2’13, Q1’13 and        90,352            89,942             89,528
Q2’12 share count)
                                                                 
Pro-forma EPS               $  1.50          $  0.85           $  0.44     
                                                                             

                          
AEBITDA RECONCILIATION
(dollars in thousands)
                             
                             Three months ended
Net Income from
Operating Segments to        June 30, 2013   March 31, 2013   June 30,
Adjusted EBITDA                                                   2012
Reconciliation
Net income                   $  123,460        $  62,616          $  36,275
Plus:
Net loss from Legacy            7,470             7,686              7,373
Portfolio and Other
Income tax expense             75,669          38,377           12,780  
Net income from                 206,599           108,679            56,428
Operating Segments
Adjust for:
Interest expense from           39,073            30,690             13,516
unsecured senior notes
Depreciation and                5,190             3,528              1,758
amortization
Change in fair value of
mortgage servicing              (32,876  )        9,659              20,875
rights
Amortization/accretion
of reverse mortgage             (275     )        (275     )         9
servicing
Share-based compensation        2,840             2,858              6,353
Fair value changes on           23,781            23,891             2,412
excess spread financing
Fair value changes in          (639     )       (795     )        (150    )
derivatives
Adjusted EBITDA              $  243,693       $  178,235        $  101,201 
Adjusted EBITDA per          $  2.70          $  1.98           $  1.13    
share
Earnings per share           $  1.37          $  0.70           $  0.41    
                                                                             


SEGMENT AEBITDA AND PRO FORMA PRE-TAX INCOME RECONCILIATION
(dollars in thousands)

FOR QUARTER ENDED JUNE 30, 2013
Adjusted
EBITDA to Net    Servicing     Origination   Operating     Legacy       Total
Income/(Loss)
Reconciliation
                                                                                  
Adjusted           $ 109,405       $ 134,288       $ 243,693       $ (7,060 )     $ 236,633
EBITDA
                                                                                  
Interest
expense on           (28,945 )       (10,128 )       (39,073 )       –              (39,073 )
corporate
notes
MSR valuation        32,876          –               32,876          –              32,876
adjustment
Excess spread        (23,781 )       –               (23,781 )       –              (23,781 )
adjustment
Amortization
of mortgage          275             –               275             –              275
servicing
obligations
Depreciation &       (3,423  )       (1,767  )       (5,190  )       (600   )       (5,790  )
amortization
Stock-based          (1,721  )       (1,119  )       (2,840  )       (21    )       (2,861  )
compensation
Fair value
adjustment for      638           –             638           212          850     
derivatives
Pre-Tax              85,324          121,274         206,598         (7,470 )       199,129
Income/Loss
                                                                                  
Income Tax                                                                          (75,669 )
                                                                                  
Net                                                                                123,460 
Income/Loss
                                                                                  
Pre-Tax              85,324          121,274         206,599         (7,470 )       199,129
Income/Loss
Ramp expenses       14,427        4,960         19,387        -            19,387  
Pro Forma
Pre-Tax              99,717          126,234         225,986         (7,470 )       218,516
Income/Loss
                                                                                  
Average shares       90,352          90,352          90,352          90,352         90,352
outstanding
                                                                                  
Earnings per                                                                  $ 1.37    
share
Pre-Tax Income     $ 0.94         $ 1.34         $ 2.29         $ (0.08  )     $ 2.20    
per share
AEBITDA per        $ 1.21         $ 1.49         $ 2.70         $ (0.08  )     $ 2.62    
share
                                                                                            


SEGMENT AEBITDA RECONCILIATION
(dollars in thousands)

FOR QUARTER ENDED MARCH 31, 2013
Adjusted
EBITDA to Net    Servicing     Origination   Operating     Legacy       Total
Income/(Loss)
Reconciliation
                                                                                  
Adjusted           $ 100,077       $  78,158       $ 178,235       $ (7,786 )     $ 170,449
EBITDA
                                                                                  
Interest
expense on           (22,667 )        (8,023 )       (30,690 )       –              (30,690 )
corporate
notes
MSR valuation        (9,659  )        –              (9,659  )       –              (9,659  )
adjustment
Excess spread        (23,891 )        –              (23,891 )       –              (23,891 )
adjustment
Amortization
of mortgage          275              –              275             –              275
servicing
obligations
Depreciation &       (2,548  )        (980   )       (3,528  )       (373   )       (3,901  )
amortization
Stock-based          (1,710  )        (1,148 )       (2,858  )       –              (2,858  )
compensation
Fair value
adjustment for      795            –            795           473          1,268   
derivatives
Pre-Tax              40,672           68,007         108,679         (7,686 )       100,993
Income/Loss
                                                                                  
Income Tax                                                                          (38,377 )
                                                                                  
Net Income                                                                        $ 62,616  
                                                                                  
Pre-Tax              40,675           68,007         108,679         (7,686 )       100,993
Income/Loss
Ramp expenses       13,172         9,057        22,228        -            22,228  
Pro Forma
Pre-Tax              53,844           77,064         130,907         (7,686 )       123,221
Income/Loss
                                                                                  
Average shares       89,942           89,942         89,942          89,942         89,942
outstanding
                                                                                  
Earnings per                                                                  $ 0.70    
share
Pre-Tax Income     $ 0.45         $  0.76        $ 1.21         $ (0.09  )     $ 1.12    
per share
AEBITDA per        $ 1.11         $  0.87        $ 1.98         $ (0.09  )     $ 1.89    
share


FOR QUARTER ENDED JUNE 30, 2012
Adjusted
EBITDA to Net      Servicing       Origination     Operating       Legacy         Total
Income/(Loss)
Reconciliation
                                                                                  
Adjusted           $ 37,378        $  63,823       $ 101,201       $ (7,488 )     $ 93,713
EBITDA
                                                                                  
Interest
expense on           (13,516 )        –              (13,516 )       –              (13,516 )
corporate
notes
MSR valuation        (20,875 )        –              (20,875 )       –              (20,875 )
adjustment
Excess spread        (2,412  )        –              (2,412  )       –              (2,412  )
adjustment
Amortization
of mortgage          (9      )        –              (9      )       –              (9      )
servicing
obligations
Depreciation &       (1,238  )        (520   )       (1,758  )       (96    )       (1,854  )
amortization
Stock-based          (4,147  )        (2,206 )       (6,353  )       718            (5,635  )
compensation
Fair value
adjustment for       150              –              150             (507   )       (357    )
derivatives
                                                                              
Pre-Tax              (4,669  )        61,097         56,428          (7,373 )       49,055
Income/Loss
                                                                                  
Income Tax                                                                          (12,780 )
                                                                                  
Net                                                                               $ 36,275  
Income/Loss
                                                                                  
Average shares       89,528           89,528         89,528          89,528         89,528
outstanding
                                                                                  
Earnings per                                                                  $ 0.41    
share
Pre-Tax Income     $ (0.05   )     $  0.68        $ 0.63         $ (0.08  )     $ 0.55    
per share
AEBITDA per        $ 0.42         $  0.71        $ 1.13         $ (0.08  )     $ 1.05    
share
                                                                                            

About Nationstar Mortgage Holdings Inc.

Based in Lewisville, Texas, Nationstar offers servicing, origination, and real
estate services to financial institutions and consumers. Nationstar is one of
the largest servicers in the United States and operates an integrated loan
origination business that mitigates servicing portfolio run-off and improves
credit performance for loan investors. Our Solutionstar business unit offers
asset management, settlement, and processing services. As of July 31, 2013,
Nationstar employs over 7,700 people. Additional corporate information is
available at www.nationstarholdings.com.

Forward Looking Statements

Any statements in this release that are not historical or current facts are
forward-looking statements. Forward-looking statements include, without
limitation, statements concerning plans, objectives, goals, projections,
strategies, future events or performance, and underlying assumptions and other
statements, which are not statements of historical facts. Forward-looking
statements convey Nationstar’s current expectations or forecasts of future
events. When used in this release, the words “anticipate,” “appears,”
“believe,” “foresee,” “intend,” “should,” “expect,” “estimate,” “target,”
“project,” “plan,” “may,” “could,” “will,” “are likely” and similar
expressions are intended to identify forward-looking statements. These
statements involve predictions of our future financial condition, performance,
plans and strategies, and are thus dependent on a number of factors including,
without limitation, assumptions and data that may be imprecise or incorrect.
Specific factors that may impact performance or other predictions of future
actions have, in many but not all cases, been identified in connection with
specific forward-looking statements. Forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause Nationstar’s
actual results, performance or achievements to be materially different from
any future results, performances or achievements expressed or implied by the
forward-looking statements. Certain of these risks and uncertainties are
described in the “Risk Factors” section of Nationstar’s Form 10-K for the year
ended December 31, 2012, and other filings Nationstar makes with the SEC,
which are available at the SEC’s website at http://www.sec.gov. We caution you
not to place undue reliance on these forward-looking statements that speak
only as of the date they were made. Unless required by law, Nationstar
undertakes no obligation to publicly update or revise any forward-looking
statements to reflect circumstances or events after the date of this release.

Contact:

Nationstar Mortgage Holdings Inc.
Marshall Murphy, 469-549-3005
 
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