Q4 2021 Offerpad Solutions Inc Earnings Call
We have evidence transactional data show that in the third quarter of 2021, I find market share reached one 9% of all U S home sales nearly doubling the previous high of 1% set in the second quarter of 2021 in three markets Greensboro, Phoenix, and Tucson, I buy and reached 10% market share highlighting the potential growth.
This industry.
And the reason I buy here in the country offer patent is exceptionally well positioned to capitalize on this potential.
While our strategy and discipline are key elements to our success.
Can't underestimate the importance of our incredible team.
Despite the tight labor market in 2021, our culture and commitment to our people allowed us to double our team from 499 employees to more than 1000 by year end.
And part of the transformation that provides tangible value to customers and allows team members to implement innovative ideas as a rewarding experience and quality, we celebrate our ability to attract and retain top talent will be important strength through 2022, as we expect the labor market will remain tight.
In 2022, we plan to continue executing on our three pronged growth strategy focused on market expansion increased market penetration and additional ancillary services.
In terms of market expansion, we plan to add eight new markets. This year for a total of 29 markets by year end.
As previously announced we are entering three new markets in California, This year with San Bernardino and Riverside opening this month Sacramento is on target to open later in the first quarter of 2022.
In our existing markets, we plan to increase penetration by serving new Zip codes in and around our existing service areas and to incorporate higher price point homes into our buy box.
For example in the fourth quarter of 2021, we added 66 ZIP codes to our service area in and around Nashville resulted in a 48% increase to our Nashville service territory.
Similar expansion plans are slated for 2022 and other existing markets. We're also expanding our platinum home offering. This program allows higher price point purchases with controls around the number of purchases during each market's initial launch.
Holmes and this program will require additional review and approval during the underwriting process and received upgraded renovations our ability to expand our buy box into higher price point homes with the potential for extensive remodeling is possible because of our highly skilled and efficient renovation teams expansion of our service territory and by Boston existing markets.
Are both examples of our market evolution from new to mature.
When we enter a new market, we start by hiring our local leadership team and establishing relationships with local vendors as we build we add our internal renovation department and we gradually expand our geographic scope.
Out of the company, we embraced learning and believe that we are smarter with every customer we serve.
The first three to four months of the market are truly about establishing a presence and building a foundation with the next nine months focused on optimizing our execution.
After the first year, we transitioned from learning and building to pushing for increased scale and profitability with end use are fully mature markets within established presence to test new products and services.
Our third growth driver and the expansion of our ancillary service offerings include the launch of offer Pat home loans into all markets and new partnerships and.
In January we announced an expansion of our partnership with Taylor Morrison to all of our mutual markets nationwide. This partnership offers buyers of a new Taylor Morrison home additional flexibility with their closing date in extended stay options past closing when selling their existing home to offer pad, we greatly value our relationship with the more than 50 homebuilders. We currently part.
With to improve the experience for our mutual customers.
Part of our 2022 goals is to enhance our buyer engagement.
We frequently talk about our express and flex offerings is simplifying the sales side of the transaction, but we also serve customers looking to buy a home.
Often customers start their real estate journey by looking for a new home they would like to buy before beginning the process of selling their current home by enhancing our ability to meet customers at the beginning of their journey, we can offer better support with multiple products, including offer Pat home loans and truly provide a one stop shop experience.
In 2022, we will introduce our enhanced instant access program, making it easier for potential homeowners to directly access offer patent properties with thousands of homes available our properties provide another venue to engage with our new customers and.
In addition to our current flex team members, we are hiring buyer experts to provide specialized support to customers. We currently pay a co broke commission on approximately 86% of the offer pet homes, we sell by enhancing customers' ability to reach us directly with buying a home.
We can reduce our cost to expand our margins and provide customers more opportunities to save through our bundle rewards program.
Turning to the broader real estate industry, we expect the market to remain strong in 2022 with the current supply and demand imbalance expect it to remain buyers will likely to continue experiencing ongoing sellers market.
Our expectations in 2022 assume that many of the fundamentals driving the 2021 market will remain.
This includes tighter supply levels, increasing yet historically low mortgage rates and wage growth acceleration.
Importantly, our growth and expectations for achieving sustainable profitability are a result of multi dimensional strategy, that's not relying on any singular market condition.
While wage growth acceleration and low unemployment a positive tailwind the unprecedented home price depreciation in 2021 further restricted first time homebuyers ability to access affordable housing and offer pad. We believe in doing the right thing for our people our customers our shareholders and our communities. This means using our tools and talents to push for.
Change to create opportunities for more and more people through our membership on the Freddie Mac Affordable housing Advisory Council and with the National Fair housing Alliance. Our goal is to promote access to affordable housing and to ensure equal housing opportunity for all people as you can see we have innovative plans for our future and the foundation and team well per.
Positioned to meet our goals.
We succeeded through the historic uncertainty and economic shutdown of 2020.
We navigated one of the most aggressive growth markets in 2021.
These achievements give me confidence that our agility and flexibility of our strategy will allow us to successfully navigate future market changes.
Now I'll turn the call over to Mike.
Thanks, Brian .
Today, I will cover our fourth quarter and full year 2021 financial and operating results.
Discuss our recent financing activities and also provide our outlook for the first quarter of 2022.
We ended the year with a strong fourth quarter continuing the trend we established at the beginning of 2021 are.
Our fourth quarter revenue set a new record at $868 million or 289% increase over the fourth quarter of 2020.
Q4, gross profit increased 178% from the prior year and we reported positive adjusted EBITDA for the fifth consecutive quarter.
Our net income this quarter was $12 8 million and includes a $13 6 million credit to mark to market the value of the warrant liability.
Excluding this credit our Q4 adjusted net loss was $2 8 million.
In the fourth quarter, we acquired 3049 homes nearly a threefold increase from Q4 of 2020, and an 11% sequential increase from Q3.
This growth pattern demonstrates our ability to quickly and smartly rebuild our inventory levels from the pandemic loans and to methodically manage that strong growth and a consistent serviceable manner, avoiding dramatic upward swings and pullbacks and acquisition activity.
Our home sales in the fourth quarter of 2000, and 423 units nearly tripled our Q4 2020 sales and increased 45% sequentially from Q3 with an average selling price of $357000 per home.
We generated $70 million of gross profit in the quarter of 32% sequential increase from Q3 at a gross margin of eight 1% compared to nine 8% in the prior quarter.
This is consistent with our expectation of margins normalizing from the prior high levels of home price appreciation.
Our growth plans not only show the operational benefits of adding scale, but also our ability to leverage overhead.
In the fourth quarter total operating costs were seven 7% revenue of 340 basis point improvement from Q4 of the prior year and a nearly 150 basis point sequential improvement from Q3.
We will continue to demonstrate strong cost discipline in 2022, while making prudent investments to continue to support our growth initiatives.
Turning to our full year financial results 2021 was a landmark year for offered pad as we exceeded the high end of our guidance ranges we.
We sold a record 6373 homes, resulting in revenue of more than $2 billion.
This represents a 95% compared to the full year 2020.
Gross profit for the year was $208 million or 137% increase over the prior year and GAAP net income was $6 $5 million, marking our first full year of positive net income.
Adjusted EBITDA for the year was $30 million as compared to a negative $8 million in 2020, reinforcing our exceptional financial performance for the year.
Our strong full year results were also supported by our unit economics contribution.
Contribution profit after interest per home sold increased 154% year over year to $22900.
This represents a 7% contribution margin after interest for the full year up from three 6% in 2020.
Over the past three years, our gross margin improved from six 9% in 2019 to eight 2% in 2020 and reached 10% in 2021.
This high level and consistently improving performance and some of the most volatile and unprecedented market movements and demonstrates our ability to skillfully adapt and navigate through all types of economic and business conditions.
In early 2020 of the real estate market didn't experience a gradual downturn it came to a complete stop.
This full hall. It was then followed by some of the most pronounced price appreciation in recent history.
Our track record demonstrates our ability to navigate changing conditions quickly and successfully.
We regularly review our strategy for points of optimization with a specific focus on flexibility and speed with which to integrate information from our markets into our automated valuation model.
Recently, the federal reserve has signaled they intend to increase interest rates in 2022.
The housing market entered this year with double digit home price depreciation strong underlying demand and near record low supply.
A modest increase in mortgage rates as a result of tighter monetary policy from their current historic lows would likely present, a more moderated yet still robust and appreciating housing market.
As with other dynamic data points that we incorporate into our underwriting process. We can adapt our model to proactively reflects higher interest rates.
We expect expenses to fluctuate in the real estate markets, we continually dynamic or people, who have decades of experience navigating changing real estate market conditions, including the downturn in 2008.
The data analytics and knowledge gained from this experience helped us to achieve our status as one of the top operating teams in our industry and is one reason why we are confident in our ability to continue our success into the future.
It is also important to remember that when the market cools and becomes less of a seller's market. The buyer becomes more empowered this enhances our ability to underwrite homes more conservatively on the acquisition side to allow for longer hold times, while not sacrificing returns.
As Brian mentioned, we are also focusing on enhancing our buyer engagement through our flex services offering in 2022.
By engaging customers at the beginning of the real estate journey, we expect to increase our ancillary service attachment rates and to further support our gross margin results.
On our third quarter earnings call, we shared that despite the global supply chain and labor challenges, we maintained an average China from home acquisition to sale below our 100 day target. We continued this achievement again in the fourth quarter of 2021.
While we did experience a slight increase in renovation time in Q4, the delays were largely related to COVID-19 impacts importantly, we are not experiencing significant challenges maintaining or attracting labor to support our growth.
As Brian mentioned, we doubled the size of our team last year, highlighting the tangible benefits of our culture.
Turning to our financing activities, we completed a fourth senior secured credit facility in December adding $500 million of new debt capacity.
We also secured an additional $113 million mezzanine secured credit facility.
These debt facilities to expand our total borrowing capacity to $1 7 billion.
Lower our overall borrowing costs.
Other expand and diversify our lender relationships mitigate reliance unrelated party funding and increase our debt capital efficiency.
In addition to the increase in our borrowing capacity our cash balance as of December 31 was $170 million, providing ample liquidity to continue to execute our growth plans this year.
As we begin 2022, we expect the health of the overall housing market to remain strong and the execution of our growth strategy to continue fueling our financial results specifically in the first quarter of 2022, we expect to sell between 3000 and 3150 homes, resulting in revenue one.
One 1 billion to $1, one 5 billion.
We also expect adjusted EBITDA between 20 million and $26 million.
We will continue to target a more normalized contribution margin after interest of 3% to 6% over the near term and 6% to 9% long term.
When looking at our historical track record our Bottomline results have improved while meeting our growth targets as you can see we expect a continuation of this trend going forward.
In conclusion, the last two years have provided tangible data points to prove how we have successfully navigated an unprecedented variety of business conditions and the unique and necessary combination of leading technology and data analytics matched with our unrivaled residential real estate industry experience has enabled us to be nimble during this.
Rapidly changing timeframe.
Over this period of time, we have successfully grown our topline revenue, but scaled and responsibly as evidenced by our unit economics and overall profitability. We will maintain this diligent approach of robust, but responsible growth as we navigate the next set of economic conditions.
I'll now turn the call over to the operator to begin the question and answer session.
Thank you.
If you would like to ask a question. Please press star followed by one on your telephone keypad.
The reason you would like to turn that question. Please press star followed by <unk>.
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As a reminder.
Speakers.
Please remember to pick up your handset.
Asking a question, we'll pause here briefly ask questions our registry.
The first question comes from the line of Jay Lee with Jpmorgan. Please go ahead.
Great. Good afternoon. Thanks for taking the question about two first one for Brian just curious to hear your thoughts on the on.
The low inventory levels that we're seeing in real estate right now.
And if youre seeing any thinking or expecting an impact here.
<unk> home.
And the second thing is for my revenue per home continues to move higher and there wont kick out implies further growth.
Curious just curious to hear how you we should think about that line as we move through the clinic.
Two.
Sure I'll jump in first.
Yes, the inventory is still very very low it's still definitely heavily on the seller side of it.
Market wise, one of the things I have been might even mentioned this last call very <unk>.
Excited about as the traditional way of selling your home is easier than it has really ever been.
Just as far as the risk tolerance as well youre not going to have the marketing timing normally have dates on market.
We're seeing more and more people coming to offer pack every month I think the consumer is getting smarter as well to understanding that.
That just putting the house under contract.
It's also closing the home as well during the mortgage process and insurance process. The bunch of other processes to home can fall out. So I think our model has been great for that to benefit the consumer on that end, but inventory is still is still very low and that picked up a little bit at the end of last year, but we're seeing definitely a supply issues.
Out there again.
And then on your second question on the.
Average revenue per home, yes, we do.
The increased significantly over the past year.
Q4, our average selling price was about 262000, that's risen to 357 and release.
A direct reflection of the home price appreciation that we've been talking about over the past 12 months.
I do see that leveling out I would not expect that to continue to rise certainly at that pace I think there will be some.
Upward depreciation, but I think we're going to start seeing that more normalized a little bit. The other thing that will impact that is as we're entering.
New markets, we tend to play around the average the median home sales price in each particular market. So there'll be a little bit of fluctuation there as we go into California, but we also will be gaining volume from our recent entry into the Midwest and tend to have a little bit of a lower.
Average price point there so.
Don't think that's going to be a big needle mover, but it will be another at that point.
Thank you.
Thanks.
Thank you Mr. Li.
The next question comes from the line of Andrew Boone with JMP Securities.
Please go ahead.
Hi, guys. Thanks for taking my questions.
I'd like to begin with expanding the buybacks can you just talk about the implications as you address morals of home purchases within a market.
And then secondly, as I think about that same kind of point.
How to more markets get to Greensboro, and Phoenix up 10% and where are you in terms of being able to drive more awareness of offer Pat overall.
Where do you think brand awareness is today.
I think brand awareness is definitely by by market market specific brand awareness is is pretty strong and our more legacy markets that we've been in for a while Phoenix and Charlotte Atlanta, Some of those brand awareness and some of our newer markets is not what it needs to be so there's still work to do on that.
That is we as we educate the.
The consumer on that but I would think in a more seasoned markets. We have we have pretty strong brand awareness.
The.
Sorry, what was the first question Andrew.
Andrew.
First just as we think about expanding the buy box and covering more.
Here yet.
I think through the implications of that does that imply kind of higher conversion as you guys can can target more customers. What does that mean as you guys go up in the buybacks in terms of renovations and just help us think through kind of the knock on effects of the buy box expanding.
Yes.
Question and Thats exactly what it is as we expand our buy box as our logistics operations gets stronger at our ground did get stronger in the markets that we're in we're able to expand those into buy higher price homes and one that is not as much competition on those price points.
And two it plays very well into us because.
Our model because normally as you expand by box or price points renovations is also higher as well and.
And so that plays very well into our hands as well so.
As we do that look we wanted to get your market. There is the market penetration and to do that you can do that obviously through through price point and then the type of product that you buy.
And so as we expand buybacks, we're going to attack both of those.
And if I can sneak one more in can you just talk about the impact of the zillow exiting the market rent like what's the competitive set look like and what has been the implications. This has been a exit. Thank you so much.
Yes, no problem.
Still a little too early to tell from.
It was a big impact to two <unk> world in the market and different things.
<unk>. It wasn't we just it's hard to gauge how impactful it was to them at this point.
What I can speak to is we are seeing more and more people come to us.
Every day every week every month and I'm sure. There's some impact of Zillow exiting the market in there, but overall, we're obviously pushing brand awareness as well in there too so little early to tell I, probably have more information on that next quarter of what we're seeing out there, but but it's definitely a path.
Thank you.
Thank you Mr. Burton.
The next question comes from the line, Brian Thomas Zeller.
Debbie Please go ahead.
Good evening, everyone. Thanks for taking the questions and congrats on the strong finish to the year.
Realizing you haven't provided our full year outlook, but maybe you can provide some commentary to put some guideposts around the trajectory of.
Home sales margins rose on a gross and EBITDA basis through the year I guess looking at the.
The first quarter guidance nice to see the expectation of continued profitability.
<unk>, how we should be thinking about that level of profitability continuing through 2022, or if you expect benefits from current inventory dynamics and HBA too.
Wayne through the year end.
Result in more normalized profitability beyond the first quarter.
Yes, Ryan.
Correct.
Not giving full year guidance, what I can tell you is from our first quarter. We are seeing continued solid and supported conditions that we're operating under and have a positive view beginning.
Beginning of the year for this year.
How long that maintains that it's really hard to tell so we still think there's going to be a continuation of a lack of supply. Good demand nobody is expecting the level of home price depreciation to continue in 2022% of saw last year.
But either way I mean, we've got a model that is built to operate in both of those conditions more normalized which which we do think is going to occur. We think there will be a normalization over the next 12 months certainly.
What's been difficult to predict as the glide path as it comes down there. So it is definitely one that we're excited about 'twenty two we like our positioning and where we're at and we're obviously off to a really good start yes. The one thing I would like to add in there. There's a lot of talk about home price appreciation, especially what we saw last year.
Here.
It's definitely a big factor and you're seeing home prices, but but I also feel like I don't want to overplay home price appreciation as well remember we own these homes for 90 to 100 days.
There's only so much home price appreciation, what really we're talking about the segmentation of the risk of the home that goes into how we're underwriting the home and the type of assumptions that we have to make for example than a seller's market when we own the home, we can underwrite less assumptions up closing costs.
The buyer co broke fees are different things that you can underwrite in there. So it's not just based upon the home price appreciation, we expect the home to be priced.
To sell more than that it is that we own today, it's all of the assumptions that we do in underwriting.
Our people on the ground in title with our data analytics, just supplement up drilling there as well.
Great and then.
A follow up as you continue to build out the capabilities of the solution Center can you discuss how youre prioritizing say, adding new products versus expanding adoption of attachment rates of existing products.
In your prepared remarks, you commented on.
Coming more relevance with buyers.
If you can just elaborate on really the strategy for really drawing in.
More traffic into the platform.
And maybe I guess versus peers that have other products cater to buyers like a cash offers product to power buyers if that something that you could potentially look at to bolster the product set.
And we're exploring everything right now.
To that point.
There are there are some solutions that were definitely emphasizing other other over others. One is is definitely mortgage with the launch of <unk> and then the buy side. What we know is there's about a 70% likelihood when someone's house their home to offer pad that theyre going to buy another home.
They buy another home and other services of our that's what we call. It that's our bundled services. So there is a major opportunity there to one its a its a great win for offer pads as we can and but two it's also a major win for the consumer because they don't have the friction of what you normally see in a transaction because.
We can close the time they buy their next house Theres only one closing the mortgage and we can really lined everything up to make it really really seamless for the consumer and so.
Mortgage.
<unk> site the other thing that.
To note is we have thousands of homes that we own that are on the market that we can use the sale centers as we drive a lot of traffic as we talked about and I mentioned the instant access.
Opportunity we have there.
Just like our homebuilders have been doing for years, but their model home centers are driving traffic, but we're in a very unique position to have thousands of homes that hit the market that we can drive traffic through.
And basically half of $20 seven open house people go in there and offer us directly and do different things. So theres a lot of different things that we're attacking.
But mortgage and buyer representation, there going to be the two highlights youre going to see us on that end and then obviously the flip side of where if somebody doesn't.
Whatever reason doesn't accept our cash offer and they can choose to partner with us on the listing and if we can help them market their home on the open market just like <unk>, but we just partner with them.
And then.
Use other services there as well.
Great. Thanks for taking the questions.
Thank you Mr. Tom Mccallum.
Our next question comes from the line of David.
Let's Berg with Jefferies. Please go ahead.
Hi, guys. This is David left begun for John Cowen Tony can you hear me.
Hey, David.
Great.
Thanks, guys. Thank for taking the question.
I know you said in the prepared remarks that you expect the market to remain strong in 2022 could you provide any additional color on your expectations for the housing market over the next few years with mortgage rates on the rise.
Are there any adjustments that you think you might need to make to navigate changing market.
Yes, so we watch it.
As to how we say hey, we started offer pads is that the market always doing something and real estate markets is all recycling it and theres always something going on in the real estate market. So so we watch that closely every minute of every day of what the market conditions are doing as we look forward.
There's a lot of talk about mortgage interest rates, increasing and that's that's definitely going to be impactful to an extent.
Don't think there is much.
Thats one big issue.
But the lack of supply out there we have way too many buyers not enough homes on the market right now that that's going to play more of a factor than rising interest rates, because even the interest rate with the acceleration of the job market and pay and those things.
Interest rates are going to factor into that but remember even if they go jump up theyre still at all time, while they are still very very low for what they've been but I think it's more impactful.
It's just a supply and demand issue with the inventory of homes out there I think it's going to affect.
I don't see that changing anytime rapidly anytime quickly I think that's that that will take a while to normalize.
Got it that's helpful. And then a quick follow up if I can.
Is there any color you could provide how much flex contributed to revenue and gross profit in the fourth quarter.
Yes, we're still at a point where that represents about less than 1% of our revenue and that's where we've been we're getting good sequential growth quarter by quarter. So there is gaining momentum there.
We're growing our core business too obviously.
With the growth of express on the buying side of things so not to imply that we're not seeing good growth there but.
Coming through the end of the year and that have not yet a big component of it but big focus for 2022, good momentum sequentially.
But our big focus bolt as Brian said on the volume side of the transaction through flex and continuation on the sell side.
Awesome. Thanks, guys appreciate it.
Thank you.
Thank you Mr. Lynch Bank. Our last question comes from the line of Dan.
And as chairman with Cantor Fitzgerald. Please go ahead.
Hey, guys. Thanks for taking my question, maybe a follow up on flex.
Could you kind of talk through what investments on your side or what kind of market dynamics are really going to help to increase the mix shift of flex as a percentage of revenue.
Yes.
High level on that end of it and if Mike wants to add something in what's important is Canada flex is the key to flex as being able to.
It would be able to operate our express the <unk> model very well and Thats what opens up the opportunity fundamentally what we see and I believe this is that the best thing for the consumer because they can have complete control.
The transaction is a cash offer that they can choose their closing date, because it doesn't go through but if they want to choose and explore other options you'll be allow them to do that but by being able to perform on the buying side of it and to buy and renovate and sell a home in 100 days what that allows us to do is attach other products on that.
Like we talked about with mortgage and.
And title and some of the other things that we've talked about and so.
But thats the game plan from a high level and but it all really starts with being able to submit a strong cash offer to a homeowner.
Because they don't they know that the traditional way is really tough there's a lot of friction for them and so they're looking for a one stop solution and somebody had talked about earlier about brand awareness and saying that's one of our focuses for 2022 I think we've done a pretty damn good job over the last four or five years of telling the world what <unk> and.
You kind of real estate as a service to.
The next thing that we need to do is educate the world about what eight when our solution center is in and the other products that we have to offer because we know the consumers highly engaged there. We just have some work and some education that will tell the world more about it as we get market by market.
Yes, and the only thing I'd add to that is.
It is about being able to offer whatever the customer.
That best fit is over time.
And for US as an organization to its very complementary to the high volume side of things too and it's a higher margin capital light business that fits into the existing business.
Well and so we think the tandem approach there along with other ancillary products is really a good path to success.
Okay, Great Thats helpful.
And then maybe a follow up on the mortgage solutions I know you guys had previously talked about moving that.
Part of that in house, and then more of a captive solution. She can just kind of talk about how that might change in unit economics of the initiative and kind of what is required to get there or do you have to reach a certain certain scale or any color there would be helpful.
Yes. So we are in process of bringing that into more of a non delegated lender format and what that will allow us to do is to capture better economics on that we're in the process of getting all of our licensing across all of our states we're about halfway through that.
Right now and expect to be complete certainly in the first half of this year and so that will also then pair very well with our focus on on flex and on the buy side, because theres much higher attach rates on the buyer side and it's more.
Logical connection there.
And so that'll be the next step there will have a <unk>.
<unk> warehouse line associated with that to do kind of the overnight funding on that but.
That's in progress on Jorge taken good steps there.
One thing I'll just add on that is back to the bundle conversation whats really important there is is as we talked about the friction on the bundled side, but theres also a cost savings for the homeowner on that side as well by selling it to their home.
Our mortgage product and finding their next home through offer pad, whether it's one of our homes that we have in inventory outside of our inventory.
They can save 1% to 2% depending on depending on the situations. So there's also a cost savings. So we're not already not just given the ease of the transaction, but there is also savings to be had there as well.
Customers seem to be very engaged with that and we're going to be spending a lot more time and resources on that in 2022.
Great. Thank you.
Thanks.
Okay.
Thank you Mr. Charlie.
We do have one follow up from the line.
Thomas Zeller with King. Please go ahead.
Hey, guys. Thanks for taking the follow up here, Mike I appreciate the comments around the balance sheet.
Prepared remarks, but maybe you can just put a finer point.
Round, the current liquidity position and your comfort with funding our growth plans through the rest of the year.
Sure Ryan Yes, we.
We did a lot of work on the balance sheet last year, and really did a lot of <unk>.
Putting new additional debt capital in place.
As well as refinancing some existing facilities to take advantage of rate improvements and term and condition improvements and so a lot of this was done late in the year into December but we ended the year with about $1 7 billion of total capacity out there.
We think thats a good place for us to be we've got the opportunity now with.
For large institutional lenders.
Very good relationships that we can continue to grow with and have good access to additional debt capital. There. So we're feeling very good about the capacity on the debt capital side of things, where we have where we are at and where we can grow on the cash side of things. We ended up with about $170 million of cash on the balance sheet.
At the end of the year, and we think that positions us well to execute against the plan in 2022, and then we will see how we go as it moves forward from there.
Great and then just a final one I'll squeeze in here.
Love the color around the homebuilder partnerships, including Taylor Morrison, maybe you can just elaborate on the benefit you're getting from that those partnerships in terms of customer acquisition and if there are any other opportunities that look interesting outside homebuilders.
And I guess based on those 50 partnerships you have today on the homebuilding side can you say if that is really driving a material portion of your acquisition volume today. Thanks.
Yes.
And the builder relationships are fantastic, we talk about Taylor Morris and they've been they've been fantastic partner, but but it's really one of those win win win for everyone because as a potential buyer walks into a tailor more course and modest center they want to buy at Taylor Morrison home, but they have to sell their current home and.
It had been tapped to try to time the closing net of all those things so when they walk into a model of builder model Center.
We can give them a cash offer with builders within an hour.
So they know their houses so they can choose their closing date, we can work around the builders. So the builder can sell their current home that the homeowners. So their current home and then we can time the transactions. So it's one of our highest conversion channels that we have in the company.
As with our with our builder partners and so it's really a triple win across the board there we're exploring partnerships across the board.
And.
So we're very we're very specific of the partnerships that we engage in.
But builders is great. We also have the partnerships with the real estate community, we call an agent to partnership program that we partner with real estate agents that.
That will sell us that will bring us their home before the house gets MLS.
And their customer wants a cash offer so we have.
We have that's a big channel as well, but while the agents brings to us and like I said with an offer that we want to be a solution center to everyone that we can that we feel like it's a win for everyone involved so.
Different different partnerships and we're always exploring others.
Thanks for taking the follow ups.
Thank you.
Thank you Mr Tomasello.
There are no additional questions at this time the question and answer. This question has concluded I will now turn the call over to Brian .
Chairman and CEO for closing remarks.
Thanks to everyone. We are incredibly excited about the future. We grew nearly 100% year over year with a positive adjusted EBITDA of $30 million customer awareness is growing and the benefits over the traditional way to buy and sell a home are tangible and meaningful body ramped in 2021, and we believe this.
<unk> will continue feel free to reach out to Stephanie if you have any questions and thanks, so much for joining us today.
That concludes the author pad fourth quarter and full year 2021 earnings Conference call I Hope you all enjoy the rest of your day you may now disconnect your lines.
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