Company: FOACW
Filing Date: 2025-05-23
Form Type: 10-Q/A
Source: 0001828937-25-000044
Chunk: 80

Company: Finance of America Companies Inc.
Filing Date: 2025-05-23
Form: 10-Q/A
Chunk 80
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Total revenues decreased $11.1 million primarily as a result of the following:

• Fee income decreased $6.4 million related to the decline in services provided by the Company’s operational fulfillment services team. As of September 30, 2023, the Company ceased the operations of the offshore fulfillment services team.

• Non-funding interest expense, net, increased $4.7 million due to increases in outstanding amounts and interest rates on our working capital promissory notes.

Total expenses decreased $35.2 million or 41.7% as a result of the following:

• Salaries, benefits, and related expenses, net of shared services allocations, decreased $18.5 million or 37.5% due to decreases in salaries and bonuses and other salary related expenses of $20.6 million and $6.8 million, respectively, for the nine months ended September 30, 2024 compared to the 2023 period as the Company continued our focus on cost-cutting initiatives related to the restructuring of the business. Compared to 2023, average onshore headcount declined by 36.8% from 408 for the nine months ended September 30, 2023 to 258 for the nine months ended September 30, 2024. These reductions were partially offset by a $9.0 million decrease in shared services allocations due to the reduction in supported business lines in the nine months ended September 30, 2024.

• General and administrative expenses, net of shared services allocations, decreased $16.1 million or 47.6% due to a $19.0 million decrease in communications and data processing and other expenses and a $2.6 million decrease in professional and consulting fees. These reductions are due to continued cost-cutting measures associated with the restructuring of the business. This was partially offset by a $5.5 million decrease in shared services allocations due to the reduction in supported business lines in the nine months ended September 30, 2024.

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#### NON-GAAP FINANCIAL MEASURES
The Company’s management evaluates performance of the Company through the use of certain non-GAAP financial measures, including adjusted net income (loss), adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”), and adjusted earnings (loss) per share.

The presentation of non-GAAP measures is used to enhance investors’ understanding of certain aspects of our financial performance. This discussion is not meant to be considered in isolation, superior to,