Rocket Companies Investor Presentation Deck
1.
Adjusted Net Income Reconciliation ($ amounts
in millions)
Net income attributable to Rocket Companies
Endnotes
Net income impact from pro forma conversion of Class D
common shares to Class A common shares (a)
Adjustment to the provision for income tax (b)
Tax-effected net income (b)
Share-based compensation expense
Change in fair value of MSRS due to valuation
assumptions (net of hedges) (c)
Loss on extinguishment of Senior Notes
Litigation accrual (d)
Change in Tax receivable agreement liability (e)
Tax impact of adjustments (f)
Other tax adjustments (g)
Adjusted Net Income
(c)
(d)
(e)
(f)
2022
6
$54
984
(242)
795
67
(739)
169
1
$293
Three Months Ended March 31,
2021
(Unaudited)
$124
2,654
(641)
2,136
42
(499)
15
110
1
$1,805
2020
$-
99
(24)
76
42
766
(200)
$683
Year Ended December 31,
2021
$308
5,766
(1,429)
4,646
164
(487)
87
15
19
55
4
$4,502
(Unaudited)
2020
$198
9,203
(2,235)
7,166
163
1,288
44
(8)
(371)
5
(a)
(b) Rocket Companies will be subject to U.S Federal income taxes, in addition to state, local and Canadian taxes with respect to its allocable share of any net taxable income of Holdings. The
adjustment to the provision for income tax reflects the effective tax rates below, assuming the Issuer owns 1 00% of the non-voting common interest units of Holdings. The effective income
tax rate for Adjusted Net Income was 25.21 %, 24.87% and 24.82% for the three months ended March 31, 2022, 2021 and 2020, respectively. The effective income tax rate for Adjusted Net
Income was 25.21 % and 24.87% for the year ended December 31, 2021 and 2020, respectively.
Reflects changes in assumptions including discount rates and prepayment speed assumptions, mostly due to changes in market interest rates, and the effects of contractual prepayment
protection associated with sales of MSRs.
$8,286
Reflects net income to Class A common stock from pro form a exchange and conversion of corresponding shares of our Class D common shares held by non-controlling interest holders as
of March 31, 2022, 2021, 2020 and as of December 31, 2021 and 2020.
Reflects legal accrual related to a specific legal matter.
Reflects changes in estimates of tax rates and other variables of the Tax receivable agreement liability for which no income tax expense/benefit is recognized.
Tax impact of adjustments gives effect to the income tax related to share-based compensation expense, change in fair value of MSRS due to valuation assumptions and litigation accrual at
the above described effective tax rates for each period.
(g) Represents tax benefits due to the amortization of intangible assets and other tax attributes resulting from the purchase of Holdings units, net of payment obligations under Tax Receivable
Agreement.
ROCKET
Companies
45View entire presentation