Rocket Companies Investor Presentation Deck
Endnotes
1.
Adjusted Net Income Reconciliation ($ amounts
in millions)
Net income attributable to Rocket Companies
Net income impact from pro forma conversion of
Class D common shares to Class A shares (a)
Adjustment to the provision for income tax (b)
Tax-effected net income
Non-cash share-based compensation expense
Change in fair value of MSRs due to valuation
assumptions (net of hedges) (c)
Litigation accrual (d)
Tax impact of adjustments (e)
Other tax adjustments (f)
Adjusted Net Income
Three Months Ended September 30,
2020
(Unaudited)
2021
$75
1,318
(322)
1,072
41
48
(22)
1
$1,139
$58
2,938
(697)
2,299
33
127
(40)
2
$2,421
2019
$-
495
(119)
376
8
209
(54)
$540
Nine Months Ended September 30,
2020
(Unaudited)
2021
$260
4,948
(1,203)
4,005
124
(330)
15
47
3
$3,865
$58
6,502
(1,565)
4,995
94
1,193
(319)
2
$5,965
2019
$-
144
(32)
112
25
921
(234)
$823
2020
$198
9,203
(2,235)
7,166
136
1,288
(354)
5
$8,241
Year Ended December 31,
2019
(Unaudited)
$-
898
(217)
681
40
838
(217)
$1,342
2018
$-
615
(148)
467
34
(327)
72
$246
(a) Reflects net income to Class A common stock from pro forma exchange and conversion of corresponding shares of our Class D common shares held by non-controlling interest holders as of September 30, 2021,
2020 and 2019.
(b) Rocket Companies, Inc. 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 RKT Holdings, LLC. The adjustment
to the provision for income tax reflects the effective tax rates assuming Rocket Companies, Inc. owns 100% of the non-voting common interest units of RKT Holdings, LLC. The effective income tax rate for Adjusted
Net Income was 24.87% for the three and nine months ended September 30, 2021, 24.82% for the three and nine months ended September 30, 2020 and 24.77% for the three and nine months ended September
30, 2019, and 24.87%, 24.77% and 24.45% for the years ended December 31, 2020, 2019, and 2018, respectively.
(c) 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 MSR's.
(d) Reflects legal accrual related to a specific legal matter.
(e) Tax impact of adjustments gives effect to the income tax related to non-cash share-based compensation expense, change in fair value of MSRS due to valuation assumptions, and other non-operating items at the
above described effective tax rates for each period.
(f) Represents tax benefits due to the amortization of intangible assets and other tax attributes resulting from the purchase of RKT Holdings units, net of payment obligations under Tax Receivable Agreement.
ROCKET
Companies
43View entire presentation