RE/MAX Holdings, Inc., parent company of RE/MAX and Motto Mortgage, recently announced operating results for the quarter ended Sept. 30, 2020.
“The continued execution of our strategy, coupled with the U.S. housing market’s remarkable run, drove our very encouraging results for the third quarter,” stated Adam Contos, RE/MAX Holdings chief executive officer. “RE/MAX agent count in both the U.S. and Canada increased sequentially on a month-to-month basis during the third quarter, particularly in company-owned regions, after stabilizing at the end of the second quarter. Agent count outside the U.S. and Canada surpassed the 50,000 mark during the quarter and has now doubled in just five years. Many of our RE/MAX agents and brokers are reporting their best years ever, and our Motto Mortgage business also continues to show impressive growth, as its franchise sales through the first nine months of 2020 nearly matched the full-year total for 2019.”
Contos continued, “The strategic acquisitions of wemlo and Gadberry Group during the third quarter both tie directly into our strategy of adding value for the RE/MAX and Motto Mortgage networks while broadening and diversifying our revenue and growth opportunities. These acquisitions benefit our memberships, strengthen our technology and data core, and create promising commercial possibilities beyond our networks.”
Third Quarter 2020 Highlights
(Compared to third quarter 2019 unless otherwise noted)
– Total agent count increased 5.1 percent to 134,769 agents
– U.S. and Canada combined agent count decreased 0.3 percent to 83,802 agents
– Total open Motto Mortgage franchises increased 27.9 percent to 133 offices
– Total revenue of $71.1 million; revenue excluding the marketing funds increased 0.5 percent to $53.8 million
– Net income attributable to RE/MAX Holdings, Inc. of $3.6 million and earnings per diluted share (GAAP EPS) of $0.19
– Adjusted EBITDA of $30.3 million, adjusted EBITDA margin of 42.7 percent and adjusted earnings per diluted share (adjusted EPS) of $0.64
Operating Statistics as of Oct. 31, 2020
(Compared to October 31, 2019 unless otherwise noted)
– Total agent count increased 5.9 percent to 136,222 agents
– U.S. and Canada combined agent count decreased 133 agents to 84,113 agents
– Total open Motto Mortgage franchises increased 26.4 percent to 134 offices
As of Sept. 30, 2020, the RE/MAX had cash and cash equivalents of $89.1 million. The company’s cash and cash equivalents increased $6.1 million from Dec. 31, 2019. As of Sept. 30, 2020, Re/MAX had $224.1 million of outstanding debt, net of an unamortized debt discount and issuance costs, a decrease of $1.6 million compared to $225.7 million as of Dec. 31, 2019.
On Nov. 4, 2020, the company’s Board of Directors approved a quarterly cash dividend of $0.22 per share of Class A common stock. The quarterly dividend is payable on Dec. 2, 2020, to shareholders of record at the close of business on Nov. 18, 2020.
The company’s fourth quarter and full-year 2020 Outlook assumes no further currency movements, acquisitions or divestitures.
For the fourth quarter of 2020, RE/MAX Holdings expects:
– Agent count to increase 4.25 percent to 5.25 percent over fourth quarter 2019
– Revenue in a range of $69.0 million to $72.0 million (including revenue from the marketing funds in a range of $17.5 million to $18.5 million)
– Adjusted EBITDA in a range of $20.0 million to $23.0 million
For the full-year 2020, RE/MAX Holdings expects:
– Agent count to increase 4.25 percent to 5.25 percent over full-year 2019
– Revenue in a range of $262.5 million to $265.5 million (including revenue from the marketing funds in a range of $64.0 million to $65.0 million)
– Adjusted EBITDA in a range of $88.5 million to $91.5 million
The effective U.S. GAAP tax rate attributable to RE/MAX Holdings is estimated to be between 27 percent and 29 percent in 2020.
For more information, please visit www.remax.com.