RE/MAX Holdings, Inc., parent company of RE/MAX, recently announced operating results for the quarter ended June 30, 2020.
“The U.S. housing market began an encouraging rebound in June after COVID-19 interrupted 2020’s promising start,” stated Adam Contos, RE/MAX Holdings chief executive officer. “We’re well positioned to help our affiliates build on this positive momentum given the financial and structural strength of our business model, which to date has enabled us to keep staff intact and continue to expand our value proposition. In the field, our RE/MAX and Motto professionals have adapted to the current environment exceptionally well, leveraging technology and adhering to social distancing guidelines, to expertly guide consumers in a safe and largely virtual way.”
Contos continued, “Our RE/MAX and Motto networks are finding opportunities to grow and build their businesses in this very demanding time. Motto posted its best second quarter of franchise sales yet, and its franchise sales on a trailing-twelve-month basis are the highest in its four-year history. On the RE/MAX side, global agent count continued to rise, while agent count in the U.S. and Canada stabilized in June and July. Our franchisees in both brands continue to demonstrate their local leadership by bringing productive agents and loan originators into our networks—and then helping those individuals get even better at what they do. Their recruiting efforts—supported by our programs and services—are critical to our ability to succeed in every kind of environment.”
Here are the highlights:
– Total agent count increased 3.8 percent to 131,905 agents
– U.S. and Canada combined agent count decreased 1.4 percent to 82,972 agents
– Total open Motto Mortgage franchises increased 29.6 percent to 127 offices
– Total Revenue of $52.2 million; Revenue excluding the marketing funds decreased 24.2 percent to $40.4 million
– Net income attributable to RE/MAX Holdings, Inc. of $3.5 million and earnings per diluted share (GAAP EPS) of $0.19
– Adjusted EBITDA of $18.9 million, adjusted EBITDA margin of 36.2 percent and adjusted earnings per diluted share (Adjusted EPS) of $0.38
Operating Statistics (Compared to July 31, 2019 unless otherwise noted)
– Total agent count increased 4.4 percent to 132,687 agents
– U.S. and Canada combined agent count decreased 1.1 percent to 83,131 agents
– Total open Motto Mortgage franchises increased 25.7 percent to 127 offices
Balance Sheet
As of June 30, 2020, the Company had cash and cash equivalents of $84.5 million. The company’s cash and cash equivalents increased $1.5 million from Dec. 31, 2019. As of June 30, 2020, the Company had $224.6 million of outstanding debt, net of an unamortized debt discount and issuance costs, a decrease of $1.1 million compared to $225.7 million as of Dec. 31, 2019.
Dividend
On Aug. 5, 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 Sept. 2, 2020, to shareholders of record at the close of business on Aug.19, 2020.
For more information, please visit www.remax.com.
