RE/MAX Holdings, Inc., parent company of RE/MAX, recently announced operating results for the first quarter ended March 31, 2021.
First Quarter 2021 Highlights
(Compared to first quarter 2020 unless otherwise noted)
– Total agent count increased 6.4% to 140,214 agents
– U.S. and Canada combined agent count increased 0.7% to 84,771 agents
– Total open Motto Mortgage franchises increased 27.1% to 150 offices
– Total revenue of $72.3 million; Revenue excluding the marketing funds increased 2.7% to $54.2 million
– Net income attributable to RE/MAX Holdings, Inc. of $1.1 million and earnings per diluted share (GAAP EPS) of $0.06
– Adjusted EBITDA of $23.2 million, adjusted EBITDA margin of 32.0% and adjusted earnings per diluted share (adjusted EPS) of $0.46
Operating Statistics as of April 30, 2021
(Compared to April 30, 2020 unless otherwise noted)
– Total agent count increased 6.7% to 139,862 agents
– U.S. and Canada combined agent count increased 2.0% to 85,076 agents
– Total open Motto Mortgage franchises increased 27.9% to 156 offices
Revenue
RE/MAX Holdings generated total revenue of $72.3 million in the first quarter of 2021, an increase of $2.0 million, or 2.9%, compared to $70.3 million in the first quarter of 2020. Total revenue grew primarily due to increased broker fees stemming from higher total transactions per agent and rising home prices, incremental revenue from acquisitions, Motto growth, and lower agent recruiting initiatives. Revenue growth was partially offset by lower events-related revenue due to COVID-19 restrictions and continued attrition of booj’s legacy customer base. Recurring revenue streams, which consist of continuing franchise fees and annual dues, increased $1.0 million, or 3.0%, compared to the first quarter of 2020 and accounted for 62.9% of revenue (excluding the marketing funds) in the first quarter of 2021, compared to 62.7% in the comparable period in 2020.
Balance Sheet
As of March 31, 2021, the company had cash and cash equivalents of $102.6 million, an increase of $1.3 million from Dec. 31, 2020. As of March 31, 2021, the company had $223.0 million of outstanding debt, net of an unamortized debt discount and issuance costs, a decrease of $0.6 million compared to $223.6 million as of Dec. 31, 2020.
“A robust housing market and record Motto growth helped drive strong financial results for the first quarter,” stated Adam Contos, RE/MAX Holdings chief executive officer. “During this period, we also saw our largest year-over-year increase in agent count in over a decade, adding more than 8,000 new agents, led by healthy agent growth in Canada and double-digit agent growth globally. Motto continued its record pace of franchise sales, selling the most franchises in its history for the trailing twelve-month period ended March 31, 2021. We now have over 150 open Motto offices in almost 40 states. We are encouraged that many of the strong tailwinds we saw in the first quarter continued in April.”
Contos continued, “We continue to increase and enhance our value proposition for both of our franchise networks. At our recent RE/MAX agent conference, we introduced an opportunity for virtually all U.S. RE/MAX affiliates to access health benefits as well as new tools, technology and educational resources for the exclusive benefit of our agents, teams and brokers. Within our mortgage business we continue to ramp up our wemlo acquisition, offering affordable, dependable loan processing services to more of our Motto franchises each week.”
For more information, please visit www.remax.com.
