RE/MAX Holdings, Inc. recently announced preliminary operating results for the third quarter ended Sept. 30, 2021.
“We achieved record third quarter revenue, Adjusted EBITDA and Adjusted EPS driven by contributions from the largest Independent Region acquisition in our history, broad-based performance in our core operations, and a healthy housing market,” said Adam Contos, RE/MAX Holdings chief executive officer, in a statement. “Our performance reaffirmed that the investments we’ve made in recent years have significantly diversified and expanded our revenue and growth opportunities. Organic revenue growth excluding the marketing funds also was strong, up nearly 7% in the third quarter, with much of the incremental revenue translating into profit.”
“Our two primary brands are vibrant and growing. The July acquisition of RE/MAX INTEGRA’s North American operations performed better than expected during the quarter and brought nearly 20,000 agents into our company-owned regions and overall, the RE/MAX network has grown by more than 6,000 agents year over year. Our Motto Mortgage footprint continues to increase as well, with healthy franchise sales and a year-over-year increase in open offices of more than 30%,” added Contos. “Given the strength of the third quarter, we are again increasing our Adjusted EBITDA guidance for 2021, and we anticipate finishing the year on a high note. Looking further ahead, we are excited about our growth prospects in 2022 and beyond.”
Preliminary Balance Sheet
As of Sept. 30, 2021, the company had cash and cash equivalents of $119.4 million, an increase of $18.1 million from Dec.31, 2020. As of Sept. 30, 2021, the company had $453.0 million of outstanding debt, net of an unamortized debt discount and issuance costs, compared to $223.6 million as of Dec. 31, 2020.
On July 21, 2021, RE/MAX Holdings announced RE/MAX, LLC amended and restated its Credit Agreement to raise $460 million in term loans and increase the capacity of the revolving facility to $50 million. RE/MAX, LLC used the proceeds from the amended Credit Agreement to repay existing indebtedness of approximately $224 million and to fund the $235 million acquisition of the RE/MAX INTEGRA North American regions.
On Nov. 3, 2021, the company’s Board of Directors approved a quarterly cash dividend of $0.23 per share of Class A common stock. The quarterly dividend is payable on Dec. 1, 2021, to shareholders of record at the close of business on Nov. 17, 2021.
The company’s fourth quarter and full-year 2021 Outlook assumes no further currency movements, acquisitions or divestitures.
For the fourth quarter of 2021, the company expects:
– Agent count to increase 2.5% to 3.5% over fourth quarter 2020
– Revenue in a range of $86.0 million to $90.0 million (including revenue from the marketing funds in a range of $22.0 million to $24.0 million)
– Adjusted EBITDA in a range of $27.5 million to $30.5 million
For the full-year 2021, the company is reducing its agent count range due to slower-than-expected global growth, changing its revenue range, and increasing its Adjusted EBITDA range due to better-than-expected third quarter results. The company expects:
– Agent count to increase 2.5% to 3.5% over full-year 2020, down from 5.0% to 6.0%
– Revenue in a range of $326.5 million to $330.5 million (including revenue from the marketing funds in a range of $81.5 million to $83.5 million), changed from $321.0 million to $336.0 million (including revenue from the marketing funds in a range of $80.5 million to $83.5 million)
– Adjusted EBITDA in a range of $116.0 million to $119.0 million, up from $113.0 million to $118.0 million
For more information, please visit www.remax.com.