RE/MAX Holdings Revenue Up 4.8% in Q4

DENVER —  RE/MAX Holdings, Inc. (NYSE: RMAX), parent company of RE/MAX, one of the world’s leading franchisors of real estate brokerage services, and Motto Mortgage (“Motto”), an innovative mortgage brokerage franchise, announced operating results for the quarter and full year ended December 31, 2018.

“We are pleased with our fourth quarter performance as our differentiated business model continued to demonstrate its strength in a correcting market,” stated Adam Contos, RE/MAX Holdings Chief Executive Officer.  “For the full-year 2018, we increased RE/MAX agent count, the number of open Motto franchises, revenue, Adjusted EBITDA and free cash flow while continuing to invest meaningfully in future organic growth opportunities despite a double-digit reduction in U.S. existing home sales to end the year. We believe the agent-centric RE/MAX model is more insulated and resilient than many others in our industry and our expanding Motto business provides another organic growth channel during times like these.”

Contos continued, “We have great momentum as we enter into the new year. Our position of strength enables us to consider smart organizational changes that evolve and improve the business. For instance, we recently reinvented our RE/MAX brokerage support structure to make it more focused and impactful. Our new service model, which emphasizes business systems, accountability and technology engagement, is designed to accelerate brokerage growth regardless of market conditions. Looking ahead, we are optimistic, knowing RE/MAX agents perform well in any market. The first booj-developed RE/MAX tech products will roll out this year, and interest in owning a Motto franchise remains high and we continue to feel good about our pipeline.”

Full-Year 2018 Highlights
(Compared to full-year 2017 unless otherwise noted)

  • Total agent count increased 4.4% to 124,280 agents
  • U.S. and Canada combined agent count increased 0.2% to 84,449 agents
  • Total open Motto Mortgage franchises more than doubled to 78 offices
  • Revenue increased 9.8% to $212.6 million
  • Net income attributable to RE/MAX Holdings, Inc. of $27.0 million and earnings per diluted share (GAAP EPS) of $1.52
  • Adjusted EBITDA1 of $104.3 million, Adjusted EBITDA margin1 of 49.1% and Adjusted earnings per diluted share (Adjusted EPS1) of $2.25

Fourth Quarter 2018 Highlights
(Compared to fourth quarter 2017 unless otherwise noted)

  • Revenue increased 4.8% to $50.8 million
  • Net income attributable to RE/MAX Holdings, Inc. of $6.3 million and earnings per diluted share (GAAP EPS) of $0.35
  • Adjusted EBITDA1 of $23.3 million, Adjusted EBITDA margin1 of 45.8% and Adjusted earnings per diluted share (Adjusted EPS1) of $0.49
  • Announced a 5% increase to the quarterly dividend on February 20, 2019