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Sep 30, 2021
RMR Q4 2021 Earnings Report
Announced fourth quarter 2021 results with net income of $30.8 million.
Key Takeaways
The RMR Group Inc. reported a strong fourth quarter with a 16.5% increase in management and advisory services revenues, reaching $46.8 million. Adjusted EBITDA Margin increased to 53.5%, and the company holds nearly $160 million in cash with no debt, positioning it well for future growth.
Assets under management were $32.7 billion as of September 30, 2021, compared to $32.4 billion as of September 30, 2020.
Total management and advisory services revenues increased to $46.8 million, compared to $40.2 million for the quarter ended September 30, 2020.
Net income was $30.8 million, or $0.82 per diluted share, compared to $14.4 million, or $0.38 per diluted share, for the same period last year.
Adjusted EBITDA was $26.3 million, with an Operating Margin of 45.1% and an Adjusted EBITDA Margin of 53.5%.
Forward Guidance
RMR anticipates continued revenue increases in fiscal 2022, driven by strategic plan execution and economic recovery, including potential incentive management fees from Managed Equity REITs. The company is focused on growing its private capital business, leveraging its strong cash position and lack of debt.
Positive Outlook
- Continued increases in revenues expected in fiscal 2022.
- Potential incentive management fees from Managed Equity REITs.
- Strategic plan execution by clients during economic recovery.
- Strong cash position with nearly $160 million and no debt.
- Concentrated focus on growth of private capital business.
Challenges Ahead
- Businesses are subject to various risks outside of RMR's and its clients' control.
- The impact and duration of the COVID-19 pandemic is not known.
- Economic conditions could deteriorate for a prolonged period.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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