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Sep 30, 2020
RE/MAX Q3 2020 Earnings Report
Reported encouraging results driven by strategic execution and a strong U.S. housing market.
Key Takeaways
RE/MAX Holdings reported a total revenue of $71.1 million for Q3 2020, a slight decrease of 0.7% compared to Q3 2019. Net income attributable to RE/MAX Holdings was $3.6 million, with GAAP EPS at $0.19 and adjusted EPS at $0.64. The company's agent count increased by 5.1% to 134,769 agents.
Total agent count increased 5.1% to 134,769 agents.
U.S. and Canada combined agent count decreased 0.3% to 83,802 agents.
Total open Motto Mortgage franchises increased 27.9% to 133 offices.
Adjusted EBITDA increased 7.7% from the third quarter of 2019.
Revenue by Segment
Forward Guidance
The Company's fourth quarter and full-year 2020 Outlook assumes no further currency movements, acquisitions or divestitures.
Positive Outlook
- Agent count to increase 4.25% to 5.25% over fourth quarter 2019
- Revenue in a range of $69.0 million to $72.0 million (including revenue from the Marketing Funds in a range of $17.5 million to $18.5 million)
- Adjusted EBITDA in a range of $20.0 million to $23.0 million
- Agent count to increase 4.25% to 5.25% over full-year 2019
- Revenue in a range of $262.5 million to $265.5 million (including revenue from the Marketing Funds in a range of $64.0 million to $65.0 million)
Challenges Ahead
- The effective U.S. GAAP tax rate attributable to RE/MAX Holdings is estimated to be between 27% and 29% in 2020.
- Global COVID-19 pandemic poses risks to business, agents, and franchisees.
- Potential for sustained material revenue declines.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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