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Dec 31, 2019
RE/MAX Q4 2019 Earnings Report
RE/MAX Holdings reported results for Q4 2019, which included a revenue increase due to the acquisition of the Marketing Funds and a decrease in net income.
Key Takeaways
RE/MAX Holdings reported a Q4 revenue of $68.2 million, up 34.1% year-over-year, primarily driven by the acquisition of the Marketing Funds. Net income attributable to RE/MAX Holdings was $2.9 million, a decrease of $3.3 million compared to the prior year. The company's total agent count increased by 5.3% to 130,889 agents.
Total revenue increased 34.1% to $68.2 million due to the acquisition of the Marketing Funds.
Net income attributable to RE/MAX Holdings decreased to $2.9 million.
Adjusted EBITDA was $22.5 million, a decrease of 3.3% year-over-year.
Total agent count grew by 5.3% to 130,889 agents.
Forward Guidance
RE/MAX Holdings provided guidance for Q1 and full-year 2020, including expectations for agent count growth, revenue, and Adjusted EBITDA. The company anticipates that the First acquisition will be dilutive to 2020 Adjusted EPS but accretive to 2021 Adjusted EBITDA margin and Adjusted EPS.
Positive Outlook
- Agent count to increase 4.0% to 5.0% over first quarter 2019
- Revenue in a range of $68.0 million to $71.0 million (including revenue from the Marketing Funds in a range of $17.5 million to $18.5 million)
- Adjusted EBITDA in a range of $18.0 million to $20.0 million
- Agent count to increase 3.0% to 5.0% over full-year 2019
- Revenue in a range of $285.5 million to $289.5 million (including revenue from the Marketing Funds in a range of $73.0 million to $75.0 million)
Challenges Ahead
- Adjusted EBITDA in a range of $96.0 million to $99.0 million
- The acquisition to be dilutive to 2020 Adjusted EPS by $0.04 to $0.06 per share
- Estimate to forgo $2 million to $3 million in non-Marketing Fund related revenue through the third quarter of this year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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