RE/MAX Holdings (NYSE: RMAX) reported Q1 EPS of $0.48, $0.01 better than the analyst estimate of $0.47. Revenue for the quarter came in at $71.2 million versus the consensus estimate of $69.24 million, reported PR Newswire.
First Quarter 2019 Highlights(Compared to first quarter 2018 unless otherwise noted)
- Total agent count increased 3.9% to 125,532 agents
- U.S. and Canada combined agent count decreased 0.9% to 84,031 agents
- Total open Motto Mortgage franchises increased to 88 offices
- Revenue of $71.2 million; excluding Marketing Funds revenue, revenue decreased 0.4% to $52.4 million
- Net income attributable to RE/MAX Holdings, Inc. of $4.4 million and earnings per diluted share (GAAP EPS) of $0.25
- Adjusted EBITDA1 of $23.0 million, Adjusted EBITDA margin1 of 32.3% and Adjusted earnings per diluted share (Adjusted EPS1) of $0.48
RE/MAX Holdings, Inc. (the “Company” or “RE/MAX Holdings”) (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, today announced operating results for the quarter ended March 31, 2019.
“We are pleased that our Motto Mortgage business in the U.S. continues to expand. This, coupled with strong international RE/MAX growth, contributed to relatively resilient top-line performance and helped offset lower revenue in the first quarter stemming from challenging housing market conditions in the U.S. and Canada,” stated Adam Contos, RE/MAX Holdings Chief Executive Officer.
Contos continued, “RE/MAX and Motto continue to demonstrate and build on their brand strength as evidenced by industry recognition and new strategic alliances. Multiple industry reports have again confirmed the 2-to-1 edge RE/MAX enjoys in per-agent productivity among large U.S. residential real estate brokerages. We also recently announced an exclusive referral relationship that will leverage industry-leading consumer search experience to create more business opportunities for RE/MAX agents. Lastly, Entrepreneur magazine just named Motto Mortgage one of the rising new franchise brands to watch in 2019.”
“Looking ahead, we’re cautiously optimistic about the housing markets in the U.S. and Canada. We remain confident in the continued strength and momentum of our business given the proven ability of RE/MAX agents to perform well in virtually any market cycle. We’re also excited about the upcoming, late-summer launch of the next generation of RE/MAX technology. Thousands of RE/MAX agents contributed valuable and insightful feedback which resulted in building a fantastic product for highly productive agents and today’s consumers.”
RE/MAX Holdings sees Q2 2019 revenue of $70-73 million, versus the consensus of $70.91 million.
RE/MAX Holdings sees FY2019 revenue of $287-291 million, versus the consensus of $281.69 million.
The Company’s second quarter and full-year 2019 Outlook assumes no further currency movements, acquisitions or divestitures.
For the second quarter of 2019, RE/MAX Holdings expects:
- Agent count to increase 2.5% to 3.5% over second quarter 2018;
- Revenue in a range of $70.0 million to $73.0 million (including revenue from the Marketing Funds in a range of $17.5 million to $18.5 million); and
- Adjusted EBITDA in a range of $26.5 million to $28.5 million.
For the full-year 2019, RE/MAX Holdings expects:
- Agent count to increase 2.0% to 4.0% over full-year 2018;
- Revenue in a range of $287.0 million to $291.0 million (including revenue from the Marketing Funds in a range of $72.5 million to $74.5 million); and
- Adjusted EBITDA in a range of $104.5 million to $107.5 million.
The effective U.S. GAAP tax rate attributable to RE/MAX Holdings is estimated to be between 17% and 19% in 2019.