Re/max Holdings, Inc. · NYSE:RMAX
Re/max — Q3 2017 Earnings Presentation
19 slides from Re/max's earnings presentation, Feb 22, 2018
Slide 1: Forward-Looking Statements and Preliminary Financial Information
Forward-Looking Statements and Preliminary Financial Information This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are often identified by the us
Slide 2: Preliminary Third Quarter 2017 Highlights
Preliminary Third Quarter 2017 Highlights Agent Growth, Revenue Growth, Brand Refresh Total agent count grew 6,380 agents, or 5.7%, to 117,568 agents RE/MAX named a top-10 franchise by Franchise Times Iconic RE/MAX brand refreshed Revenue grew 8.4% to $49.4 million, of which 64.1% was recurring reve
Slide 3: Iconic RE/MAX Brand Refreshed
Iconic RE/MAX Brand Refreshed Extensive Customer Surveys Drove the Outcome More than 20,000 U.S. & Canadian consumers surveyed Contemporary twist on #1 real estate brand1 Works well across all social, digital and mobile marketing platforms 1Source: MMR Strategy Group study of unaided brand awareness
Slide 4: Growing Our Global Network
Growing Our Global Network Year-over-Year Agent Count Growth of 5.7% (+6,380 agents) +5.7% YoY +2.3% YoY (+1,912 agents) +15.7% YoY (+4,468 agents) September 30, 2016 September 30, 2017 Agent Count Growth Year-over-Year 111,188 82,797 28,391 117,568 84,709 32,859 Total RE/MAX U.S. & Canada Outside U
Slide 5: Agent Count in the U.S. and Canada Increases
Agent Count in the U.S. and Canada Increases Agents in the U.S. Agent Count Growth Year-over-Year Agents in Canada +2.9% (+604 Agents) +2.1% (+1,308 Agents) September 30, 2016 September 30, 2017 20,556 21,160 Q3 2016 Q3 2017 62,241 63,549 Q3 2016 Q3 2017
Slide 6: Preliminary Revenue
Preliminary Revenue Acquired Regions, Agent Growth Driving Revenue Total revenue of $49.4 million for Q3 2017, an increase of $3.8 million or 8.4% compared to $45.6 million in Q3 2016 Continuing franchise fees revenue increased primarily due to contributions from the acquired regions and agent count
Slide 7: Preliminary Adjusted EBITDA
Adjusted EBITDA1 ($M) Preliminary Adjusted EBITDA For Q3 2017: Fees waived for hurricane-impacted associates reduced Adjusted EBITDA by ~$1.7 million 1Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP numbers and exclude all adjustments attributable to the non-controlling interest. See the App
Slide 8: Strong Balance Sheet Bolsters Ability to Reinvest and Return Capital to Shareholders
Strong Balance Sheet Bolsters Ability to Reinvest and Return Capital to Shareholders Preliminary Balance Sheet & Leverage Cash balance of $83.9 million on September 30, 2017, up $26.3 million from December 31, 2016 $229.4 million in term loans1 and no revolving loans outstanding Total Debt / Adjuste
Slide 9: Leading Real Estate Franchisor with Recurring Revenues, High Margins and Strong Free Cash Flow
Leading Real Estate Franchisor with Recurring Revenues, High Margins and Strong Free Cash Flow #1 Real Estate Franchise Brand1 with Unmatched Global Footprint Highly Productive Network of More Than 115,000 Agents Agent-Centric Model is Different and Better Largely Recurring Fee-Based Revenue Model w
Slide 10: Leading Real Estate Franchisor with Recurring Revenues, High Margins and Strong Free Cash Flow
Leading Real Estate Franchisor with Recurring Revenues, High Margins and Strong Free Cash Flow Qo ® O #1 Real Estate Franchise Highly Productive Agent-Centric Model is Brand‘ with Unmatched Network of More Than Different and Better Global Footprint 115,000 Agents Largely Recurring Fee- 100% Franchis
Slide 11: Nobody in the World Sells More Real Estate Than RE/MAX
y NOBODY IN THE WORLD SELLS MORE REAL ESTATE THAN RE/MAX
Slide 12: Recent Independent Region Acquisitions
Recent Independent Region Acquisitions Region Agents1 RE/MAX now captures 100% of fee revenue earned by the regions (previously captured all fee revenue from Annual Dues and between 15-30% of other fee revenue earned in Independent Regions) Offices1 1As of acquisition date Date Acquired New York 869
Slide 13: As of each quarter end since December 31, 2016, U.S. Company-owned Regions include agents
As of each quarter end since December 31, 2016, U.S. Company-owned Regions include agents in the Georgia, Kentucky/Tennessee and Southern Ohio regions, which converted from Independent Regions to Company-owned Regions in connection with the acquisition of certain assets of RE/MAX of Georgia, Inc., R
Slide 14: Preliminary Adjusted EBITDA Reconciliation to Net Income
Represents loss (gain) on the sale or disposition of assets as well as the losses (gains) on the sublease of a portion of the Company’s corporate headquarters office building. Acquisition-related expenses include fees incurred in connection with the Company’s acquisition and integration of certain a
Slide 15: Preliminary Adjusted Net Income and Adjusted Earnings per Share
Represents loss (gain) on the sale or disposition of assets as well as the losses (gains) on the sublease of a portion of the Company’s corporate headquarters office building. Acquisition-related expenses include fees incurred in connection with the Company’s acquisition and integration of certain a
Slide 16: Preliminary Free Cash Flow and Unencumbered Cash Generation
Non-GAAP measure. See the end of this presentation for a definition of Non-GAAP measures. RE/MAX Holdings, Inc. Preliminary Free Cash Flow and Unencumbered Cash Generation (Amounts in 000s) 2017 2016 Cash flow from operations $ 53,440 $ 49,040 Less: Purchases of property, equipment and software (1,7
Slide 17: Non-GAAP Financial Measures
The SEC has adopted rules to regulate the use in filings with the SEC and in public disclosures of financial measures that are not in accordance with U.S. GAAP, such as Adjusted EBITDA and the ratios related thereto, Adjusted net income, Adjusted basic and diluted earnings per share (Adjusted EPS) a
Slide 18: Non-GAAP Financial Measures (continued)
Adjusted net income is calculated as Net income attributable to RE/MAX Holdings, assuming the full exchange of all outstanding non-controlling interests for shares of Class A common stock as of the beginning of the period (and the related increase to the provision for income taxes after such exchang
Slide 19: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) [Adjusted net income is calculated as Net income atibutable to REIMAX Holdings, assuming the ful exchange of all outstanding non-controing interests fr shares of Cass A common ‘sock as ofthe boginnng ofthe period (and the rlated increase tothe provision for in