Re/max Holdings, Inc. · NYSE:RMAX
Re/max — Q4 2023 Earnings Presentation
20 slides from Re/max's earnings presentation, Feb 23, 2024
Slide 1: Fourth Quarter & FY 2023 Earnings
RE/MAX Holdings, Inc. Fourth Quarter & FY 2023 Earnings February 23, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 use of words such as “believe,” “intend,
Slide 3: Q4 2023 Highlights
Q4 2023 Highlights Total Revenue of $76.6 Million, Adjusted EBITDA1 of $23.0 Million, Adjusted Diluted EPS1 of $0.30 Q4 2023 Operating Highlights Q4 2023 Financial Highlights ▪ Total agent count grew 821 agents, or 0.6%, ▪ Revenue was $76.6 million YoY to 144,835 agents ▪ Adjusted EBITDA1 of $23.0 m
Slide 4: Revenue
Revenue Total Revenue down 5.7%, Negative Organic Revenue growth1 of 5.6% For Q4 2023: ▪ RE/MAX Holdings generated revenue of $76.6 million in the fourth quarter of 2023, a decrease of $4.7 million, or 5.7%, compared to $81.3 million in the fourth quarter of 2022. Revenue excluding the Marketing Fun
Slide 5: Selling, Operating and Administrative Expenses
Selling, Operating and Administrative Expenses Total Selling, Operating and Administrative expenses increased 9.6% For Q4 2023: ▪ Selling, operating and administrative expenses were $39.1 million in the fourth quarter of 2023, an increase of $3.4 million, or 9.6%, compared to the fourth quarter of 2
Slide 6: Looking Ahead – Q1 2024 and FY 2024 Outlook
Looking Ahead – Q1 2024 and FY 2024 Outlook Q1 2024 Outlook1 Full-Year 2024 Outlook1 For the first quarter of 2024, RE/MAX For the full year 2024, RE/MAX Holdings Holdings expects: expects: ▪ Agent count to change negative 0.5% to ▪ Agent count to change negative 0.5% to positive 0.5% over first qua
Slide 7: A Leading Dual-Brand Franchisor with Compelling Growth Opportunities
RE/MAX Holdings, Inc. A Leading Dual-Brand Franchisor with Compelling Growth Opportunities #1 Name in Real Highly Agent-Centric Estate1 Productive Model is (US/Canada) Network of Different and and Unmatched More Than Better Global 140,000 Footprint2 Agents Rapidly First-and-Only Among Top Expanding
Slide 8: Thank You!
RE/MAX HOLDIN Thank You! RE/MAX [MOTTO wemlo.
Slide 9: Growing Our Global Network
Growing Our Global Network Year-over-Year Agent Count Growth of 0.6% Agent Count Change Year-over-Year December 31, 2022 December 31, 2023 +0.6% YoY (+821 agents) 4.2% YoY (-3,540 agents) +7.2% YoY (+4,361 agents) 8
Slide 10: Agent Count Change Year-over-Year
Agent Count Change Year-over-Year December 31, 2023, over December 31, 2022 +7.2% +0.2% -6.1% (+4,361 Agents) (+48 Agents) (-3,588 Agents) Agents Outside U.S. & Canada Agents in Canada Agents in the U.S. Total agent count grew 821 agents, or 0.6%, YoY to 144,835 agents 9
Slide 11: Adjusted EBITDA of $23.0 Million
Adjusted EBITDA1 of $23.0 Million Adjusted EBITDA1 Margin of 30.0% Adjusted EBITDA1 ($M) Adjusted EBITDA Margin1 For Q4 2023: ▪ Adjusted EBITDA was $23.0 million for the fourth quarter of 2023, a decrease of $3.6 million, or 13.4%, compared to the fourth quarter of 2022. Fourth quarter 2023 Adjusted
Slide 12: Balance Sheet and Capital Allocation
Balance Sheet and Capital Allocation Balance Sheet & Leverage Capital Allocation ▪ Cash balance of $82.6 million on The Company has a common stock December 31, 2023, down $26.0 million repurchase program of up to $100 million. from December 31, 2022. During the three months ended December 31, 2023,
Slide 13: Industry Forecasts
Industry Forecasts Monthly Existing Home Sales1 (Thousands) Annual Existing Home Sales1,2,3 (Millions) Home Price Appreciation2,3 (YoY) Housing Starts - Single Family3,4 (Thousands) 1Source: NAR (National Association of Realtors) – Existing Home Sales, numbers presented are not seasonally adjusted;
Slide 14: Mortgage Finance Forecasts
Mortgage Finance Forecasts Loan Originations1 ($’s in billions) Mortgage & Interest Rates1 1Source: Mortgage Bankers Association – MBA Mortgage Finance Forecast January 2024 13 14
Slide 15: Agent Count and Revenue Excluding Marketing Funds
RE/MAX Holdings, Inc. Agent Count and Revenue Excluding Marketing Funds As of December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 2022 2022 2022 2021 Agent Count: U.S. Company-Owned Regions 48,401 49,576 50,011 50,340 51,4
Slide 16: Adjusted EBITDA Reconciliation to Net Income
RE/MAX Holdings, Inc. Adjusted EBTIDA Reconciliation to Net Income (Reflects RE/MAX Holdings with 100% ownership of RMCO, LLC) Three Months Ended Year Ended December 31, December 31, 2023 2022 2023 2022 Net income (loss) $ (18,379) $ (1,553) $ (98,486) $ 10,757 Depreciation and amortization 8,178 8,
Slide 17: Adjusted Net Income & Adjusted Earnings per Share
RE/MAX Holdings, Inc. Adjusted Net Income & Adjusted Earnings per Share (Reflects RE/MAX Holdings with 100% ownership of RMCO, LLC) Three Months Ended Year Ended December 31, December 31, 2023 2022 2023 2022 Net income (loss) $ (18,379) $ (1,553) $ (98,486) $ 10,757 Amortization of acquired intangib
Slide 18: Adjusted Free Cash Flow & Unencumbered Cash Generation
RE/MAX Holdings, Inc. Adjusted Free Cash Flow & Unencumbered Cash Generation 17
Slide 19: Non-GAAP Financial Measures
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 revenue excluding the Marketing Funds, Adjusted EBITDA and the ratios related thereto, Adjusted net inc
Slide 20: Non-GAAP Financial Measures (continued)
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 provi