Re/max Holdings, Inc. · NYSE:RMAX
Re/max — Q2 2024 Earnings Presentation
23 slides from Re/max's earnings presentation, Aug 9, 2024
Slide 1: RE/MAX Holdings, Inc. Second Quarter 2024 Earnings
RE/MAX Holdings, Inc. Second Quarter 2024 Earnings August 9, 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: Q2 2024 Highlights
Q2 2024 Highlights Total Revenue of $78.5 Million, Adjusted EBITDA1 of $28.1 Million Q2 2024 Operating Highlights Q2 2024 Financial Highlights ▪ Total agent count decreased 968 agents, ▪ Revenue was $78.5 million or 0.7%, YoY to 143,542 agents ▪ Adjusted EBITDA1 of $28.1 million, up ▪ Agent count in
Slide 4: The Anatomy of the RE/MAX Network
THE ANATOMY of the RE/MAX* network UNSTOPPABLE LOCAL EXPERTISE EXPERIENCE TO GET THE JOB DONE MOST PRODUCTIVE NETWORK’ FULL-SERVICE PROFESSIONALS VOTED MOST TRUSTED’ RE/MAX HOLDINGS, INC.
Slide 5: Growth: open in over states
GROWTH open in over 40 states*
Slide 6: Revenue
Revenue Total Revenue down 4.8%, negative Organic Revenue growth1 of 4.5% Quarter to Date Year to Date Revenue ($M) Increase/(Decrease) Increase/(Decrease) 2024 2023 2024 2023 $ % $ % Continuing franchise fees $30.3 $32.1 ($1.8) (5.5%) $61.4 $64.2 ($2.8) (4.3%) Annual dues $8.2 $8.6 ($0.4) (5.1%) $1
Slide 7: Selling, Operating and Administrative Expenses
Selling, Operating and Administrative Expenses Total Selling, Operating and Administrative expenses decreased 13.3% Quarter to Date Year to Date Selling, Operating & Administrative Expenses Increase/(Decrease) Increase/(Decrease) ($M) 2024 2023 2024 2023 $ % $ % Personnel $22.2 $23.9 ($1.7) (7.2%) $
Slide 8: Looking Ahead – Q3 2024 and FY 2024 Outlook
Looking Ahead – Q3 2024 and FY 2024 Outlook Q3 2024 Outlook1 Full-Year 2024 Outlook1 For the third quarter of 2024, RE/MAX For the full year 2024, RE/MAX Holdings Holdings expects: expects: ▪ Agent count to change negative 1.5% to ▪ Agent count to change negative 1.0% to 0.0% over third quarter 2023
Slide 9: RE/MAX Holdings, Inc. A Leading Dual-Brand Franchisor
RE/MAX Holdings, Inc. A Leading Dual-Brand Franchisor with Compelling Growth Opportunities #1 Name in Highly Most-Trusted Real Estate1 Productive Agents in the (US/Canada) Network of U.S. and and Unmatched More Than Canada3,4 Global 140,000 Footprint2 Agents Rapidly First-and-Only Among Top Expandin
Slide 10: Thank You!
RE/MAX HOLDINGS, INC. Thank You! RE/MAX [MOTTO wemlo. f
Slide 11: RE/MAX Agents Thrive In Good & Bad Markets
RE/MAX’® Agents Thrive In Good & Bad Markets U.S. Transactions Per Agent (Large Brokerages Only) 17.8 17.3 17.2 17.0 171 16.6 163 16.5 15.4 || | | = | = =—I ° | 14.5 = 43.6 11.8 4 81 8.4 78 7.9 7.8 71 S c . 25. 71 7.3 7.6 3 [ | L L L L L L | [ L [ [ I l ° 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 12: Total Agent Count
Total Agent Count Year-over-Year Agent Count Change of -0.7% Agent Count Change Year-over-Year June 30, 2023 June 30, 2024 -0.7% YoY (-968 agents) 144,510 143,542 -4.4% YoY (-3,606 agents) +4.2% YoY 82,205 (+2,638 agents) 78,599 62,305 64,943 Total RE/MAX U.S. & Canada Outside U.S. & Canada
Slide 13: Agent Count Change Year-over-Year
Agent Count Change Year-over-Year June 30, 2024, over June 30, 2023 Agents Outside U.S. & Canada Agents in Canada Agents in the U.S. +4.2% -0.1% -6.3% (+2,638 Agents) (-25 Agents) (-3,581 Agents) Total agent count down 968 agents, or -0.7%, YoY to 143,542 agents
Slide 14: Adjusted EBITDA of $28.1 Million
Adjusted EBITDA1 of $28.1 Million Adjusted EBITDA1 Margin of 35.8% Adjusted EBITDA1 ($M) Adjusted EBITDA Margin1 35.8% Up 350 32.3% 32.9% basis $26.6 $28.1 30.0% points over Q2 24.3% 2023 For Q2 2024: ▪ Adjusted EBITDA was $28.1 million for the second quarter of 2024, an increase of $1.4 million, or
Slide 15: Balance Sheet, Capital Allocation and Litigation Settlement
Balance Sheet, Capital Allocation and Litigation Settlement Balance Sheet & Leverage Capital Allocation & Litigation Settlement ▪ Cash balance of $66.1 million on June 30, 2024, ▪ The Company has a common stock repurchase down $16.6 million from December 31, 2023 program of up to $100 million. Durin
Slide 16: Industry Forecasts
Industry Forecasts Monthly Existing Home Sales1 (Thousands) Annual Existing Home Sales2,3 (Millions) Fannie Mae NAR 5.03 5.03 4.09 4.09 4.17 4.26 2022 2023 2024e Home Price Appreciation3,4 (YoY) Housing Starts - Single Family3,5 (Thousands) Fannie Mae MBA Fannie Mae NAHB 8.3% 7.9% 1005 1006 1010 100
Slide 17: Mortgage Finance Forecasts
Mortgage Finance Forecasts Loan Originations1 ($’s in billions) Mortgage & Interest Rates1 Purchase Refinance 30-Year Fixed 10-Year Treasury $1,800 $1,600 $1,619 7.3% $1,400 6.6% 6.6% $1,200 $1,325 $1,346 $1,000 $800 4.4% 3.8% 4.1% $600 $686 $400 $431 $200 $314 $0 2022 2023 2024e 2022 2023 2024e 1So
Slide 18: Agent Count and Revenue Excluding Marketing Funds
RE/MAX Holdings, Inc. Agent Count and Revenue Excluding Marketing Funds As of June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, 2024 2024 2023 2023 2023 2023 2022 2022 2022 Agent Count: U.S. Company-Owned Regions 46,780 47,302 48,401 49,576 50,011 5
Slide 19: 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 Six Months Ended June 30, June 30, $ in 000’s 2024 2023 2024 2023 Net income (loss) $ 6,190 $ 3,244 $ 583 $ 2,565 Depreciation and amortization 7,400 8,00
Slide 20: 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 Six Months Ended June 30, June 30, $ in 000’s 2024 2023 2024 2023 Net income (loss) $ 6,190 $ 3,244 $ 583 $ 2,565 Amortization of acquired intangible
Slide 21: Adjusted Free Cash Flow & Unencumbered Cash Generation
RE/MAX Holdings, Inc. Adjusted Free Cash Flow & Unencumbered Cash Generation Six Months Ended June 30, $ in 000’s 2024 2023 Cash flow from operations $ 25,266 $ 2,242 Less: Purchases of property, equipment and capitalization of software (4,510) (2,831) (Increases) decreases in restricted cash of the
Slide 22: 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 23: 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