Re/max Holdings, Inc. · NYSE:RMAX
Re/max — Merger or Acquisition (November 2016)
10 slides from Re/max's merger presentation, Nov 28, 2016
Slide 1: 2016 Independent Region Acquisitions Supplementary Materials
November 28, 2016 2016 Independent Region Acquisitions Supplementary Materials Andy Schulz – Executive Director Investor Relations – aschulz@remax.com
Slide 2: Forward-Looking Statements
2 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 may be identified by the use of words such as “believe,” “i
Slide 3: RE/MAX Reacquires Six Independent Regions in 2016
3 RE/MAX Reacquires Six Independent Regions in 2016 Hawaii Alaska Acquired in 2016 1 Washington Oregon Idaho Montana California Colorado Utah Wyoming South Dakota North Dakota Texas Pennsylvania Delaware Florida North Carolina South Carolina Nevada Arizona New Mexico Maryland Virginia Missouri Illin
Slide 4: Georgia, Kentucky/Tennessee, & Southern Ohio (Regional Services) Acquisition Overview
4 Georgia, Kentucky/Tennessee, & Southern Ohio (“Regional Services”) Acquisition Overview ▪ Purchase price: $50.4 million ▪ Includes three regions – Georgia, Kentucky/Tennessee, and Southern Ohio (“Regional Services”) Key Statistics 1 As of September 30, 2016 2 Includes the Company - owned region in
Slide 5: New Jersey Region Acquisition Overview
5 New Jersey Region Acquisition Overview ▪ Purchase price: $45 million ▪ Agent count: 2,994 1 Key Statistics ▪ The acquisition will enable RE/MAX to capture the incremental revenue earned from the region in its financial statements ▪ RE/MAX expects to realize cost synergies in 2017 and will continue
Slide 6: 65% of Agents in the U.S. & Canada are in Company-owned Regions
6 65% of Agents in the U.S. & Canada are in Company - owned Regions 1 Washington Oregon Idaho Montana California Hawaii Colorado Utah Wyoming South Dakota North Dakota Texas Pennsylvania Delaware Florida North Carolina South Carolina British Columbia Alberta Saskatchewan Manitoba Yukon U.S./Canada O
Slide 7: 2016 Independent Region Acquisitions Overview
7 2016 Independent Region Acquisitions Overview Region Agents ▪ Regional Services includes 5 of the top 50 U.S. metros: - Atlanta, Nashville, Columbus, Memphis, and Louisville ▪ RE/MAX now captures 100% of fee revenue earned by the regions (previously captured all fee revenue from Annual Dues and be
Slide 8: Expected 2017 Combined Contribution from Motto Mortgage and Acquisitions
8 ▪ Assuming the New Jersey and Regional Services acquisitions close prior to the end of 2016, RE/MAX estimates that Motto Mortgage and the New Jersey and Regional Services 1 acquisitions combined will contribute in 2017 an incremental : - $12 - 15 million in revenue, and - $ 5 - 8 million in Adjust
Slide 9: Credit Facility Transaction Overview and Use of Proceeds
9 Credit Facility Transaction Overview ▪ On November 28, 2016, RE/MAX began marketing a new $245M Credit Facility ( consisting of a $10M Revolving Credit Facility and $235M Term Loan) ▪ The Company intends to use proceeds from the new Credit Facility to refinance the Company’s current $188M in debt
Slide 10: Non-GAAP Financial Measures
10 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 not in accordance with U . S . GAAP, such as Adjusted EBITDA and the ratios related thereto . These measures are derived on the basis of methodologie
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