Re/max Holdings, Inc. · NYSE:RMAX
Re/max — Q3 2023 Earnings Presentation
22 slides from Re/max's earnings presentation, Nov 3, 2023
Slide 1: Third Quarter 2023 Earnings
RE/MAX RE/MAX Holdings, Inc. Third Quarter 2023 Earnings November 3, 2023
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: Q3 2023 Highlights
Q3 2023 Highlights Total Revenue of $81.2 Million, Adjusted EBITDA! of $26.7 Million, Adjusted Diluted EPS! of $0.40 Q3 2023 Operating Highlights Q3 2023 Financial Highlights = Total agent count grew 1,009 agents, or » Revenue was $81.2 million 0.7%, YOY to 145,309 agents = Adjusted EBITDA’ of $26.7
Slide 4: RE/MAX Teams
RE/MAX’ Teams ..25 teams of six-or-more agents added since launch of Teams pilot Conversions, Mergers, Ranked the and Acquisitions #1 real estate franchise brand ..36 CMA transactions have been completed year- . . to-date resulting in more than 500 new agents In the Franch ise Times Top 400 MAAT ECH
Slide 5: Approaching 250 Open Offices (Motto Mortgage)
APPROACHING | OPEN OFFICES Ry MOTTO MORTGAGE
Slide 6: Revenue
Revenue Total Revenue down 8.7%, Negative Organic Revenue growth! of 8.2% Quarter to Date Year to Date 2023 2022 Inctease/(Decreas) 2023 2022 Inctease/ (Decrease) 5 5 Revenue ($M) Continuing franchise fees $318 $33.3 ($1.5) (4.4%) $96.0 $100.9 ($4.9) (4.9%) Annual dues $8.5 $8.9 ($0.5) (5.1%) $257 $
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 Increase/(Decrease) Increase/(Decrease) Expenses ($M) 2022 $ % 2022 F Personnel ($4.5) (14.3%) ($5.1) (6.3%) Pr
Slide 8: Looking Ahead - Q4 2023 and FY 2023 Outlook
Looking Ahead - Q4 2023 and FY 2023 Outlook Focused on Growing our Business, our Brands, and our Networks Q4 2023 Outlook' Full Year 2023 Outlook! For the fourth quarter of 2023, RE/MAX For the Full Year 2023, the Company is Holdings expects: slightly increasing its agent count guidance and narrowin
Slide 9: A Leading Dual-Brand Franchisor with Compelling Growth Opportunities
A Leading Dual-Brand Franchisor with Compelling Growth Opportunities 9 9
Slide 10: Thank You
THANK YOU RE/MAX HOLDINGS, INC
Slide 11: Growing Our Global Network
Growing Our Global Network Year-over-Year Agent Count Growth of 0.7% RE/MAX Agent Count Change Year-over-Year HM September 30, 2022 EI September 30, 2023 +0.7% YOY (+1,009 agents) 144,300 145,309 -3.9% YoY (-3,351 agents) +7.4% YoY (+4,360 agents) Total RE/MAX U.S. & Canada Outside U.S. & Canada 11
Slide 12: Agent Count Change Year-over-Year
Agent Count Change Year-over-Year September 30, 2023, over September 30, 2022 +7.4% +1.1% -6.0% (+4,360 Agents) (+270 Agents) (-3,621 Agents) Agents Outside U.S. & Canada Agents in Canada Agents in the U.S. Total agent count grew 1,009 agents, or 0.7%, YoY to 145,309 agents RE/MAX 12
Slide 13: Adjusted EBITDA of $26.7 Million
Adjusted EBITDA! of $26.7 Million Adjusted EBITDA Margin! of 32.9% Adjusted EBITDA! ($M) Adjusted EBITDA Margin! $315 $26.7 Gates 32.7% 32.3% 32.9% ov ov ep “> ty oe Ria on sid ov ov ov $ $ a¥ »” 3” ” rad oe oe tes fed e ce tes For Q3 2023: = Adjusted EBITDA was $26.7 million for the third quarter o
Slide 14: Balance Sheet and Capital Allocation
Balance Sheet and Capital Allocation Balance Sheet & Leverage Cash balance of $89.8 million on September 30, 2023, down $18.8 million from December 31, 2022 $445.5 million in outstanding debt! and no revolving loans outstanding Total Debt / TTM Adjusted EBITDA? of 4.5x3 Net Debt / TTM Adjusted EBITD
Slide 15: Industry Forecasts
Industry Forecasts Monthly Existing Home Sales! (Thousands) Annual Existing Home Sales!:23 (Millions) 650 mFannieMae NAR 600 550 500 450 400 350 300 250 200 + ne a1 8 22 0 mn oe 2021 2022 2023e my ge ge? oe? ge go cee co” coo RE/MAX Ln Home Price Appreciation23 (YoY) Housing Starts - Single Family4
Slide 16: Mortgage Finance Forecasts
Mortgage Finance Forecasts Loan Originations' ($’s in billions) $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 RE/MAX DIN mPurchase mRefinance 2021 2022 ‘Source: Mortgage Bankers Association - MBA Mortgage Finance Forecast October 2023 2023e Mortgage & Interest Rates! —+30-Year Fixed -m-10-Year Treasury
Slide 17: Agent Count by Region
As of September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, 2023 2023 2023 2022 2022 2022 2022 2021 2021 Agent Count: U.S. Company-Owned Regions 49,576 50,011 50,340 51,491 52,804 53,415 53,338 53,946 54,578 Independent Regions 6,918 6,976 7,110 7,
Slide 18: Adjusted EBITDA Reconciliation
Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net income (loss) $ (82,672) $ (910) $ (80,107) $ 12,310 Depreciation and amortization 8,195 8,757 24,236 26,855 Interest expense 9,292 5,729 26,377 13,412 Interest income (1,173) (497) (3,318) (675) Provision for i
Slide 19: Adjusted Net Income Reconciliation
Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net income (loss) $ (82,672) $ (910) $ (80,107) $ 12,310 Amortization of acquired intangible assets 5,768 5,819 17,299 18,553 Provision for income taxes 53,680 553 56,494 4,359 Add-backs: Settlement charge (1) 55,00
Slide 20: Adjusted Free Cash Flow
Nine Months Ended September 30, 2023 2022 Cash flow from operations $ 19,625 $ 61,386 Less: Purchases of property, equipment and capitalization of software (4,249) (7,950) (1) (Increases) decreases in restricted cash of the Marketing Funds 12,222 730 (2) Adjusted free cash flow 27,598 54,166 (2) Adj
Slide 21: 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 22: 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