RE/MAX Holdings (RMAX) Reports In-Line Q4 EPS, Revenues Beat; Offers Q1 & FY19 Revenue Guidance Above Consensus

RE/MAX Holdings (NYSE: RMAX) reported Q4 EPS of $0.49, in-line with the analyst estimate of $0.49. Revenue for the quarter came in at $50.8 million versus the consensus estimate of $50.49 million.

• Revenue increased 4.8% to $50.8 million
• Net income attributable to RE/MAX Holdings, Inc. of $6.3 million and earnings per diluted share (GAAP EPS) of $0.35
• Adjusted EBITDA1 of $23.3 million, Adjusted EBITDA margin1 of 45.8% and Adjusted earnings per diluted share (Adjusted EPS1) of $0.49
• Announced a 5% increase to the quarterly dividend on February 20, 2019

"We are pleased with our fourth quarter performance as our differentiated business model continued to demonstrate its strength in a correcting market,\" stated Adam Contos, RE/MAX Holdings Chief Executive Officer. "For the full-year 2018, we increased RE/MAX agent count, the number of open Motto franchises, revenue, Adjusted EBITDA and free cash flow while continuing to invest meaningfully in future organic growth opportunities despite a double-digit reduction in U.S. existing home sales to end the year. We believe the agent-centric RE/MAX model is more insulated and resilient than many others in our industry and our expanding Motto business provides another organic growth channel during times like these."

Contos continued, "We have great momentum as we enter into the new year. Our position of strength enables us to consider smart organizational changes that evolve and improve the business. For instance, we recently reinvented our RE/MAX brokerage support structure to make it more focused and impactful. Our new service model, which emphasizes business systems, accountability and technology engagement, is designed to accelerate brokerage growth regardless of market conditions. Looking ahead, we are optimistic, knowing RE/MAX agents perform well in any market. The first booj-developed RE/MAX tech products will roll out this year, and interest in owning a Motto franchise remains high and we continue to feel good about our pipeline."

GUIDANCE:

RE/MAX Holdings sees Q1 2019 revenue of $70-73 million, versus the consensus of $0.53 million.

RE/MAX Holdings sees FY2019 revenue of $287-291 million, versus the consensus of $219.22 million.

For earnings history and earnings-related data on RE/MAX Holdings (RMAX) click here.

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