The RMR Group Inc. (RMR) Tops Q4 EPS by 7c, Revenues Beat

The RMR Group Inc. (NASDAQ: RMR) reported Q4 EPS of $0.59, $0.07 better than the analyst estimate of $0.52. Revenue for the quarter came in at $159.24 million versus the consensus estimate of $140.92 million.

“In the fiscal fourth quarter, we generated net income of $18.9 million, Adjusted EBITDA of $28.6 million, a sequential quarter increase of 8.0%, Operating Margin of 46.1% and Adjusted EBITDA Margin of 60.2%, a sequential quarter increase of 360 basis points. Adjusted EBITDA Margin of 60.2% represents our highest Adjusted EBITDA Margin level since becoming a public company, reflecting sequential quarter revenue growth and the related impact of economies of scale across our platform.

In late September, Service Properties Trust completed its acquisition of a large portfolio of net leased retail properties from Spirit MTA REIT, or SMTA, for $2.4 billion. We continue to expect this acquisition will result in approximately $12 million in incremental annual service revenues on a run-rate basis after planned strategic dispositions within the acquired portfolio.

Additionally, we made significant progress on repositioning efforts at our Client Companies. Since beginning their repositioning efforts, Office Properties Income Trust has sold or has under agreement to sell $731.5 million of properties and Senior Housing Properties Trust has sold or has under agreement to sell approximately $564 million of properties.

We ended the fiscal year with $358.4 million of cash and no debt. In October, we increased the quarterly dividend by 8.6% to $0.38 per quarter and we continue to explore strategic opportunities for growth.”

For earnings history and earnings-related data on The RMR Group Inc. (RMR) click here.

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