RE/MAX Holdings (RMAX) Misses Q2 EPS by 1c, Slight Beat on Revenues

RE/MAX Holdings (NYSE: RMAX) reported Q2 EPS of $0.38, $0.01 worse than the analyst estimate of $0.39. Revenue for the quarter came in at $52.21 million versus the consensus estimate of $52.09 million.

Second Quarter 2020 Highlights(Compared to second quarter 2019 unless otherwise noted)

• Total agent count increased 3.8% to 131,905 agents
• U.S. and Canada combined agent count decreased 1.4% to 82,972 agents
• Total open Motto Mortgage franchises increased 29.6% to 127 offices1
• Total Revenue of $52.2 million; Revenue excluding the Marketing Funds decreased 24.2% to $40.4 million
• Net income attributable to RE/MAX Holdings, Inc. of $3.5 million and earnings per diluted share (GAAP EPS) of $0.19
• Adjusted EBITDA2 of $18.9 million, Adjusted EBITDA margin2 of 36.2% and Adjusted earnings per diluted share (Adjusted EPS2) of $0.38

Operating Statistics as of July 31, 2020(Compared to July 31, 2019 unless otherwise noted)

• Total agent count increased 4.4% to 132,687 agents
• U.S. and Canada combined agent count decreased 1.1% to 83,131 agents
• Total open Motto Mortgage franchises increased 25.7% to 127 offices1

"The U.S. housing market began an encouraging rebound in June after COVID-19 interrupted 2020's promising start," stated Adam Contos, RE/MAX Holdings Chief Executive Officer. "We're well positioned to help our affiliates build on this positive momentum given the financial and structural strength of our business model, which to date has enabled us to keep staff intact and continue to expand our value proposition. In the field, our RE/MAX and Motto professionals have adapted to the current environment exceptionally well, leveraging technology and adhering to social distancing guidelines, to expertly guide consumers in a safe and largely virtual way."

Contos continued, "Our RE/MAX and Motto networks are finding opportunities to grow and build their businesses in this very demanding time. Motto posted its best second quarter of franchise sales yet, and its franchise sales on a trailing-twelve-month basis are the highest in its four-year history. On the RE/MAX side, global agent count continued to rise, while agent count in the U.S. and Canada stabilized in June and July. Our franchisees in both brands continue to demonstrate their local leadership by bringing productive agents and loan originators into our networks – and then helping those individuals get even better at what they do. Their recruiting efforts – supported by our programs and services – are critical to our ability to succeed in every kind of environment."

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

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