RE/MAX Holdings (RMAX) Tops Q4 EPS by 2c, Revenues Beat; Offers FY21 Revenue Guidance Above Consensus

February 25, 2021 5:01 PM EST

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RE/MAX Holdings (NYSE: RMAX) reported Q4 EPS of $0.47, $0.02 better than the analyst estimate of $0.45. Revenue for the quarter came in at $72.4 million versus the consensus estimate of $71.29 million.

Fourth Quarter 2020 Highlights

(Compared to fourth quarter 2019 unless otherwise noted)

  • Total Revenue of $72.4 million; Revenue excluding the Marketing Funds increased 7.6% to $54.6 million
  • Net income attributable to RE/MAX Holdings, Inc. of $1.3 million and earnings per diluted share (GAAP EPS) of $0.07
  • Adjusted EBITDA2 of $23.8 million, Adjusted EBITDA margin2 of 32.8% and Adjusted earnings per diluted share (Adjusted EPS2) of $0.47

"A surging housing market underpinned strong fourth quarter results and provided a nice tailwind heading into 2021," stated Adam Contos, RE/MAX Holdings Chief Executive Officer. "Despite the pandemic, we delivered good organic growth, resulting in better-than-expected fourth-quarter revenue and profit, as well as robust free cash flow generation. Overall RE/MAX agent count and Motto franchise sales continued to grow in the fourth quarter, with our Canadian agent count increasing nicely during the period. Agent count outside the U.S. and Canada also accelerated during the fourth quarter and grew an impressive 16% year-over-year. Motto Mortgage had an especially memorable year and finished off strong. We sold over 70 Motto franchises during 2020, a record, and over 35% higher than in 2019."

Contos continued, "We expect the macro housing environment will remain buoyant in the coming year with ongoing amplified demand continuing to outpace supply. The battle for listings will stay highly competitive, and agents who are experienced, productive and armed with seller-focused tools, such as our First app, should enjoy an edge in that regard. We continue to support the productivity of our networks by enhancing our value proposition and strengthening our technology and data core. At the same time, we are also creating additional promising revenue possibilities, both by organic means and through strategic acquisitions, such as wemlo and Gadberry Group. Overall, we believe we are poised for meaningful growth in 2021 and beyond."

GUIDANCE:

RE/MAX Holdings sees Q1 2021 revenue of $71-75 million, versus the consensus of $73.96 million.

RE/MAX Holdings sees FY2021 revenue of $300-310 million, versus the consensus of $293.81 million.

The Company's first quarter and full-year 2021 Outlook assumes no further currency movements, acquisitions or divestitures.

For the first quarter of 2021, RE/MAX Holdings expects:

  • Agent count to increase 4.5% to 5.5% over first quarter 2020;
  • Revenue in a range of $71.0 million to $75.0 million (including revenue from the Marketing Funds in a range of $18.0 million to $19.0 million); and
  • Adjusted EBITDA in a range of $21.5 million to $24.5 million.

For the full-year 2021, RE/MAX Holdings expects:

  • Agent count to increase 4.0% to 5.0% over full-year 2020;
  • Revenue in a range of $300.0 million to $310.0 million (including revenue from the Marketing Funds in a range of $71.0 million to $74.0 million), and
  • Adjusted EBITDA in a range of $103.0 million to $107.0 million.

The effective U.S. GAAP tax rate attributable to RE/MAX Holdings is estimated to be between 22% and 24% in 2021.

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



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