The RMR Group Inc. (RMR) Misses Q2 EPS by 3c, Revenues Miss

The RMR Group Inc. (NASDAQ: RMR) reported Q2 EPS of $0.46, $0.03 worse than the analyst estimate of $0.49. Revenue for the quarter came in at $140.86 million versus the consensus estimate of $150.53 million.

“The market disruptions resulting from the COVID-19 pandemic have led to share price declines for our Managed Equity REITs, which have significantly reduced our fee-paying assets under management beginning in the latter part of our second fiscal quarter. Despite these share price declines, management services revenues increased year over year by 1.7% and we generated net income of $14.9 million, Adjusted EBITDA of $23.9 million, Operating Margin of 40.6% and Adjusted EBITDA Margin of 51.3% this quarter.

While it remains to be seen how the pandemic and its impacts on the economy will evolve over the remainder of the year, we believe that our Client Companies have ample resources to navigate the challenges impacting their respective sectors. I remain impressed with the dedication of our workforce, and find that in unique times like these, the experience and depth of our leadership team is critical to navigating both our Client Companies’ recovery and subsequent growth.

We continue to believe RMR is in a strong position to weather the current economic disruption due to our long-term evergreen contracts and our scalable platform. We believe our dividend is secure and our balance sheet remains strong with $377.4 million of cash and no debt, providing us the continued ability to assess strategic opportunities for future growth.”

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

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