RE/MAX Holdings, Inc. (RMAX) Bundle
A Brief History of RE/MAX Holdings, Inc.
Company Overview
RE/MAX Holdings, Inc. operates within the real estate sector, providing a franchise system for real estate agents. Founded in 1973, the company has grown to become one of the largest real estate networks globally, with a focus on residential and commercial properties.
Financial Performance
As of September 30, 2024, RE/MAX reported a net income of $3,414,000 for the quarter, contrasting sharply with a net loss of $82,672,000 for the same period in 2023. For the nine months ended September 30, 2024, the net income totaled $3,997,000, compared to a loss of $80,107,000 in the prior year.
Revenue Breakdown
| Revenue Source | Three Months Ended September 30, 2024 (in $000s) | Three Months Ended September 30, 2023 (in $000s) | Nine Months Ended September 30, 2024 (in $000s) | Nine Months Ended September 30, 2023 (in $000s) |
|---|---|---|---|---|
| Continuing franchise fees | 30,798 | 31,834 | 92,223 | 96,011 |
| Annual dues | 7,969 | 8,456 | 24,345 | 25,661 |
| Broker fees | 14,915 | 14,255 | 40,159 | 39,468 |
| Total Revenue | 78,478 | 81,223 | 235,218 | 249,071 |
Cash Flow Analysis
For the nine months ended September 30, 2024, cash provided by operating activities was $42,867,000, a significant increase from $19,625,000 in 2023. The cash used in investing activities was $5,123,000, compared to $3,570,000 in the previous year, reflecting higher expenditures on technology and leased buildings.
Debt and Liquidity
As of September 30, 2024, RE/MAX had $445.1 million in term loans outstanding and maintained a cash balance of $83.8 million, up from $82.6 million at the end of 2023. The company has no revolving loans outstanding under its Senior Secured Credit Facility, highlighting a cautious approach to liquidity management amid challenging market conditions.
Stockholder Equity
| Equity Item | September 30, 2024 (in $000s) | December 31, 2023 (in $000s) |
|---|---|---|
| Class A common stock | 2 | 2 |
| Additional paid-in capital | 562,594 | 550,637 |
| Accumulated deficit | (139,524) | (140,217) |
| Total stockholders' equity | (61,763) | (76,061) |
Dividends and Share Buybacks
In 2023, the Board of Directors suspended the quarterly dividend to preserve capital due to ongoing litigation settlements and challenging market conditions. No dividends were declared for the first three quarters of 2024. The company previously authorized a $100 million share repurchase program, with $62.5 million remaining as of September 30, 2024.
A Who Owns RE/MAX Holdings, Inc. (RMAX)
Ownership Structure
As of September 30, 2024, RE/MAX Holdings, Inc. has a two-class stock structure consisting of Class A common stock and Class B common stock. The ownership is divided as follows:
| Ownership Type | Shares Outstanding | Ownership Percentage |
|---|---|---|
| Class A Common Stock | 18,872,052 | 60.0% |
| Class B Common Stock | 12,559,600 | 40.0% |
| Total Common Units in RMCO | 31,431,652 | 100.0% |
Non-Controlling Interests
The non-controlling interest in RE/MAX Holdings, Inc. is represented by the common units in RMCO, where RE/MAX Holdings, Inc. serves as the managing member. As of September 30, 2024, the non-controlling interest ownership is as follows:
| Ownership Type | Shares Outstanding | Ownership Percentage |
|---|---|---|
| Non-Controlling Interest | 12,559,600 | 40.0% |
| Total Common Units in RMCO | 31,431,652 | 100.0% |
Stockholder Composition
As of the latest reporting, the composition of stockholders is as follows:
| Stockholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | Approximately 60.0% | Varies by firm |
| Insider Ownership | Approximately 10.0% | Varies by individual |
| Public Float | Approximately 30.0% | Varies by market |
Recent Financial Performance
In the third quarter of 2024, RE/MAX Holdings, Inc. reported the following financial highlights:
| Financial Metric | Value |
|---|---|
| Total Revenue | $78.5 million |
| Net Income (Loss) Attributable to RE/MAX Holdings, Inc. | $966,000 |
| Adjusted EBITDA | $27.3 million |
| Weighted Average Shares of Class A Common Stock Outstanding (Diluted) | 19,483,798 |
Stock Performance
As of the end of September 2024, the stock performance metrics are as follows:
| Metric | Value |
|---|---|
| Class A Common Stock Price | $3.65 |
| Market Capitalization | $69 million |
| 52-Week Range | $2.50 - $5.00 |
Ownership Changes
In 2024, there have been no significant changes in ownership structure or major acquisitions impacting the ownership of RE/MAX Holdings, Inc.
RE/MAX Holdings, Inc. (RMAX) Mission Statement
Mission Statement Overview
The mission of RE/MAX Holdings, Inc. is to empower agents to achieve their goals and provide exceptional service to their clients. The company emphasizes innovation, integrity, and community engagement while delivering high-quality real estate services globally.
Financial Performance Highlights (2024)
As of September 30, 2024, RE/MAX Holdings, Inc. reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenue | $235.2 million |
| Net Income (Loss) | $3.997 million |
| Adjusted EBITDA | $74.4 million |
| Basic Earnings Per Share | $0.07 |
| Diluted Earnings Per Share | $0.07 |
| Cash and Cash Equivalents | $83.8 million |
| Term Loans Outstanding | $445.1 million |
Agent and Franchise Network Metrics
As of September 30, 2024, RE/MAX Holdings, Inc. reported the following metrics regarding its agent and franchise network:
| Metric | Value |
|---|---|
| Total Agent Count | 145,483 agents |
| U.S. and Canada Agent Count | 78,201 agents |
| Total Motto Mortgage Offices | 234 offices |
| U.S. Company-Owned Regions | 46,283 agents |
| Canada Company-Owned Regions | 20,515 agents |
Revenue Breakdown (Nine Months Ended September 30, 2024)
RE/MAX Holdings, Inc. generated revenue through several streams as detailed below:
| Revenue Stream | Value |
|---|---|
| Continuing Franchise Fees | $92.2 million |
| Annual Dues | $24.3 million |
| Broker Fees | $40.2 million |
| Marketing Funds Fees | $60.3 million |
| Franchise Sales and Other Revenue | $18.2 million |
Operating Expenses (Nine Months Ended September 30, 2024)
The company incurred the following operating expenses during the same period:
| Expense Type | Value |
|---|---|
| Selling, Operating, and Administrative Expenses | $116.5 million |
| Marketing Funds Expenses | $60.3 million |
| Depreciation and Amortization | $22.5 million |
| Total Operating Expenses | $199.3 million |
Liquidity and Capital Resources
As of September 30, 2024, RE/MAX Holdings, Inc. maintained a strong liquidity position with total cash, cash equivalents, and restricted cash amounting to:
| Cash Component | Value |
|---|---|
| Cash and Cash Equivalents | $83.8 million |
| Restricted Cash (Marketing Funds) | $17.6 million |
| Restricted Cash (Settlement Fund) | $55.0 million |
| Total Cash, Cash Equivalents, and Restricted Cash | $156.4 million |
Conclusion
RE/MAX Holdings, Inc. remains committed to its mission of empowering agents and providing exceptional real estate services while navigating a challenging market environment.
How RE/MAX Holdings, Inc. (RMAX) Works
Business Model Overview
RE/MAX Holdings, Inc. operates primarily as a franchisor in the real estate industry. The company does not own any of the brokerages operating under its brand but provides support to its franchisees through technology, education, and marketing resources. This model allows RE/MAX to maintain a low fixed-cost structure while capitalizing on a recurring fee-based revenue system.
Financial Performance
For the three months ended September 30, 2024, RE/MAX reported total revenue of $78.5 million, a decrease of 3.4% from the prior year. The breakdown of revenue is as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Continuing franchise fees | $30,798 | $31,834 | (3.3%) |
| Annual dues | $7,969 | $8,456 | (5.8%) |
| Broker fees | $14,915 | $14,255 | 4.6% |
| Marketing Funds fees | $20,098 | $20,853 | (3.6%) |
| Franchise sales and other revenue | $4,698 | $5,825 | (19.3%) |
For the nine months ended September 30, 2024, total revenue was $235.2 million, down from $249.1 million in the same period of 2023, reflecting a 5.6% decrease.
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $63.3 million, down from $102.2 million in Q3 2023. The major components included:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Selling, operating and administrative expenses | $35,932 | $43,090 | (16.6%) |
| Marketing Funds expenses | $20,098 | $20,853 | (3.6%) |
| Depreciation and amortization | $7,237 | $8,195 | (11.7%) |
Net Income and Earnings Per Share
The net income attributable to RE/MAX Holdings, Inc. for Q3 2024 was $966,000, compared to a net loss of $59.5 million in Q3 2023. The earnings per share (EPS) for Class A common stock were:
| Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Basic EPS | $0.05 | $(3.28) |
| Diluted EPS | $0.05 | $(3.28) |
Agent Count and Franchise Operations
As of September 30, 2024, RE/MAX reported a total agent count of 145,483, a slight increase of 0.1% year-over-year. However, the combined agent count in the U.S. and Canada decreased by 4.4% to 78,201 agents.
The number of Motto Mortgage offices decreased to 234, reflecting a 3.3% decline from the previous year.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, RE/MAX generated $42.9 million in cash from operating activities, a significant increase from $19.6 million in the same period of 2023. The company reported cash and cash equivalents of $83.8 million as of September 30, 2024, compared to $82.6 million at the end of 2023.
Debt and Financial Obligations
As of September 30, 2024, RE/MAX had $445.1 million in term loans outstanding, with no revolving loans under its Senior Secured Credit Facility. The interest rate on the term loan facility was 7.5%.
Conclusion
RE/MAX continues to navigate challenges in the real estate market while maintaining a focus on its franchise model, operational efficiency, and financial stability.
How RE/MAX Holdings, Inc. (RMAX) Makes Money
Revenue Streams
RE/MAX Holdings, Inc. generates revenue through multiple streams, primarily from its franchise operations. The major components of revenue include:
- Continuing franchise fees
- Annual dues from agents
- Broker fees
- Marketing Funds fees
- Franchise sales and other revenue
Continuing Franchise Fees
For the nine months ended September 30, 2024, RE/MAX reported continuing franchise fees of $92.2 million, a decrease of 3.9% compared to $96.0 million in the same period of 2023.
Annual Dues
The annual dues collected from RE/MAX agents totaled $24.3 million for the nine months ended September 30, 2024, down 5.1% from $25.7 million in 2023.
Broker Fees
Broker fees rose to $40.2 million for the first nine months of 2024, reflecting a 1.8% increase from $39.5 million in 2023.
Marketing Funds Fees
Marketing Funds fees amounted to $60.3 million, a decrease of 4.6% from $63.3 million in the same period of 2023.
Franchise Sales and Other Revenue
Franchise sales and other revenue fell sharply to $18.2 million, a 26.4% decline from $24.7 million in the prior year.
Total Revenue
Overall, RE/MAX reported total revenue of $235.2 million for the nine months ending September 30, 2024, which represents a 5.6% decrease from $249.1 million in the same period of 2023.
| Revenue Component | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Continuing Franchise Fees | $92.2 million | $96.0 million | -3.9% |
| Annual Dues | $24.3 million | $25.7 million | -5.1% |
| Broker Fees | $40.2 million | $39.5 million | +1.8% |
| Marketing Funds Fees | $60.3 million | $63.3 million | -4.6% |
| Franchise Sales and Other Revenue | $18.2 million | $24.7 million | -26.4% |
| Total Revenue | $235.2 million | $249.1 million | -5.6% |
Operating Expenses
For the nine months ended September 30, 2024, RE/MAX reported total operating expenses of $199.3 million, down 20.3% from $250.0 million in 2023.
Profitability Metrics
RE/MAX's net income attributable to the company for the nine months ended September 30, 2024, was $1.3 million, compared to a net loss of $58.1 million in the same period of 2023.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Income (Loss) | $1.3 million | ($58.1 million) |
| Adjusted EBITDA | $74.4 million | $73.3 million |
Cash Flow Summary
For the nine months ended September 30, 2024, cash provided by operating activities was $42.9 million, an increase from $19.6 million in 2023.
| Cash Flow Activity | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Cash Provided by Operating Activities | $42.9 million | $19.6 million |
| Cash Used in Investing Activities | ($5.1 million) | ($3.6 million) |
| Cash Used in Financing Activities | ($6.6 million) | ($33.4 million) |
Market Conditions and Challenges
As of September 30, 2024, the total agent count was 145,483, which is a slight increase of 0.1% from 145,309 in 2023.
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Resources:
- RE/MAX Holdings, Inc. (RMAX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of RE/MAX Holdings, Inc. (RMAX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View RE/MAX Holdings, Inc. (RMAX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.