RE / MAX Holdings, Inc. recently announced its preliminary operating results for the third quarter ended September 30, 2021.
âWe achieved record third quarter revenue, Adjusted EBITDA and Adjusted EPS thanks to contributions from the largest independent region acquisition in our history, overall performance in our core businesses and a market of healthy housing, âsaid Adam Contos, RE / MAX Holdings. general manager, in a press release. âOur performance reaffirmed that the investments we have made in recent years have significantly diversified and broadened our revenue and growth opportunities. Organic growth in revenue excluding marketing funds was also strong, up nearly 7% in the third quarter, with much of the additional revenue translating into profits. “
âOur two main brands are dynamic and growing. The July acquisition of the North American operations of RE / MAX INTEGRA performed better than expected during the quarter and attracted nearly 20,000 agents to our company-owned regions and, overall, the RE / MAX network has grown by over 6,000 agents year over year. Our mortgage currency footprint also continues to grow, with healthy franchise sales and a year-over-year increase in open offices of over 30%, âContos added. âGiven the strength of the third quarter, we are further increasing our Adjusted EBITDA guidance for 2021 and expect to end the year on a high note. Longer term, we are excited about our growth prospects in 2022 and beyond. “
As at September 30, 2021, the company had cash and cash equivalents of $ 119.4 million, an increase of $ 18.1 million compared to December 31, 2020. As at September 30, 2021, the company had $ 453.0 million in debt outstanding, net of a debt discount and unamortized issue costs, compared to $ 223.6 million as at December 31, 2020.
On July 21, 2021, RE / MAX Holdings announced that RE / MAX, LLC has amended and restated its credit agreement to raise $ 460 million in term loans and increase the capacity of the revolving facility to $ 50 million. RE / MAX, LLC used the proceeds of the amended credit agreement to repay existing debt of approximately $ 224 million and to finance the $ 235 million acquisition of the North American regions of RE / MAX INTEGRA .
On November 3, 2021, the Board of Directors of the Company approved a quarterly cash dividend of $ 0.23 per Class A common share. The quarterly dividend is payable on December 1, 2021 to shareholders of record as of the close of business on November 17, 2021.
The company’s outlook for the fourth quarter and full year 2021 does not assume any further currency movements, acquisitions or disposals.
For the fourth quarter of 2021, the company plans to:
– The number of agents will increase from 2.5% to 3.5% compared to the fourth quarter of 2020
– Revenues in the range of $ 86.0 million to $ 90.0 million (including marketing fund revenues in the range of $ 22.0 million to $ 24.0 million)
– Adjusted EBITDA in the range of $ 27.5 million to $ 30.5 million
For the full year 2021, the company is reducing its agent count range due to slower than expected global growth, shifting its revenue range and increasing its Adjusted EBITDA range due to results of the third quarter better than expected. The company expects:
– The number of agents will increase from 2.5% to 3.5% over the whole of 2020, down from 5.0% to 6.0%
– Revenues in a range of $ 326.5 million to $ 330.5 million (including marketing fund revenues in a range of $ 81.5 million to $ 83.5 million), increased $ 321.0 million to $ 336.0 million (including marketing fund revenues in the range of $ 80.5 million to $ 83.5 million)
– Adjusted EBITDA in the range of $ 116.0 million to $ 119.0 million, up $ 113.0 million to $ 118.0 million
For more information, please visit www.remax.com.