RE/MAX Holdings, Inc. [RMAX] Filings

10-Q 1 rmax-20240930x10q.htm 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2024.

☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission file number: 001-36101

RE/MAX Holdings, Inc.

(Exact name of registrant as specified in its charter)



Delaware		80-0937145
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

5075 South Syracuse Street Denver, Colorado		80237
(Address of principal executive offices)		(Zip Code)

(303) 770-5531

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, $0.0001 par value per share	RMAX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒	Emerging growth company	☐
Non-accelerated filer	☐	Smaller reporting company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

On October 25, 2024, there were 18,872,052 outstanding shares of the registrant’s Class A common stock, $0.0001 par value per share, and 1 outstanding share of Class B common stock, $0.0001 par value per share.

Table of Contents

TABLE OF CONTENTS


		Page No.
	PART I. – FINANCIAL INFORMATION

Item 1.	Financial Statements	3

	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Income (Loss)	4

	Condensed Consolidated Statements of Comprehensive Income (Loss)	5

	Condensed Consolidated Statements of Stockholders’ Equity (Deficit)	6

	Condensed Consolidated Statements of Cash Flows	8

	Notes to Unaudited Condensed Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Item 3.	Quantitative and Qualitative Disclosures About Market Risks	41

Item 4.	Controls and Procedures	42

	PART II. – OTHER INFORMATION

Item 1.	Legal Proceedings	42

Item 1A.	Risk Factors	43

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43

Item 3.	Defaults Upon Senior Securities	43

Item 4.	Mine Safety Disclosures	43

Item 5.	Other Information	43

Item 6.	Exhibits	44

	SIGNATURES	46

Table of Contents

PART I. – FINANCIAL INFORMATION

Item 1. Financial Statements

RE/MAX HOLDINGS, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)

(Unaudited)



	As of
	September 30,		December 31,
	2024		2023
Assets
Current assets:
Cash and cash equivalents	$	83,779	$	82,623
Restricted cash		72,599		43,140
Accounts and notes receivable, current portion, net of allowances		30,598		33,427
Income taxes receivable		1,693		1,706
Other current assets		13,224		15,669
Total current assets		201,893		176,565
Property and equipment, net of accumulated depreciation		8,295		8,633
Operating lease right of use assets		19,209		23,013
Franchise agreements, net		87,346		101,516
Other intangible assets, net		15,297		19,176
Goodwill		240,102		241,164
Other assets, net of current portion		6,507		7,083
Total assets	$	578,649	$	577,150
Liabilities and stockholders' equity (deficit)
Current liabilities:
Accounts payable	$	5,347	$	4,700
Accrued liabilities		105,132		107,434
Income taxes payable		1,274		766
Deferred revenue		22,625		23,077
Current portion of debt		4,600		4,600
Current portion of payable pursuant to tax receivable agreements		285		822
Operating lease liabilities		8,437		7,920
Total current liabilities		147,700		149,319
Debt, net of current portion		437,176		439,980
Deferred tax liabilities		11,281		10,797
Deferred revenue, net of current portion		15,482		17,607
Operating lease liabilities, net of current portion		25,044		31,479
Other liabilities, net of current portion		3,729		4,029
Total liabilities		640,412		653,211
Commitments and contingencies
Stockholders' equity (deficit):
Class A common stock, par value $.0001 per share, 180,000,000 shares authorized; 18,872,052 and 18,269,284 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		2		2
Class B common stock, par value $.0001 per share, 1,000 shares authorized; 1 share issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		—		—
Additional paid-in capital		562,594		550,637
Accumulated deficit		(139,524)		(140,217)
Accumulated other comprehensive income (deficit), net of tax		35		638
Total stockholders' equity attributable to RE/MAX Holdings, Inc.		423,107		411,060
Non-controlling interest		(484,870)		(487,121)
Total stockholders' equity (deficit)		(61,763)		(76,061)
Total liabilities and stockholders' equity (deficit)	$	578,649	$	577,150

See accompanying notes to unaudited condensed consolidated financial statements.

Table of Contents

RE/MAX HOLDINGS, INC.

Condensed Consolidated Statements of Income (Loss)

(In thousands, except share and per share amounts)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenue:
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
Marketing Funds fees		20,098		20,853		60,331		63,272
Franchise sales and other revenue		4,698		5,825		18,160		24,659
Total revenue		78,478		81,223		235,218		249,071
Operating expenses:
Selling, operating and administrative expenses		35,932		43,090		116,488		132,417
Marketing Funds expenses		20,098		20,853		60,331		63,272
Depreciation and amortization		7,237		8,195		22,489		24,236
Settlement and impairment charges		—		55,000		—		55,000
Gain on reduction in tax receivable agreement liability		—		(24,917)		—		(24,917)
Total operating expenses		63,267		102,221		199,308		250,008
Operating income (loss)		15,211		(20,998)		35,910		(937)
Other expenses, net:
Interest expense		(9,249)		(9,292)		(27,696)		(26,377)
Interest income		885		1,173		2,835		3,318
Foreign currency transaction gains (losses)		74		125		(568)		383
Total other expenses, net		(8,290)		(7,994)		(25,429)		(22,676)
Income (loss) before provision for income taxes		6,921		(28,992)		10,481		(23,613)
Provision for income taxes		(3,507)		(53,680)		(6,484)		(56,494)
Net income (loss)	$	3,414	$	(82,672)	$	3,997	$	(80,107)
Less: net income (loss) attributable to non-controlling interest		2,448		(23,218)		2,679		(21,992)
Net income (loss) attributable to RE/MAX Holdings, Inc.	$	966	$	(59,454)	$	1,318	$	(58,115)

Net income (loss) attributable to RE/MAX Holdings, Inc. per share of Class A common stock
Basic	$	0.05	$	(3.28)	$	0.07	$	(3.22)
Diluted	$	0.05	$	(3.28)	$	0.07	$	(3.22)
Weighted average shares of Class A common stock outstanding
Basic		18,863,793		18,150,557		18,733,190		18,064,009
Diluted		19,483,798		18,150,557		19,063,279		18,064,009
Cash dividends declared per share of Class A common stock	$	—	$	0.23	$	—	$	0.69

See accompanying notes to unaudited condensed consolidated financial statements.

Table of Contents

RE/MAX HOLDINGS, INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(In thousands)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Net income (loss)	$	3,414	$	(82,672)	$	3,997	$	(80,107)
Change in cumulative translation adjustment		695		(1,015)		(1,010)		313
Other comprehensive income (loss), net of tax		695		(1,015)		(1,010)		313
Comprehensive income (loss)		4,109		(83,687)		2,987		(79,794)
Less: Comprehensive income (loss) attributable to non-controlling interest		2,728		(23,601)		2,272		(21,945)
Comprehensive income (loss) attributable to RE/MAX Holdings, Inc., net of tax	$	1,381	$	(60,086)	$	715	$	(57,849)

See accompanying notes to unaudited condensed consolidated financial statements.

Table of Contents

RE/MAX HOLDINGS, INC.

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

(In thousands, except share amounts)

(Unaudited)


									Retained		Accumulated other
	Class A			Class B			Additional		earnings		comprehensive		Non-		Total
	common stock			common stock			paid-in		(accumulated		income (loss),		controlling		stockholders'
	Shares	Amount		Shares	Amount		capital		deficit)		net of tax		interest		equity (deficit)
Balances, January 1, 2024	18,269,284	$	2	1	$	—	$	550,637	$	(140,217)	$	638	$	(487,121)	$	(76,061)
Net income (loss)	—		—	—		—		—		(3,353)		—		(2,254)		(5,607)
Equity-based compensation expense and dividend equivalents	866,069		—	—		—		8,146		(585)		—		—		7,561
Change in accumulated other comprehensive income (loss)	—		—	—		—		—		—		(743)		(505)		(1,248)
Shares withheld for taxes on share-based compensation	(282,495)		—	—		—		(2,498)		—		—		—		(2,498)
Balances, March 31, 2024	18,852,858	$	2	1	$	—	$	556,285	$	(144,155)	$	(105)	$	(489,880)	$	(77,853)
Net income (loss)	—		—	—		—		—		3,705		—		2,485		6,190
Equity-based compensation expense and dividend equivalents	2,734		—	—		—		2,883		(2)		—		—		2,881
Change in accumulated other comprehensive income (loss)	—		—	—		—		—		—		(275)		(182)		(457)
Shares withheld for taxes on share-based compensation	(930)		—	—		—		(7)		—		—		—		(7)
Other	—		—	—		—		119		(34)		—		5		90
Balances, June 30, 2024	18,854,662	$	2	1	$	—	$	559,280	$	(140,486)	$	(380)	$	(487,572)	$	(69,156)
Net income (loss)	—		—	—		—		—		966		—		2,448		3,414
Equity-based compensation expense and dividend equivalents	22,232		—	—		—		3,357		(4)		—		—		3,353
Change in accumulated other comprehensive income (loss)	—		—	—		—		—		—		415		280		695
Shares withheld for taxes on share-based compensation	(4,842)		—	—		—		(43)		—		—		—		(43)
Other	—		—	—		—		—		—		—		(26)		(26)
Balances, September 30, 2024	18,872,052	$	2	1	$	—	$	562,594	$	(139,524)	$	35	$	(484,870)	$	(61,763)

See accompanying notes to unaudited condensed consolidated financial statements

Table of Contents


									Retained		Accumulated other
	Class A			Class B			Additional		earnings		comprehensive		Non-		Total
	common stock			common stock			paid-in		(accumulated		income (loss),		controlling		stockholders'
	Shares	Amount		Shares	Amount		capital		deficit)		net of tax		interest		equity
Balances, January 1, 2023	17,874,238	$	2	1	$	—	$	535,566	$	(53,999)	$	(395)	$	(449,472)	$	31,702
Net income (loss)	—		—	—		—		—		(671)		—		(8)		(679)
Distributions to non-controlling unitholders	—		—	—		—		—		—		—		(2,889)		(2,889)
Equity-based compensation expense and dividend equivalents	593,463		—	—		—		6,635		(660)		—		—		5,975
Dividends to Class A common stockholders	—		—	—		—		—		(4,164)		—		—		(4,164)
Repurchase and retirement of common shares	(160,405)							—		(3,408)		—		—		(3,408)
Change in accumulated other comprehensive income (loss)	—		—	—		—		—		—		82		17		99
Shares withheld for taxes on share-based compensation	(185,349)		—	—		—		(3,458)		—		—		—		(3,458)
Other	—		—	—		—		—		(235)		—		—		(235)
Balances, March 31, 2023	18,121,947	$	2	1	$	—	$	538,743	$	(63,137)	$	(313)	$	(452,352)	$	22,943
Net income (loss)	—		—	—		—		—		2,010		—		1,234		3,244
Distributions to non-controlling unitholders	—		—	—		—		—		—		—		(2,889)		(2,889)
Equity-based compensation expense and dividend equivalents	5,682		—	—		—		3,688		(3)		—		—		3,685
Dividends to Class A common stockholders	—		—	—		—		—		(4,168)		—		—		(4,168)
Change in accumulated other comprehensive income (loss)	—		—	—		—		—		—		816		413		1,229
Shares withheld for taxes on share-based compensation	(1,013)		—	—		—		(19)		—		—		—		(19)
Balances, June 30, 2023	18,126,616	$	2	1	$	—	$	542,412

RE/MAX Holdings, Inc. [RMAX] Filings
10-Q	[2024-10-31]
10-Q	[2024-08-08]
10-Q	[2024-05-02]
10-K	[2024-02-22]
10-Q	[2023-11-03]
10-Q	[2023-08-02]
10-Q	[2023-05-04]
10-K	[2023-02-28]
10-Q	[2022-11-03]
10-Q	[2022-08-04]
10-Q	[2022-04-28]
10-K	[2022-02-23]
10-Q	[2021-12-21]
10-Q	[2021-08-04]
10-Q	[2021-05-06]
10-K	[2021-02-25]
10-Q	[2020-11-05]
10-Q	[2020-08-06]
10-Q	[2020-05-06]
10-K	[2020-02-21]
10-Q	[2019-11-01]
10-Q	[2019-08-02]
10-Q	[2019-05-03]
10-K	[2019-02-22]
10-Q	[2018-11-02]
10-Q	[2018-08-03]
10-Q	[2018-05-04]
10-K	[2018-03-15]
10-Q	[2018-03-15]
10-Q	[2017-08-04]
10-Q	[2017-05-05]
10-K	[2017-02-24]
10-Q	[2016-11-04]
10-Q	[2016-08-05]
10-Q	[2016-05-06]
10-K	[2016-02-26]
10-Q	[2015-11-06]
10-Q	[2015-08-07]
10-Q	[2015-05-08]
10-K	[2015-03-13]
10-Q	[2014-11-14]
10-Q	[2014-08-14]
10-Q	[2014-05-15]
10-K	[2014-03-28]
10-Q	[2013-11-14]
S-1	[2013-08-19]