RE/MAX Holdings, Inc. (NYSE:RMAX) Q1 2016 Earnings Conference Call - Final Transcript

May 06, 2016 • 08:30 am ET


RE/MAX Holdings, Inc. (NYSE:RMAX) Q1 2016 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Re/Max Holdings' First Quarter 2016 Earnings Conference Call and Webcast. My name is Melissa and I will be facilitating the audio portion of today' s call.

At this time, I would like to turn the call over to Peter Crowe, Senior Vice President of Communications and Marketing. Mr. Crowe?

Peter Crowe

Thank you, operator. Good morning, everyone and welcome to Re/Max's first quarter 2016 earnings conference call. Joining me today are our Chief Executive Officer and Co-Founder, Dave Liniger; and our Chief Financial Officer, Karri Callahan.

Please visit the Investor Relations page of for all earnings related materials and to access the live webcast and a replay of the today's call. If you are participating through the webcast, please note that you will need to advance the slides as we move through the presentation.

Turning to Slide 2, I would like to remind everyone that on today's call, our prepared remarks and answers to your questions may contain forward-looking statements. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ materially from those discussed today. Examples of forward-looking statements may include those related to agent count, revenue, operating expenses, financial guidance, housing market conditions as well as non-GAAP financial measures.

As a reminder, forward-looking statements represent management's current estimates. Re/Max assumes no obligation to update any forward-looking statements in the future. We encourage listeners to review the more detailed discussions related to these forward-looking statements contained in our filings with the SEC and the definitions and reconciliations of non-GAAP measures contained in the fourth quarter earnings press release, which is available on our website.

With that, I would like to turn the call over to Re/Max CEO, Dave Liniger. Dave?

Dave Liniger

Thanks you, Pete, and thanks to everyone for joining our call today. Turning to Slide 3, we had a positive start to 2016, as the strength of our business model and continued execution of our strategy yielded solid results. As a reminder, we are focused on three core pillars that create shareholder value are getting growth, acquisition and investment catalysts and return of capital to shareholders.

Since the beginning of the year, we have made substantial progress across all three fronts. Agent count, our key nature of organic growth, increased by almost 7% year-over-year in the first quarter, surpassing our expectations.

We acquired the master franchise rights to both New York and Alaska. We also continued to strategically reinvest in our business, most notably evidenced by the recent launch of the redesigned Re/ And yesterday, we announced our quarterly dividend of $0.15 per share. All of this combined with a gradually improving housing market, lays a strong foundation on which to build in 2016.

Before we move into our quarterly performance, there are couples of important milestones I want to note. First, a leading real estate industry publication, recently announced the results of their 2015 annual survey of large brokerages. Among the more notable findings were these. First