RE/MAX Holdings, Inc. (NYSE:RMAX) Q3 2016 Earnings Conference Call - Preliminary Transcript

Aug 05, 2016 • 08:30 am ET


RE/MAX Holdings, Inc. (NYSE:RMAX) Q3 2016 Earnings Conference Call - Preliminary Transcript


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Good morning and welcome to the RE/MAX Holdings Third Quarter 2016 Earnings Conference Call and webcast. My name is Denise and I'll be facilitating the audio portion of today's call. At this time, I'd like to turn the call over to Andy Schulz, Executive Director of Investor Relations. Mr. Schulz, begin.

Andy Schulz

Thank you, operator. Good morning, everyone, and welcome to RE/MAX's third quarter 2016 earnings conference call. Please visit the Investor Relations page of for all earnings related materials and to access the live webcast and the replay of the call today.

If you are participating through the webcast, please notice that you'll need to advance the slides as we move through the presentation.

Turning to slide two, I would like to remind everyone that on todays 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, housing market conditions, revenue, operating expenses, financial guidance 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 our third quarter earnings release, which is available on our website.

Upon the conclusion of our prepared remarks by our Chief Executive Officer and Co-Founder, Dave Liniger, and our Chief Financial Officer, Karri Callahan, we will open the call for Q&A, at which time we will be joined by Adam Contos, RE/MAX's, Chief Operating Officer, and Geoff Lewis, RE/MAX's our President and Ward Morrison, Motto Mortgage, President.

With that, I would like to turn the call over to RE/MAX CEO, David Liniger. Dave?

David Liniger

Thank you, Andy. And thanks to everyone for joining us on our call. It's a real pleasure to be with you today as we have a number of exciting events to share. First, our business continues to perform well. Our strong financial performance in the third quarter exceeded our expectations, highlighted by increases in agent count, revenue, margins and cash flow.

Second, the recent launch of our innovative mortgage brokerage franchise Motto Mortgage is an opportunity we believe will be a positive catalyst to our existing business for many years to come and yesterday afternoon, we announced we've signed an agreement to acquire the Master Franchise rights to the New Jersey region effective in early December. We will provide more details on each of these topics in our prepared remarks today, while making sure we leave enough time for your questions.

So let's get started. Looking at slide four, in the third quarter we successfully executed on our strategic priorities. Our focus on the three pillars of value creation, organic growth, reinvestment and acquisition growth catalyst and