RE/MAX Holdings, Inc. (NYSE:RMAX) Q1 2018 Earnings Conference Call - Final Transcript

May 04, 2018 • 08:30 am ET

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RE/MAX Holdings, Inc. (NYSE:RMAX) Q1 2018 Earnings Conference Call - Final Transcript

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Operator
Operator

Good morning and welcome to the RE/MAX Holdings First Quarter 2019 Earnings Conference Call and Webcast. My name is Carol and I will be facilitating the audio portion of today's call.

At this time, I'd like to turn the call over to Andy Schulz, Vice President of Investor Relations. Mr. Schulz?

Executive
Andy Schulz

Thank you, operator. Good morning everyone and welcome to RE/MAX Holdings first quarter 2019 earnings conference call. Please visit the Investor Relations page of remax.com 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 note that you will need to advance the slides as we move through the presentation.

Turning to slide two. Our prepared remarks and answers to your questions on today's call may contain forward-looking statements. Forward-looking statements include those related to agent count, franchise sales, financial measures and guidance, brand expansion, competition, technology, housing market conditions, dividends, strategic and operational plans, and business models.

Forward-looking statements represent management's current estimates. RE/MAX assumes no obligation to update any forward-looking statements in the future. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ materially from those projected in forward-looking statements. These are discussed in our first quarter 2019 financial results press release and other SEC filings. Also, we will refer to certain non-GAAP measures on today's call. Please see the definitions and reconciliations of non-GAAP measures contained in our most recent quarterly financial results press release, which is available on our website. Joining me on our call today are Adam Contos, our Chief Executive Officer; and Karri Callahan, our Chief Financial Officer.

With that, I'd like to turn the call over to RE/MAX Holdings' CEO, Adam Contos. Adam?

Executive
Adam Contos

Thank you, Andy and thanks to everyone for joining our call today. Looking at slide three, our global agent count surpassed 125,000 agents for the first time in our Company's history during the first quarter. Motto mortgage expansion in the US and strong international RE/MAX growth helped offset lower revenue, stemming from challenging housing market conditions in the US and Canada. Our agent-centric differentiated business model and diverse revenue streams contributed to relatively resilient top and bottom line performance despite the 7% year-over-year decline in US existing home sales this quarter.

Moreover, during this past quarter, we continue to take bold steps to strengthen our market leading value proposition and position ourselves well for sustainable long-term growth. By continuously adding or enhancing essential tools, technology and training, we can recruit and retain the industry's most productive agents and teams and help us support the growth of RE/MAX franchisees domestically and internationally.

To that end, we recently announced a business building referral relationship with Redfin, exclusive to participating RE/MAX agents in certain US zip codes and most of Canada. This exclusive powerful tool is yet another example of how RE/MAX supports our network of entrepreneurial, highly productive agents and teams in helping to build their businesses.