RE/MAX Holdings, Inc. (NYSE:RMAX) Q2 2018 Earnings Conference Call - Final Transcript

Aug 03, 2018 • 08:30 am ET


RE/MAX Holdings, Inc. (NYSE:RMAX) Q2 2018 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the RE/MAX Holdings Second Quarter 2018 Earnings Conference Call and Webcast. My name is Kim, and I will be facilitating the audio portion of today's call.

At this time, I would like to turn the call over to Andy Schulz, VP of IR. Mr. Schulz?

Andy Schulz

Thank you, operator. Good morning, everyone, and welcome to RE/MAX Holdings second quarter 2018 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 note that you will need to advance the slides as we move through the presentation.

(Forward-Looking Cautionary Statements)

Our CEO, Adam Contos; and our CFO, Karri Callahan are joining me today on our call. Ward Morrison, President of Motto Mortgage, will join us for the Q&A.

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

Adam Contos

Thank you, Andy, and thanks to everyone for joining our call today. Looking at slide 3. Our business continue to perform well during the second quarter and steady performance across our major operating drivers led to double digit revenue growth. Some of the high points of the quarter included total agent count, one of our key operating metrics grew in line with our expectations and increased almost 7,000 agents' year-over-year. Motto expansion continued highlighted by an acceleration in office openings.

Adjusted earnings per share increased more than 15% due almost exclusively to the 2017 tax reform as we continue to invest meaningfully in technology and Motto's growth. The integration of booj is off to a great start as we shape the future of real estate technology at RE/MAX and another significant report recently reconfirmed our status as the industry leader in agent productivity continuing a multi-year trend of independent recognition will start here.

Turning to slide 4. REAL Trends recently announced its annual real estate agent rankings. One of the most widely followed reports in our industry REAL Trends America's best real estate professionals ranks participating U.S. agents based on their 2017 residential transactions sides and volume. For the fourth consecutive year RE/MAX is home to more top ranked agents than any other brand. In fact, nearly one in four of America's best were RE/MAX agents. No matter what else might be happening in the real estate space RE/MAX continues to attract and develop the industry's top producing professionals. It remains a defining characteristic of our brand and value proposition.

We should note, however, that being the world's most productive real estate network is just one of our many competitive advantages. RE/MAX is also recognized for a unique agent-centric model for having an unmatched global footprint and for being the number one name in real estate. Nobody in the world sells more real estate than RE/MAX in terms of residential transaction sides and that leadership position creates business opportunities for every member of our organization.

Turning to slide