RE/MAX Holdings, Inc. (NYSE:RMAX) Q3 2019 Earnings Conference Call Transcript

Nov 01, 2019 • 08:30 am ET

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RE/MAX Holdings, Inc. (NYSE:RMAX) Q3 2019 Earnings Conference Call Transcript

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Operator
Operator

Good morning and welcome to the RE/MAX Holdings Third Quarter 2019 Earnings Conference Call and Webcast. My name is Sharon 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 Vice President of Investor Relations. Mr. Schulz.

Executive
Andy Schulz

Thank you operator. Good morning everyone and welcome to RE/MAX Holdings Third 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 third 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. Ward Morrison President of Motto Mortgage; and Nick Bailey RE/MAX Chief Customer Officer will join us for the Q&A.

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. The successful launch of our booj technology platform greater stability in our U.S. agent count continued double-digit growth in international agent count and ongoing Motto Mortgage expansion all were key contributors to our third quarter results. We're starting to see positive traction from the multiple strategic moves we made the past two years. And although it's still early our recent performance coupled with the improving housing markets in both the U.S. and Canada gives us added confidence that we'll end 2019 and enter the new year with good momentum. Highlights of the quarter included: Global RE/MAX agent count increased 3.5% exceeding 128000 agents for the first time in our history; revenue of $71.5 million; adjusted EBITDA of $28.2 million; adjusted EPS of $0.61 per share; the successful launch of the RE/MAX technology platform powered by booj with more and more agents adopting it each week; and the continuing growth of the Motto Mortgage brand which recently sold its 150th franchise. Let's start here.

Looking at slide four. Motto was launched three years ago with