RE/MAX(RMAX) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2024 was $72.5 million, a decrease of 5.4% compared to Q4 2023[3] - Revenue excluding Marketing Funds decreased 3.9% to$ 53.8 million, driven by negative organic growth of 3.5% and adverse foreign currency movements of 0.4%[5] - Adjusted EBITDA increased 1.6% to $23.3 million, with an Adjusted EBITDA margin of 32.2%[11] - Net income attributable to RE/MAX Holdings was$ 5.8 million, with GAAP EPS of $0.29, compared to a net loss of$ 10.9 million in Q4 2023[9] - Total operating expenses for Q4 2024 were $68.2 million, a decrease of 21.0% compared to Q4 2023[7] - For Q4 2024, RE/MAX Holdings reported a net income of$ 4,080,000, a significant improvement from a net loss of $18,379,000 in Q4 2023[36] - Adjusted EBITDA for Q4 2024 was$ 23,341,000, compared to $22,976,000 in Q4 2023, reflecting an adjusted EBITDA margin of 32.2%[36] - Adjusted net income for the year ended December 31, 2024, was$ 41,494,000, slightly down from $41,695,000 in 2023[40] - Adjusted EBITDA for 2024 was$ 97,700 million, slightly up from $96,288 million in 2023, indicating a growth of 1.5%[46] Agent Count and Franchise Operations - Total agent count increased 1.2% to 146,627 agents, while U.S. and Canada combined agent count decreased 4.8% to 76,457 agents[4] - Total open Motto Mortgage franchises decreased 8.5% to 225 offices[3] - The total agent count in the U.S. decreased to 51,286 in Q4 2024 from 55,131 in Q4 2023, indicating a decline of approximately 7% year-over-year[34] - The total number of independent regions outside the U.S. and Canada increased to 70,170 in Q4 2024, up from 64,536 in Q4 2023, representing an increase of about 8%[34] Cash and Liquidity - Cash and cash equivalents as of December 31, 2024, were$ 96.6 million, an increase of $14.0 million from the previous year[13] - Cash and cash equivalents increased to$ 96,619,000 as of December 31, 2024, up from $82,623,000 in 2023[30] - Total current assets rose to$ 218,511,000 in 2024, compared to $176,565,000 in 2023, reflecting a growth of 23.7%[30] - The company reported a net cash provided by operating activities of$ 59,652,000 for the year ended December 31, 2024, compared to $28,264,000 in 2023[32] - Cash flow from operations for the year ended December 31, 2024, was$ 59,652 million, a significant increase from $28,264 million in 2023, representing a growth of 111%[46] - Adjusted free cash flow reached$ 51,002 million in 2024, up from $35,670 million in 2023, marking an increase of 43%[46] - Unencumbered cash generated amounted to$ 46,402 million in 2024, an increase from $31,058 million in 2023, which is a rise of 49%[46] Debt and Expenses - Total liabilities decreased to$ 639,988,000 in 2024 from $653,211,000 in 2023, a reduction of 2%[30] - Interest expense for the year ended December 31, 2024, was$ 36,258,000, compared to $35,741,000 in 2023, indicating a slight increase[36] - Debt principal payments remained consistent at$ 4,600 million for both years, indicating stable debt management[46] Strategic Initiatives - The company restructured its support services in Q4 2024 to enhance customer experience, alongside a reduction in force announced in Q3 2023 aimed at long-term cost savings[42] - The company emphasizes that adjusted free cash flow is a key measure for assessing cash available for strategic opportunities, including acquisitions and reinvestments[58] Dividends and Shareholder Returns - RE/MAX Holdings, Inc. declared no cash dividends for the year ended December 31, 2024, compared to $0.69 per share in 2023[28] - The weighted average shares of Class A common stock outstanding increased to 18,921,229 in Q4 2024 from 18,253,608 in Q4 2023[28] - Total basic pro forma shares outstanding increased to 31,480,829 in Q4 2024 from 30,813,208 in Q4 2023, reflecting a growth of approximately 2.2%[44]