RE/MAX Holdings, Inc. (RMAX) Q1 2022 Earnings Conference Call April 29, 2022 8:30 AM ET Company Participants Andy Schulz – Senior Vice President of Investor Relations Steve Joyce – Chief Executive Officer Ward Morrison – President and Chief Executive Officer of Motto Mortgage and Wemlo Nick Bailey – President and Chief Executive Officer of RE/MAX, LLC Karri Callahan – Chief Financial Officer Conference Call Participants Rich Hill – Morgan Stanley Anthony Paolone – JP Morgan Ryan McKeveny – Zelman & Associat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2022. OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number: 001-36101 RE/MAX Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organ ...

RE/MAX® H O L D I N G S, I N C. RE/MAX Holdings, Inc. Fourth Quarter & FY 2021 Earnings February 24, 2022 Forward-Looking Statements This presentation includes "forward-hooking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Lifigation Reform Act of 1995. Forward-looking statements are often identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project," "anticipate," "may," "will," "would" and other simil ...

RE/MAX Holdings, Inc. (RMAX) Q4 2021 Earnings Conference Call February 24, 2022 8:30 AM ET Company Participants Andy Schulz - Senior Vice President, Investor Relations Adam Contos - Chief Executive Officer Steve Joyce - Director and Incoming Chief Executive Officer Karri Callahan - Chief Financial Officer Nick Bailey - Chief Customer Officer Ward Morrison - President and Chief Executive Officer, Motto Franchising Conference Call Participants Ryan McKeveny - Zelman & Associates Stephen Sheldon - William Blai ...

Acquisitions - The company acquired the North American regions of RE/MAX INTEGRA for cash consideration of approximately $235.0 million on July 21, 2021[323]. - The company acquired the operating companies of RE/MAX INTEGRA, converting over 19,000 agents into Company-Owned Regions in 2021[352]. - The company acquired Gadberry for a total of $20 million, including $4.6 million in cash and $5.5 million in common stock, plus $9.9 million in equity-based compensation[434]. - The acquisition of wemlo was completed for $6.1 million in cash and $3.3 million in common stock, along with $6.7 million in equity-based compensation[435]. - The total purchase price allocated to assets and liabilities for the acquisition of INTEGRA was $194.1 million, with a total consideration of $235 million[432]. - The Company recorded $108.9 million in goodwill from the acquisition of INTEGRA, primarily attributable to expected synergies and projected long-term revenue growth[433]. Financial Performance - Total revenue for 2021 was $329.7 million, an increase of 24% from $266.0 million in 2020[341]. - Net loss attributable to RE/MAX Holdings, Inc. for 2021 was $15.6 million, compared to a net income of $11.3 million in 2020[341]. - Total revenue for the year ended December 31, 2021, was $356.5 million, compared to $309.5 million in 2020, reflecting a year-over-year increase of approximately 15.2%[440]. - The net income attributable to RE/MAX Holdings, Inc. for 2021 was a loss of $16.1 million, compared to a net income of $6.5 million in 2020[440]. - The company reported a loss before provision for income taxes of $22,161,000 in 2021, a decline from a profit of $29,708,000 in 2020[490]. Assets and Liabilities - Total assets increased to $776.1 million in 2021, up from $546.4 million in 2020, representing a growth of 42%[338]. - Total liabilities rose to $707.1 million in 2021, compared to $444.7 million in 2020, marking a 59% increase[338]. - As of December 31, 2021, total debt was $457.7 million, significantly increased from $225.0 million in 2020[449]. - Cash and cash equivalents increased to $126.3 million in 2021, up from $101.4 million in 2020, a growth of 24.6%[338]. - Long-term deferred tax assets, net of valuation allowance, amounted to $54.52 million as of December 31, 2021, compared to $53.47 million in 2020[463]. Revenue Streams - The company reported a significant increase in franchise fees, which rose to $118.5 million in 2021, up from $90.2 million in 2020, a growth of 31%[341]. - Fee revenue for the year ended December 31, 2021, was $211,618,000, up from $169,966,000 in 2020, indicating a growth of approximately 24.5%[376]. - Continuing franchise fees increased to $110.6 million in 2021 from $84.9 million in 2020, representing a growth of 30%[488]. - Total revenue from mortgage processing increased to $10,051,000 in 2021 from $6,610,000 in 2020, showing a growth trend in this segment[376]. - The mortgage segment reported total revenue of $10.1 million in 2021, up from $6.6 million in 2020, marking a 53% increase[488]. Expenses - Selling, operating, and administrative expenses for 2021 were $179.9 million, an increase of 39% from $129.0 million in 2020[341]. - Equity-based compensation expense rose to $34.30 million in 2021, up from $16.27 million in 2020, indicating increased investment in talent[350]. - Acquisition-related expenses increased to $17,422,000 in 2021 from $2,375,000 in 2020, showing a significant rise of 632.5%[490]. - Interest expense increased to $11,344,000 in 2021 from $9,223,000 in 2020, reflecting a rise of 23.1%[490]. - The company incurred a loss on contract settlement amounting to $40,900,000 in 2021[490]. Cash Flow - Cash flows from operating activities decreased to $42.44 million in 2021 from $70.85 million in 2020, reflecting a decline of approximately 40%[350]. - Total cash used in investing activities significantly increased to $194.92 million in 2021 from $17.53 million in 2020, primarily due to acquisitions[350]. - Cash, cash equivalents, and restricted cash at the end of the period increased to $158.40 million in 2021 from $121.23 million in 2020[350]. - The company declared cash dividends of $0.92 per share for Class A common stock in 2021, compared to $0.88 in 2020[341]. Credit and Risk Management - The company is exposed to credit risk related to receivables from franchisees and performs quarterly reviews of credit exposure[309]. - The allowance for doubtful accounts decreased to $9,564,000 in 2021 from $11,724,000 in 2020, indicating improved credit quality[385]. - The company does not engage in interest rate hedging but monitors interest rates for potential future hedging activities[310]. - A hypothetical 5% strengthening/weakening of the U.S. dollar compared to the Canadian dollar would have resulted in a decrease/increase to operating income of approximately $1.2 million during the year ended December 31, 2021[313]. Technology and Growth Initiatives - The company is focused on diversifying and broadening its revenue and growth opportunities through technology initiatives and potential acquisitions[16]. - Technology operating costs increased to $13,396,000 in 2021 from $12,245,000 in 2020, reflecting ongoing investments in technology[380]. - The company aims to increase the number of RE/MAX agents and closed transaction sides, as well as expand the number of Motto Mortgage offices[16]. Tax and Valuation - The provision for income taxes for 2021 was $2.46 million, significantly lower than $9.16 million in 2020[461]. - The Company assesses the recoverability of deferred tax assets based on expected future earnings and may establish a valuation allowance if full recoverability is not likely[397]. - The Company anticipates utilizing its net operating loss carryforward of $0.7 million related to a Canadian subsidiary within the next two years[465].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2021. OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number: 001-36101 RE/MAX Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

Q3 2021 Financial Performance - RE/MAX achieved record revenue of $91.0 million in Q3 2021[4] - The company's Adjusted EBITDA reached a record $35.0 million with a margin of 38.4%[4] - Adjusted Basic and Diluted EPS also hit a record of $0.71[4] - Total revenue increased by $19.9 million, or 28.0%, compared to Q3 2020's $71.1 million[18] - Recurring revenue streams increased by $8.5 million, or 25.6%, compared to Q3 2020, accounting for 61.2% of revenue (excluding Marketing Funds)[18] Agent Network Growth - Total agent count grew by 6,167 agents, or 4.6%, year-over-year, reaching a record 140,936 agents[4, 12] - Agent count in the U.S and Canada combined increased by 2.2%[4] - Agents Outside U.S. & Canada increased 8.5%[10] Expenses - Selling, operating, and administrative expenses, excluding Marketing Funds, represented 75.4% of revenue, compared to 52.5% in the prior-year period[24] Q4 2021 and Full Year Outlook - For Q4 2021, RE/MAX expects agent count to increase 2.5% to 3.5% over Q4 2020[28] - Q4 2021 revenue is projected to be in the range of $86.0 million to $90.0 million (including Marketing Funds revenue of $22.0 million to $24.0 million)[28] - Full-year 2021 agent count is expected to increase 2.5% to 3.5% over 2020, revised down from 5.0% to 6.0%[29]

Financial Data and Key Metrics Changes - RE/MAX Holdings reported record revenue of $91 million for Q3 2021, a 28% increase year-over-year, with organic revenue growth of almost 7% [6][21] - Adjusted EBITDA reached a record $35 million, and adjusted diluted EPS was $0.71 [7] - The company increased its profit guidance for 2021 based on strong Q3 results [8] Business Line Data and Key Metrics Changes - Motto franchise sales remained strong, with open office count up more than 30% year-over-year [5][6] - Gadberry Group (now G73) posted a quarterly profit, contributing positively to overall revenue [7] - The core business generated nearly 7% organic revenue growth, with expectations for continued mid-single-digit organic growth [7][21] Market Data and Key Metrics Changes - October home sales in surveyed metros dropped 6.4% from September, indicating a cooling housing market [9] - Inventory levels decreased to 1.3 months supply in October, down from 1.5 months in September, highlighting ongoing supply chain challenges [10] Company Strategy and Development Direction - The company is focused on diversifying and expanding revenue opportunities, with significant investments in technology and acquisitions [5][8] - The integration of RE/MAX Integra's North American regions is a priority, with a focus on enhancing support for franchisees and agents [8] - RE/MAX is positioning itself for growth in Canada, leveraging its strong market presence and recent acquisitions [13][40] Management's Comments on Operating Environment and Future Outlook - Management noted a robust housing market despite recent sales declines, with expectations for a more balanced market moving forward [9][10] - The company anticipates continued growth in agent count and revenue, with a focus on maintaining productivity among agents [12][38] - Management expressed confidence in the company's strategic direction and the potential for future growth [25] Other Important Information - The company has launched a reinvention of its RE/MAX University platform to enhance agent training and productivity [15] - The introduction of the wemlo loan brokering system is expected to provide additional revenue opportunities [19][36] Q&A Session Summary Question: Revenue per agent trends - Management indicated that revenue per agent has remained consistent at around $2,600 to $2,700, benefiting from a recurring revenue model [27] Question: Measurement of productive brokers - Management conducts regular analyses of franchisee performance, leading to terminations of underperforming agents [28][29] Question: G73 revenue model - G73 operates on a subscription-based revenue model, contributing to overall franchise sales and revenue growth [31][32] Question: Reduced agent count growth - Management attributed reduced growth to unexpected terminations of underperforming franchisees in specific states [38] Question: Market share in Canada - RE/MAX holds approximately 30% market share across Canada, with potential for further growth [40] Question: Normalizing SOA and non-cash compensation - Management expects SOA to normalize around $7 million per quarter, with incremental amortization expenses from acquisitions [41][42]

Financial Data and Key Metrics Changes - The company reported record revenue of $77.2 million and adjusted EBITDA of $30.5 million for Q2 2021, with adjusted diluted EPS of $0.63 [8][35] - Total revenue increased by nearly 3% due to acquisitions, while organic revenue growth showed a mid-single-digit increase [36][37] - The company converted almost 70% of adjusted EBITDA into free cash flow over the past 12 months [34] Business Line Data and Key Metrics Changes - The acquisition of RE/MAX INTEGRA added over 19,000 agents and 1,100 offices, contributing significantly to growth [9][10] - Motto Mortgage experienced a nearly 30% year-over-year increase in open offices, with 164 open franchises and a target of 200 by year-end [28][30] - The mortgage segment contributed over 1% to overall topline organic growth for the quarter [55] Market Data and Key Metrics Changes - The U.S. housing market saw record home sales and prices, with June sales up more than 14% over May [13][15] - The median sales price reached a record of $336,000, a 4.9% increase from the previous record [13] - Inventory of homes listed for sale grew by 1.9% over May, marking the first increase since March 2020, although still down 37.5% from June 2020 [14] Company Strategy and Development Direction - The company plans to focus on integrating the acquired INTEGRA regions and paying down debt while exploring further strategic acquisitions [12][64] - Investments in technology and branding are aimed at enhancing the value proposition for agents and franchisees [11][21] - The company is exploring opportunities to provide additional services to enhance the customer experience throughout the homeownership lifecycle [64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the housing market's strength and the company's growth trajectory, expecting continued mid-single-digit organic growth [15][37] - The successful refinancing of the credit facility is expected to improve financial flexibility and support future growth initiatives [41][42] - The company anticipates a strong second half of 2021, driven by the integration of the INTEGRA acquisition and favorable market conditions [46] Other Important Information - The company has over $100 million in cash on its balance sheet, providing flexibility for future acquisitions [12] - The First app, which aids agents in identifying potential clients, won an Innovation Award and is expected to enhance agent productivity [22][25] Q&A Session Summary Question: How much was factored into the guidance for the INTEGRA deal? - The guidance includes an annualized run rate and adjustments for interest cost improvements, with an expected adjusted EPS contribution increase of $0.05 to $0.06 [48] Question: Is the international business maturing? - Management does not believe the international business has hit a maturity point affecting growth, attributing any slowdowns to ongoing COVID-19 lockdowns [51] Question: What was the contribution from Motto and newer businesses? - Motto contributed a little over 1% to overall topline organic growth, with expectations for high-single-digit contributions for the full year [55][56] Question: Are there any identified cost synergies from the INTEGRA acquisition? - Year one cost synergies are included in the EBITDA contribution, with ongoing optimization expected during integration [66] Question: What is the outlook for the mortgage broker channel? - The broker channel is growing, with a year-over-year volume increase of nearly 72%, driven by competitive pricing and strong performance from Motto franchisees [70] Question: What is the business model for Gadberry and other acquisitions? - Gadberry operates on a recurring revenue model, while wemlo is more transactional, with expectations for long-term margin characteristics similar to RE/MAX [74] Question: Is there expected attrition of agents from the INTEGRA conversion? - Management does not anticipate significant attrition, as key leaders from the previous franchise system remain in place [76] Question: What is the target leverage ratio? - The company aims for a leverage ratio of four times on a gross basis and three times on a net basis, with a focus on cash generation for future allocations [87]

Q2 2021 Financial Performance - RE/MAX Holdings achieved record revenue of $77.2 million in Q2 2021, a 48.0% increase compared to $52.2 million in Q2 2020[6, 26] - The company reported record Adjusted EBITDA of $30.5 million in Q2 2021[6] - Adjusted EBITDA margin was 39.5% in Q2 2021, compared to 36.2% in Q2 2020[6, 55] - Adjusted basic and diluted EPS were $0.64 and $0.63 respectively[6] Agent Network Growth - Total agent count grew by 8,296 agents, a 6.3% year-over-year increase, reaching 140,201 agents[5, 17] - Agent count in the U S and Canada combined increased by 3%, reaching the highest total count since Q3 2018[5] - Agents Outside U S & Canada increased 11.8% (+5,774 Agents) year-over-year[15] - Agents in Canada increased 8.3% (+1,771 Agents) year-over-year[15] - Agents in the U S increased 1.2% (+751 Agents) year-over-year[15] Motto Mortgage Expansion - Motto open offices increased almost 30% year-over-year to 164 offices[5] - Motto Mortgage continues to expand with year-over-year revenue growth of approximately 46%[61] Strategic Acquisitions and Capital Allocation - The company announced an agreement to acquire INTEGRA's North American regions and closed the transaction in July[5] - The acquisition of RE/MAX INTEGRA North American regions was funded with $235 million in debt[37] - A new $460 million Term Loan B, plus a $50 million revolving credit facility refinanced the prior existing $224 million Term Loan B[37] Market Trends - Closed transactions increased 14.2% year-over-year[11] - Median sales price increased 21.9% year-over-year to $336,000[12] - Months supply of inventory decreased 49.6% year-over-year[11] Q3 and Full Year 2021 Outlook - The company expects agent count to increase 5.0% to 6.0% over Q3 2020[40] - Revenue is projected to be in the range of $86.5 million to $91.5 million, including Marketing Funds revenue of $21.5 million to $23.5 million[40] - Adjusted EBITDA is expected to be in the range of $29.5 million to $33.0 million[40]