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The RMR Group(RMR) - 2022 Q1 - Quarterly Report
2022-01-27 21:33
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 Commission file number 001-37616 THE RMR GROUP INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 47-4122583 (State of Organization) (IRS Employer Identification No.) Two Newton Place, 255 Washington Street, Suite 300, Newton, MA 02458-1634 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number ...
The RMR Group(RMR) - 2021 Q4 - Earnings Call Transcript
2021-11-16 18:43
The RMR Group Inc. (NASDAQ:RMR) Q4 2021 Earnings Conference Call November 16, 2021 10:00 AM ET Company Participants Michael Kodesch – Director-Investor Relations Adam Portnoy – President and Chief Executive Officer Matt Jordan – Chief Financial Officer Conference Call Participants Bryan Maher – B. Riley FBR Ronald Kamdem – Morgan Stanley Jim Sullivan – BTIG Kenneth Lee – RBC Capital Market Operator Good day and welcome to RMR's Fiscal Fourth Quarter 2021 Earnings Conference Call. All participants will be in ...
The RMR Group(RMR) - 2021 Q4 - Annual Report
2021-11-15 21:24
Table of Contents or UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-37616 THE RMR GROUP INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 47-4122583 (State of Organization) (IRS Employer Identification No.) T ...
The RMR Group(RMR) - 2021 Q3 - Earnings Call Presentation
2021-08-16 19:48
____________________________________________________________________________ FOR IMMEDIATE RELEASE The RMR Group Inc. Announces Third Quarter Fiscal 2021 Results Net Income of $19.0 Million, or $0.50 Per Diluted Share Adjusted Net Income of $0.47 Per Diluted Share, a 27% Sequential Quarter Increase and a 24% Increase from Last Year Adjusted EBITDA of $24.4 Million, a 16% Sequential Quarter Increase and a 25% Increase from Last Year Newton, MA (August 5, 2021). The RMR Group Inc. (Nasdaq: RMR) today announce ...
The RMR Group(RMR) - 2021 Q3 - Earnings Call Transcript
2021-08-06 23:55
The RMR Group Inc. (NASDAQ:RMR) Q3 2021 Earnings Conference Call August 6, 2021 1:00 PM ET Company Participants Michael Kodesch - Director, IR Adam Portnoy - President and CEO Matt Jordan - CFO Conference Call Participants Bryan Maher - B. Riley FBR Jim Sullivan - BTIG Kenneth Lee - RBC Capital Markets Ronald Kamdem - Morgan Stanley Owen Lau - Oppenheimer Operator Good day, and welcome to The RMR Group Fiscal Third Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operato ...
The RMR Group(RMR) - 2021 Q3 - Quarterly Report
2021-08-05 20:38
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 June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-37616 THE RMR GROUP INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 47-4122583 (State of Organization) (IRS Employer Identification No.) Two Newton Place ...
The RMR Group(RMR) - 2021 Q2 - Earnings Call Transcript
2021-05-11 00:49
The RMR Group Inc. (NASDAQ:RMR) Q2 2021 Earnings Conference Call May 10, 2021 1:00 PM ET Company Participants Michael Kodesch - Director, Investor Relations Adam Portnoy - President and Chief Executive Officer Matt Jordan - Chief Financial Officer Conference Call Participants Jim Sullivan - BTIG Bryan Maher - B. Riley FBR Owen Lau - Oppenheimer Ronald Kamdem - Morgan Stanley Kenneth Lee - RBC Capital Markets Dean Stephan - Bank of America Operator Good day and welcome to The RMR Group Fiscal Second Quarter ...
The RMR Group(RMR) - 2021 Q2 - Quarterly Report
2021-05-07 21:44
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, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-37616 THE RMR GROUP INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 47-4122583 (State of Organization) (IRS Employer Identification No.) Two Newton Plac ...
The RMR Group(RMR) - 2021 Q1 - Earnings Call Transcript
2021-02-02 20:08
The RMR Group Inc. (NASDAQ:RMR) Q1 2021 Results Conference Call February 2, 2021 10:00 AM ET Company Participants Michael Kodesch - Director of Investor Relations Adam Portnoy - President and Chief Executive Officer Matt Jordan - Chief Financial Officer Conference Call Participants Bryan Maher - B. Riley Securities Ronald Kamdem - Morgan Stanley Kwun Sum Lau - Oppenheimer & Co James Sullivan - BTIG, LLC Kenneth Lee - RBC Capital Markets, Dean Stephan - BofA Merrill Lynch Millie Wu - Citi Operator Good day ...
The RMR Group(RMR) - 2021 Q1 - Quarterly Report
2021-02-02 16:21
[Part I. Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited condensed consolidated financial statements for the quarter ended December 31, 2020, show a slight decrease in total revenues to $156.9 million, primarily due to lower management services fees [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2020, total assets increased slightly to $698.4 million, driven by a $13.5 million rise in cash and cash equivalents to $383.2 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2020 | Sep 30, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$698,393** | **$690,253** | | Cash and cash equivalents | $383,213 | $369,663 | | Due from related parties | $68,445 | $82,605 | | **Total Liabilities** | **$150,276** | **$149,351** | | **Total Equity** | **$548,117** | **$540,902** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended December 31, 2020, total revenues decreased by 1.8% to $156.9 million, leading to a 37.0% drop in operating income to $13.7 million, despite an $8.1 million unrealized gain on an equity investment Condensed Consolidated Statement of Income Highlights (in thousands, except per share amounts) | Metric | Q1 FY2021 (ended Dec 31, 2020) | Q1 FY2020 (ended Dec 31, 2019) | | :--- | :--- | :--- | | Total Revenues | $156,946 | $159,892 | | Management and advisory services revenues | $41,333 | $48,122 | | Operating Income | $13,732 | $21,780 | | Net Income | $19,753 | $21,624 | | Net Income Attributable to RMR Inc. | $8,897 | $9,449 | | Diluted EPS | $0.51 | $0.58 | - Separation costs increased significantly to **$4.2 million** from **$260 thousand** in the prior-year period, heavily impacting operating income[11](index=11&type=chunk) - An unrealized gain of **$8.1 million** on an equity method investment (TA) accounted for under the fair value option bolstered pre-tax income, compared to a **$1.4 million** gain in the prior year[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for the quarter was **$27.7 million**, a decrease from **$41.9 million** in the prior-year period, primarily due to changes in working capital and lower net income Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended Dec 31, 2020 | Three Months Ended Dec 31, 2019 | | :--- | :--- | :--- | | Net cash from operating activities | $27,660 | $41,920 | | Net cash used in investing activities | ($560) | ($148) | | Net cash used in financing activities | ($13,550) | ($14,525) | | **Increase in cash and cash equivalents** | **$13,550** | **$27,247** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's business structure, revenue sources, and related-party transactions, with over 99% of total revenues derived from related parties - RMR LLC provides management services to four publicly traded Managed Equity REITs (DHC, ILPT, OPI, SVC) and three Managed Operating Companies (Five Star, Sonesta, TA)[21](index=21&type=chunk)[22](index=22&type=chunk) Management & Advisory Services Revenue Breakdown (Q1 FY2021, in thousands) | Revenue Source | Amount | | :--- | :--- | | Base Business Management Fees (Managed Equity REITs) | $21,555 | | Property Management Fees | $12,379 | | Fees from Managed Operating Companies | $5,638 | | Advisory Services (RMRM & TRMT) | $586 | - For the three months ended December 31, 2020, revenues from related parties totaled **$156.7 million**, representing over **99%** of total revenues[75](index=75&type=chunk) - The company recorded separation costs of **$4.2 million**, primarily related to retirement agreements with former executive and non-executive officers[82](index=82&type=chunk)[84](index=84&type=chunk) - A quarterly dividend of **$0.38 per share** was declared and paid during the quarter, totaling **$6.2 million**[88](index=88&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant impact of the COVID-19 pandemic on its Client Companies, leading to a decline in management services revenue, while maintaining a strong liquidity position [Overview and Business Environment](index=23&type=section&id=Overview%20and%20Business%20Environment) The company's business is closely tied to the U.S. real estate cycle and has been significantly impacted by the COVID-19 pandemic, particularly in hospitality, travel, and senior housing sectors - The COVID-19 pandemic has had a particularly severe impact on industries where Client Companies operate, including hospitality, travel, service retail, and senior housing[107](index=107&type=chunk) - The majority of Managed Equity REITs are currently paying business management fees based on their total market capitalization, making revenues susceptible to share price volatility[108](index=108&type=chunk) - Client Companies have granted temporary rent deferrals totaling **$20.1 million** to **239 tenants**, which delays the recognition of property management fees for RMR[108](index=108&type=chunk)[109](index=109&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Comparing Q1 FY2021 to Q1 FY2020, management services revenue decreased by **$6.5 million**, while total compensation and benefits expense rose by **$5.2 million**, leading to a **37.0%** fall in operating income Change in Operating Results (Q1 FY2021 vs Q1 FY2020, in thousands) | Line Item | $ Change | % Change | | :--- | :--- | :--- | | Management services revenue | $(6,528) | (13.8)% | | Total compensation and benefits expense | $5,175 | 16.2% | | Operating income | $(8,048) | (37.0)% | | Net income attributable to The RMR Group Inc. | $(552) | (5.8)% | - The decrease in management services revenue was primarily due to lower base business management fees from DHC (**$1.5 million**), OPI (**$1.0 million**), and SVC (**$3.1 million**) resulting from declines in their market capitalizations[127](index=127&type=chunk) - Equity-based compensation expense increased by **$2.0 million**, mainly due to the acceleration of unvested shares for retiring officers and higher share prices of Client Companies[126](index=126&type=chunk)[134](index=134&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$383.2 million** in cash and cash equivalents and no debt as of December 31, 2020, continuing to pay quarterly dividends - As of December 31, 2020, the company had **$383.2 million** in cash and cash equivalents and no outstanding debt[142](index=142&type=chunk) - In January 2021, a quarterly dividend of **$0.38 per share** was declared, expected to total approximately **$10.7 million** in aggregate distributions to shareholders and RMR LLC members[145](index=145&type=chunk) - The company has a liability of **$29.95 million** related to the Tax Receivable Agreement, of which **$2.2 million** is expected to be paid in fiscal year 2021[79](index=79&type=chunk)[150](index=150&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is not subject to significant direct market risk from interest rates, commodity prices, or credit risk, but its revenues are indirectly exposed to market conditions affecting Client Companies - The company does not invest in derivative instruments or issue debt securities, limiting direct market risk[151](index=151&type=chunk) - Indirect market risk exists because if Client Companies are negatively impacted by market conditions, the company's revenues would likely decline[151](index=151&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures are effective as of December 31, 2020[155](index=155&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[156](index=156&type=chunk) [Part II. Other Information](index=32&type=section&id=PART%20II.%20Other%20Information) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes to the risk factors from those previously disclosed in its Annual Report on Form 10-K for the fiscal year ended September 30, 2020 - There have been no material changes to the risk factors from those provided in the 2020 Annual Report[165](index=165&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the principal executive and financial officers, and XBRL data files [Signatures](index=34&type=section&id=Signatures) The report is signed by Matthew P. Jordan, Executive Vice President, Chief Financial Officer and Treasurer, on behalf of the registrant, dated February 2, 2021