RE/MAX Holdings, Inc. Class A

Good morning and welcome to the RE-MAX Holdings second quarter 2022 earnings conference call and webcast. My name is Dennis 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 Scholz, Senior Vice President of Investor Relations. Mr. Scholz.

Thank you, Operator. Good morning, everyone, and welcome to RE-MAX Holdings second quarter 2022 earnings conference call. Please visit the investor relations section of www.remaxholdings.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 outlook, brand expansion, competition, technology, housing and mortgage market conditions, capital allocation, dividends, share repurchases, strategic and operational plans, and business models. Forward-looking statements represent management's current estimates. Remax Holdings 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 maturely from those projected in forward-looking statements. These are discussed in our second quarter 2022 financial results press release and other SEC filings. Also, we will refer to certain non-GAAP measures on today's call. We 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 Steve Joyce, our Chief Executive Officer, Terry Callahan, our Chief Financial Officer, and the presidents and CEOs of our brands, Nick Bailey and Ward Morrison. With that, I'd like to turn the call over to Remax Holdings CEO, Steve Joyce. Steve?

Thank you, Andy, and thanks to everyone for joining our call today. Looking at slide three, our strong second quarter results demonstrates the strength and resilience of our 100% franchise model. particularly amid shifting housing market conditions. Our acquisition of REMAX and Tegra's North America regions continues to perform well, again contributing meaningfully to both our top-line and bottom-line performance. We recently announced certain strategic growth initiatives which we believe will enhance our ability to grow profitably over the long term and should further mitigate the impact of additional market volatility. Some of our notable quarterly highlights include overall REMAX Holdings revenue was $92.2 million, up almost 20% driven by last year's acquisition of Integra, which comprised nearly 16% of our growth, as well as almost 2% organic growth. We generated adjusted EBITDA of $35.1 million, up 14.4%, and our adjusted EBITDA margin was a strong 38.1%. Adjusted EPS increased 6% to 68 cents. Total REVAX agent count grew by almost 4,000 agents to nearly 144,000 agents in total, a new record. And both motto franchise sales and motto open offices continue to grow, with the number of open offices hitting 200 during the second quarter. Ward and Nick will provide additional details on their respective business lines in a moment. First, I'd like to spend a minute discussing our recently announced strategic growth initiatives. Our focus remains on increasing REMAX U.S. agent count and continuing to fuel the growth of our expanding mortgage business. Our team has done a terrific job identifying and implementing those growth opportunities that we believe will yield the best results and contribute to near-term and long-term profitable growth. These initiatives are closely aligned with our current strategy. We think we can make a measurable difference through smart strategic moves, essentially bolstering our growth prospects through institutional focus, accountability, and proper allocation of resources. Our 100% franchise model demonstrates its strength and differentiation during times of change, which has borne out over the past five decades since our founding. Today, We have two industry-leading brands, networks of experienced and productive real estate professionals, a strong balance sheet, and a fantastic ability to generate cash flow, all of which will continue to serve us well in virtually any kind of market. We intend to leverage these strengths to actively seek the best opportunities that will support our future growth. With that, I'll turn it over to Nick.