RE/MAX Holdings, Inc (RMAX) has reported 44.07 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $6.91 million, or $0.39 a share in the quarter, compared with $4.80 million, or $0.39 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $14.58 million, or $0.48 a share compared with $13.91 million or $0.46 a share, a year ago. Revenue during the quarter went up marginally by 1 percent to $45.56 million from $45.11 million in the previous year period.
Total expenses were $24.20 million for the quarter, down 1.20 percent or $0.30 million from year-ago period. Operating margin for the quarter expanded 118 basis points over the previous year period to 46.88 percent.
Operating income for the quarter was $21.36 million, compared with $20.61 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $25.96 million compared with $25.12 million in the prior year period. At the same time, adjusted EBITDA margin improved 130 basis points in the quarter to 56.97 percent from 55.68 percent in the last year period.
For the fourth-quarter, RE/MAX Holdings projects revenue to be in the range of $40.60 million to $41.60 million. RE/MAX Holdings projects revenue to be in the range of $172.50 million to $173.50 million for financial year 2016.
"RE/MAX had a strong third quarter as our agent count surpassed 111,000 agents globally, and we grew our revenue, margins, and cash flow. Our third quarter results highlight the operational and financial strengths of our business and exceeded our expectations. As a result, we are increasing our financial outlook for full-year 2016," stated Dave Liniger, Chief Executive Officer and Co-Founder of RE/MAX.
Operating cash flow declines
RE/MAX Holdings, Inc has generated cash of $49.04 million from operating activities during the nine month period, down 18.20 percent or $10.91 million, when compared with the last year period. The company has spent $21.07 million cash to meet investing activities during the nine month period as against cash outgo of $2.16 million in the last year period. It has incurred net capital expenditure of $3.22 million on net basis during the nine month period, up 57 percent or $1.17 million from year ago period.
The company has spent $36.58 million cash to carry out financing activities during the nine month period as against cash outgo of $69.03 million in the last year period.
Cash and cash equivalents stood at $101.98 million as on Sep. 30, 2016, up 6.93 percent or $6.61 million from $95.37 million on Sep. 30, 2015.
Receivables increase substantially
Net receivables were almost stable over the past one year at $18.33 million on Sep. 30, 2016. Accounts payable surged 21,740.86 percent or $91.53 million to $91.95 million on Sep. 30, 2016.
Total assets grew 16.13 percent or $53.94 million to $388.33 million on Sep. 30, 2016. On the other hand, total liabilities were at $329.64 million as on Sep. 30, 2016, up 5.79 percent or $18.04 million from year-ago.
Return on assets moved down 96 basis points to 4.29 percent in the quarter. At the same time, return on equity moved down 928 basis points to 11.78 percent in the quarter.
Debt comes down
Total debt was at $186.61 million as on Sep. 30, 2016, down 7.79 percent or $15.76 million from year-ago. Shareholders equity stood at $58.68 million as on Sep. 30, 2016, up 157.60 percent or $35.90 million from year-ago. As a result, debt to equity ratio went down 570 basis points to 3.18 percent in the quarter.
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