- The franchisor reported solid growth in 2015, with a 7 percent agent count growth, 3.4 percent revenue growth and 16.2 percent operating income growth.
The Re/Max balloon is still flying high — the company reported solid growth in 2015, with a 7 percent agent count growth, 3.4 percent revenue growth and 16.2 percent operating income growth.
“Re/Max had a strong year in 2015 led by two of our key growth drivers, agent count growth and office franchise sales,” said company CEO Dave Liniger in a statement. “Over 6,800 agents chose to join Re/Max in 2015, our largest agent count gain in ten years, and our office franchise sales outpaced every year since 2010.”
Liniger continued, “With nearly 60 percent of our revenue represented by recurring fees, we have a stable business model that delivers strong free cash flow. We’ve increased our quarterly dividend by 140 percent in the past two years and paid a special dividend last year. We also acquired the master franchise rights to the New York region and we’re excited to grow our presence in the region. Both of these actions are a testament to our ability to invest, acquire, and return capital while still maintaining a strong cash position.”
Re/Max had 104,826 agents in 2015, and reported a profit of approximately $49.4 million. Revenues of $176.9 million included:
- $73.8 million in continuing franchise fees
- $31.8 million in annual dues
- $32.3 million in broker fees
- $25.5 million in franchise sales and revenue
- $13.6 million in brokerage revenue
For the first quarter of 2016, the company’s outlook included:
- An agent-count increase of 5.5 percent to 6 percent year-over-year.
- A revenue decrease of 2.0 percent to 3.0 percent year-over-year
- Selling, operating and administrative expenses of 56.0 percent to 57.0 percent of first-quarter revenue
For all of 2016, the company projects:
- Agent count to increase by 4.0 percent to 5.0 percent year-over-year
- Revenue to decrease by 3.0 percent to 4.0 percent year-over-year
- Selling, operating and administrative expenses of 48.0 percent to 49.0 percent of first-quarter revenue