First and Only National Mortgage Brokerage Franchise in U.S.
Among the Fastest-Growing Franchises1 and a Top New Franchise Brand2
Nobody in the World Sells More Real Estate than RE/MAX3
RE/MAX Agents Outsell Other Agents 2 to 1 at Large Brokerages4
Unmatched Global Footprint5
Highest Level of Unaided Brand Awareness Among Competitors in Survey of U.S. and Canadian Home Buyers and Sellers6
1 Source: Entrepreneur Magazine based on the net number of franchise units added worldwide between July 2019 to July 2020 as reflected in a its review of unit lists and Franchise Disclosure Documents of 1,116 participating franchises across all industries 2 Source: Entrepreneur Magazine based on its analysis of data, including costs, fees, size, growth and brand and financial strength, from franchise disclosure and related documents dated August 2019 to July 2020 of 262 participating franchise systems that began franchising in the last 5 years (in 2016 or later) 3 As measured by residential transaction sides 4 Source: Transaction sides per agent calculated by RE/MAX based on 2021 REAL Trends 500 data, citing 2020 transaction sides for the 1,753 largest participating U.S. brokerages. RE/MAX average: 16.0. Competitors: 7.3 5 RE/MAX has a presence in more than 110 countries and territories 6 According to MMR Strategy Group study of unaided awareness
We are one of the world’s leading franchisors in the real estate industry. We franchise real estate brokerages globally under the RE/MAX® brand and mortgage brokerages in the U.S. under the Motto® Mortgage brand. We also sell ancillary products and services, primarily technology, to our franchise networks and, in certain instances, we sell those offerings outside our franchise networks.
($ in millions)
1 Excludes Adjustments attributable to the non-controlling interest. 2 We define Adjusted EBITDA as EBITDA (consolidated net income before depreciation and amortization, interest expense, interest income and the provision for income taxes, each of which is presented in our audited financial statements included our Annual Report on Form 10-K), adjusted for the impact of the following items that are either non-cash or that we do not consider representative of our ongoing operating performance: gain or loss on sale or disposition of assets and sublease, non-cash impairment charges, equity-based compensation expense, acquisition-related expense, gain on reduction in tax receivable agreement liability, Special Committee investigation and remediation expense, expense or income related to changes in the estimated fair value measurement of contingent consideration and other non-recurring items. Please see pages 49-50 of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 25, 2021, for a reconciliation with the most directly comparable GAAP measure.
Operating Statistics as of December 31, 2020
Operating Statistics as of and for the year ended December 31, 2020, as applicable
Primarily Recurring Revenue Streams, High Margins and Strong Free Cash Flow1
1Calculation is for the year ended December 31, 2020. Adjusted EBITDA and Free Cash Flow are non-GAAP measures and exclude all adjustments attributable to the non-controlling interest. For a definition and reconciliation of Adjusted EBITDA, please see footnote 2 under RE/MAX Holdings, Inc. Financial Results above. Free cash flow is calculated as cash flows from operations less capital expenditures and any changes in restricted cash of the Marketing Funds, all as reported under GAAP, and quantifies how much cash a company has to pursue opportunities that enhance shareholder value. The restricted cash of the Marketing Funds is limited in use for the benefit of franchisees and any impact to free cash flow is removed. Please see page 56 of our 2021 Proxy Statement filed with the Securities and Exchange Commission on April 15, 2021, for a reconciliation with the most directly comparable GAAP measure. 2Recurring revenue comprises Continuing franchise fees and Annual dues
*Additional special cash dividend of $1.50 per share in 2015 not shown