- Denver-based RE/MAX now has more than 100,000 agents.
- RE/MAX set that milestone in April.
- RE/MAX released its 1st quarter earnings.
Denver-based RE/MAX now has more than 100,000 agents.
It passed that milestone last month.
“In the first quarter, we experienced our strongest quarterly agent gain since the first quarter of 2006 and we surpassed the 100,000 agent mark in April, strong proof that our agent-centric business remains a destination for quality agents,” Dave Liniger, CEO and co-founder of the Denver real estate brokerage franchise company said on Thursday, when RE/MAX released its first-quarter earnings.
And RE/MAX is poised to get bigger, said Liniger, who started RE/MAX with his wife, Gail, in 1973 in the Denver Tech Center.
“As the economy and the housing market continue to improve, we are optimistic for a successful spring buying and selling season and for our continued ability to attract productive agents to RE/MAX,” Liniger said.
Indeed, the company is projecting the agent count in the second quarter will increase by 4.5 percent to 5 percent over the second quarter of 2014.And it expects to end 2015 with 4 percent to 5 percent more agents than in 2014.
RE/MAX added 5,570 agents in the first quarter, bringing its total number of agents to 99,955, a 5.9 percent increase from the first quarter of 2014.
In the United States, the agent count increased by 2,659 to 57,945, a 4.8 percent year-over-year increase.
Agent count in U.S. company-owned and independent regions grew by 5.7 percent and 3.4 percent, respectively.
In Canada, agent count increased by 192 agents to 19,161 agents or 1.0 percent, compared to the first quarter of 2014.
Outside the U.S. and Canada, agent count increased by 2,719 agents to 22,849 agents or 13.5 percent.
RE/MAX added 1,945 agents from the fourth quarter.
RE/MAX also reported net income of $9.1 million in the first quarter, an increase of $1.3 million, or 17.1 percent.
And RE/MAX generated total revenue of $44.2 million for the first quarter, a 5.6 percent increase compared to $41.9 million in the first quarter of 2014.
The revenue increase primarily was driven by the increase in agent count.
Re/MAX also announced a quarterly dividend of $0.125 per share.
“Our strong cash flow generation provides us with the flexibility to create value through our capital allocation strategy, including returning cash to shareholders, as reflected by the payment in April of the special dividend and previously doubled quarterly dividend,” Liniger said.
“We will continue to focus our capital management priorities on investments in our future growth and value creation for shareholders,” Liniger added.
In April, RE/MAX converted six owned brokerage offices to independent franchises. The offices in Maryland and Virginia had 270 agents.
That “demonstrates our belief in and commitment to the franchise business model,” according to Liniger.
Revenue from annual dues was $7.8 million, up $300,000, or 3.9 percent. Revenue from broker fees was $6.4 million, up $900,000 or 15.5 percent. The increase was driven by growth in agent count and increased transaction activity due in part to improving market conditions.
Franchise sales and other franchise revenue was $8.4 million, up $500,000, or 6.5 percent. Brokerage revenue was $3.9 million, an increase of $700,000, or 21.7 percent. The increase was driven by the increased agent count and increased productivity at owned brokerage offices.
RE/MAX, which trades on the New York Stock Exchange under the symbol RMAX, closed at $33.70 on Thursday, up 1.78 percent.
Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.