Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
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Accounts and notes receivable, allowance | $ 14,879 | $ 12,538 |
Property and equipment, accumulated depreciation | $ 15,402 | $ 14,940 |
Common Class A | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 18,123,963 | 17,838,233 |
Common stock, shares outstanding | 18,123,963 | 17,838,233 |
Common Class B | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 1 | 1 |
Common stock, shares outstanding | 1 | 1 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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Consolidated Statements of Comprehensive Income | ||
Net income | $ 5,290 | $ 8,257 |
Change in cumulative translation adjustment | (230) | 69 |
Other comprehensive income (loss), net of tax | (230) | 69 |
Comprehensive income | 5,060 | 8,326 |
Less: comprehensive income attributable to non-controlling interest | 2,465 | 3,881 |
Comprehensive income attributable to RE/MAX Holdings, Inc., net of tax | $ 2,595 | $ 4,445 |
Consolidated Statements of Stockholders' Equity - USD ($) |
Common Stock
Common Class A
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Common Stock
Common Class B
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Additional paid-in capital |
Retained earnings |
Accumulated other comprehensive income (loss), net of tax |
Non-controlling interest |
Common Class A |
Common Class B |
Total |
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Beginning balance, Value at Dec. 31, 2018 | $ 2,000 | $ 0 | $ 460,101,000 | $ 21,138,000 | $ 328,000 | $ (402,294,000) | $ 79,275,000 | ||
Beginning balance, Shares at Dec. 31, 2018 | 17,754,416 | 1 | |||||||
Net income | $ 0 | $ 0 | 0 | 4,409,000 | 0 | 3,848,000 | 8,257,000 | ||
Distributions to non-controlling unitholders | 0 | 0 | 0 | 0 | 0 | (2,693,000) | (2,693,000) | ||
Equity-based compensation expense and related dividend equivalents, value | $ 0 | $ 0 | 3,213,000 | (42,000) | 0 | 0 | 3,171,000 | ||
Equity-based compensation expense and related dividend equivalents, shares | 70,797 | 0 | |||||||
Dividends to Class A common stockholders | $ 0 | $ 0 | 0 | (3,740,000) | 0 | 0 | $ (3,740,000) | (3,740,000) | |
Change in accumulated other comprehensive income | 0 | 0 | 0 | 0 | 36,000 | 33,000 | 69,000 | ||
Payroll taxes related to net settled restricted stock units, value | $ 0 | $ 0 | (713,000) | 0 | 0 | 0 | (713,000) | ||
Payroll taxes related to net settled restricted stock units, shares | (17,265) | 0 | |||||||
Ending balance, Value at Mar. 31, 2019 | $ 2,000 | $ 0 | 462,601,000 | 21,765,000 | 364,000 | (401,106,000) | 83,626,000 | ||
Ending balance, Shares at Mar. 31, 2019 | 17,807,948 | 1 | |||||||
Beginning balance, Value at Dec. 31, 2019 | $ 2,000 | $ 0 | 466,945,000 | 30,525,000 | 414,000 | (399,510,000) | 98,376,000 | ||
Beginning balance, Shares at Dec. 31, 2019 | 17,838,233 | 1 | 17,838,233 | 1 | |||||
Net income | $ 0 | $ 0 | 0 | 2,631,000 | 0 | 2,659,000 | 5,290,000 | ||
Distributions to non-controlling unitholders | 0 | 0 | 0 | 0 | 0 | (2,777,000) | (2,777,000) | ||
Equity-based compensation expense and related dividend equivalents, value | $ 0 | $ 0 | 5,962,000 | (289,000) | 0 | 0 | 5,673,000 | ||
Equity-based compensation expense and related dividend equivalents, shares | 368,375 | 0 | |||||||
Dividends to Class A common stockholders | $ 0 | $ 0 | 0 | (3,986,000) | 0 | 0 | $ (3,986,000) | (3,986,000) | |
Change in accumulated other comprehensive income | 0 | 0 | 0 | 0 | (36,000) | (194,000) | (230,000) | ||
Payroll taxes related to net settled restricted stock units, value | $ 0 | $ 0 | (2,268,000) | 0 | 0 | 0 | (2,268,000) | ||
Payroll taxes related to net settled restricted stock units, shares | (82,645) | 0 | |||||||
Ending balance, Value at Mar. 31, 2020 | $ 2,000 | $ 0 | $ 470,639,000 | $ 28,881,000 | $ 378,000 | $ (399,822,000) | $ 100,078,000 | ||
Ending balance, Shares at Mar. 31, 2020 | 18,123,963 | 1 | 18,123,963 | 1 |
Business and Organization |
3 Months Ended |
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Mar. 31, 2020 | |
Business and Organization | |
Business and Organization | 1. Business and Organization RE/MAX Holdings, Inc. (“Holdings”) and its consolidated subsidiaries, including RMCO, LLC (“RMCO”), are referred to hereinafter as the “Company.” The Company is a franchisor in the real estate industry, franchising real estate brokerages globally under the RE/MAX brand (“RE/MAX”) and mortgage brokerages within the United States (“U.S.”) under the Motto Mortgage brand (“Motto”). RE/MAX, founded in 1973, has over 130,000 agents operating in over 8,000 offices and a presence in more than 110 countries and territories. Motto, founded in 2016, is the first nationally franchised mortgage brokerage in the U.S. RE/MAX and Motto are 100% franchised and do not operate any real estate or mortgage brokerage offices. |
Summary of Significant Accounting Policies |
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Summary of Significant Accounting Policies | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying Consolidated Balance Sheet at December 31, 2019, which was derived from the audited consolidated financial statements at that date, and the unaudited interim condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying condensed consolidated financial statements are presented on a consolidated basis and include the accounts of Holdings and its consolidated subsidiaries. All significant intercompany accounts and transactions have been eliminated. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2020 and the results of its operations and comprehensive income, cash flows and changes in its stockholders’ equity for the three months ended March 31, 2020 and 2019. Interim results may not be indicative of full-year performance. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements within the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Annual Report on Form 10-K”). Please refer to that document for a fuller discussion of all significant accounting policies. Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition The Company generates the substantial majority of its revenue from contracts with customers. The Company’s major streams of revenue are:
Annual Dues The activity in the Company’s deferred revenue for annual dues is included in “Deferred revenue” and “Deferred revenue, net of current portion” on the Condensed Consolidated Balance Sheets, and consists of the following in aggregate (in thousands):
Franchise Sales The activity in the Company’s franchise sales deferred revenue accounts consists of the following (in thousands):
Commissions Related to Franchise Sales Commissions paid on franchise sales are recognized as an asset and amortized over the contract life of the franchise agreement. The activity in the Company’s capitalized contract costs for commissions (which are included in “other current assets” and “other assets, net of current portion” on the Condensed Consolidated Balance Sheets) consist of the following (in thousands):
Disaggregated Revenue In the following table, segment revenue is disaggregated by geographical area (in thousands):
In the following table, segment revenue is disaggregated by Company-owned or independent regions in the U.S., Canada and Global (in thousands):
Transaction Price Allocated to the Remaining Performance Obligations The following table includes estimated revenue by year, excluding certain other immaterial items, expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period (in thousands):
Cash, Cash Equivalents and Restricted Cash All cash held by the Marketing Funds is contractually restricted. The following table reconciles the amounts presented for cash, both unrestricted and restricted, in the Condensed Consolidated Balance Sheets to the amounts presented in the Condensed Consolidated Statements of Cash Flows (in thousands):
Services Provided to the Marketing Funds by RE/MAX Franchising RE/MAX Franchising charges the Marketing Funds for various services it performs. These services are primarily comprised of (a) building and maintaining agent marketing technology, including customer relationship management tools, the www.remax.com website, agent and office websites, and mobile apps, (b) dedicated employees focused on marketing campaigns, and (c) various administrative services including customer support of technology, accounting and legal. Because these costs are ultimately paid by the Marketing Funds, they do not impact the net income of Holdings as the Marketing Funds have no reported net income. Costs charged from RE/MAX Franchising to the Marketing Funds are as follows (in thousands):
Leases The Company leases corporate offices, a distribution center, billboards and certain equipment. As all franchisees are independently owned and operated, there are no leases recognized for any offices used by the Company’s franchisees. All the Company’s material leases are classified as operating leases. The Company acts as the lessor for four sublease agreements on its corporate headquarters, consisting solely of operating leases. Sublease income was $0.4 million for each of the three months ended March 31, 2020 and 2019. The Company has made an accounting policy election not to recognize right-of-use assets and lease liabilities that arise from any of its short-term leases. All leases with a term of 12 months or less at commencement, for which the Company is not reasonably certain to exercise available renewal options that would extend the lease term past 12 months, will be recognized on a straight-line basis over the lease term. Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which clarifies that implementation costs incurred by customers in cloud computing arrangements are deferred if they would be capitalized by customers in the software licensing arrangements under the internal-use software guidance. ASU 2018-15 also clarifies that any capitalized costs should not be recorded to “Depreciation and amortization” in the Consolidated Statements of Income. The Company adopted this standard effective January 1, 2020 prospectively to all new implementation costs incurred after adoption. The amendments of ASU 2018-15 did not have a significant impact on the Company’s consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), which eliminates certain disclosure requirements for fair value measurements and requires new or modified disclosures. ASU 2018-13 became effective for the Company on January 1, 2020. This new guidance was applied on a prospective basis. The amendments of ASU 2018-13 did not have a significant impact on the Company’s consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires earlier recognition of credit losses on loans, held-to-maturity securities, and certain other financial assets. ASU 2016-13 replaces the current incurred loss model with a model requiring entities to estimate expected credit losses over the life of the financial instrument based on both historical information as well as reasonable and supportable forecasts. The FASB requires entities to use a modified retrospective transition approach, in which an adjustment is made to beginning retained earnings for the cumulative effect of adopting the standard. ASU 2016-13 became effective for the Company on January 1, 2020. The standard had an immaterial effect on the Company’s credit losses at transition and adjustment to retained earnings was required. All periods presented for comparative purposes prior to the adoption date of this standard were not adjusted.New Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), which contains temporary optional expedients and exceptions to the guidance in GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). The new guidance is effective upon issuance and may be adopted on any date on or after March 12, 2020. The relief is temporary and only available until December 31, 2022, when the reference rate replacement activity is expected to have completed. The Company believes the amendments of ASU 2020-04 will not have a significant impact on the Company’s consolidated financial statements and related disclosures as the Company does not currently engage in interest rate hedging of its LIBOR based debt, nor does it believe it has any material contracts tied to LIBOR other than its debt agreement. |
Non-controlling Interest |
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Non-controlling Interest | 3. Non-controlling Interest Holdings is the sole managing member of RMCO and operates and controls all of the business affairs of RMCO. The ownership of the common units in RMCO is summarized as follows:
The weighted average ownership percentages for the applicable reporting periods are used to calculate the “Net income attributable to RE/MAX Holdings, Inc.” A reconciliation of “Income before provision for income taxes” to “Net Income attributable to RE/MAX Holdings, Inc.” and “Net Income attributable to non-controlling interest” in the accompanying Condensed Consolidated Statements of Income for the periods indicated is detailed as follows (in thousands, except percentages):
Distributions and Other Payments to Non-controlling Unitholders Under the terms of RMCO’s limited liability company operating agreement, RMCO makes cash distributions to non-controlling unitholders on a pro-rata basis. The distributions paid or payable to non-controlling unitholders are summarized as follows (in thousands):
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Earnings Per Share and Dividends |
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Earnings Per Share and Dividends | 4. Earnings Per Share and Dividends Earnings Per Share The following is a reconciliation of the numerator and denominator used in the basic and diluted EPS calculations (in thousands, except shares and per share information):
Outstanding Class B common stock does not share in the earnings of Holdings and is therefore not a participating security. Accordingly, basic and diluted net income per share of Class B common stock has not been presented. Dividends Dividends declared and paid during each quarter ended per share on all outstanding shares of Class A common stock were as follows (in thousands, except per share information):
On May 5, 2020, the Company’s Board of Directors declared a quarterly dividend of $0.22 per share on all outstanding shares of Class A common stock, which is payable on June 2, 2020 to stockholders of record at the close of business on May 19, 2020. |
Acquisitions |
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Acquisitions | 5. Acquisitions First On December 16, 2019, the Company acquired First Leads, Inc. (“First”) for $15 million in cash generated from operations. First provides a mobile app that leverages data science, machine learning and human interaction to help real estate professionals better leverage the value of their personal network and was acquired to complement the Company’s technology offerings and booj Platform. Marketing Funds On January 1, 2019, the Company acquired all of the regional and pan-regional advertising fund entities previously owned by its founder and Chairman of the Board of Directors, David Liniger, for a nominal amount. As in the past, the Marketing Funds are contractually obligated to use the funds collected to support both regional and pan-regional marketing campaigns designed to build and maintain brand awareness and to support the Company’s agent marketing technology. The acquisitions of the Marketing Funds were part of the Company’s succession plan, and ownership of the Marketing Funds by the franchisor is a common structure. Expenses incurred with the acquisition of the Marketing Funds were not material. The total assets equal the total liabilities of the Marketing Funds and beginning January 1, 2019, are reflected in the condensed consolidated financial statements of the Company. The following table summarizes the Company’s allocation of the purchase price to the fair value of assets acquired and liabilities assumed (in thousands):
The Company finalized its accounting for the acquisition of the Marketing Funds during the three months ended June 30, 2019. The Marketing Funds constitutes a business and was accounted for using the fair value acquisition method. The total purchase price was allocated to the assets acquired based on their estimated fair values. |
Intangible Assets and Goodwill |
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Intangible Assets and Goodwill | 6. Intangible Assets and Goodwill The following table provides the components of the Company’s intangible assets (in thousands, except weighted average amortization period in years):
Amortization expense for the three months ended March 31, 2020 and 2019 was $5.9 million and $5.2 million, respectively. The estimated future amortization expense for the next five years related to intangible assets is as follows (in thousands):
The following table presents changes to goodwill (in thousands), by segment:
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Accrued Liabilities |
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Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consist of the following (in thousands):
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Debt |
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Debt | 8. Debt Debt, net of current portion, consists of the following (in thousands):
Maturities of debt are as follows (in thousands):
Senior Secured Credit Facility In July 2013, the Company entered into a credit agreement with several lenders and administered by a bank, referred to herein as the “2013 Senior Secured Credit Facility.” In December 2016, the 2013 Senior Secured Credit Facility was amended and restated, referred to herein as the “Senior Secured Credit Facility.” The Senior Secured Credit Facility consists of a $235.0 million term loan facility which matures on December 15, 2023 and a $10.0 million revolving loan facility for which any loans outstanding must be repaid on December 15, 2021. As of March 31, 2020, the Company had no revolving loans outstanding under its Senior Secured Credit Facility. As of March 31, 2020, the interest rate on the term loan facility was 3.74%. |
Fair Value Measurements |
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Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 9. Fair Value Measurements Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering assumptions, the Company follows a three-tier fair value hierarchy, which is described in detail in the 2019 Annual Report on Form 10-K. A summary of the Company’s liabilities measured at fair value on a recurring basis is as follows (in thousands):
The Company is required to pay additional purchase consideration totaling 8% of gross receipts collected by Motto each year (the “Revenue Share Year”) through September 30, 2026, with no limitation as to the maximum payout. The fair value of the contingent purchase consideration represents the forecasted discounted cash payments that the Company expects to pay. Increases or decreases in the fair value of the contingent purchase consideration can result from changes in discount rates as well as the timing and amount of forecasted revenues. The forecasted revenue growth assumption that is most sensitive is the assumed franchise sales count for which the forecast assumes between 40 and 80 franchises sold annually, with a weighted average of 70. The model also assumes a discount rate of 15%. A 10% reduction in the number of franchise sales would decrease the liability by $0.2 million. A 1% change to the discount rate applied to the forecast would change the liability by approximately $0.2 million. The Company measures this liability each reporting period and recognizes changes in fair value, if any, in “Selling, operating and administrative expenses” in the accompanying Condensed Consolidated Statements of Income and recorded as a component of “Accrued liabilities” and “Other liabilities, net of current portion” in the accompanying Condensed Consolidated Balance Sheets.The table below presents a reconciliation of this liability (in thousands):
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Income Taxes |
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Income Taxes | 10. Income Taxes The “Provision for income taxes” in the accompanying Condensed Consolidated Statements of Income is based on an estimate of the Company’s year to date actual effective income tax rate. The Company has determined that it is unable to reliably estimate its annual effective tax rate to apply to its income for the quarter, as described in ASC 740. Therefore, the Company has elected to record its tax provision for the quarter ended using its actual effective tax rate. On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was enacted which includes significant changes to the U.S. Corporate tax system. The Company will continue to evaluate tax planning opportunities as well as monitor any changes that might be contained in the final regulations related to the TCJA. Such remaining final regulations are expected in 2020. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted which includes several significant business tax provisions. The Company has recognized the effect of this change in tax law during the current quarter which was not significant. The CARES Act provides a five-year carryback of net operating losses generated in tax years beginning after December 31, 2017 and before January 1, 2020. Based upon this change in law, any 2020 tax loss, if realized will be able to be carried back five years.
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Equity-Based Compensation |
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Equity-Based Compensation | 11. Equity-Based Compensation Employee equity-based compensation expense, net of the amount capitalized in internally developed software, is as follows (in thousands):
Time-based Restricted Stock Units The following table summarizes equity-based compensation activity related to time-based restricted stock units (“RSUs”):
At March 31, 2020, there was $18.9 million of total unrecognized RSU expense, all of which is related to unvested awards. This compensation expense is expected to be recognized over the weighted-average remaining vesting period of 2.2 years for time-based restricted stock units. Performance-based Restricted Stock Units The following table summarizes equity-based compensation activity related to performance-based restricted stock units (“PSUs”):
At March 31, 2020, there was $3.7 million of total unrecognized PSU expense, all of which is related to unvested awards. This compensation expense is expected to be recognized over the weighted-average remaining vesting period of 2.5 years for PSUs. |
Commitments and Contingencies |
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Commitments and Contingencies | 12. Commitments and Contingencies In March and April of 2019, three putative class action complaints were filed against National Association of Realtors (“NAR”), Realogy Holdings Corp., HomeServices of America, Inc, RE/MAX Holdings, and Keller Williams Realty, Inc. The first was filed on March 6, 2019, by plaintiff Christopher Moehrl in the Northern District of Illinois. The second was filed on April 15, 2019, by plaintiff Sawbill Strategies, Inc., also in the Northern District of Illinois. These two actions have now been consolidated. A third action was filed by plaintiffs Joshua Sitzer and four other individual plaintiffs in the Western District of Missouri. The complaints (collectively “Moehrl/Sitzer suits”) make substantially similar allegations and seek substantially similar relief. The plaintiffs allege that a NAR rule requires brokers to make a blanket, non-negotiable offer of buyer broker compensation when listing a property, resulting in inflated costs to sellers in violation of federal antitrust law. They further allege that certain defendants use their agreements with franchisees to require adherence to the NAR rule in violation of federal antitrust law. Amended complaints add allegations regarding buyer steering and non-disclosure of buyer-broker compensation to the buyer. Additionally, plaintiffs in the action filed by Sitzer et al allege violations of the Missouri Merchandising Practices Act. By agreement, RE/MAX, LLC was substituted for RE/MAX Holdings as defendant in the actions. Among other requested relief, plaintiffs seek damages against the defendants and an injunction enjoining defendants from requiring sellers to pay the buyer broker. The Company intends to vigorously defend against all claims.
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Segment Information |
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Segment Information | 13. Segment Information The Company operates under the following four operating segments: RE/MAX Franchising, Motto Franchising, Marketing Funds and booj. Due to quantitative insignificance, the booj operating segment does not meet the criteria of a reportable segment and is included in “Other”. Motto Franchising does not meet the quantitative significance test; however, management has chosen to report results for the segment as it believes it will be a key driver of future success for Holdings. Management evaluates the operating results of its segments based upon revenue and adjusted earnings before interest, the provision for income taxes, depreciation and amortization and other non-cash and non-recurring cash charges or other items (“Adjusted EBITDA”). The Company’s presentation of Adjusted EBITDA may not be comparable to similar measures used by other companies. Except for the adjustments identified below in arriving at Adjusted EBITDA, the accounting policies of the reportable segments are the same as those described in the Company’s 2019 Annual Report on Form 10-K.
The following table presents a reconciliation of Adjusted EBITDA by segment to income before provision for income taxes (in thousands):
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Summary of Significant Accounting Policies (Policies) |
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Basis of Presentation | Basis of Presentation The accompanying Consolidated Balance Sheet at December 31, 2019, which was derived from the audited consolidated financial statements at that date, and the unaudited interim condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying condensed consolidated financial statements are presented on a consolidated basis and include the accounts of Holdings and its consolidated subsidiaries. All significant intercompany accounts and transactions have been eliminated. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2020 and the results of its operations and comprehensive income, cash flows and changes in its stockholders’ equity for the three months ended March 31, 2020 and 2019. Interim results may not be indicative of full-year performance. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements within the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Annual Report on Form 10-K”). Please refer to that document for a fuller discussion of all significant accounting policies. |
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Use of Estimates | Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
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Revenue Recognition | Revenue Recognition The Company generates the substantial majority of its revenue from contracts with customers. The Company’s major streams of revenue are:
Annual Dues The activity in the Company’s deferred revenue for annual dues is included in “Deferred revenue” and “Deferred revenue, net of current portion” on the Condensed Consolidated Balance Sheets, and consists of the following in aggregate (in thousands):
Franchise Sales The activity in the Company’s franchise sales deferred revenue accounts consists of the following (in thousands):
Commissions Related to Franchise Sales Commissions paid on franchise sales are recognized as an asset and amortized over the contract life of the franchise agreement. The activity in the Company’s capitalized contract costs for commissions (which are included in “other current assets” and “other assets, net of current portion” on the Condensed Consolidated Balance Sheets) consist of the following (in thousands):
Disaggregated Revenue In the following table, segment revenue is disaggregated by geographical area (in thousands):
In the following table, segment revenue is disaggregated by Company-owned or independent regions in the U.S., Canada and Global (in thousands):
Transaction Price Allocated to the Remaining Performance Obligations The following table includes estimated revenue by year, excluding certain other immaterial items, expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period (in thousands):
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Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash All cash held by the Marketing Funds is contractually restricted. The following table reconciles the amounts presented for cash, both unrestricted and restricted, in the Condensed Consolidated Balance Sheets to the amounts presented in the Condensed Consolidated Statements of Cash Flows (in thousands):
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Services Provided to the Marketing Funds By RE/MAX Franchising | Services Provided to the Marketing Funds by RE/MAX Franchising RE/MAX Franchising charges the Marketing Funds for various services it performs. These services are primarily comprised of (a) building and maintaining agent marketing technology, including customer relationship management tools, the www.remax.com website, agent and office websites, and mobile apps, (b) dedicated employees focused on marketing campaigns, and (c) various administrative services including customer support of technology, accounting and legal. Because these costs are ultimately paid by the Marketing Funds, they do not impact the net income of Holdings as the Marketing Funds have no reported net income. Costs charged from RE/MAX Franchising to the Marketing Funds are as follows (in thousands):
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Leases | Leases The Company leases corporate offices, a distribution center, billboards and certain equipment. As all franchisees are independently owned and operated, there are no leases recognized for any offices used by the Company’s franchisees. All the Company’s material leases are classified as operating leases. The Company acts as the lessor for four sublease agreements on its corporate headquarters, consisting solely of operating leases. Sublease income was $0.4 million for each of the three months ended March 31, 2020 and 2019. The Company has made an accounting policy election not to recognize right-of-use assets and lease liabilities that arise from any of its short-term leases. All leases with a term of 12 months or less at commencement, for which the Company is not reasonably certain to exercise available renewal options that would extend the lease term past 12 months, will be recognized on a straight-line basis over the lease term. |
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Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which clarifies that implementation costs incurred by customers in cloud computing arrangements are deferred if they would be capitalized by customers in the software licensing arrangements under the internal-use software guidance. ASU 2018-15 also clarifies that any capitalized costs should not be recorded to “Depreciation and amortization” in the Consolidated Statements of Income. The Company adopted this standard effective January 1, 2020 prospectively to all new implementation costs incurred after adoption. The amendments of ASU 2018-15 did not have a significant impact on the Company’s consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), which eliminates certain disclosure requirements for fair value measurements and requires new or modified disclosures. ASU 2018-13 became effective for the Company on January 1, 2020. This new guidance was applied on a prospective basis. The amendments of ASU 2018-13 did not have a significant impact on the Company’s consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires earlier recognition of credit losses on loans, held-to-maturity securities, and certain other financial assets. ASU 2016-13 replaces the current incurred loss model with a model requiring entities to estimate expected credit losses over the life of the financial instrument based on both historical information as well as reasonable and supportable forecasts. The FASB requires entities to use a modified retrospective transition approach, in which an adjustment is made to beginning retained earnings for the cumulative effect of adopting the standard. ASU 2016-13 became effective for the Company on January 1, 2020. The standard had an immaterial effect on the Company’s credit losses at transition and adjustment to retained earnings was required. All periods presented for comparative purposes prior to the adoption date of this standard were not adjusted. |
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New Accounting Pronouncements Not Yet Adopted | New Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), which contains temporary optional expedients and exceptions to the guidance in GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). The new guidance is effective upon issuance and may be adopted on any date on or after March 12, 2020. The relief is temporary and only available until December 31, 2022, when the reference rate replacement activity is expected to have completed. The Company believes the amendments of ASU 2020-04 will not have a significant impact on the Company’s consolidated financial statements and related disclosures as the Company does not currently engage in interest rate hedging of its LIBOR based debt, nor does it believe it has any material contracts tied to LIBOR other than its debt agreement. |
Summary of Significant Accounting Policies (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commissions related to franchise sales |
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Schedule of disaggregated revenue | In the following table, segment revenue is disaggregated by geographical area (in thousands):
In the following table, segment revenue is disaggregated by Company-owned or independent regions in the U.S., Canada and Global (in thousands):
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Schedule of transaction price allocated to the remaining performance obligations | The following table includes estimated revenue by year, excluding certain other immaterial items, expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period (in thousands):
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Schedule of reconciliation of cash, both unrestricted and restricted |
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Schedule of cost charges to intersegment | Costs charged from RE/MAX Franchising to the Marketing Funds are as follows (in thousands):
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Annual dues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of contract liability | The activity in the Company’s deferred revenue for annual dues is included in “Deferred revenue” and “Deferred revenue, net of current portion” on the Condensed Consolidated Balance Sheets, and consists of the following in aggregate (in thousands):
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Franchise sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of contract liability | The activity in the Company’s franchise sales deferred revenue accounts consists of the following (in thousands):
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Non-controlling Interest (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Ownership of the Common Units |
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Reconciliation from Income Before Provision for Income Taxes to Net Income | The weighted average ownership percentages for the applicable reporting periods are used to calculate the “Net income attributable to RE/MAX Holdings, Inc.” A reconciliation of “Income before provision for income taxes” to “Net Income attributable to RE/MAX Holdings, Inc.” and “Net Income attributable to non-controlling interest” in the accompanying Condensed Consolidated Statements of Income for the periods indicated is detailed as follows (in thousands, except percentages):
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Distributions Paid or Payable |
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Earnings Per Share and Dividends (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share and Dividends | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Numerator and Denominator used in Basic and Diluted EPS Calculations | The following is a reconciliation of the numerator and denominator used in the basic and diluted EPS calculations (in thousands, except shares and per share information):
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Schedule of Dividends Declared and Paid Quarterly per Share | Dividends declared and paid during each quarter ended per share on all outstanding shares of Class A common stock were as follows (in thousands, except per share information):
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Acquisitions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||
Marketing funds | |||||||||||||||||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Of Assets at Acquisition Date |
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Intangible Assets and Goodwill (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of intangible assets | The following table provides the components of the Company’s intangible assets (in thousands, except weighted average amortization period in years):
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Schedule of estimated future amortization of intangible assets, other than goodwill | The estimated future amortization expense for the next five years related to intangible assets is as follows (in thousands):
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Schedule of changes to goodwill | The following table presents changes to goodwill (in thousands), by segment:
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Accrued Liabilities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands):
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Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt | Debt, net of current portion, consists of the following (in thousands):
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Schedule of Maturities of Debt | Maturities of debt are as follows (in thousands):
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Fair Value Measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities measured at fair value on a recurring basis | A summary of the Company’s liabilities measured at fair value on a recurring basis is as follows (in thousands):
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Reconciliation of all liabilities of Company measured at fair value on a recurring basis using significant unobservable inputs | The table below presents a reconciliation of this liability (in thousands):
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Summary of carrying value and fair value of senior secured credit facility |
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Equity-Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Stock-Based Compensation Expense | Employee equity-based compensation expense, net of the amount capitalized in internally developed software, is as follows (in thousands):
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Time-based awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Units |
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Performance-based awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Units |
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from External Customers By Segment |
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Schedule of Revenue and Adjusted EBITDA of the Company's Reportable Segment | The following table presents a reconciliation of Adjusted EBITDA by segment to income before provision for income taxes (in thousands):
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Business and Organization (Details) |
3 Months Ended | |
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Mar. 31, 2020
country
Office
item
|
Dec. 31, 2019 |
|
RMCO, LLC | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Parent economic interest in RMCO (as a percent) | 59.10% | 58.70% |
Non-controlling interest ownership of common units in RMCO as a percentage | 40.90% | 41.30% |
Minimum | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Number of agents | item | 130,000 | |
Number of offices | Office | 8,000 | |
Number of countries in which entity operates | country | 110 | |
REMAX | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Percentage of Company consisting of franchises | 100.00% |
Summary of Significant Accounting Policies - Schedule of Deferred Revenue (Details) $ in Thousands |
3 Months Ended |
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Mar. 31, 2020
USD ($)
| |
Annual dues | |
Disaggregation of Revenue [Line Items] | |
Balance at beginning of period | $ 15,982 |
New billings | 9,895 |
Revenue recognized | (8,921) |
Balance at the end of period | 16,956 |
Revenue recognized | 6,800 |
Franchise sales | |
Disaggregation of Revenue [Line Items] | |
Balance at beginning of period | 25,884 |
New billings | 2,154 |
Revenue recognized | 2,647 |
Balance at the end of period | 25,391 |
Revenue recognized | $ 2,500 |
Summary of Significant Accounting Policies - Commissions Related to Franchise Sales (Details) - Commissions Related to Franchise Sales $ in Thousands |
3 Months Ended |
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Mar. 31, 2020
USD ($)
| |
Capitalized Contract Cost [Line Items] | |
Balance at beginning of period | $ 3,578 |
Expense recognized | (367) |
Additions to contract cost for new activity | 444 |
Balance at end of period | $ 3,655 |
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|
Cash, Cash Equivalents and Restricted Cash | ||||
Cash and cash equivalents | $ 80,905 | $ 83,001 | ||
Total cash, cash equivalents and restricted cash | 105,100 | 103,601 | $ 97,998 | $ 59,974 |
Marketing funds | ||||
Cash, Cash Equivalents and Restricted Cash | ||||
Cash and cash equivalents | 80,905 | 83,001 | ||
Restricted Cash | 24,195 | 20,600 | ||
Total cash, cash equivalents and restricted cash | $ 105,100 | $ 103,601 |
Summary of Significant Accounting Policies - Services Provided to Marketing Funds by RE/MAX Franchising (Details) - Marketing funds - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Cost charges | $ 4,843 | $ 2,925 |
Technology development - operating | ||
Cost charges | 2,971 | 965 |
Technology development - capital | ||
Cost charges | 644 | 935 |
Marketing staff and administrative services | ||
Cost charges | $ 1,228 | $ 1,025 |
Summary of Significant Accounting Policies - Leases (Details) $ in Millions |
3 Months Ended | |
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Mar. 31, 2020
USD ($)
lease
|
Mar. 31, 2019
USD ($)
|
|
Leases | ||
Number of franchisees' leases recognized by the Company | 0 | |
Number of sublease agreements | 4 | |
Sublease Income | $ | $ 0.4 | $ 0.4 |
Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) $ in Thousands |
Dec. 31, 2019
USD ($)
|
---|---|
Restatement Adjustment | ASU 2016-13 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment from change in accounting principle | $ 0 |
Non-controlling Interest - Ownership of common units in RMCO (Details) - RMCO, LLC - shares |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Shares | ||
Non-controlling interest ownership of common units in RMCO | 12,559,600 | 12,559,600 |
Holdings outstanding Class A common stock (equal to Holdings common units in RMCO) | 18,123,963 | 17,838,233 |
Total number of common stock units in RMCO | 30,683,563 | 30,397,833 |
Ownership Percentage | ||
Non-controlling interest ownership of common units in RMCO as a percentage | 40.90% | 41.30% |
Holdings outstanding Class A common stock (equal to Holdings common units in RMCO) | 59.10% | 58.70% |
Total percentage of common stock units | 100.00% | 100.00% |
Non-controlling Interest - Distributions Paid or Payable (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Tax and other distributions | ||
Dividends Payable [Line Items] | ||
Distributions paid or payable to or on behalf of non-controlling unitholders | $ 14 | $ 55 |
Dividend distributions | ||
Dividends Payable [Line Items] | ||
Distributions paid or payable to or on behalf of non-controlling unitholders | 2,763 | 2,638 |
Quarterly distribution | ||
Dividends Payable [Line Items] | ||
Distributions paid or payable to or on behalf of non-controlling unitholders | $ 2,777 | $ 2,693 |
Earnings Per Share and Dividends - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
May 05, 2020 |
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Dividends Payable [Line Items] | |||
Dividends to Class A common stockholders | $ 3,986 | $ 3,740 | |
Distributions declared to non-controlling unitholders | $ 2,763 | $ 2,638 | |
Common Class A | |||
Dividends Payable [Line Items] | |||
Cash dividends declared per share of Class A common stock | $ 0.22 | $ 0.21 | |
Dividends to Class A common stockholders | $ 3,986 | $ 3,740 | |
Quarterly dividend | Common Class A | |||
Dividends Payable [Line Items] | |||
Cash dividends declared per share of Class A common stock | $ 0.22 | $ 0.22 | |
Non-controlling interest | |||
Dividends Payable [Line Items] | |||
Dividends to Class A common stockholders | $ 0 | $ 0 |
Acquisitions (Details) - USD ($) $ in Thousands |
Dec. 16, 2019 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Jan. 01, 2019 |
---|---|---|---|---|
Purchase Price Allocation | ||||
Goodwill | $ 161,698 | $ 159,038 | ||
First Leads | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 15,000 | |||
Marketing funds | ||||
Purchase Price Allocation | ||||
Restricted cash | $ 28,495 | |||
Other current assets | 8,472 | |||
Property and equipment | 788 | |||
Other assets, net of current portion | 126 | |||
Total assets acquired | 37,881 | |||
Other current liabilities | 37,881 | |||
Total liabilities assumed | $ 37,881 |
Intangible Assets and Goodwill - Estimated Future Amortization of Intangible Assets, Other Than Goodwill (Details) $ in Thousands |
Mar. 31, 2020
USD ($)
|
---|---|
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
Remainder of 2020 | $ 17,557 |
2021 | 25,941 |
2022 | 19,323 |
2023 | 15,192 |
2024 | 12,795 |
Estimated future amortization expense over next five years | $ 90,808 |
Intangible Assets and Goodwill - Schedule of Changes in Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2020
USD ($)
| |
Changes to goodwill | |
Beginning Balance | $ 159,038 |
Goodwill recognized related to acquisitions | 2,927 |
Effect of changes in foreign currency exchange rates | (267) |
Ending Balance | 161,698 |
RE/MAX Franchising | |
Changes to goodwill | |
Beginning Balance | 147,238 |
Goodwill recognized related to acquisitions | 2,927 |
Effect of changes in foreign currency exchange rates | (267) |
Ending Balance | 149,898 |
Motto Franchising | |
Changes to goodwill | |
Beginning Balance | 11,800 |
Goodwill recognized related to acquisitions | 0 |
Effect of changes in foreign currency exchange rates | 0 |
Ending Balance | $ 11,800 |
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Accrued Liabilities. | ||
Marketing Funds | $ 42,253 | $ 39,672 |
Accrued payroll and related employee costs | 2,749 | 11,900 |
Accrued taxes | 1,779 | 2,451 |
Accrued professional fees | 1,972 | 2,047 |
Other | 3,590 | 4,093 |
Accrued liabilities | $ 52,343 | $ 60,163 |
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
Senior Secured Credit Facility | $ 227,065 | |
Less current portion | (2,628) | $ (2,648) |
Debt, net of current portion | 222,522 | 223,033 |
Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Senior Secured Credit Facility | 226,775 | 227,363 |
Other long-term financing | 290 | 362 |
Less unamortized debt issuance costs | (1,107) | (1,182) |
Less unamortized debt discount costs | (808) | (862) |
Less current portion | (2,628) | (2,648) |
Debt, net of current portion | $ 222,522 | $ 223,033 |
Debt - Schedule of Maturities of Debt (Details) $ in Thousands |
Mar. 31, 2020
USD ($)
|
---|---|
Debt | |
Remainder of 2020 | $ 1,988 |
2021 | 2,414 |
2022 | 2,350 |
2023 | 220,313 |
Long term debt | $ 227,065 |
Debt - Additional Information (Details) - USD ($) |
Mar. 31, 2020 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 3.74% | |
Term loan | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Notes Payable to Bank | $ 235,000,000.0 | |
Revolving loan facility | ||
Debt Instrument [Line Items] | ||
Amounts drawn on line of credit | $ 0 | |
Revolving loan facility | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility, borrowing capacity | $ 10,000,000.0 |
Fair Value Measurements - Reconciliation of Assets and Liabilities Measured Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance at Beginning | $ 5,005 | |
Fair value adjustment | (505) | $ (70) |
Balance at Ending | 4,500 | |
Measured on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance at Beginning | 5,005 | |
Balance at Ending | 4,500 | |
Level 3 | Measured on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance at Beginning | 5,005 | |
Balance at Ending | $ 4,500 |
Fair Value Measurements - Schedule of Senior Secured Credit Facility (Details) - Senior Secured Credit Facility - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Carrying amounts | ||
Debt Instrument [Line Items] | ||
Long term debt, carrying amount | $ 224,860 | $ 225,319 |
Level 2 | Estimated fair value | ||
Debt Instrument [Line Items] | ||
Long term debt, fair value | $ 192,759 | $ 227,363 |
Segment Information (Details) |
3 Months Ended |
---|---|
Mar. 31, 2020
segment
| |
Segment Information | |
Number of Operating Segments | 4 |