RE/MAX Holdings, Inc (RMAX) has reported a 0.57 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $4.91 million, or $0.28 a share in the quarter, compared with $4.94 million, or $0.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $12.15 million, or $0.40 a share compared with $11.47 million or $0.38 a share, a year ago. Revenue during the quarter grew 12.38 percent to $48.23 million from $42.92 million in the previous year period.
Total expenses were $32.78 million for the quarter, up 21.13 percent or $5.72 million from year-ago period. Operating margin for the quarter contracted 491 basis points over the previous year period to 32.04 percent.
Operating income for the quarter was $15.45 million, compared with $15.86 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $22.50 million compared with $21.01 million in the prior year period. At the same time, adjusted EBITDA margin contracted 231 basis points in the quarter to 46.64 percent from 48.95 percent in the last year period.
For the second-quarter, RE/MAX Holdings forecasts revenue to be in the range of $47 million to $48.50 million. RE/MAX Holdings forecasts revenue to be in the range of $194 million to $197 million for fiscal year 2017.
"We started 2017 strong, underpinned by increasing agent count and double-digit revenue growth year-over-year," stated Dave Liniger, chief executive officer and co-founder. "Our agent count increased more than 7,000 agents since March of last year, and, notably, our agent count outside the U.S. and Canada increased by 15 percent to over 30,000 agents. RE/MAX is in over 100 countries and territories, a global presence unrivaled by our peers."
Operating cash flow improves
RE/MAX Holdings, Inc has generated cash of $14.10 million from operating activities during the quarter, up 12.96 percent or $1.62 million, when compared with the last year period. The company has spent $0.66 million cash to meet investing activities during the quarter as against cash outgo of $9.72 million in the last year period.
The company has spent $6.51 million cash to carry out financing activities during the quarter as against cash outgo of $17.80 million in the last year period.
Cash and cash equivalents stood at $64.64 million as on Mar. 31, 2017, down 32.44 percent or $31.03 million from $95.67 million on Mar. 31, 2016.
Receivables move up
Net receivables were at $20.41 million as on Mar. 31, 2017, up 18.83 percent or $3.23 million from year-ago. Accounts payable surged 1,944.08 percent or $11.82 million to $12.43 million on Mar. 31, 2017.
Total assets grew 17.23 percent or $64.24 million to $437.08 million on Mar. 31, 2017. On the other hand, total liabilities were at $375.12 million as on Mar. 31, 2017, up 13.95 percent or $45.93 million from year-ago.
Return on assets moved down 56 basis points to 2.84 percent in the quarter. At the same time, return on equity moved down 339 basis points to 7.93 percent in the quarter.
Debt moves up
Total debt was at $230.36 million as on Mar. 31, 2017, up 21.63 percent or $40.97 million from year-ago. Shareholders equity stood at $61.95 million as on Mar. 31, 2017, up 41.96 percent or $18.31 million from year-ago. As a result, debt to equity ratio went down 62 basis points to 3.72 percent in the quarter.
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