DENVER, March 19, 2020 /PRNewswire/ -- RE/MAX
Holdings, Inc. (the "Company" or "RE/MAX Holdings") (NYSE:
RMAX) today announced several initiatives to help RE/MAX affiliates
navigate their businesses through the ongoing challenges of the
global coronavirus (COVID-19) pandemic. The initiatives the
Company is offering include financial support (for example, the
deferral of certain fees), productivity tools at a full or partial
discount, along with enhanced training and other tools to be rolled
out to help affiliates optimize their business for the current
environment. RE/MAX Holdings also provided an update on its
previously issued guidance for the first quarter and full year of
2020.
"Our priority continues to be the health and safety of our
agents, franchisees, employees, home buyers and sellers and the
communities in which they live," said Adam
Contos, RE/MAX Holdings CEO. "While circumstances related to
COVID-19 vary by location and are evolving quickly, we remain
committed to providing best-in-class solutions to assist our
affiliates at a time when they need to pivot and adjust quickly to
the challenging environment. We are actively monitoring the
situation and evaluating the best way to support our affiliates and
their businesses during this time."
RE/MAX Holdings encourages its networks to support government
and health agency guidelines to help stem the spread of
COVID-19. We have advised our networks to adhere to
conditions set forth in their communities, including – for RE/MAX
affiliates – considering not holding open houses for the time
being.
The magnitude and duration of the impact from COVID-19,
especially on consumer behaviors, are unknown and therefore cannot
be reasonably estimated. Given the constantly changing environment
and uncertainty stemming from this global health crisis, RE/MAX
Holdings is withdrawing the first quarter and full-year 2020
guidance that it provided on February 20,
2020.
The Company's 100% franchised business model, primarily
recurring revenue streams from dues and fees and strong balance
sheet provide financial flexibility to navigate challenging
conditions. The Company will continue to manage its expenses and
capital expenditure programs judiciously.
Continued Contos, "We have over 45 years of experience operating
through many business cycles driven by the strength and geographic
breadth of our professional and entrepreneurial networks. Now is
the time help our brokers and agents so they can continue helping
their communities, and we will do that through kindness, caring and
empathy until this storm too has passed."
About RE/MAX Holdings, Inc.
RE/MAX Holdings, Inc.
(NYSE: RMAX) is one of the world's leading franchisors in the real
estate industry, franchising real estate brokerages globally under
the RE/MAX® brand, and mortgage brokerages within the
U.S. under the Motto® Mortgage brand. RE/MAX was
founded in 1973 by David and Gail
Liniger, with an innovative, entrepreneurial culture
affording its agents and franchisees the flexibility to operate
their businesses with great independence. Now with more than
130,000 agents across over 110 countries and territories, nobody in
the world sells more real estate than RE/MAX, as measured by total
residential transaction sides. Dedicated to innovation and change
in the real estate industry, RE/MAX launched Motto Franchising,
LLC, a ground-breaking mortgage brokerage franchisor, in 2016.
Forward-Looking Statements
This press release includes
"forward-looking statements" within the meaning of the "safe
harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements are often
identified by the use of words such as "believe," "intend,"
"expect," "estimate," "plan," "outlook," "project," "anticipate,"
"may," "will," "would" and other similar words and expressions that
predict or indicate future events or trends that are not statements
of historical matters. Forward-looking statements include
statements related to: the impact of the global coronavirus
(COVID-19) pandemic; initiatives that the Company is offering to
its franchisees and the effectiveness of those initiatives; the
ability of RE/MAX and Motto franchisees to adjust to the changing
business environment; the Company's ability to successfully operate
through different business cycles; the Company's business model,
revenue streams, cost structure, balance sheet, and financial
flexibility; and the Company's management of expenses and capital
expenditures. Forward-looking statements should not be read as a
guarantee of future performance or results and will not necessarily
accurately indicate the times at which such performance or results
may be achieved. Forward-looking statements are based on
information available at the time those statements are made and/or
management's good faith belief as of that time with respect to
future events and are subject to risks and uncertainties that could
cause actual performance or results to differ materially from those
expressed in or suggested by the forward-looking
statements. Important risks and uncertainties that could
cause actual results to differ materially from the Company's
expectations include, among others, risks related to (1) the
duration and severity of COVID-19 and its impact on the Company's
agents, loan originators, franchises and employees, as well as home
buyers and sellers more generally, (2) the impact on the Company's
business of rapidly changing events relating to COVID-19, including
the effects of shelter-in-place orders and similar government
orders aimed at containing the spread of the COVID-19 virus such as
restrictions on public gatherings, quarantines of people who may
have been exposed to the virus and travel restrictions, (3) the
impact on the Company's business of its initiatives to assist
franchisees during the COVID-19 pandemic, including fee deferrals
to its franchisees in Company-owned regions in the United States and Canada, (4) the impact of COVID-19 and
requirements to work remotely on the ability of the Company's
management team to successfully implement the Company's business
plans, and (5) the impact of COVID-19 on the U.S. and global
economies and financial markets, all of which could significantly
harm the Company's business, liquidity, results of operations and
financial condition. Other important risks and
uncertainties include, without limitation, (i) changes in the real
estate market or interest rates and availability of financing, (ii)
changes in business and economic activity in general, (iii) the
Company's ability to attract and retain quality franchisees, (iv)
the Company's franchisees' ability to recruit and retain real
estate agents and mortgage loan originators, (v) changes in laws
and regulations, (vi) the Company's ability to enhance, market, and
protect the RE/MAX and Motto Mortgage brands, (vii) the Company's
ability to implement its technology initiatives, (viii)
fluctuations in foreign currency exchange rates, and those risks
and uncertainties described in the sections entitled "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" in the most recent Annual Report on Form
10-K and Quarterly Reports on Form 10-Q filed with the Securities
and Exchange Commission ("SEC") and similar disclosures in
subsequent periodic and current reports filed with the SEC, which
are available on the investor relations page of the Company's
website at www.remax.com and on the SEC website
at www.sec.gov. Readers are cautioned not to place undue
reliance on forward-looking statements, which speak only as of the
date on which they are made. Except as required by law, the Company
does not intend, and undertakes no obligation, to update this
information to reflect future events or circumstances.
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SOURCE RE/MAX Holdings, Inc.