RE/MAX Holdings Provides New Tools, Enhanced Training, And Financial Support To Assist Its Affiliates Amid COVID-19 Outbreak
DENVER, March 19, 2020 / PRNewswire / – RE / MAX Holdings, Inc. (the “Company” or “RE / MAX Holdings”) (NYSE: RMAX) today announced several initiatives that RE / MAX subsidiaries are joining to help navigate their stores to meet the ongoing challenges of the global coronavirus pandemic (COVID-19). Initiatives the company offers include financial assistance (such as deferring certain fees), productivity tools with full or partial discounts, and improved training and other tools to be introduced to help affiliates optimize their business for to help the current environment. RE / MAX Holdings also announced an update to its previously published guidance for the first quarter and full year 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, CEO of RE / MAX Holdings. “While circumstances related to COVID-19 vary from location to location and are evolving rapidly, we continue to strive to offer first-class solutions to support our partners at a time when they have to adapt quickly to the challenging environment . We are actively monitoring the situation and examining how we can best support our affiliated companies and their companies during this time. “
RE / MAX Holdings encourages its networks to support government and health agency guidelines to help contain the spread of COVID-19. We have advised our networks to adhere to the terms and conditions set out in their communities, including – for RE / MAX subsidiaries – consider not holding open houses for the time being.
The extent and duration of the effects of COVID-19, particularly on consumer behavior, are unknown and therefore cannot be reasonably estimated. In light of the ever-changing environment and the uncertainty resulting from this global health crisis, RE / MAX Holdings is withdrawing the guidance presented on February 20, 2020 for the first quarter and full year 2020.
The company’s 100% franchise business model, primarily recurring revenue streams from fees and charges, and a strong balance sheet, offer financial flexibility to handle challenging conditions. The company will continue to wisely manage its spending and investment programs.
Contos continued, “We have over 45 years of experience in many business cycles that depend on the strength and breadth of our professional and corporate networks. Now is the time to help our brokers and agents so they can continue to serve their communities, and we will do so through kindness, care, and empathy until this storm is over too. “
About RE / MAX Holdings, Inc.
RE / MAX Holdings, Inc. (NYSE: RMAX) is one of the world’s leading franchisors in the real estate industry, offering real estate agents worldwide under the RE / MAX® brand and mortgage brokers in the US under the Motto® Mortgage brand. RE / MAX was founded in 1973 by David and Gail Liniger with an innovative corporate culture that offers its agents and franchisees the flexibility to run their businesses with great independence. With more than 130,000 brokers in over 110 countries and territories, no one in the world sells more real estate than RE / MAX, based on the total number of residential property transactions. Dedicated to innovation and change in the real estate industry, RE / MAX founded Motto Franchising, LLC, a pioneering mortgage broker-franchisor, in 2016.
This press release contains “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 frequently identified by the use of the words “believe”. “Intend,” “expect,” “estimate,” “plan,” “look out,” “project,” “anticipate,” “may,” “will,” “would” and other similar words and expressions that predict the future or display events or trends that are not statements of historical matters. Forward-looking statements include statements about: the impact of the global coronavirus (COVID-19) pandemic; Initiatives the company offers to its franchisees and the effectiveness of those initiatives; the ability of RE / MAX and Motto franchisees to adapt to the changing business environment; the company’s ability to operate successfully across different business cycles; the business model, sources of income, cost structure, balance sheet and financial flexibility of the company; and managing the company’s expenses and investments. Forward-looking statements should not be taken as a guarantee of future performance or results and do not necessarily indicate the exact times when such performance or results may be achieved. Forward-looking statements are based on information available at the time such statements were made and / or on management’s belief in good faith about future events and are subject to risks and uncertainties that could cause actual performance or the Results will differ materially from those expressed or suggested in the forward-looking statements. Important risks and uncertainties that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, risks related to (1) the duration and severity of COVID-19 and its impact on agents, lenders, Franchises and company employees. and home buyers and sellers in general (2) the impact of rapidly changing events related to COVID-19 on the company’s business, including the impact of on-site assignments and similar government assignments aimed at preventing the spread of the Company Curb 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 of its initiatives to assist franchisees during the COVID-19 pandemic on the company’s business , including deferment fees to its franchisees in company-owned regions in the US and Canada, (4) the impact of COVID-19 and the need to work remotely on the company’s management team’s ability to successfully execute the company’s business plans, and (5 ) the impact of COVID-19 on the US and global economies and financial markets that could materially affect the business, liquidity, results of operations, and financial condition of the company. Other important risks and uncertainties include, but are not limited to, (i) changes in the property market or interest rates and availability of funds, (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 improve, market and maintain RE / MAX and motto protect mortgage brands, (vii) the company’s ability to implement its technology initiatives, (viii) exchange rate fluctuations, and the risks and uncertainties described in the “Risk Factors” and “Management Discussion and Analysis of Financial Condition and Results” sections of Operations “In the most recent annual report on Form 10-K and in the Se Curities and Exchange Commission (“SEC”) filed quarterly reports on Form 10-Q and similar disclosures in the following periodic and timely reports filed with the SEC and on the Investor Relations page of the company’s website at www.remax.com and are available 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 they are made. Except as required by law, the company does not intend or assume any obligation to update this information to reflect future events or circumstances.
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SOURCE RE / MAX Holdings, Inc.