RE/MAX Holdings Announces Dividend Actions
Doubles quarterly dividend to $0.125 per share; Declares special dividend of $1.50 per share
DENVER, March 11, 2015 // PRNewswire // -- RE/MAX Holdings, Inc. (the "Company" or "RE/MAX") (NYSE: RMAX), one of the world's leading franchisors of real estate brokerage services, announced today that its Board of Directors doubled the Company's quarterly dividend to $0.125 per share and approved a special cash dividend of $1.50 per share. The aggregate payment of the special cash dividend will be approximately $45 million and will be funded through existing cash.
Chief Executive Officer and Co-Founder of RE/MAX, Dave Liniger, said, "Our ability to double our quarterly dividend and pay a special dividend is testament to the strength of our balance sheet and the strong and stable cash flow generated by our franchise business model. Even after increasing our quarterly dividend and paying the special dividend, we will have ample capital capacity to pursue our other capital management priorities, which include reinvesting in our business and completing acquisitions to spur future growth."
Liniger continued, "As always, we remain focused on allocating capital to maximize value for our shareholders. We have paid a quarterly dividend since we went public a year and a half ago and today's announcement reinforces our commitment to return capital to shareholders."
The quarterly dividend is payable on April 8, 2015 to shareholders of record at the close of business on March 25, 2015. The special cash dividend is payable on April 8, 2015 to shareholders of record at the close of business on March 23, 2015.
The portion of the Company's dividends that will be treated as a qualified dividend for U.S. tax purposes will depend upon the amount of the Company's accumulated earnings and profits as of December 31, 2015, the end of the Company's current fiscal year, as determined by the Internal Revenue Code. Therefore, at this time the Company is not able to determine the portion of the dividends that will be treated as a qualified dividend. Stockholders will receive further information on Form 1099 after the end of 2015 and are encouraged to consult with their own tax advisors regarding the tax treatment of the dividends.
About the RE/MAX Network
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Over 98,000 agents provide RE/MAX a global reach of more than 95 countries. Nobody sells more real estate than RE/MAX.
RE/MAX, LLC, one of the world's leading franchisors of real estate brokerage services, is a wholly-owned subsidiary of RMCO, which is controlled and managed by RE/MAX Holdings, Inc. (NYSE: RMAX).
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 may be identified by the use of words such as "anticipate," "believe," "intend," "expect," "estimate," "plan," "outlook," "project" and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding the Company's outlook for potential growth of the business, the Company's belief that business fundamentals remain strong, as well as other statements regarding the Company's strategic and operational plans. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will 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. Such risks and uncertainties include, without limitation, (1) changes in business and economic activity in general, (2) changes in the real estate market, including changes due to interest rates and availability of financing, (3) the Company's ability to attract and retain quality franchisees, (4) the Company's franchisees' ability to recruit and retain agents, (5) changes in laws and regulations that may affect the Company's business or the real estate market, (6) failure to maintain, protect and enhance the RE/MAX brand (7) fluctuations in foreign currency exchange rates, as well as those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in the most recent Annual Report or Form 10-K filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent 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 duty, to update this information to reflect future events or circumstances.
SOURCE RE/MAX Holdings, Inc.