NASDAQ$RMR

The RMR Group Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

RMR Group Inc. announced first quarter fiscal 2020 results.

The RMR Group Inc. reported net income attributable of $9.4 million, or $0.58 per diluted share and adjusted net income attributable of $9.3 million, or $0.57 per diluted share for the quarter ended December 31, 2019.

  • Gross assets under management were $32.2 billion as of December 31, 2019, compared to $29.7 billion as of December 31, 2018.
  • Fee paying assets under management were $24.9 billion on December 31, 2019 compared to $23.4 billion on December 31, 2018.
  • Total management and advisory services revenues were $48.1 million for the quarter ended December 31, 2019, compared to $168.4 million for the quarter ended December 31, 2018.
  • As of December 31, 2019, The RMR Group Inc. had $385.7 million in cash and cash equivalents with no outstanding debt obligations.

Headline financials

Total Revenue

$160M

Previous: $280M-43.0%
EPS (adj)

$0.57

Previous: $0.62-8.1%
Assets Under Management

$32.2B

No prior period
Capital Expenditures

-$148K

Previous: -$170K+12.9%
Free Cash Flow

$9.3M

Previous: $52M-82.1%
Net Income

$9.45M

Previous: $52.2M-81.9%
Operating Income

$21.8M

Previous: $138M-84.2%
Gross Profit

$31.7M

Previous: $280M-88.7%
Cash & Equivalents

$386M

Previous: $284M+35.7%
Total Assets

$705M

Previous: $690M+2.1%
Stock-Based Comp

$1.58M

Previous: $1.81M-12.6%

Revenue & EPS history

RMR · Revenue · Quarterly

$160M

Q1 2020-43%vs Q1 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Forward guidance

The RMR Group Inc. is well positioned to assess strategic opportunities for future growth.

Tailwinds

  • The integration of Service Properties Trust’s $2.4 billion net leased retail portfolio acquisition has progressed as planned.
  • Incremental financial benefits to The RMR Group are remaining in line with forecasts.
  • The RMR Group is making significant progress in executing on the repositioning efforts at Office Properties Income Trust.
  • The RMR Group is making significant progress in executing on the repositioning efforts at Diversified Healthcare Trust.
  • Balance sheet continues to leave RMR well positioned to assess strategic opportunities for future growth.

Headwinds

  • Integrating acquisitions and executing strategic repositionings are subject to various risks.
  • The RMR Group and its Client Companies may not realize the benefits they expect from these activities, including increased total shareholder returns at the applicable Client Companies
  • Property sales that Diversified Healthcare Trust has under agreement are subject to conditions and may not occur, may be delayed or their terms may change
  • The RMR Group’s assessments and efforts may not be successful.
  • The RMR Group may realize losses as a result.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.9%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+0.8%

Avg return

30 days after

40%

17 / 42 earnings

Positive

+10.4%

Q2 2016

Best reaction

-14.3%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.3%-1.9%+3.4%
Q1 2026+7.6%+13.7%+9.2%
Q4 2025+0.6%-2.5%+0.9%
Q2 2025-4.5%+1.9%+6.1%
Q1 2025-0.7%-1.8%-1.3%
Q4 2024-7.4%-9.7%-10.1%
Q3 2024-3.4%-6.6%-1.7%
Q2 2024-4.3%-1.3%-3.3%
Q1 2024+2.7%+3.3%-7.1%
Q4 2023-1.8%-0.6%+12.3%
Q3 2023-1.2%+4.0%+6.8%
Q2 2023-4.1%-5.6%-4.0%
Q1 2023-2.5%-8.6%-7.2%
Q4 2022-3.2%+1.5%+4.2%
Q3 2022+0.5%-0.7%-9.1%
Q2 2022-0.1%-0.7%+8.5%
Q1 2022-2.6%+2.4%-4.2%
Q4 2021+0.9%-3.8%-9.0%
Q3 2021+3.3%+2.6%-1.2%
Q2 2021-1.8%-5.3%-0.9%
Q1 2021+8.5%+4.1%+13.5%
Q4 2020+8.4%+12.5%+22.2%
Q3 2020+6.8%+10.3%+7.9%
Q2 2020-14.3%-17.4%+4.2%
Q1 2020-6.2%-5.4%-20.4%
Q4 2019-3.9%-1.9%-4.4%
Q3 2019-6.1%-8.3%-1.8%
Q2 2019-8.4%-7.0%-8.2%
Q1 2019+1.4%+3.3%-1.1%
Q4 2018-1.7%-3.9%-16.2%
Q3 2018+1.8%+1.9%+12.0%
Q2 2018+0.1%-6.4%-4.7%
Q1 2018+3.7%+9.5%+29.1%
Q4 2017-0.7%-0.7%+3.8%
Q3 2017-8.0%-1.8%+1.1%
Q2 2017-2.8%-6.1%-6.7%
Q1 2017+1.1%+8.2%+5.3%
Q4 2016-3.1%-5.7%-9.3%
Q3 2016+2.2%+4.4%+13.0%
Q2 2016+10.4%
Q1 2016-1.8%
Q4 2015-2.7%
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2013

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