NASDAQ$RMR

The RMR Group Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

RMR Group Inc. reported a net income of $14.9 million and management services revenues increased by 1.7% year over year.

The RMR Group Inc. announced its financial results for the fiscal quarter ended March 31, 2020. Management services revenues increased 1.7% year over year. The company generated net income of $14.9 million, Adjusted EBITDA of $23.9 million, Operating Margin of 40.6% and Adjusted EBITDA Margin of 51.3% this quarter.

  • Management services revenues increased by 1.7% year over year.
  • Net income was $14.9 million.
  • Adjusted EBITDA was $23.9 million.
  • Cash and cash equivalents totaled $377.4 million with no debt.

Headline financials

Total Revenue

$141M

Previous: $130M+8.3%
EPS (adj)

$0.46

Previous: $0.50-8.0%
Capital Expenditures

-$352K

Previous: -$125K-181.6%
Free Cash Flow

$6.12M

Previous: $8.04M-24.0%
Net Income

$6.47M

Previous: $8.17M-20.8%
Operating Income

$17.9M

Previous: $18.7M-4.5%
Gross Profit

$26.5M

Previous: $130M-79.6%
Cash & Equivalents

$377M

Previous: $384M-1.8%
Total Assets

$686M

Previous: $660M+4.0%
Stock-Based Comp

$302K

Previous: $1.2M-74.9%

Revenue & EPS history

RMR · Revenue · Quarterly

$141M

Q2 2020+8.3%vs Q2 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Forward guidance

It remains to be seen how the pandemic and its impacts on the economy will evolve over the remainder of the year, the company believes that its Client Companies have ample resources to navigate the challenges impacting their respective sectors.

Tailwinds

  • Client Companies have ample resources.
  • Experience and depth of leadership team is critical.
  • RMR is in a strong position to weather the current economic disruption.
  • Long-term evergreen contracts.
  • Scalable platform.

Headwinds

  • Market disruptions resulting from the COVID-19 pandemic have led to share price declines for Managed Equity REITs.
  • Share price declines have significantly reduced fee-paying assets under management.
  • Pandemic and its impacts on the economy remain uncertain.
  • Economic conditions spurred by the COVID-19 pandemic continue for an extended period or worsen.
  • Ultimate impact of COVID-19 and its aftermath is impossible to determine at this time.

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 Q2 2020

Historical avgQ2 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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