NASDAQ$RMR

The RMR Group Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Announced third quarter fiscal 2020 results.

The RMR Group Inc. reported net income attributable to the company of $0.41 per diluted share and adjusted net income attributable to the company of $0.38 per diluted share for the third quarter of fiscal year 2020. The company had $393.7 million of cash and no debt as of June 30, 2020.

  • Net income was $15.4 million.
  • Adjusted EBITDA was $19.6 million.
  • Adjusted EBITDA Margin was 47.1%.
  • Cash and cash equivalents totaled $393.7 million with no debt.

Headline financials

Total Revenue

$139M

Previous: $144M-3.5%
EPS (adj)

$0.38

Previous: $0.53-28.3%
Capital Expenditures

-$404K

Previous: -$299K-35.1%
Free Cash Flow

$6.31M

Previous: $5.55M+13.7%
Net Income

$6.72M

Previous: $5.85M+14.8%
Operating Income

$15.1M

Previous: $20M-24.2%
Gross Profit

$23.4M

Previous: $144M-83.7%
Cash & Equivalents

$394M

Previous: $377M+4.4%
Total Assets

$705M

Previous: $663M+6.3%
Stock-Based Comp

$1.3M

Previous: $1.33M-2.6%

Revenue & EPS history

RMR · Revenue · Quarterly

$139M

Q3 2020-3.5%vs Q3 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Forward guidance

The RMR Group Inc. is optimistic about rent collections, strategic opportunities and future growth, but faces risks including the impact and duration of the COVID-19 pandemic.

Tailwinds

  • Fee paying assets under management increased sequentially.
  • Management services revenues increased each successive month in the quarter.
  • Assisted several Client Companies in raising more than $2 billion of capital.
  • Overall high rent collection levels.
  • Waning tenant rent relief requests across the retail, office and industrial assets.

Headwinds

  • Results reflect the adverse impacts of the pandemic on Managed Equity REITs’ share prices.
  • Business is subject to various risks, including risks outside of its control.
  • The impact and duration of the COVID-19 pandemic is not known.
  • Tenant rent collections may decline and tenant rent relief requests may increase in the future.
  • Tenants may be unable to repay those amounts when due.

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 Q3 2020

Historical avgQ3 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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