NASDAQ$RMR

The RMR Group Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported net income of $17.3 million and adjusted EBITDA of $29.4 million, both showing sequential quarter increases.

The RMR Group Inc. announced its Q3 fiscal 2022 results with management and advisory services revenues of $53.0 million, a 16% increase from last year. Net income was $17.3 million, and Adjusted EBITDA was $29.4 million.

  • Management and advisory services revenues increased by 16% year-over-year to $53.0 million.
  • Net income reached $17.3 million, with a net income margin of 32.6%.
  • Adjusted EBITDA was $29.4 million, resulting in an Adjusted EBITDA margin of 53.1%.
  • The company had approximately $196 million in cash and cash equivalents with no debt.

Headline financials

Total Revenue

$211M

Previous: $145M+45.3%
EPS (adj)

$0.59

Previous: $0.47+25.5%
Assets Under Management

$37.2B

No prior period
Capital Expenditures

-$915K

Previous: -$940K+2.7%
Free Cash Flow

$6.66M

Previous: $7.29M-8.7%
Net Income

$7.57M

Previous: $8.23M-8.0%
Operating Income

$25.4M

Previous: $20.9M+21.8%
Gross Profit

$34.9M

Previous: $29.5M+18.5%
Cash & Equivalents

$196M

Previous: $398M-50.7%
Total Assets

$531M

Previous: $725M-26.7%
Stock-Based Comp

$512K

Previous: $1.95M-73.8%

Revenue & EPS history

RMR · Revenue · Quarterly

$211M

Q3 2022+45.3%vs Q3 2021
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Forward guidance

The press release contains forward-looking statements regarding future revenues, financial results, operating leverage, and capital allocation strategies. However, these statements are subject to various risks and uncertainties, including economic conditions, the impact of the COVID-19 pandemic, and factors outside the company's control.

Tailwinds

  • Company anticipates to continue earning increased management and advisory services revenues in the future.
  • Company expects improved financial results in the future.
  • Company's business will realize steady operating results and returns as a result of its characteristics.
  • Company will continue to pay a regular quarterly dividend at the current rate.
  • Company will successfully identify and execute one or more capital allocation strategies.

Headwinds

  • The RMR Group Inc.'s and its clients’ businesses are subject to various risks, including risks outside its and their control.
  • The impact and duration of the COVID-19 pandemic is not known and economic conditions could deteriorate, including as a result of increasing interest rates, inflation and adverse geopolitical conditions, for a prolonged period and negatively impact The RMR Group Inc.’s and its clients’ businesses and operating and financial results
  • These characteristics may not be as certain as The RMR Group Inc. may believe and they may not be sufficient to adequately prevent future events or conditions, including those outside its control, from negatively impacting The RMR Group Inc.’s business and operating results
  • There can be no assurance that The RMR Group Inc. will continue to pay any regular dividends or that it will continue to pay dividends at the current rate. The RMR Group Inc. may decide to lower or even eliminate its dividends.
  • Identifying and executing on capital allocation strategies are subject to various uncertainties and risks, it may take an extended period of time to realize any benefits and there can be no assurance that any capital allocation strategy that it does pursue will advance continued long term growth.

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 2022

Historical avgQ3 2022

-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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