NASDAQ$RMR

The RMR Group Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Announced fourth quarter 2021 results with net income of $30.8 million.

The RMR Group Inc. reported a strong fourth quarter with a 16.5% increase in management and advisory services revenues, reaching $46.8 million. Adjusted EBITDA Margin increased to 53.5%, and the company holds nearly $160 million in cash with no debt, positioning it well for future growth.

  • Assets under management were $32.7 billion as of September 30, 2021, compared to $32.4 billion as of September 30, 2020.
  • Total management and advisory services revenues increased to $46.8 million, compared to $40.2 million for the quarter ended September 30, 2020.
  • Net income was $30.8 million, or $0.82 per diluted share, compared to $14.4 million, or $0.38 per diluted share, for the same period last year.
  • Adjusted EBITDA was $26.3 million, with an Operating Margin of 45.1% and an Adjusted EBITDA Margin of 53.5%.

Headline financials

Total Revenue

$173M

Previous: $150M+15.6%
EPS (adj)

$0.50

Previous: $0.39+28.2%
Assets Under Management

$32.7B

No prior period
Capital Expenditures

$202K

Previous: $197K+2.5%
Free Cash Flow

-$779K

Previous: -$1.49M+47.7%
Net Income

$30.8M

Previous: $14.4M+113.5%
Operating Income

$21.1M

Previous: $13.9M+51.9%
Gross Profit

$34.3M

Previous: $25.9M+32.4%
Cash & Equivalents

$160M

Previous: $370M-56.8%
Total Assets

$498M

Previous: $690M-27.9%
Stock-Based Comp

$4.76M

Previous: $4.65M+2.4%

Revenue & EPS history

RMR · Revenue · Quarterly

$173M

Q4 2021+15.6%vs Q4 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

RMR anticipates continued revenue increases in fiscal 2022, driven by strategic plan execution and economic recovery, including potential incentive management fees from Managed Equity REITs. The company is focused on growing its private capital business, leveraging its strong cash position and lack of debt.

Tailwinds

  • Continued increases in revenues expected in fiscal 2022.
  • Potential incentive management fees from Managed Equity REITs.
  • Strategic plan execution by clients during economic recovery.
  • Strong cash position with nearly $160 million and no debt.
  • Concentrated focus on growth of private capital business.

Headwinds

  • Businesses are subject to various risks outside of RMR's and its clients' control.
  • The impact and duration of the COVID-19 pandemic is not known.
  • Economic conditions could deteriorate for a prolonged period.
  • Base management fees may not grow and could decline in future periods.
  • Limited control over total returns realized by shareholders of Managed Equity REITs.

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 Q4 2021

Historical avgQ4 2021

-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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