DENVER, March 11, 2015 /PRNewswire/ -- RE/MAX Holdings, Inc.
(the "Company" or "RE/MAX") (NYSE: RMAX), one of the world's leading
franchisors of real estate brokerage services, announced today that its
Board of Directors doubled the Company's quarterly dividend to $0.125
per share and approved a special cash dividend of $1.50 per share. The
aggregate payment of the special cash dividend will be approximately $45
million and will be funded through existing cash.
Chief Executive Officer and Co-Founder of RE/MAX, Dave Liniger, said,
"Our ability to double our quarterly dividend and pay a special
dividend is testament to the strength of our balance sheet and the
strong and stable cash flow generated by our franchise business model.
Even after increasing our quarterly dividend and paying the special
dividend, we will have ample capital capacity to pursue our other
capital management priorities, which include reinvesting in our business
and completing acquisitions to spur future growth."
Liniger continued, "As always, we remain focused on allocating
capital to maximize value for our shareholders. We have paid a quarterly
dividend since we went public a year and a half ago and today's
announcement reinforces our commitment to return capital to
shareholders."
The quarterly dividend is payable on April 8, 2015 to shareholders of
record at the close of business on March 25, 2015. The special cash
dividend is payable on April 8, 2015 to shareholders of record at the
close of business on March 23, 2015.
The portion of the Company's dividends that will be treated as a
qualified dividend for U.S. tax purposes will depend upon the amount of
the Company's accumulated earnings and profits as of December 31, 2015,
the end of the Company's current fiscal year, as determined by the
Internal Revenue Code. Therefore, at this time the Company is not able
to determine the portion of the dividends that will be treated as a
qualified dividend. Stockholders will receive further information on
Form 1099 after the end of 2015 and are encouraged to consult with their
own tax advisors regarding the tax treatment of the dividends.
About the RE/MAX Network
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an
innovative, entrepreneurial culture affording its agents and franchisees
the flexibility to operate their businesses with great independence.
Over 98,000 agents provide RE/MAX a global reach of more than 95
countries. Nobody sells more real estate than RE/MAX.
RE/MAX, LLC, one of the world's leading franchisors of real estate
brokerage services, is a wholly-owned subsidiary of RMCO, which is
controlled and managed by RE/MAX Holdings, Inc. (NYSE: RMAX).
Forward-Looking Statements
This press release includes "forward-looking statements" within the
meaning of the "safe harbor" provisions of the United States Private
Securities Litigation Reform Act of 1995. Forward-looking statements may
be identified by the use of words such as "anticipate," "believe,"
"intend," "expect," "estimate," "plan," "outlook," "project" and other
similar words and expressions that predict or indicate future events or
trends that are not statements of historical matters. These
forward-looking statements include statements regarding the Company's
outlook for potential growth of the business, the Company's belief that
business fundamentals remain strong, as well as other statements
regarding the Company's strategic and operational plans. Forward-looking
statements should not be read as a guarantee of future performance or
results, and will not necessarily be accurate indications of the times
at, or by, which such performance or results will be achieved.
Forward-looking statements are based on information available at the
time those statements are made and/or management's good faith belief as
of that time with respect to future events, and are subject to risks and
uncertainties that could cause actual performance or results to differ
materially from those expressed in or suggested by the forward-looking
statements. Such risks and uncertainties include, without limitation,
(1) changes in business and economic activity in general, (2) changes in
the real estate market, including changes due to interest rates and
availability of financing, (3) the Company's ability to attract and
retain quality franchisees, (4) the Company's franchisees' ability to
recruit and retain agents, (5) changes in laws and regulations that may
affect the Company's business or the real estate market, (6) failure to
maintain, protect and enhance the RE/MAX brand (7) fluctuations in
foreign currency exchange rates, as well as those risks and
uncertainties described in the sections entitled "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results
of Operation" in the most recent Annual Report or Form 10-K filed with
the Securities and Exchange Commission ("SEC") and similar disclosures
in subsequent reports filed with the SEC, which are available on the
investor relations page of the Company's website at www.remax.com and on the SEC website at www.sec.gov.
Readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date on which they are made.
Except as required by law, the Company does not intend, and undertakes
no duty, to update this information to reflect future events or
circumstances.
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SOURCE RE/MAX Holdings, Inc.