DENVER, Jan. 11, 2022 /PRNewswire/ -- RE/MAX Holdings,
Inc. (the "Company") (NYSE: RMAX), parent company of RE/MAX, one of
the world's leading franchisors of real estate brokerage services,
and of Motto Mortgage, the first national mortgage brokerage
franchise brand in the U.S., today announced that Adam Contos, who has served as the Company's
Chief Executive Officer since 2018, has informed the Company's
Board of Directors (the "Board") of his decision to leave the
Company effective March 31, 2022, to
spend more time with his family and pursue new entrepreneurial
endeavors. He will also step down from the Company's Board
effective March 31, 2022.
![(PRNewsfoto/RE/MAX Holdings, Inc.) (PRNewsfoto/RE/MAX Holdings, Inc.)](https://mma.prnewswire.com/media/1164309/REMAX_Holdings_Blue_Logo.jpg)
The Board has appointed Board member Stephen Joyce to become Chief Executive Officer
upon Mr. Contos' departure. Mr. Joyce will serve as Chief
Executive Officer on an interim basis. The timing of
Mr. Contos' departure allows time for an orderly transition of
responsibilities working in cooperation with Mr. Joyce. To
facilitate the transition, Mr. Contos and Mr. Joyce will serve as
Co-Chief Executive Officers beginning March
1, 2022.
The Company's Board expects to form a CEO search committee to
identify a permanent CEO replacement and to retain an executive
search firm to assist with the process, which will include
evaluating internal and external candidates for the CEO role.
Additionally, the Board expects to conduct a formal selection
process to add one additional independent Board director who would
then maintain the current size of the Board. The Company is
committed to a corporate governance program that ensures that its
Board has the right people and practices to effectively create
stockholder value while considering the interests of all of its
stakeholders.
The Company also announced that Nick
Bailey has been named President and Chief Executive Officer
of RE/MAX effective immediately and will continue to lead all
aspects of the RE/MAX brand and business globally. Additionally,
Ward Morrison has been named
President and Chief Executive Officer of Motto Mortgage and wemlo
effective immediately and will continue to lead all aspects of the
Company's mortgage operations.
RE/MAX Holdings Chairman of the Board and RE/MAX Co-Founder
Dave Liniger said, "The Company
posted record results for the third quarter, which we believe is a
strong affirmation of our strategy and the recent investments we
have made to diversify and expand our business. This
performance and the growth opportunities we see ahead give us
confidence in our future."
Mr. Liniger continued, "Adam is an outstanding leader, and on
behalf of the entire Board, we thank him for his nearly two decades
of service to our Company. His leadership and commitment to
the Company, working alongside our deep and talented senior
management team, have driven our success and established a strong
foundation for our continued growth.
"We are delighted that Steve has agreed to transition to the CEO
role while we take the requisite amount of time to conduct our
search for a permanent CEO. We asked Steve to join our Board nearly
two years ago because we were drawn to his extensive track record
of success and growth as CEO of publicly traded, global
franchisors. His contributions to our Board and Company have been
significant. He is a highly engaged executive and during his time
in the CEO chair we expect the Company and our shareholders will
benefit as he leads the evolution of our strategy to drive enhanced
value for all stakeholders."
Mr. Contos said, "Serving as CEO of RE/MAX Holdings has been the
high point of my nearly 20 years with the Company. I am proud of
everything we accomplished, especially given the dynamic changes in
our industry and society. It has been my sincere pleasure to
work with our excellent leadership team and employees, as well as
some of the most dedicated, productive and entrepreneurial
professionals in the real estate and mortgage industries. I
thank them for their friendship, support and contributions. I am
confident that the future is bright for the Company and for our two
incredible networks."
Mr. Joyce commented, "I am honored to work alongside the RE/MAX
Holdings management team and Board as we build on our strengths and
advance our industry leadership positions. The real estate
and mortgage sectors continue to experience tremendous change, but
what remains constant is the unique and strong value proposition
our Company presents for productive agents, loan originators and
franchisees to grow their businesses. We are proud to play
such a critical role in their success."
Mr. Joyce is a seasoned executive with proven success leading
global franchise operations, including Dine Brands Global, the
franchisor of IHOP and Applebee's Grill + Bar, where he was
previously Chief Executive Officer and Board member. Prior to Dine
Brands Global, he served as President and Chief Executive Officer
of Choice Hotels International, where he reinvigorated and grew its
hotel brands, expanding them from nine to 13 brands, and grew
Choice Hotels internationally to more than 6,700 hotels in over 45
countries. Earlier in his career, Mr. Joyce spent over 25
years with Marriott International, Inc., the world's largest hotel
company, where he created its first franchise program and helped
build a network of more than 2,500 franchised hotels. Mr.
Joyce also serves on the Board of Directors of Hospitality
Investors Trust, Inc. and CARE International.
Share Repurchase Program
RE/MAX Holdings also announced that its Board of Directors
authorized a common stock repurchase program of up to $100 million, reflecting confidence in the
Company's performance and the strength of its balance
sheet.
"The investments we have made over the past few years, including
our recent acquisition of RE/MAX INTEGRA's North American regions,
position us well to continue to grow and generate substantial
amounts of free cash flow over the long term," said Mr. Liniger.
"Since our initial public offering over eight years ago, the
Company has balanced returning capital to shareholders with
strategic investments in the business to create shareholder value,
and that is how we will continue to prioritize our capital
allocation accordingly."
Share repurchases may be made from time to time through a
variety of methods, including by means of open market or privately
negotiated transactions, through Rule 10b5-1 trading plans or in
reliance on indirect purchases of common stock such as by using
derivatives. The timing of repurchases and the actual number of
shares repurchased will be subject to the discretion of the Company
and may be based upon market conditions as well as other
opportunities that the Company may have for the allocation of
capital from time to time. The share repurchase program does not
obligate the Company to purchase any particular amount of common
stock. The share repurchase program may be suspended or
discontinued in whole or in part at any time without further
notice.
# # #
About RE/MAX Holdings, Inc.
RE/MAX Holdings, Inc. (NYSE: RMAX) is one of the world's leading
franchisors in the real estate industry, franchising real estate
brokerages globally under the RE/MAX® brand, and mortgage
brokerages within the U.S. under the Motto® Mortgage brand. 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. Now with more than
140,000 agents in over 8,600 offices across more than 110 countries
and territories, nobody in the world sells more real estate than
RE/MAX, as measured by total residential transaction sides.
Dedicated to innovation and change in the real estate industry,
RE/MAX launched Motto Franchising, LLC, a ground-breaking mortgage
brokerage franchisor, in 2016. Motto Mortgage has grown to over 175
offices across almost 40 states.
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 are often identified by the use of words such as
"believe," "intend," "expect," "estimate," "plan," "outlook,"
"project," "anticipate," "may," "will," "would" and other similar
words and expressions that predict or indicate future events or
trends that are not statements of historical matters.
Forward-looking statements include statements related to: the
Company's expectations related to its share repurchase program
including any implications about the timing or amount of purchases
to be made in connection with the program, statements regarding the
Company's capital allocation and return of capital to shareholders,
expectations concerning the benefits of the acquisition of the
North American operations of RE/MAX INTEGRA, the Company's
anticipated growth and its generation of free cash flow, and
statements related to the transition of the Company's CEO,
including the appointment of an interim CEO and the search for a
new CEO and Board member. Forward-looking statements should not be
read as a guarantee of future performance or results and will not
necessarily accurately indicate the times at which such performance
or results may 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. These
risks and uncertainties include, without limitation, (1) the global
COVID-19 pandemic, which continues to pose significant and
widespread risks to the Company's business, including the Company's
agents, loan originators, franchisees and employees, as well as
home buyers and sellers, (2) changes in the real estate market or
interest rates and availability of financing, (3) changes in
business and economic activity in general, (4) the Company's
ability to attract and retain quality franchisees, and the
Company's franchisees' ability to recruit and retain real estate
agents and mortgage loan originators, (5) changes in laws and
regulations, (6) the Company's ability to enhance, market, and
protect its brands, including the RE/MAX and Motto Mortgage brands,
(7) the Company's ability to implement its technology initiatives,
(8) fluctuations in foreign currency exchange rates, (9) risks and
uncertainties related to the share repurchase program including the
timing, amount and the price at which any share repurchases might
be made in connection with the program, (10) uncertainties
concerning the Company's ability to continue to generate free cash
flow, (11) uncertainties regarding the returns to be achieved and
benefits to shareholders from different allocations of capital and
the Company's decisions and expectations around expenditure of
capital towards the share repurchase program versus other
priorities, (12) the exact details and timing of events related to
the CEO transition, including the timing and duration of the Co-CEO
period and (13) those risks and uncertainties described in the
sections entitled "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the
most recent Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q filed with the Securities and Exchange Commission ("SEC")
and similar disclosures in subsequent periodic and current reports
filed with the SEC, which are available on the investor relations
page of the Company's website at www.remaxholdings.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 obligation, to update
this information to reflect future events or circumstances.
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SOURCE RE/MAX Holdings, Inc.