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The RMR Group Inc. Announces Fourth Quarter and Fiscal Year 2019 Results

November 22, 2019

NEWTON, Mass.--(BUSINESS WIRE)--Nov 22, 2019--

The RMR Group Inc. (Nasdaq: RMR) today announced its financial results for the fiscal quarter and fiscal year ended September 30, 2019.

Adam Portnoy, President and Chief Executive Officer, made the following statement regarding the fourth quarter fiscal 2019 results:

“In the fiscal fourth quarter, we generated net income of $18.9 million, Adjusted EBITDA of $28.6 million, a sequential quarter increase of 8.0%, Operating Margin of 46.1% and Adjusted EBITDA Margin of 60.2%, a sequential quarter increase of 360 basis points. Adjusted EBITDA Margin of 60.2% represents our highest Adjusted EBITDA Margin level since becoming a public company, reflecting sequential quarter revenue growth and the related impact of economies of scale across our platform.

In late September, Service Properties Trust completed its acquisition of a large portfolio of net leased retail properties from Spirit MTA REIT, or SMTA, for $2.4 billion. We continue to expect this acquisition will result in approximately $12 million in incremental annual service revenues on a run-rate basis after planned strategic dispositions within the acquired portfolio.

Additionally, we made significant progress on repositioning efforts at our Client Companies. Since beginning their repositioning efforts, Office Properties Income Trust has sold or has under agreement to sell $731.5 million of properties and Senior Housing Properties Trust has sold or has under agreement to sell approximately $564 million of properties.

We ended the fiscal year with $358.4 million of cash and no debt. In October, we increased the quarterly dividend by 8.6% to $0.38 per quarter and we continue to explore strategic opportunities for growth.”

Fourth Quarter Fiscal 2019 Highlights:

 

 

Three Months Ended September 30,

 

 

2019

 

2018

Managed Equity REITs (1)

 

$

36,342

 

 

82.0

%

 

$

41,032

 

 

83.5

%

Managed Operators (2)

 

6,624

 

 

14.9

%

 

6,903

 

 

14.0

%

Other

 

1,380

 

 

3.1

%

 

1,202

 

 

2.5

%

Total

 

$

44,346

 

 

100.0

%

 

$

49,137

 

 

100.0

%

(1) Managed Equity REITs for the periods presented includes: Industrial Logistics Properties Trust (ILPT), Office Properties Income Trust (OPI), Select Income REIT (SIR), until its merger with OPI on December 31, 2018, Senior Housing Properties Trust (SNH) and Service Properties Trust (SVC) (formerly known as Hospitality Properties Trust).

(2) Managed Operators collectively refers to: Five Star Senior Living Inc. (FVE), Sonesta International Hotels Corporation (Sonesta) and TravelCenters of America Inc. (TA).

Reconciliations to GAAP:

Adjusted net income attributable to The RMR Group Inc., EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. The GAAP financial measure that is most directly comparable to EBITDA and Adjusted EBITDA is net income, while the GAAP financial measure that is most directly comparable to Adjusted EBITDA Margin is Operating Margin, which represents operating income divided by total management and advisory services revenues. Reconciliations of net income attributable to The RMR Group Inc. determined in accordance with GAAP to adjusted net income attributable to The RMR Group Inc., and of net income to EBITDA and Adjusted EBITDA as well as calculations of Operating Margin and Adjusted EBITDA Margin for each of the three months ended September 30, 2019 and 2018 are presented later in this press release.

Assets Under Management:

The calculation of gross assets under management, or gross AUM, primarily includes: (i) the gross book value of real estate and related assets, excluding depreciation, amortization, impairment charges or other non-cash reserves, of the Managed Equity REITs and ABP Trust, plus (ii) the gross book value of real estate assets, property and equipment of the Managed Operators, excluding depreciation, amortization, impairment charges or other non-cash reserves, plus (iii) the fair value of investments of Affiliates Insurance Company and the RMR Office Property Fund LP, the managed assets of RMR Real Estate Income Fund and the equity of Tremont Mortgage Trust. This calculation of gross AUM may include amounts that are higher than the calculations of assets under management used for purposes of calculating fees under the terms of the business management agreements.

The calculation of fee paying assets under management, or fee paying AUM, refers to the fact that base business management fees payable to The RMR Group LLC by the Managed Equity REITs are calculated monthly based upon the lower of the average historical cost of each entity’s real estate assets and its average market capitalization. Management fees payable to The RMR Group LLC by other Client Companies are generally calculated as a percentage of revenues earned, average daily managed assets, equity, net asset value or total premiums paid under active insurance policies in accordance with the applicable management agreement.

All references in this press release to assets under management on, or as of, a date are calculated at a point in time.

For additional information on the calculation of assets under management for purposes of the fee provisions of the business management agreements, see The RMR Group Inc.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC. The RMR Group Inc.’s SEC filings are available at the SEC website: www.sec.gov.

Conference Call:

At 2:00 p.m. Eastern Time this afternoon, President and Chief Executive Officer, Adam Portnoy, and Executive Vice President, Chief Financial Officer and Treasurer, Matt Jordan, will host a conference call to discuss The RMR Group Inc.’s fiscal fourth quarter ended September 30, 2019 financial results.

The conference call telephone number is (877) 329-4297. Participants calling from outside the United States and Canada should dial (412) 317-5435. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. Eastern Time on Friday, November 29, 2019. To access the replay, dial (412) 317-0088. The replay pass code is 10134926.

A live audio webcast of the conference call will also be available in a listen only mode on The RMR Group Inc.’s website, at www.rmrgroup.com. Participants wanting to access the webcast should visit The RMR Group Inc.’s website about five minutes before the call. The archived webcast will be available for replay on The RMR Group Inc.’s website following the call for about one week. The transcription, recording and retransmission in any way of The RMR Group Inc.’s fiscal fourth quarter ended September 30, 2019 financial results conference call are strictly prohibited without the prior written consent of The RMR Group Inc.

About The RMR Group Inc.

The RMR Group Inc. is a holding company, and substantially all of its business is conducted by its majority-owned subsidiary, The RMR Group LLC. The RMR Group LLC is an alternative asset management company that primarily provides management services to publicly traded REITs and real estate operating companies. As of September 30, 2019, The RMR Group LLC had $32.8 billion of real estate assets under management, including over 2,200 properties, and employed approximately 600 real estate professionals in more than 30 offices throughout the United States; and the companies managed by The RMR Group LLC collectively had nearly 50,000 employees. The RMR Group Inc. is headquartered in Newton, Massachusetts.

The RMR Group Inc.
Consolidated Statements of Income
(amounts in thousands, except per share amounts)
(unaudited)

 

 

 

Three Months Ended September 30,

 

Fiscal Year Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

Revenues:

 

 

 

 

 

 

 

 

Management services (1)

 

$

44,346

 

 

$

49,137

 

 

$

178,075

 

 

$

191,594

 

Incentive business management fees

 

 

 

 

 

120,094

 

 

155,881

 

Advisory services

 

824

 

 

860

 

 

3,169

 

 

4,352

 

Total management and advisory services revenues

 

45,170

 

 

49,997

 

 

301,338

 

 

351,827

 

Reimbursable compensation and benefits

 

16,622

 

 

15,076

 

 

57,490

 

 

53,152

 

Other client company reimbursable expenses (2)

 

97,452

 

 

 

 

354,540

 

 

 

Total reimbursable costs

 

114,074

 

 

15,076

 

 

412,030

 

 

53,152

 

Total revenues

 

159,244

 

 

65,073

 

 

713,368

 

 

404,979

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

Compensation and benefits

 

29,006

 

 

25,887

 

 

114,529

 

 

108,763

 

Equity based compensation (3)

 

4,691

 

 

4,621

 

 

9,040

 

 

10,423

 

Separation costs

 

 

 

1,372

 

 

7,050

 

 

3,730

 

Total compensation and benefits expense

 

33,697

 

 

31,880

 

 

130,619

 

 

122,916

 

General and administrative

 

6,594

 

 

6,868

 

 

28,706

 

 

27,149

 

Other client company reimbursable expenses (2)

 

97,452

 

 

 

 

354,540

 

 

 

Transaction and acquisition related costs

 

425

 

 

780

 

 

698

 

 

1,697

 

Depreciation and amortization

 

255

 

 

252

 

 

1,017

 

 

1,248

 

Total expenses

 

138,423

 

 

39,780

 

 

515,580

 

 

153,010

 

Operating income

 

20,821

 

 

25,293

 

 

197,788

 

 

251,969

 

Interest and other income

 

2,368

 

 

1,463

 

 

8,770

 

 

4,546

 

Tax receivable agreement remeasurement

 

 

 

 

 

 

 

24,710

 

Impairment loss on Tremont Mortgage Trust investment

 

 

 

(4,359

)

 

(6,213

)

 

(4,359

)

Equity in earnings (losses) of investees

 

401

 

 

(10

)

 

719

 

 

(578

)

Unrealized loss on equity method investment accounted for under the fair value option

 

(1,722

)

 

 

 

(4,700

)

 

 

Income before income tax expense

 

21,868

 

 

22,387

 

 

196,364

 

 

276,288

 

Income tax expense

 

(2,985

)

 

(3,376

)

 

(27,320

)

 

(58,862

)

Net income

 

18,883

 

 

19,011

 

 

169,044

 

 

217,426

 

Net income attributable to noncontrolling interest

 

(10,529

)

 

(10,827

)

 

(94,464

)

 

(121,385

)

Net income attributable to The RMR Group Inc.

 

$

8,354

 

 

$

8,184

 

 

$

74,580

 

 

$

96,041

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

16,149

 

 

16,094

 

 

16,132

 

 

16,077

 

Weighted average common shares outstanding - diluted

 

16,149

 

 

16,144

 

 

16,143

 

 

16,120

 

 

 

 

 

 

 

 

 

 

Net income attributable to The RMR Group Inc. per common share - basic (4)

 

$

0.51

 

 

$

0.51

 

 

$

4.59

 

 

$

5.94

 

Net income attributable to The RMR Group Inc. per common share - diluted (4)

 

$

0.51

 

 

$

0.50

 

 

$

4.59

 

 

$

5.92

 

See Notes on pages 6 and 7.

The RMR Group Inc.
Notes to Consolidated Statements of Income
(dollars in thousands)
(unaudited)

(1) Includes business management fees earned from the Managed Equity REITs monthly based upon the lower of (i) the average historical cost of each REIT’s properties and (ii) each REIT’s average market capitalization. The following table presents a summary of each Managed Equity REIT’s primary strategy and the lesser of the historical cost of its assets under management and its market capitalization as of September 30, 2019 and 2018, as applicable:

 

 

 

 

Lesser of Historical Cost of Assets

 

 

 

 

Under Management or

 

 

 

 

Total Market Capitalization (a)

 

 

 

 

As of September 30,

REIT

 

Primary Strategy

 

2019

 

2018

ILPT

 

Industrial and logistics properties

 

$

2,530,811

 

 

$

1,547,219

 

OPI

 

Office properties primarily leased to single tenants, including the government (b)

 

4,074,202

 

 

3,277,442

 

SIR

 

Office properties primarily leased to single tenants (b)

 

 

 

3,445,824

 

SNH

 

Senior living, medical office and life science properties

 

5,889,907

 

 

7,915,213

 

SVC

 

Hotels and net lease service and necessity-based retail properties

 

10,784,131

 

 

8,935,518

 

 

 

 

 

$

23,279,051

 

 

$

25,121,216

 

(a) The basis on which base business management fees are calculated for the three months and fiscal years ended September 30, 2019 and 2018 may differ from the basis at the end of the periods presented in the table above. As of September 30, 2019, the market capitalization was lower than the historical costs of assets under management for OPI, SNH and SVC; the historical costs of assets under management for OPI, SNH and SVC as of September 30, 2019, were $6,114,931, $8,670,173 and $12,787,009, respectively. For ILPT, the historical costs of assets under management were lower than their market capitalization of $2,790,848 as of September 30, 2019.

(b) SIR merged with and into OPI (formerly named Government Properties Income Trust) on December 31, 2018 with OPI continuing as the surviving entity.

(2) Reflects the prospective adoption of Accounting Standards Update, or ASU, No. 2014-09, Revenue from Contracts with Customers, which has been codified as Accounting Standard Codification, or ASC, 606, effective October 1, 2018. Under ASC 606, beginning October 1, 2018, The RMR Group Inc. accounts for the costs of services provided by third parties to its Client Companies, and the related reimbursement, on a gross basis.

(3) Equity based compensation expense for the three months ended September 30, 2019 consists of $1,183 related to shares granted by The RMR Group Inc. to certain of its officers and employees and $3,508 related to Client Companies’ shares granted to certain of The RMR Group Inc.’s officers and employees.

Expense related to shares granted by The RMR Group Inc. is based on the market value on the date of grant, with the aggregate value of the shares granted amortized over the applicable vesting period. Shares issued each September vest in five equal, consecutive annual installments, with the first installment vesting on the date of grant. During the three months ended September 30, 2019, The RMR Group Inc. granted 77,900 shares to certain of its officers and employees. As of September 30, 2019, The RMR Group Inc. had 126,160 unvested shares outstanding which are scheduled to vest as follows:

 

 

Number of

 

Weighted Average

Year

 

Shares Vesting

 

Grant Date Fair Value

2020

 

49,890

 

$58.86

2021

 

34,900

 

$61.65

2022

 

25,790

 

$65.39

2023

 

15,580

 

$45.99

The RMR Group Inc.
Notes to Consolidated Statements of Income (Continued)
(amounts in thousands, except per share amounts)
(unaudited)

(4) The RMR Group Inc. calculates earnings per share using the two-class method as calculated below:

 

 

Three Months Ended September 30,

 

Fiscal Year Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

Basic EPS

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

Net income attributable to The RMR Group Inc.

 

$

8,354

 

 

$

8,184

 

 

$

74,580

 

 

$

96,041

 

Income attributable to unvested participating securities

 

(50

)

 

(46

)

 

(482

)

 

(564

)

Net income attributable to The RMR Group Inc. used in calculating basic EPS

 

$

8,304

 

 

$

8,138

 

 

$

74,098

 

 

$

95,477

 

Denominator:

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

16,149

 

 

16,094

 

 

16,132

 

 

16,077

 

Net income attributable to The RMR Group Inc. per common share - basic

 

$

0.51

 

 

$

0.51

 

 

$

4.59

 

 

$

5.94

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

Net income attributable to The RMR Group Inc.

 

$

8,354

 

 

$

8,184

 

 

$

74,580

 

 

$

96,041

 

Income attributable to unvested participating securities

 

(50

)

 

(46

)

 

(482

)

 

(564

)

Net income attributable to The RMR Group Inc. used in calculating diluted EPS

 

$

8,304

 

 

$

8,138

 

 

$

74,098

 

 

$

95,477

 

Denominator:

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

16,149

 

 

16,094

 

 

16,132

 

 

16,077

 

Dilutive effect of incremental unvested shares (a)

 

 

 

50

 

 

11

 

 

43

 

Weighted average common shares outstanding - diluted

 

16,149

 

 

16,144

 

 

16,143

 

 

16,120

 

Net income attributable to The RMR Group Inc. per common share - diluted

 

$

0.51

 

 

$

0.50

 

 

$

4.59

 

 

$

5.92

 

(a) For the three months ended September 30, 2019, incremental unvested common shares were antidilutive.

The RMR Group Inc.
Reconciliation of Adjusted Net Income Attributable to The RMR Group Inc. from
Net Income Attributable to The RMR Group Inc.
(dollars in thousands, except per share amounts)
(unaudited)

The RMR Group Inc. is providing the reconciliation below and information regarding certain individually significant items occurring or impacting its financial results for the three months ended September 30, 2019 and 2018 for supplemental informational purposes in order to enhance the understanding of The RMR Group Inc.’s consolidated statements of income and to facilitate a comparison of The RMR Group Inc.’s current operating performance with its historical operating performance. This information should be considered in conjunction with net income, net income attributable to The RMR Group Inc. and operating income as presented in The RMR Group Inc.’s consolidated statements of income.

 

Three Months Ended September 30, 2019

 

 

Impact on Net Income Attributable to The RMR Group Inc.

 

Impact on Net Income Attributable to The RMR Group Inc. Per Common Share - Diluted

Net income attributable to The RMR Group Inc.

 

$

8,354

 

 

$

0.51

 

Unrealized loss on equity method investment accounted for under the fair value option (1)

 

662

 

 

0.04

 

Certain compensation adjustments, net of reimbursements (2)

 

371

 

 

0.03

 

Transaction and acquisition related costs (3)

 

163

 

 

0.01

 

Adjusted net income attributable to The RMR Group Inc.

 

$

9,550

 

 

$

0.59

 

(1) Includes $1,722 in unrealized losses on The RMR Group Inc.’s investment in TA common shares, adjusted to reflect amounts attributable to the noncontrolling interest and income tax expense at a rate of approximately 13.7%.

(2) Includes $966 of certain compensation adjustments related to annual bonus estimates, adjusted to reflect amounts attributable to the noncontrolling interest and income tax expense at a rate of approximately 13.7%.

(3) Includes $425 of transaction and acquisition related costs, adjusted to reflect amounts attributable to the noncontrolling interest and income tax expense at a rate of approximately 13.7%.

 

Three Months Ended September 30, 2018

 

 

Impact on Net Income Attributable to The RMR Group Inc.

 

Impact on Net Income Attributable to The RMR Group Inc. Per Common Share - Diluted

Net income attributable to The RMR Group Inc.

 

$

8,184

 

 

$

0.50

 

Impairment loss on Tremont Mortgage Trust investment (1)

 

1,608

 

 

0.10

 

Certain compensation adjustments, net of reimbursements (2)

 

(682

)

 

(0.04

)

Separation costs (3)

 

506

 

 

0.03

 

Transaction and acquisition related costs (4)

 

288

 

 

0.02

 

Adjusted net income attributable to The RMR Group Inc.

 

$

9,904

 

 

$

0.61

 

(1) Includes $4,359 in impairment losses on The RMR Group Inc.’s Tremont Mortgage Trust investment, adjusted to reflect amounts attributable to the noncontrolling interest and income tax expense at a rate of approximately 15.1%.

(2) Includes $1,847 of certain compensation adjustments related to annual bonus estimates, adjusted to reflect amounts attributable to the noncontrolling interest and income tax expense at a rate of approximately 15.1%.

(3) Includes $1,372 of separation costs adjusted to reflect amounts attributable to the noncontrolling interest and income tax expense at a rate of approximately 15.1%.

(4) Includes $780 of transaction and acquisition related costs, adjusted to reflect amounts attributable to the noncontrolling interest and income tax expense at a rate of approximately 15.1%.

The RMR Group Inc.
Reconciliation of EBITDA and Adjusted EBITDA from Net Income
and Calculation of Operating Margin and Adjusted EBITDA Margin (1)
(dollars in thousands)
(unaudited)

 

Three Months Ended September 30,

 

Fiscal Year Ended September 30,

 

2019

 

2018

 

2019

 

2018

Reconciliation of EBITDA and Adjusted EBITDA from net income:

 

 

 

 

 

 

 

Net income

$

18,883

 

 

$

19,011

 

 

$

169,044

 

 

$

217,426

 

Plus: income tax expense

2,985

 

 

3,376

 

 

27,320

 

 

58,862

 

Plus: depreciation and amortization

255

 

 

252

 

 

1,017

 

 

1,248

 

EBITDA

22,123

 

 

22,639

 

 

197,381

 

 

277,536

 

Plus: other asset amortization

2,354

 

 

2,354

 

 

9,416

 

 

9,416

 

Plus: operating expenses paid in The RMR Group Inc.'s common shares

1,183

 

 

1,567

 

 

3,363

 

 

3,865

 

Plus: separation costs

 

 

1,372

 

 

7,050

 

 

3,730

 

Plus: transaction and acquisition related costs

425

 

 

780

 

 

698

 

 

1,697

 

Plus: business email compromise fraud costs

 

 

 

 

 

 

225

 

Plus: impairment loss on Tremont Mortgage Trust investment

 

 

4,359

 

 

6,213

 

 

4,359

 

Plus: unrealized loss on equity method investment accounted for under the fair value option

1,722

 

 

 

 

4,700

 

 

 

Less: certain compensation adjustments, net of reimbursements

966

 

 

(1,847

)

 

 

 

 

Less: tax receivable agreement remeasurement due to the Tax Act

 

 

 

 

 

 

(24,710

)

Less: incentive business management fees earned

 

 

 

 

(120,094

)

 

(155,881

)

Certain other net adjustments

(176

)

 

10

 

 

(335

)

 

87

 

Adjusted EBITDA

$

28,597

 

 

$

31,234

 

 

$

108,392

 

 

$

120,324

 

Calculation of Operating Margin:

 

 

 

 

 

 

 

Total management and advisory services revenues

$

45,170

 

 

$

49,997

 

 

$

301,338

 

 

$

351,827

 

Operating income

$

20,821

 

 

$

25,293

 

 

$

197,788

 

 

$

251,969

 

Operating Margin

46.1

%

 

50.6

%

 

65.6

%

 

71.6

%

Calculation of Adjusted EBITDA Margin:

 

 

 

 

 

 

 

Contractual management and advisory fees (excluding any incentive business management fees) (2)

$

47,524

 

 

$

52,351

 

 

$

190,660

 

 

$

205,362

 

Adjusted EBITDA

$

28,597

 

 

$

31,234

 

 

$

108,392

 

 

$

120,324

 

Adjusted EBITDA Margin

60.2

%

 

59.7

%

 

56.9

%

 

58.6

%

(1) EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures calculated as presented in the tables above. The RMR Group Inc. considers EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin to be appropriate supplemental measures of its operating performance, along with net income, net income attributable to The RMR Group Inc., operating income and operating margin. The RMR Group Inc. believes that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to investors because by excluding the effects of certain amounts, such as those outlined in the tables above, EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin may facilitate a comparison of current operating performance with The RMR Group Inc.’s historical operating performance and with the performance of other asset management businesses. In addition, The RMR Group Inc. believes that providing Adjusted EBITDA Margin may help investors assess The RMR Group Inc.’s performance of its business by providing the margin that Adjusted EBITDA represents to its contractual management and advisory fees (excluding any incentive business management fees). EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin do not represent cash generated by operating activities in accordance with GAAP and should not be considered as alternatives to net income, net income attributable to The RMR Group Inc., operating income or operating margin as an indicator of The RMR Group Inc.’s financial performance or as a measure of The RMR Group Inc.’s liquidity. Other asset management businesses may calculate EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin differently than The RMR Group Inc. does.

(2) Contractual management and advisory fees are the base business management fees, property management fees and advisory fees The RMR Group Inc. or its subsidiaries earns pursuant to its management and investment advisory agreements with its client companies. These amounts are calculated pursuant to the contractual formulas and do not deduct other asset amortization of $2,354 for each of the three months ended September 30, 2019 and 2018 or $9,416 for each of the fiscal years ended September 30, 2019 and 2018, required to be recognized as a reduction to management services revenues in accordance with GAAP and do not include the incentive business management fees of $120,094 and $155,881 that The RMR Group Inc. recognized under GAAP during the fiscal years ended September 30, 2019 and 2018, respectively, which were earned for the calendar years 2018 and 2017, respectively.

The RMR Group Inc.
Consolidated Balance Sheets
(dollars in thousands, except per share amounts)
(unaudited)

 

 

September 30,

 

 

2019

 

2018

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

358,448

 

 

$

256,848

 

Due from related parties

 

93,521

 

 

28,846

 

Prepaid and other current assets

 

12,888

 

 

10,392

 

Total current assets

 

464,857

 

 

296,086

 

 

 

 

 

 

Property and equipment, net

 

2,383

 

 

2,589

 

Due from related parties, net of current portion

 

9,238

 

 

8,183

 

Equity method investment

 

6,658

 

 

7,051

 

Equity method investment accounted for under the fair value option

 

3,682

 

 

 

Goodwill

 

1,859

 

 

1,859

 

Intangible assets, net of amortization

 

323

 

 

375

 

Deferred tax asset

 

25,729

 

 

25,726

 

Other assets, net of amortization

 

153,143

 

 

162,559

 

Total assets

 

$

667,872

 

 

$

504,428

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable and accrued expenses

 

$

98,029

 

 

$

28,307

 

Total current liabilities

 

98,029

 

 

28,307

 

 

 

 

 

 

Long term portion of deferred rent payable, net of current portion

 

1,620

 

 

1,229

 

Amounts due pursuant to tax receivable agreement, net of current portion

 

29,950

 

 

32,048

 

Employer compensation liability, net of current portion

 

9,238

 

 

8,183

 

Total liabilities

 

138,837

 

 

69,767

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

Class A common stock, $0.001 par value; 31,600,000 shares authorized; 15,302,710 and 15,229,957 shares issued and outstanding, respectively

 

15

 

 

15

 

Class B-1 common stock, $0.001 par value; 1,000,000 shares authorized, issued and outstanding

 

1

 

 

1

 

Class B-2 common stock, $0.001 par value; 15,000,000 shares authorized, issued and outstanding

 

15

 

 

15

 

Additional paid in capital

 

103,360

 

 

99,239

 

Retained earnings

 

257,457

 

 

182,877

 

Cumulative other comprehensive income

 

 

 

82

 

Cumulative common distributions

 

(72,194

)

 

(49,467

)

Total shareholders’ equity

 

288,654

 

 

232,762

 

Noncontrolling interest

 

240,381

 

 

201,899

 

Total equity

 

529,035

 

 

434,661

 

Total liabilities and equity

 

$

667,872

 

 

$

504,428

 

 

WARNING CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Forward-looking statements can be identified by use of words such as “outlook,” “believe,” “expect,” “potential,” “will,” “may,” “estimate,” “anticipate” and derivatives or negatives of such words or similar words. Forward-looking statements in this press release are based upon present beliefs or expectations. However, forward-looking statements and their implications are not guaranteed to occur and may not occur for various reasons, including some reasons beyond The RMR Group Inc.’s control. For example:

The information contained in The RMR Group Inc.’s filings with the SEC, including under the caption “Risk Factors” in The RMR Group Inc.’s periodic reports, or incorporated therein, identifies important factors that could cause differences from the forward-looking statements in this press release. The RMR Group Inc.’s filings with the SEC are available on its website and at www.sec.gov.

Except as required by law, The RMR Group Inc. undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191122005103/en/

CONTACT: Timothy A. Bonang, Senior Vice President

(617) 796-8230

KEYWORD: MASSACHUSETTS UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES RESIDENTIAL BUILDING & REAL ESTATE COMMERCIAL BUILDING & REAL ESTATE FINANCE CONSTRUCTION & PROPERTY REIT

SOURCE: The RMR Group Inc.

Copyright Business Wire 2019.

PUB: 11/22/2019 07:00 AM/DISC: 11/22/2019 07:00 AM

http://www.businesswire.com/news/home/20191122005103/en