RE/MAX Holdings, Inc. (RMAX): restructuring charge — RE/MAX reduces workforce 7%, estimates $2.75-3.25M charge; reaffirms Q3/FY23 guidance

RE/MAX Holdings, Inc.

Workforce reduced by ~7%; affected employees notified Aug 18; expected complete by Sep 30, 2023.
Pre-tax severance charge of $2.75M to $3.25M, substantially all in Q3 2023.
Principal Accounting Officer Adam Grosshans terminated Aug 18; succeeded by Leah Jenkins as VP and CAO.
Reaffirms Q3 2023 revenue $78.5-83.5M, adjusted EBITDA $23.5-26.5M; FY23 revenue $320-332M, adj. EBITDA $92-98M.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

RE/MAX Holdings, Inc. announced a restructuring with charges of between approximately $2.75 million and $3.25 million (approximately 7%).

Type: restructuring
Charge: between approximately $2.75 million and $3.25 million
Headcount: approximately 7%

Exact text from the filing

On August 18, 2023, RE/MAX Holdings Inc. (the “Company”) announced a reduction in force and reorganization (the “Reorganization”) intended to streamline the Company’s operations and yield cost savings over the long term. The Reorganization will reduce the Company’s overall workforce by approximately 7%. Affected employees were notified by August 18, 2023, and the Reorganization is expected to be substantially complete by September 30, 2023. As a result of the Reorganization, the Company expects to incur a pre-tax cash charge for one-time termination benefits, which consist primarily of severance and related costs, of between approximately $2.75 million and $3.25 million, substantially all of which will be recognized in the third quarter of 2023.

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6 restructurings & charges filed in the last 30 days. Browse all restructurings & charges →

RE/MAX Holdings, Inc. filing history →

Source: SEC EDGAR

accession 0001104659-23-093490

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