RMR Group, Inc. (NASDAQ:RMR) Q3 2023 Earnings Conference Call August 10, 2023 10:00 AM ET

Company Participants

Kevin Barry - Director, IR

Adam Portnoy - CEO, President, MD & Director

Matthew Jordan - EVP, CFO & Treasurer

Conference Call Participants

Bryan Maher - B. Riley Securities

Ronald Kamdem - Morgan Stanley

Operator

Hello, and welcome to The RMR Group Fiscal Third Quarter 2023 Earnings Conference Call. [Operator Instructions].

I would now like to turn the conference over to Kevin Barry, Director of Investor Relations. Please go ahead.

Kevin Barry

Good morning, and thank you for joining RMR's Third Quarter and Fiscal 2023 Conference Call. With me on today's call are President and CEO, Adam Portnoy; and Chief Financial Officer, Matt Jordan. In just a moment, they will provide details about our business and quarterly results, followed by a question-and-answer session. I would like to note that the recording and retransmission of today's conference call is prohibited without the prior written consent of the company.

Today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based on RMR's beliefs and expectations as of today, August 10, 2023, and actual results may differ materially from those that we project. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call.

Additional information concerning factors that could cause those differences is contained in our filings with the Securities and Exchange Commission, which can be found on our website at www.rmrgroup.com. Investors are cautioned not to place undue reliance upon any forward-looking statements.

In addition, we may discuss non-GAAP numbers during this call, including adjusted net income, adjusted earnings per share, adjusted EBITDA and adjusted EBITDA margin. A reconciliation of net income determined in accordance with U.S. generally accepted accounting principles to adjusted net income, adjusted earnings per share, adjusted EBITDA and the calculation of adjusted EBITDA margin can be found in our financial results.

I will now turn the call over to Adam.

Adam Portnoy

Thank you, Kevin, and thank you all for joining us this morning. On July 31, RMR announced an agreement to acquire CARROLL, a vertically integrated multifamily platform with approximately $7 billion in assets under management. RMR acquired 100% of the equity interest in CARROLL for $80 million in cash with a potential earn-out consideration of up to an additional $20 million based on the deployment of future capital.