RMR Group, Inc. (NASDAQ:RMR) Q3 2022 Earnings Conference Call August 5, 2022 1:00 PM ET

Company Participants

Michael Kodesch - Director, IR

Adam Portnoy - CEO, President, MD & Director

Matthew Jordan - EVP, CFO & Treasurer

Conference Call Participants

Bryan Maher - B. Riley Securities

Operator

Good day, and welcome to the RMR Fiscal Third Quarter 2022 Earnings Conference Call. [Operator Instructions].

Please note, today's event is being recorded. I would now like to turn the conference over to Michael Kodesch, Director of Investor Relations. Please go ahead, sir.

Michael Kodesch

Good afternoon, and thank you for joining RMR's Third Quarter of Fiscal 2022 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. 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 5, 2022, 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 earnings release.

And now I would like to turn the call over to Adam.

Adam Portnoy

Thanks, Michael, and thank you for joining us this afternoon. We are pleased to report another strong quarter of financial results with adjusted net income of $0.59 per share and adjusted EBITDA of $29.4 million.representing sequential quarter increases of 18% and 14%, respectively. As an alternative asset manager focused primarily on core commercial real estate, RMR's unique structure remains highly attractive in today's operating environment. Our competitive advantage is rooted in over 35 years of experience in managing commercial real estate as well as our large size and scale, which includes over 2,100 properties located throughout North America. This expertise is especially important today as we navigate the ongoing macroeconomic challenges related to rising inflation, increasing interest rates and slowing economic activity.