The RMR Group Inc. (NASDAQ:RMR) Q3 2024 Earnings Conference Call August 2, 2024 10:00 AM ET

Company Participants

Kevin Barry - Senior Director, IR
Adam Portnoy - President and CEO
Matt Jordan - CFO

Conference Call Participants

Bryan Maher - B. Riley Securities
Ronald Kamdem - Morgan Stanley

Operator

Good morning. And welcome to the RMR Group Fiscal Third Quarter 2024 Earnings Conference Call. All participants will be in listen only mode [Operator Instructions]. Please note that this event is being recorded. I would now like to turn the conference over to Kevin Barry, Senior Director of Investor Relations. Please go ahead.

Kevin Barry

Good morning. And thank you for joining RMR's third quarter of fiscal 2024 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 also 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 2, 2024, 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, distributable earnings and adjusted EBITDA. A reconciliation of net income determined in accordance with U.S. Generally Accepted Accounting Principles to these non-GAAP figures can be found in our financial results.

I will now turn the call over to Adam.

Adam Portnoy

Thanks, Kevin. And thank you all for joining us this morning. Yesterday, we reported third quarter results that were in line with our expectations, which included adjusted net income per share of $0.37 distributable earnings per share of $0.45 and adjusted EBITDA of $21 million. Our quarterly dividend remains well covered with a payout ratio of approximately 70%. We believe these results continue to underscore the durability of the RMR platform. As a highly scalable alternative asset manager RMR's recurring management fees has stability to our business for over 35 years. We have evolved throughout our history to changing industry conditions and market cycles, while generating strong cash flows with limited ongoing capital needs.