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BELLINGHAM, Wash., Aug. 13, 2018 (GLOBE NEWSWIRE) -- eXp World Holdings (NASDAQ: EXPI), the holding company for eXp Realty, the largest residential real estate brokerage by geography in North America, today announced financial results for the second quarter ended June 30, 2018.
“We received a number of industry honors this quarter due to our amazing agents as they continue to deliver top production numbers, including this quarter’s record transaction and volume levels,” said eXp World Holdings CEO, Chairman and Founder Glenn Sanford. “We are proud to be on this journey together, providing superior technology and agent support. This quarter also marked a pivotal day in the history of eXp Realty as we moved to Nasdaq.”
Second Quarter 2018 Financial Summary
Second Quarter 2018 Consolidated Operating and Business Highlights
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, a non-GAAP financial measure. We view Adjusted EBITDA as an operating performance measure and, as such, we believe that the GAAP financial measure most directly comparable to it is net income (loss). We define Adjusted EBITDA as net income excluding interest, income taxes, depreciation, amortization, and stock based compensation. We believe that Adjusted EBITDA provides us an important measure of operating performance and enhances comparability while providing investors with useful insight into the underlying trends of the business. Our use of Adjusted EBITDA has limitations as an analytical tool, and this measure should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP, as the excluded items may have significant effects on our operating results and financial condition. Additionally, our measure of Adjusted EBITDA may differ from other companies’ measure of Adjusted EBITDA. When evaluating our performance, Adjusted EBITDA should be considered with other financial performance measures, including various cash flow metrics, net income and other GAAP results. In the future, we may disclose different non-GAAP financial measures in order to help our investors and others more meaningfully evaluate and compare our future results of operations to our previously reported results of operations.
1 In November 2016, the FASB issued ASU No. 2016-18 - Statement of Cash Flows (Topic 240) which changed the classification and presentation of restricted cash on the cash flow statement. The Company reclassified certain amounts in prior periods to conform to the current period’s presentation. Previously, the Company disclosed cash flow from operations of $145,000 in the second quarter of 2017.
About eXp World Holdings
eXp World Holdings, Inc. (NASDAQ: EXPI) is the holding company for eXp Realty, LLC, the largest residential real estate brokerage by geography in North America. eXp Realty (exprealty.com) is changing the way that agents, brokers and consumers work together in an adaptive, sustainable environment. As the leading, national, cloud-based real estate brokerage, eXp Realty provides 24/7 access to collaborative tools, training and socialization for real estate brokers and agents through its virtual campus environment. It is one of the fastest growing real estate brokerage firms in North America operating in 49 U.S. states, the District of Columbia and three Canadian provinces. As a publicly traded company, eXp World Holdings, Inc. uniquely offers real estate professionals within its ranks opportunities to earn company stock for production and contributions to overall company growth.
For more information, please visit the company’s website at www.eXpRealty.com.
Safe Harbor Statement
The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Such forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to revise or update them. These statements include, but are not limited to, statements about the company’s expansion, revenue growth, operating results, financial performance and net income changes. Such statements are not guarantees of future performance. Important factors that may cause actual results to differ materially and adversely from those expressed in forward-looking statements include changes in business or other market conditions; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the company’s Securities and Exchange Commission filings, including but not limited to the most recently filed Annual Report on Form 10-K.
Reported Consolidated Results
|EXP WORLD HOLDINGS, INC.|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|June 30, 2018||December 31, 2017|
|Cash and cash equivalents||$||15,567,430||$||4,672,034|
|Accounts receivable, net of allowance $189,240 and $179,759, respectively||22,974,140||6,912,657|
|Prepaids and other assets||679,465||591,034|
|TOTAL CURRENT ASSETS||42,115,329||13,098,918|
|Fixed assets, net||1,978,362||1,538,213|
|TOTAL OTHER ASSETS||1,978,362||1,538,213|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|TOTAL CURRENT LIABILITIES||29,134,512||10,376,460|
|Common Stock, $0.00001 par value 220,000,000 shares authorized;|
|57,475,022 and 54,962,535 shares issued and outstanding at|
|June 30, 2018 and December 31, 2017, respectively||575||550|
|Additional paid-in capital||60,121,007||36,848,041|
|Accumulated other comprehensive income (loss)||16,974||8,454|
|TOTAL STOCKHOLDERS' EQUITY||14,959,179||4,260,671|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$||44,093,691||$||14,637,131|
|EXP WORLD HOLDINGS, INC.|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three Months Ended June 30,||Six Months Ended June 30,|
|Cost of revenues||118,119,212||34,740,874||173,820,728||53,701,009|
|General and administrative||12,988,835||5,692,647||28,677,583||10,468,528|
|Sales and marketing||710,368||348,823||1,356,165||650,045|
|Net loss from operations||(1,872,388||)||(2,119,786||)||(12,538,283||)||(4,993,301||)|
|Other income and (expenses)|
|Total other income and (expenses)||-||(3,762||)||-||(5,477||)|
|Loss before income tax expense||(1,872,388||)||(2,123,548||)||(12,538,283||)||(4,998,778||)|
|Income tax expense||(14,270||)||(23,747||)||(44,720||)||(48,338||)|
|Net loss per share attributable to common shareholders|
|Basic from continuing operations||$||(0.03||)||$||(0.04||)||$||(0.22||)||$||(0.10||)|
|Diluted from continuing operations||$||(0.03||)||$||(0.04||)||$||(0.22||)||$||(0.10||)|
|Weighted average shares outstanding|
|US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION
Quarter to Date
|Adjusted EBITDA Reconciliation, QTD||Mar-17||Jun-17||Sep-17||Dec-17||Mar-18||Jun-18|
|Net Income / (Loss)||$||(2,899,821||)||$||(2,147,296||)||$||(5,314,737||)||$||(11,769,111||)||$||(10,696,345||)||$||(1,886,658||)|
|Depreciation & Amortization||13,265||81,437||112,487||146,040||183,321||147,558|
|Stock Option (benefit)||1,467,735||1,126,195||1,971,394||2,290,705||1,301,702||1,181,969|
|Agent equity program|
In prior quarters, when disclosing adjusted EBITDA, the Company included non-cash expenses related to its Agent Equity Program (AEP), a program whereby the Company grants awards of the Company’s common stock to agents for meeting certain achievements. Including the expense related to the AEP was incorrect and, as such, it has been excluded from the US-GAAP Net Income (Loss) To Adjusted EBITDA Reconciliation table above, resulting in a reduction to adjusted EBITDA as reported in the first quarter of 2018.
Connect with eXp Realty and eXp World Holdings:
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/26c8d010-ece1-45df-9861-93cc905cbdbe
Media Relations Contact: Cynthia Nowak Vice president of marketing and communications, eXp Realty 360.419.5285 ext. 116 firstname.lastname@example.org Investor Relations Contact: Greg Falesnik Managing director, MZ Group – MZ North America 949.385.6449 email@example.com