FINAL T TRANSC CRIPT - Brookfield Real Estate Services Inc.

Transcription

FINAL TTRANSC
CRIPT Broo
okfield Reaal Estate SServices Incc. Firstt Quarter 2
2016 Confference Caall Event Date/Time: M
May 4, 20166 — 2:00 p
p.m. E.T. Length
h: 26 minuutes "T
Though CNW Group has used commercially
y reasonable efforts to produce this transcrip
pt, it does not represennt or warrant that this ttranscript
is error-free. CNW Grou
up will not be responsible for any direct, indirect, incidental, specia
al, consequential, losss of profits or other dam
mages or
lia
abilities which may aris
se out of or result from
m any use made of this
s transcript or any erro
or contained therein."
« Bien que CNW Telbec
c ait fait tous les effortts possibles pour produire cet audioscript, la
a société ne peut affirm
mer ou garantir qu’il ne
e
co
ontient aucune erreur. CNW Telbec ne peut être tenue responsab
ble de pertes ou profits
s, responsabilités ou ddommages causés parr ou
dé
écoulant directement, indirectement, accidentellement ou corrélattivement à l’utilisation de ce texte ou toute eerreur qu’il contiendraitt. »
1
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
Brookffield Real Esttate Services Inc. First Qua
arter 2016 Co
onference
Call
CORPORAT
TE PARTICIP
PANTS Phil Soper nt and Chief Executive Of
Officer Brookfield Real Estate Services Inc.. — Presiden
Glen McMillan Brookfield Real Estate Services Inc.. — Chief Fin
nancial Officcer CONFEREN
NCE CALL PA
ARTICIPANTSS John Rolfe
e Argand Cap
pital — Analyst "Though CNW Gro
oup has used commerrcially reasonable efforrts to produce this tran
nscript, it does not reppresent or warrant thatt this transcript
is error-free. CNW Group will not be resp
ponsible for any directt, indirect, incidental, special,
s
consequentiall, loss of profits or othe
er damages or
ay arise out of or resultt from any use made of
o this transcript or any
y error contained thereein."
liabilities which ma
T
ait fait tous les efforts possibles pour produire cet audioscrript, la société ne peutt affirmer ou garantir q
qu’il ne
contient aucune errreur. CNW Telbec ne peut être tenue respo
onsable de pertes ou profits,
p
responsabilitéss ou dommages causé
és par ou
découlant directem
ment, indirectement, ac
ccidentellement ou corrélativement à l’utilisa
ation de ce texte ou tooute erreur qu’il contie ndrait. »
2
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
PRESENTA
ATION Operator Good G
day. My M name iss Steve (pho
on), and I would like to welcome everyone to the Brookfield Real Estate Services Incc. First Quartter 2016 Connference Call. All lines have been placed on mute to prrevent any b
background noise. Afterr the speakeers’ remarkss, there will be a question‐and‐
answer sesssion. If you’’d like to askk a question
n simply presss *, then th
he number 1
1 on your tellephone keypad. If yyou would liike to withdrraw your question, presss the # key. Thank you. I would like to introduce you to Mr. P
Phil Soper, PPresident an
nd CEO of Bro
ookfield Reaal Estate er, you may b
begin your conference ccall. Services Inc. Mr. Sope
Phil Soper — President and Chief EExecutive Offficer, Brookkfield Real Esstate Servicees Inc. Thank you, S
T
teve, and go
ood afternoo
on, everyone. Thank you for joiningg us. With m
me today is our Chief Financial O
Officer, Glen McMillan.
On today’s ca
O
all, I will beggin with a b
brief look at our quarterrly highlightss that I sharred with those gath
hered at ourr annual gen
neral meetin
ng in Torontoo earlier tod
day. Glen, w
will then disccuss our financial results for the t
quarter.. I’ll conclude by provviding some remarks o
on recent business, operationaal, and marrket develop
pments. Aftter that, Glen and I w
would be happy to takke your questions. hat some off the remarrks expresseed during th
his call may contain I want to remind you th
ments. You should not place relia nce on thesse forward‐‐looking stattements forward‐looking statem
"Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
3
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
because th
hey involve kknown and u
unknown rissks and unceertainties that may causse the actual results or perform
mance of the
e Company to differ maaterially from
m anticipateed future reesults, expreessed or implied by such forwarrd‐looking sttatements.
I encourage e
everyone to review the cautionary llanguage fou
und in our n
news releasee and all ulatory filinggs with respe
ect to forwaard‐looking sstatements. All of thesee documentss can be of our regu
found on o
our website aand on SEDA
AR. Building on t
B
the tremend
dous successs of 2015, w
we continue to see our n
numbers climb. We ocus on delivered strong s
finan
ncial and operational results in the first quarteer of 2016, tthrough a fo
enhancing the value w
we offer Canaadian real esstate compa ny owners aand their REA
ALTORS®. For the first tthree month
hs of 2016, w
we saw an inncrease in cash flow fro
om operation
ns of 12 per cent compared c
to
o the same period in 2015. Our aacquisition strategy continues to support sustained positive momentum, m
n of 33 frranchise including the Januarry 1, 2016 acquisition
agreementts, representting 459 new
w REALTORSS® and an annnual revenue stream o
of approximaately $1 million. n addition to this acq
quisition, th
he Companyy was furth
her increaseed by net organic In
recruitmen
nt of 67 REA
ALTORS® during the perriod, driven by our receent investmeents in recruitment and retenttion program
ms. While we w have lon
ng had orga nic growth programs in
n place, theese new initiatives aare proving to help our brokers and
d managers eefficiently atttract and reetain the besst talent in the real estate busin
ness. "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
4
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
Through T
gro
owth strateggies that broaden b
ou r reach geographicallyy and deep
pen our connection
n within seggments of Caanada’s dive
erse home‐bbuying popu
ulation, we ssolidify our position as Canada’’s largest reaal estate firm
m. As A of March 31st, I am thrilled t
to report that oour agent co
ount has surpassed thee 17,000 mark. At the t end of the t first quaarter, we haad 17,320 R
REALTORS® operating under 308 frranchise agreementts, providingg services frrom 670 loccations, witth approxim
mately a onee‐fifth sharee of the Canadian rresidential re
eal estate market. I will further reflect on th
he Canadian
n housing maarket later in
n the call. Here at the o
outset, it ointing out to listeners that our busiiness model again proveed its mettlee during the period. is worth po
The T Compan
ny’s structurre removes much of tthe cyclical swing inherent in real estate markets. In
n a period where w
we saw s
great diifferences between hott regions, su
uch as Toron
nto and Vancouverr, and strugggling marketss such as Calgary and St . John’s, thee Company ggrew steadilyy. True, we do n
T
not grow at the same paace as a marrket on fire. But much m
more importaantly, at least in my m mind, ou
ur predomin
nantly fixed‐‐fee revenue sources p
protect the Company aand the dividend in
n down markkets. And on that A
positive notte, the Board
d of Directors of the Co
ompany approved a dividend to shareholde
ers of $0.10
083 per resttricted votin
ng share, p ayable Junee 30, 2016 to shareholders of record at M
May 31, 201
16. Our stead
dily growingg dividend reepresents a targeted an
nnual distribution of $1.30 per rrestricted vo
oting share. "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
5
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
With that, I’ll
W
l turn things over to Glen. Glen McMillan — Chie
ef Financial O
Officer, Broo
okfield Real EEstate Servicces Inc. Thank you, P
T
hil, and good afternoon, everyone.
As A Phil menttioned, during the first quarter of 2016, Brookfield Real Estate Serviices Inc. generated strong finan
ncial results.. Our royalties and cash flow from o
operations ccontinued to
o exceed previous re
esults on a q
quarterly bassis and on a rolling 12‐m
month basis.
The T Compan
ny generated
d cash flow from operaations of $66.8 million or $0.53 peer share which reprresents an in
ncrease of 1
12 per cent compared tto the 6 million or $0.4
47 per sharee for the same perio
od last year. For the rollin
ng 12‐month
h period end
ded March 331st, cash flow from op
perations waas $2.31 per share aas compared
d to $2.04 fo
or the rollingg 12‐month pperiod ended March 31,, 2015. For the first tthree month
hs of 2016, rroyalty reveenue totalled
d $9.4 millio
on, compared to 8.5 million for the first quarter of 201
15. And for tthe rolling 122‐month period ended March 31st,, royalty otalled 40.8
8 million compared to 37.7 millionn for the co
omparable period in 2015, an revenue to
improveme
ent of 8 per cent. The T
increase
ed royalties and impro
ovement in cash flow from operaations weree driven primarily b
by an increasse in the nu
umber of REA
ALTORS® in the Compan
ny’s networrk, as Phil’s rreferred to. "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
6
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
The Company
T
y generated net earninggs of $0.9 m illion or $0.110 per sharee in the first quarter of 2016 compared to aa net loss of $3.5 million or $0.37 peer share in 20015. During the fir
D
rst quarter o
of 2016, the Canadian reesidential reeal estate maarket saw a marked increase off 32 per cen
nt at $56.8 billion comp
pared to thee same perio
od in 2015, driven by aa 16 per cent increaase in the naational averaage selling price and a 133 per cent in
ncrease in un
nits sold. For the rollin
ng 12‐month period ended March 31, 2016, thee Canadian m
market closeed up 18 per cent co
ompared to March 2015
5. This gain was driven by an 11 peer cent increase in selling prices and a 7 per cent increaase in units. The most not
T
table increasses continue
ed to come ffrom the Greeater Torontto Area and Greater Vancouverr. In the first quarter, th
he GTA marrket experieenced a 31 p
per cent inccrease comp
pared to 2015, with
h about halff of that increase comin
ng from hig her prices aand the otheer half from
m higher volumes. On O a rolling 12‐month basis, b
the ho
ousing markket in the G
GTA experien
nced a 22 p
per cent increase, again split eq
qually betwe
een price increases and hhigher volum
mes. For the three
e months en
nded March 31, 2016, thhe Greater V
Vancouver m
market increeased by 65 per cen
nt, driven byy a 23 per ce
ent increase
e in average selling pricee and a 32 p
per cent increase in units sold. "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
7
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
On a rolling 1
O
12‐month basis, the Gre
eater Vancoouver markeet experienceed a year‐ovver‐year increase off 49 per cent, driven by a 16 per cent increase in selling prrices and a 2
29 per cent increase in units sold. And A with thaat, I’d now like to turn the call bacck over to Phil, for some additional insight and commentary on th
he market an
nd operation
ns. Phil Soper Thanks, Glen
T
. As A demonstrrated by ou
ur first quarter resultss and our ggrowing REA
ALTOR® cou
unt, the Company ccontinues to
o provide vaalue through
h ongoing in vestments in technologgy and servicces that ensure our brokers an
nd agents are a among the t most in formed, sup
pported, and successfu
ul in the Canadian market. This continues to attract the best brrokers and agents in tthe industryy to our leading braands, nationwide. Strengthening our positio
on in some o
of Canada’s most diversse housing m
markets, in M
March of w welcome
ed Royal LeP
Page United
d and its moore than 1550 REALTORSS® who servvice the this year we Brampton, Ontario hou
using marke
et, in addition to parts off Toronto an
nd Mississauga. And in early A
April, Scarbo
orough, Onttario‐based R
RE/MAX Vision converteed to Royal LePage, adding an aadditional 65 agents to o
our growingg network. In
n recent mo
onths, we haave grown stteadily in etthnically divverse Canadiian markets,, adding significant Chinese‐Can
nadian, Kore
ean‐Canadian, and Southh Asian‐Canaadian sales ccapacity. "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
8
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
These T
acquissitions not only o
represe
ent momenttum for our expanding network, th
hey also demonstraate our ability to furth
her reach new n
demoggraphics thrroughout th
he nation eensuring Canada’s laargest real e
estate firm ch
hanges and grows as Ca nada changes and grow
ws. As well, for t
A
he first time
e in several yyears, we arre seeing new and signifficant opporrtunities in the Province of Qu
uébec. As a result, we are a giving aadditional fo
ocus to thatt marketplacce, with increased sstaffing, as w
well as new broker and agent suppport and traiining, which will ensure we can appropriattely leverage
e the currentt shift in the industry moomentum. I will touch briefly on the
e building strrength of thee Québec m
market in mo
ore detail sho
ortly. Coupled with
C
h our strong growth year‐to‐date, w
we believe ou
ur healthy pipeline and focused market strategy will en
nsure our co
ontinued gro
owth and suuccess in theese and otheer market seegments throughout the comingg year. Superior financial resultss require an exceptional operating p
platform. Wee continue to invest in differentiating technologies, ne
ew business services to improve the efficiency and profitaability of eting initiativves that suppport our valued brandss, and the industry’s our agentss and brokerrages, marke
best trainin
ng and coach
hing. This T year, to date, we’ve
e seen the continuation
c
n of successsful broker aand agent ccoaching programs and services. To aid our brokers and manageers in their recruiting efforts we’vve been gearing up
p training an
nd accountaability progrrams to enssure they are well equ
uipped for the year ahead. "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
9
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
The beginnin
T
ng of 2016 saw the ongo
oing, positivve media recception of o
our enhanceed Royal LePage Ho
ouse Price Composite, part p
of the House H
Price Survey program. The C
Composite p
provides one of the
e most comp
prehensive views v
of Canada’s natioonal residen
ntial real esttate sector, and it’s continued to increase our positive brand expo
osure in the m
media. Our Q1 repor
O
rt garnered 125 million cconsumer im
mpressions ffrom over 43
30 stories, in
ncluding the Tier 1 media outle
ets nationwide. Based on this succeess, and a sim
milar achievvement with our Q4 2015 reporrt released in January, w
we are anticipating that 2016 will bee another reecord‐breaking year for media e
exposure an
nd our firm. In
nvestments in mobile te
echnologies and lead‐g eneration p
programs continue as w
we begin 2016. The first quarter of the yeaar saw further enhancem
ments to royallepage.caa. These ressulted in increased ttraffic to the
e website, u
up an averagge of 100,0000 visits per month to 3
3.1 million visits per month. This in turn h
T
has contribu
uted to an in
ncrease in our lead volu
ume. These aare people w
who are interested in the houssing market,, who we marry m
with oour REALTOR
RS®, resultin
ng in more b
business p
acrosss the coun
ntry. On aveerage, we aare generating 9,500 leads per being driven to our people ds. month, witth a peak in February of 10,000 lead
Additional en
A
nhancementts were also
o made to Royal LePagee’s intranet, rlpNetworkk. This is the platforrm by which
h we deliver services to our nationw
wide network, including the introdu
uction of enhanced ttools to improve commu
unication be
etween headd office, brokkers, and agents. "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
10
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
And A
beginning this yeaar, our Via Capitale buusiness in Q
Québec hass begun offfering a transaction
ns and listing management service to its brokeers. This servvice providees a win‐win
n for the brand and its salespeo
ople. Brokerss realize cosst savings annd efficienciees, while Viaa Capitale in
ncreases broker satisfaction and loyalty, an
nd adds ano
other differeentiated serrvice that will be compeelling to n targets and
d help grow o
our brand th
here. acquisition
These T
are on
nly a few off our many ongoing o
inittiatives as w
we continuallly look for w
ways to grow and e
enhance the
e business. D
Details of ad
dditional proojects in thee works will be shared w
with you on future u
update calls.. As A Glen note
ed earlier, the t first quaarter of 20116 showed aa strong reaal estate market in Canada, bu
ut one with e
extreme reggional disparities, the kinnd we haven
n’t seen in well, about a decade. As we exp
pected, the most m
significcant price in
ncreases weere seen in the Greaterr Toronto Area and particularlyy in Greater Vancouver o
or the Lower Mainland oof British Co
olumbia. However, a n
H
notable divergence betw
ween Canadaa’s two hotteest markets appeared, w
with the Greater Toronto Are
ea sustaining its home
e price apppreciation ttrajectory, while the Greater d at rarely se
een appreciaation levels.
Vancouverr market hass accelerated
Additionally, A
an emergin
ng interprovincial migrattion to British Columbiaa and Ontarrio from commodityy focused ecconomic reggions such as Alberta, iss expected tto put furtheer upward p
pressure on home p
prices in thesse areas, in tthe coming m
months. "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
11
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
The impact o
T
of very low iinterest rate
es, the impaact of a com
mpetitively lo
ow Canadian
n dollar, and a rapid
dly expandin
ng US work fforce, are all stimulatingg economic ggrowth and housing dem
mand in our largestt metropolitaan areas. Conversely, C
in i cities like
e Calgary, the ongoing drags of a depressed energy secctor and worrisome
e employment trends haave taken a bite out of ssales volumees. As you w
would expecct, lower demand do
oes impact h
home prices. Price, howev
P
er, is a lagging indicatorr. It takes tim
me for homeeowners to aadjust to reaality that their housses have fallen in value
e. When that happens,, markets aare frankly lliberated an
nd sales volumes caan pick up. In Alberta and a Newfou
undland, ma rkets are ad
djusting to lower demand with modest, sin
ngle‐digit prrice decrease
es. Within W
a reggion, price adjustments reflect the diversity off the underllying econom
mies. In Calgary, fo
or example, with its large populatio
on of oil coompany head office pro
ofessionals aand less affordable housing thaan elsewherre in the pro
ovince, we expect to seee more of a price adju
ustment n Edmonton,, where prices have beeen relatively flat. during the year than in
mic and Shifting our focus easttward, following a muulti‐year perriod of stallled econom
wth, the Gre
eater Montr eal Area’s seeen an upsw
wing in demaand and residential real estate market grow
unit sales, which often
n foreshadow
ws stronger h
home price appreciation
n. "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
12
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
While Québe
W
ec has been slower to reap the ecoonomic beneefits of moree affordablee energy costs, a competitively low dollar aand low inte
erest rates, tthe region iss turning a ccorner. My p
personal vote goes tto Montréal as the city m
most likely to
o exceed ex pectations in 2016. An exporting
A
g province, Q
Québec, will also benefiit from expaanding US m
markets and Ontario economiess. There is quite a bitt of interprrovincial tra de and exp
port from Q
Québec to Ontario businessess. Looking at other o
parts of Canada, Regina andd Atlantic Canada continue to seee flat or softening prices p
as higgh inventory, and in th
he case of tthe Atlantic Provinces, ageing populations create opp
portunities fo
or buyers. Home H
pricess are expectted to incre
ease in manny markets aacross Canaada throughout the remainder of 2016 bu
ut not at the
e pace that has been tthe recent n
norm. Insteaad, the hotttest real s
somew
what, later tthis year, prrincipally du
ue to the efffects of estate markets are exxpected to slow eroding afffordability. Again, A
with focus f
on the
e vibrant To
oronto and V
Vancouver m
markets, thee impact of foreign buyers hass been in the
e news in the
ese regions, and it rema ins a hot top
pic with the Canadian m
media. While we be
W
lieve the impact on the Canadian reesidential reeal estate market as a w
whole to be minimaal, we encou
urage the go
overnment to t do all it ccan to acquire meaninggful data on foreign investment in Canadian real prope
erty. "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
13
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
We W feel the engagemen
nt of Statistiics Canada iis an appropriate first sstep to und
derstand what questions need tto be asked around this topic, as w ell as to dettermine who
o should parrticipate to create in
nformed pub
blic policy. In
n conclusion
n, in a quarte
er where some Canadian real estatee markets co
ontinued to expand rapidly, wh
hile others experienced
d the ongoing drag of lower energgy and com
mmodity pricces, our business expanded e
att a steady, profitable pace, whicch we belieeve reflects the health of the Company and the vaalue of a bu
usiness mod
del that em
mphasized ffixed and reeoccurring rrevenue streams. A
As always, we
e strive for cconsistency aand reliabilitty in up and down markeets. We W are optim
mistic about the state of our busiiness and growth oppo
ortunities th
hat exist throughout the country to contin
nue to expand our netw
work, while providing o
our sharehollders an investment vehicle thaat pays stable and growing dividend s. With W
that, I’’ll turn the call back to
o our Oper ator, and o
open up thee call to qu
uestions, including if anybody would w
like to t discuss a recent dec ision that affects the TToronto Reaal Estate ere the natio
onal Competition Commissioner is reequesting more open acccess to dataa. Board whe
To summariz
T
on that poin
nt, we do noot believe th
hat this will impact the b
business e our view o
in a negative way. And
d in fact, it o
opens up new opportun ities for a business such
h as our own
n. I’d be happy to taake question
ns on that su
ubject or anyy other. Steve, over to
o you. "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
14
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
Q&A Operator At this time, A
I would like to remind e
everyone in order to askk a question please presss *, and then the n
number 1 on
n your telephone keypad
d. We’ll pauuse for just aa moment tto compile the Q&A roster. Oncce again, thaat is *, 1 to aask a questio
on. Again, if you’d like to
o ask a quesstion please press *, 1 on your ttelephone ke
eypad. Your first que
Y
estion comes from John Rolfe with A
Argand Capittal. Your linee is now opeen. John Rolfe
e — Argand C
Capital Hey, guys. Ni
H
ice quarter aas always. I think the beest news thaat I saw in th
he earnings release, candidly th
his quarter, w
was the factt that you were able to ggrow your R
REALTOR® baase organicaally. And it seems likke it’s been some time since we’ve seen that. A
And notwith
hstanding th
he fact that it was a relatively ssmall increasse in the quarter, could you just maaybe talk a llittle bit abo
out how susttainable you think that trend is? i And whe
ether there are potentiially addition
nal levers th
hat you can
n pull to nderlying REALTOR® basse going even possiibly sort of iincrease thaat rate of orrganic growtth in the un
forward? TThanks. Phil Soper Thanks, John
T
n, and thanks for the comment. Speecifically as it relates to organic gro
owth, or probably a better way to put it in o
operational terms wouldd be attritio
on managem
ment. Maybe if I step back just h
half a step, in
n an industryy where you
u are managing independent contractors, and aall of the "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
15
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
revenue an
nd earnings that flow into their boo
oks of busineess are geneerated by them, you do tend to have highe
er levels of attrition th
han in other business m
models. Wee have alwaays had a fo
ocus on recruiting, but the foccus specificaally on reten
ntion is a reelatively new
w one. In th
he last threee years, we’ve step
pped back an
nd said, whaat can we do
o to ensure that our bussinesses acrross the country are more sustaainably healtthy so the acctual brokerrage offices, approximattely 670 offices, are themselves healthy? And A one of the things we came to
o realize is if we reduce the ratee of attrition
n, if we essentially made it eassier for youn
ng REALTORSS® who are sstarting out in the busin
ness to get that first d to build a ssustainable book of bus iness and no
ot give up, aand to ensurre that a sale, to gett rolling, and
greater percentage of the overall p
population w
was happy a nd retained in those loccal brokeragges, they would — w
with less chu
urn — see le
ess operatio
onal risk, andd they would be more p
profitable. SSo that’s really where the emph
hasis started
d. And it’s ju
ust now starrting to show
w up in term
ms of a net positive recruiting number. And most of th
hat has com
me from attraacting or hanging onto a larger percentage pulation. The
e industry itself, in term
ms of agent ccount, is gro
owing very, very slowly,, mid to of the pop
low‐single‐‐digits. The only tim
T
Company, ass a public veehicle, has grown substaantially, orgaanically, e that the C
was duringg a burst of growth in ovverall industtry registrannts, back in tthe middle o
of the 2000ss. When the industrry growth sllowed down
n to flat, 1, 2
2, 3 per cennt, just with general attrrition we tended to make it up
p through growth strate
egies: M&A growth straategies, acq
quisition gro
owth strateggies. But "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
16
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
these new
w programs have h
been met m in a very positive w
way by our management team acrross the country. So
o for an example, we’ve
e provided n
new trainingg programs ffor our managers. We’vve put in place trackking mechan
nisms where
eby we track and publissh how peo
ople are doin
ng, and we actually share the results, so people can see how they stack uup versus th
heir peers. W
We’ve put iin place rewards an
nd recognitio
on programss for the veryy first time.
We’ve W
alwayys focused on o REALTOR® awards annd recognition. Well, no
ow we’re prroviding rewards and recognittion for the
e actual bro
okerages th emselves, aas it relatess to retentiion and recruiting. And the acccountabilityy programs that we haave in place are new. SSo we bringg people n groups, and to put it so
ort of anecdotally, someeone suggessts to their p
peer group th
hat they together in
are going to do some
ething, meett with a keyy prospect ffor coffee. TThe next weeek, the gro
oup gets together, aand they askk, “So Sue, h
how did it go with your prospect Jo
oe?” And she goes, “Oh I never got around
d to calling.”” Well, she doesn’t wan
nt to do thaat two weekks in a row. And so thiss group‐
based acco
ountability system, s
whiile it soundss very basicc, to set up across 670
0 offices is aa pretty significant undertakingg, and it’s starting s
to take t
hold. S o your coree question w
was sustainaability. I d more time to see thhe results. B
But underneeath the covvers, on think it is sustainable. We’ll need
we don’t rep
port in termss of the flow
w of people iin and out o
of the busineess, the tren
nds have numbers w
been positive, and we’’re going to ccontinue to focus on it.
John Rolfe
e Okay. Great. O
Thanks veryy much. Thatt’s helpful. "Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
17
FINAL TRAN
NSCRIPT
May 4, 2
2016 — 2:00 p.m. E.T.
arter 2016 Co
onference
Call
Operator Again, if you A
would like to ask a quesstion, pleasee press *, 1.
And there are
A
e no furtherr questions aat this time. I now turn the call back over to Mr. Soper. Phil Soper I wish to thank everyone
e, once again
n, for partic ipating in to
oday’s call. A
And look forward to updating you again during our nexxt quarterly e
earnings calll, in three m
months’ time. Thank you.. Operator This conclude
T
es today’s co
onference caall. You may now discon
nnect. *****
"Though CNW Gro
s
er damages or
T
qu’il ne
p
és par ou
découlant directem
18

FINAL T TRANSC CRIPT - Brookfield Real Estate Services Inc.

Transcription

Documents pareils

International medical journal reports Vancouver product`s

FINAL TRANSCRIPT

First Quarter Conference Call Transcript

Transcript

Transcript - Polaris Materials Corporation

final transcript

Second Quarter Conference Call Transcript

RFP Template - Brookfield Real Estate Services Inc.

Third Quarter Conference Call Transcript

final transcript - Medical Facilities Corporation

Q2 2015 Conference Call

Transcript - Polaris Materials Corporation

final transcript

FINAL TRANSCRIPT