On Thursday, RE/MAX Holdings, Inc., the parent company of RE/MAX, announced its delaying Q3 2017 earnings results and conference call amidst internal investigation regarding Co-CEOs Dave Liniger and Adam Contos.
According to a release by RE/MAX Holdings, In October 2017, the Board of Directors appointed a special committee of independent directors, (Special Committee), to investigate “allegations concerning actions of certain members of the company's senior management including an allegation of a previously undisclosed loan of personal funds from David L. Liniger, the company's Co-CEO and Chairman, to Adam M. Contos, the Company's Co-CEO.”
The report attributes the investigation to allegations of wrongdoing in employment practices and conduct—matters that could constitute violations of the company’s codes of ethics, business conduct, and policies.
Despite the investigation, RE/MAX “remains confident in its strategy and long-term business plan.” Reporting that the company’s total agent count grew year-over-year by 5.7 percent to 117,568 agents as of September 30, 2017.
The company also reported that it expects to achieve its previously announced revenue guidance for the quarter ended September 30, 2017. Although, waiving approximately $1.7 million of certain fees for hurricane-impacted associates during Q3.
The release notes that the investigation by the Special Committee is ongoing and the company is currently unable to predict the outcome or the timing of its completion.
“The Company is working diligently on this matter and will, as soon as practicable, make a further announcement regarding the updated timing of the third quarter earnings release and conference call to review financial results for the quarter ended September 30, 2017.”