Re: |
The RMR Group Inc.
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1. |
We have reviewed your response to comment 2, and reissue. We continue to believe that your revenues should be captioned as related party transactions on the face
of your ‘Consolidated Statements of Income’ or parenthetically stated, pursuant to Rule 4-08(k)(1) of Regulation S-X which is prescriptive in stating “Amounts of related party transactions should be stated on the face of the balance sheet,
statement of comprehensive income, or statement of cash flows.” Please revise or advise accordingly.
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Sincerely,
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/s/ Matthew P. Jordan
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Matthew P. Jordan
|
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Executive Vice President,
|
|
Chief Financial Officer and Treasurer
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The RMR Group Inc.
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cc: |
Faiz Ahmad
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Three Months Ended December 31,
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||||||||
2021
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2020
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|||||||
Revenues:
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||||||||
Management services
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$
|
44,897
|
$
|
40,747
|
||||
Advisory services
|
1,118
|
586
|
||||||
Total management and advisory services revenues
|
46,015
|
41,333
|
||||||
Reimbursable compensation and benefits
|
14,397
|
13,225
|
||||||
Reimbursable equity based compensation
|
1,598
|
3,003
|
||||||
Other reimbursable expenses
|
119,558
|
99,385
|
||||||
Total reimbursable costs
|
135,553
|
115,613
|
||||||
Total revenues
|
181,568
|
156,946
|
||||||
Expenses:
|
||||||||
Compensation and benefits
|
31,791
|
29,494
|
||||||
Equity based compensation
|
2,219
|
3,561
|
||||||
Separation costs
|
—
|
4,159
|
||||||
Total compensation and benefits expense
|
34,010
|
37,214
|
||||||
General and administrative
|
7,671
|
6,260
|
||||||
Other reimbursable expenses
|
119,558
|
99,385
|
||||||
Transaction and acquisition related costs
|
—
|
117
|
||||||
Depreciation and amortization
|
236
|
238
|
||||||
Total expenses
|
161,475
|
143,214
|
||||||
Operating income
|
20,093
|
13,732
|
||||||
Interest and other income
|
57
|
231
|
||||||
Equity in earnings of investees
|
—
|
424
|
||||||
Unrealized gain on equity method investments accounted for under the fair value option
|
1,196
|
8,122
|
||||||
Income before income tax expense
|
21,346
|
22,509
|
||||||
Income tax expense
|
(3,054
|
)
|
(2,756
|
)
|
||||
Net income
|
18,292
|
19,753
|
||||||
Net income attributable to noncontrolling interest
|
(10,250
|
)
|
(10,856
|
)
|
||||
Net income attributable to The RMR Group Inc.
|
$
|
8,042
|
$
|
8,897
|
||||
Weighted average common shares outstanding - basic
|
16,325
|
16,252
|
||||||
Weighted average common shares outstanding - diluted
|
31,325
|
31,252
|
||||||
Net income attributable to The RMR Group Inc. per common share - basic
|
$
|
0.49
|
$
|
0.54
|
||||
Net income attributable to The RMR Group Inc. per common share - diluted
|
$
|
0.49
|
$
|
0.51
|