Good morning, and welcome to the RE/MAX Holdings Second Quarter 2021 Earnings Conference Call and Webcast. My name is Tabitha, and I will be facilitating the audio portion of today's call. At this time, I'd like to turn the call over to Andy Schulz, Senior Vice President of Investor Relations. Mr. Schulz? Thank you, operator. Good morning, everyone, and welcome to RE/MAX Holdings Second Quarter 2021 Earnings Conference Call. Please visit the Investor Relations page of remaxholdings.com for all earnings-related materials and to access the live webcast and the replay of the call today. If you are participating through the webcast, please note that you will need to advance the slides as we move through the presentation. Turning to slide two. Our prepared remarks and answers to your questions on today's call may contain forward-looking statements. Forward-looking statements include those related to agent count, franchise sales, financial measures and outlook, brand expansion, competition, technology, housing and mortgage market conditions, capital allocation, dividends, strategic and operational plans and business models. Forward-looking statements represent management's current estimates. RE/MAX Holdings assumes no obligation to update any forward-looking statements in the future. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ materially from those projected in forward-looking statements. These are discussed in our second quarter 2021 financial results press release and other SEC filings. Also, we will refer to certain non-GAAP measures on today's call. Please see the definitions and reconciliations of non-GAAP measures contained in our most recent quarterly financial results press release, which is available on our website. Joining me on our call today are Adam Contos, our Chief Executive Officer; Karri Callahan, our Chief Financial Officer; Nick Bailey, President of RE/MAX; and Ward Morrison, President of Motto Mortgage. With that, I'd like to turn the call over to RE/MAX Holdings CEO, Adam Contos. Adam?

Thank you, Andy, and thanks to everyone for joining our call today. Looking at slide three, we've posted record financial results in the second quarter, driven by a historically strong housing market, improved performance from our core operations and contributions from recent acquisitions. Continued execution on our strategy and the benefits of investments we've made in recent years are having an impact. With the recently closed acquisition of the RE/MAX INTEGRA North American regions, we're driving economies of scale and delivering a consistent, high-quality value proposition, and our greater size brings more opportunity to create shareholder value. We remain encouraged by trends in our key leading indicators. RE/MAX agent count growth as well as modeled franchise sales and open offices, we believe our strategy and investments set us up nicely for continued profitable growth. I'm very excited about where we are and where we are headed. Highlights of the second quarter include record revenue of $77.2 million and record adjusted EBITDA of $30.5 million, adjusted diluted EPS of $0.63, and net increase of over 8,000 RE/MAX agents year-over-year, highlighted by growth across the board in the U.S., in Canada and internationally and a nearly 30% year-over-year increase in Motto open offices. Turning to slide four. The landmark acquisition of RE/MAX INTEGRA's North American regions brings over 19,000 agents and 1,100 offices into our company-owned operations. On our February earnings call, we said we believed we could double the size of our revenue, excluding the marketing funds and profit through executing on previously identified growth opportunities. The INTEGRA acquisition was one of those opportunities and gets us roughly 20% to 25% of the way toward achieving that goal, a great start. This acquisition, the most significant in our history given its size and cross-border market presence, is the latest step in the transformation we have been undergoing over the past five years. During this time, we have challenged, reinvented and/or transformed nearly every aspect of the company from our branding to our executive leadership team. We've upgraded people, processes and platforms at almost every level. We launched a new franchise brand, ramped up our tech capabilities to expand and diversify our product lines, modernized our marketing and strengthened our core business. As a result, we're a larger, more formidable enterprise with greater opportunities for growth, all while staying true to the principles embraced by Dave and Neil Liniger when they founded the company nearly 50 years ago. Much of our transformation has occurred through strategic M&A activity. Looking ahead, we plan to focus on integrating the acquired INTEGRA regions and paying down our debt. At the same time, with over $100 million of cash on our balance sheet, we can and will take advantage of strategic opportunities to expand even more. Acquiring independent RE/MAX regions and extending our company-owned footprint remains a top priority for capital allocation. At the same time, we also look for complementary acquisitions in the franchising and real estate channels with an eye toward adding value across the entire home buying life cycle. Moving to slide five. June presented an ideal trifecta for a hot housing market, record home sales and prices as indicated in our RE/MAX National Housing Report and an increase in inventory for the first time in 15 months. June, typically the biggest month of the year for home sales, saw sales soar more than 14% over a strong May. In fact, June sales topped every other month in a 13-year history of our National Housing Report, which spans 53 metro markets. Median sales price of $336,000 was also a report record, eclipsing the previous record of $320,000 set this April and tied in May by 4.9%. Meanwhile, a welcome news for frustrated buyers. The number of homes listed for sale grew 1.9% over May, the first increase since March 2020. Inventory, however, was still down 37.5% from June 2020. The fact that sales are up and inventory is increasing at the same time indicates that more sellers are coming into the market to list their homes, and buyers are lined up at the door, still hungry. Despite the pandemic, record high prices and limited inventory, buyers continue to take advantage of historically low interest rates and fight for a chance to become homeowners, a milestone that seemingly still appeals to every generation. Although some pundits are now forecasting a lower number of U.S. existing home sales than they were earlier, 2021 is still shaping up to be a strong housing market, one of the better ones we've seen in the past decade. The return of more sellers is a positive sign that may represent a small step forward to a more balanced market, which would be good news for all. With that, I'll turn it over to Nick.

Thanks, Adam. Good morning, everyone. Looking at slide six, overall agent count increased more than 6% year-over-year. We added over 8,000 agents worldwide since June 2020, with growth in each major geography. In fact, our combined U.S. and Canadian agent count is the highest it has been in nearly three years since Q3 of '18, despite the immense competition and the unusual circumstances of the past year. The strong housing markets in the U.S. and Canada are both an attraction and a confidence builder for agents. In the U.S., our agent count increased over 750 agents, up more than 1% compared to last year. In Canada, our growth accelerated, and we added almost 1,800 agents, up more than 8% year-over-year. Our growth in Canada is particularly notable given our position as a market leader there. We believe the events of the past year have increased agent awareness of the importance of having a strong brand. Our national market share of more than 30% in Canada is a difference maker, especially during times of uncertainty. It is also one of the many reasons we're excited about the acquisition of INTEGRA's North American regions. These regions have experienced outsized growth in recent years and should be a positive driver in accelerating our overall organic growth rate. Right now, our focus is on integrating these regions as quickly and seamlessly as possible. The process which began right after closing is off to a terrific start. We're leveraging our experience with previous acquisitions to help these brokers and agents maximize the advantages of our company-owned regional operations. There is tremendous enthusiasm among the brokers and agents in these acquired regions, and their excitement is shared by everyone in the RE/MAX corporate organization, and we say welcome aboard to all of them. Turning to slide seven. We continue to make good progress on the technology front, receiving accolades for the efforts while we innovate and see increased adoption of our offerings. One of the highlights from Q2 was that our proprietary First app won a distinguished Innovation Award from Franchise Update Media. Our First app was a first place winner in the Annual Franchise Innovation Awards, which recognize franchisors that are creating and implementing the most original strategies for their franchisees. The First app uses machine learning to analyze an agent's friends, family and acquaintances and then identify those most likely to list their home in the coming months. It has been a real difference maker. For example, in terms of transaction size, RE/MAX agents who began using First prior to April 2020, increased their productivity by 9% on average versus the same period in 2019. The RE/MAX value proposition includes new ways for busy agents to automate and streamline tasks, creating more time for them to focus on helping customers. The First app helps agents grow their business by helping them refine their contact lists, predict those most likely to list their homes, and master strategic follow-up activities. In this low inventory market, First is a game-changing tool exclusive to RE/MAX agents. When we initially encountered the First app, we saw possibilities to leverage, optimize and innovate on top of its unique agent productivity suite. We thought to ourselves, can we repurpose this powerful software to help our brokers recruit and retain highly productive agents, and our team embraced this challenge. And I'm happy to announce the answer to our question is a resounding yes. We will be unveiling the new recruiting capabilities at the First app at our annual broker-owner conference to be held in Austin, Texas next week. We're excited about this extension of the First capabilities and believe this is a best-in-class, first-to-market product that is truly unique to the industry. This new offering is available only to the U.S. right now, and like most technologies, it's a work in progress and we will be growing and refining the functionality over time. The recruiting functionality is free and exclusive to RE/MAX franchisees. It's one more worthy addition to our leading value proposition. With that, I will turn it over to Ward.

Thanks, Nick. Looking at slide eight, the U.S. mortgage market continues to enjoy a tremendous year. Fannie Mae is forecasting that the U.S. will do over $4 trillion in mortgage originations in 2021, likely the second best year on record. This is good news for all mortgage market participants, including our Motto franchisees, many of whom are enjoying a strong year-to-date. That momentum has carried over into our franchise sales. We are selling at a brisk rate, just a touch under last year's record pace. It is the continuation of the successful franchise sales track record we have consistently achieved since day one. We will celebrate our five-year anniversary this October and during that time, we will have averaged better than one franchise sale per week. We are trending toward selling between 60 and 80 franchises in 2021, consistent with last year and in line with our expectations. Office openings have accelerated as expected. We are experiencing the echo effect of last year's inflection in franchise sales and are now witnessing a similar dynamic in office openings, which grew nearly 30% year-over-year in Q2. The Motto team does a terrific job of helping our franchisees navigate the licensing process and the multiple steps needed to get their Motto offices open. We make it as simple as possible, and it is a core part of the Motto value proposition. I'm proud of the great work so many of our Motto colleagues do behind the scenes. I know our franchisees certainly appreciate their efforts and it shows in our results. We now have 164 open Motto franchises, and we are within shouting distance of having 200 open offices by year-end. A big area of organizational focus for us is the successful integration of wemlo. We acquired wemlo last year in order to solve one of our franchisees' primary pain points, finding steady, dependable and economic loan processing services. Since acquiring wemlo last fall, we have built out our marketing strategy, sales journey, project management and business operations structure. We continue to get licensed in more states with the goal of being licensed in as many of the 50 states as possible by the end of the year. We are also ramping up resources to handle processing for our anticipated model loan volumes. We're processing an increasing number of loans for a growing portion of the Motto network each month and are trending in the right direction. The best-in-class wemlo technology provides the only enterprise solution of its kind in the mortgage brokerage space. Although it was purchased primarily to support Motto franchisees, wemlo will continue to serve clients and market its products throughout the mortgage brokerage industry, providing an additional channel of growth for RE/MAX Holdings. With that, I'd like to turn the call over to Karri.

Thank you, Ward, and good morning, everyone. Moving to slide nine, a healthy housing market momentum in our core businesses, the continued impact of our investments and strong collections despite the pandemic, helped generate record financial performance during the second quarter. Our financial results exceeded our expectations in most categories, and we converted almost 70% of adjusted EBITDA into free cash flow during the past 12 months. With the recent closing of the INTEGRA regional acquisition, the corresponding refinancing of our credit facility and our key leading indicators pointing in the right direction, I believe we are positioned well for continued profitable growth. Total revenue was $77.2 million, an all-time quarterly high. Excluding the marketing funds, revenue was almost $60 million. Acquisitions increased overall revenue by nearly 3% as we are seeing year-over-year growth for both wemlo and Gadberry. FX listed revenue by just over 1%. Our organic revenue growth was up significantly. Given the pandemic and the fee waivers we employed a year ago, the year-over-year comparisons are not particularly meaningful. What I do think is noteworthy is the momentum we see in our core business. Even after normalizing for the temporary COVID-19 fee waivers extended in Q2 of last year and setting aside broker fees, we still generated a mid-single-digit organic growth rate as many of our organic growth drivers contributed to the topline during Q2, including agent count growth, pricing model first, more targeted use of agent recruiting incentives to name the most notable one. If you exclude the booj legacy runoff, our organic growth improved by nearly another 100 basis points. The magnitude of our topline growth is what drives our margin, and we saw that in Q2. We believe we'll see continued mid-single-digit organic growth for the foreseeable future. Looking at slide 10. Selling, operating and administrative expenses were $38.8 million in the second quarter of 2021, up significantly over the prior year. Similar to revenue, the year-over-year comparisons for SO&A are not meaningful due to the pandemic. While our staff travel is picking up in response to the importance of in-person events and training that our customers are now eager to participate in, our spending levels remain well behind our pre-pandemic level in 2019. On the acquisition front, we continue to see margins from our acquisitions trending in the right direction. In fact, Gadberry has already started to generate a monthly profit ahead of our expectations. First, in our mortgage business, which represents the combination of wemlo and Motto, are both moving toward breakeven, and we expect each to start generating a monthly profit likely sometime in the first half of 2022. Turning to slide 11. We took advantage of favorable market conditions and refinanced our credit facility last month. We increased our capacity, reduced interest costs and generally improved the terms of the agreement. We raised $460 million in term loans, which allowed us to pay off our existing indebtedness and fund the $235 million acquisition of the RE/MAX INTEGRA region. Plus, we expanded our revolving facility to $50 million, up from the previous $10 million cap. We also pushed out the timeframe of the agreement. The new term loan facility is for seven years, while the revolver has a five-year term. Financing the INTEGRA acquisition exclusively with debt made the most financial sense in light of the attractive conditions in the debt market and should give us a more efficient capital structure going forward. After adding the expected EBITDA contributions from the acquired regions, we expect our leverage to increase to a still comfortable level of approximately three times on a net basis and approximately four times on a gross basis. Moving to slide 12. The company's third quarter and full year 2021 outlook includes the financial results of the acquired INTEGRA North American region and assumes no further currency movements, acquisitions or divestitures. For the third quarter of 2021, we expect agent count to increase 5% to 6% over third quarter 2020; revenue in a range of $86.5 million to $91.5 million, including revenue from the marketing funds in a range of $21.5 million to $23.5 million; and adjusted EBITDA in the range of $29.5 million to $33 million. For the full year 2021, we are increasing our revenue guidance due to the RE/MAX INTEGRA North American acquisition. We are also increasing our adjusted EBITDA guidance due to stronger-than-expected second quarter results and the RE/MAX INTEGRA acquisition. For FY 2021, we expect agent count increase 5% to 6% over full year 2020; revenue in a range of $321 million to $336 million, including revenue from the marketing funds in the range of $80.5 million to $83.5 million, up from $300 million to $310 million; and adjusted EBITDA in a range of $113 million to $118 million, up from $103 million to $107 million. Now I'll turn it back to Adam.

Thank you, Karri. Looking at slide 12, we ended the first half of the year on a strong note with record financial results, encouraging trends in our business and the most significant regional acquisition in our history. We believe we have real momentum right now, and we are looking forward to an even better second half of 2021. With that, operator, let's open it up for questions.

Our first question comes from the line of John Campbell with Stephens.

Hey good morning. This is James Hawley, stepping in for John Campbell. So on the INTEGRA deal, can you talk about how much was factored into the guidance for the back half? Is it just the annualized run rate and then taking five months' worth of that for the remainder of the year?

Yes, that's a very good way to look at it. We have remained consistent in our guidance since our call in June. The main update to our expectations for the first 12 months of contribution relates to the successful refinance of the credit facility, which has resulted in slightly lower interest costs. The most significant change is in the adjusted EPS contribution, which we now expect to improve by about $0.05 to $0.06 compared to the range we provided back in June. Otherwise, we are maintaining a consistent annualized run rate.

Okay thank you, that's helpful. We did see a sequential decline after the first time there. Do you think that's a product of that side of the business maturing? And could we expect the pricing weather being pulled on the international stage going forward? Just looking for some updates on the side of the business.

Yes, James, it's Nick. When we look globally, our short answer is no. We don't think it has reached a maturity point that's affecting overall growth. However, last year and currently, many countries are still experiencing severe lockdowns due to COVID, which we believe is impacting overall growth. Nevertheless, we expect a strong second half in that category. As you mentioned, growth is present, and we think some of it is just a temporary pause.

Okay, thank guys. Appreciate it.

Our next question comes from the line of Vikram Malhotra with Morgan Stanley.

Thanks for taking the question. Maybe, Karri, just to start with you. If you could just help break out in the quarter, what the contribution was specifically from Motto and some of the newer businesses you've added to the company? And just going forward, do you plan to break that out separately or create a new line item?

Yes, Vikram, that's a good question. We present Motto separately in our external reports, and I'm pleased with the mortgage segment's performance this quarter. We've integrated both Motto and wemlo into this segment. One significant aspect of our transformation is the variety of strategies we can implement. The mortgage segment contributed just over 1% to our overall organic growth this quarter, which is encouraging. I want to note that we are still investing in this segment, particularly with the legacy Motto and ramping up the wemlo business, and I'm satisfied with its performance. Regarding other parts of the business, we experienced mid-single-digit organic growth when excluding the effects of last year's fee waivers and broker fees. Although First and Gadberry are still relatively small, they are contributing to our overall organic growth profile.

Just to clarify. So in the guidance, can you give us sort of a dollar amount or range for just maybe more combined with the other businesses?

Yes. So in terms of the full year kind of looking in the high-single-digit range in terms of annual contribution.

Okay. Got it. That's helpful. And then just building upon sort of the potential doubling of the revenue. You called out like a couple of different pillars of that. And I'm wondering if you can just update us specifically on fees that you may charge for the suite of services now that agents can leverage off of? And how you see that playing out specifically? And then secondarily, in that bridge, with the Motto accelerating, any updates to that bridge in terms of Motto contribution or growth?

Yes. So when we framed up the opportunity with respect to doubling the size of the revenue back in February, we really split that between the real estate business and the mortgage business. On the real estate side of the house, I'm very excited about the acquisition of RE/MAX INTEGRA. That gets us a good kind of quarter of the way in terms of half that could come from the real estate side of the house. Obviously, other independent region acquisitions as well as monetization within the existing network as we think about continuing to leverage products like First continuing to ramp the Gadberry business, which we've seen a little bit of acceleration in just this quarter and other opportunities really provide some excitement on that side of the business. Specific to your question on the mortgage side of the business, we think that there is a tremendous opportunity there. We've said since the beginning of Motto that we think about a third of the RE/MAX franchisees in the U.S. or roughly 1,000, is our total addressable market. But we've seen some acceleration recently in terms of Motto franchise sales to other real estate company participants. So other national brands, independent real estate companies and teams. Keep in mind, there are 80,000 other independent and franchise brand teams and companies out there. So if you even just said another 1,000 potential from a TAM perspective to sell Motto, and then that doesn't even consider the capture from a wemlo perspective. So we do think that the other $100 million on the mortgage side of the business is an exciting opportunity for us as we look to grow the business over time.

Thank you very much. Adam or Nick, if I understood correctly, you've mentioned that you've expanded the business significantly through various external acquisitions. However, I believe you also suggested that you're still exploring other adjacent areas for growth. Given the current leverage, could you provide some additional insights? Are you finished with external growth as far as bolt-on acquisitions are concerned, or should we expect more in the future?

Hey good morning. We're always keeping our eyes on the market with respect to anything in the home ownership life cycle that could better provide a greater customer experience through our agent relationships that they have. One of the really exciting and important parts of our network is the fact that our agents help so many people each year to do such a great amount of business comparatively speaking to other agents. And as a result, they're looked at as the expert and the provider of that counsel to their customers very, very closely. So we do look at other opportunities to provide our agents and our franchisees the ability to provide additional types of service to the consumer. And as a result, yes, we are exploring other opportunities. Do we have anything teed up right now? No. We don't at this point. But our eyes are open, and we're always looking for how do we continue to enhance the transactional process and the homeownership life cycle.

Next question comes from the line of Ryan McKeveny with Zelman & Associates.

Hey good morning guys, thanks for taking the question. On the INTEGRA piece, can you just remind us whether any identified cost synergies are baked into that 12-month run rate EBITDA contribution? And if not, I guess, whether they are or not, how do you think about those cost synergies beyond just year one of the initial integration?

Yes, good morning Ryan, so those year one cost synergies are included. I think one of the things that we have learned already is that, that integration is going well, and we'll continue to optimize the cost structure and make sure that we're doing everything that we can to support our franchisees and our agents and continue to look at additional levers that we can pull over time as those operations really do get combined in both the U.S. and Canada.

Got it. Regarding the mortgage side, there is currently a price war in the wholesale channel, leading to a significant compression of gain on sale margins from the wholesaler perspective. This situation likely creates an appealing value proposition for mortgage brokers to offer competitive rates to customers. I'm interested to know if you are observing this trend within your mortgage broker network. Additionally, concerning the interest list, are you noticing new individuals considering the broker channel either due to the current circumstances or independently of them? How does this interest compare to the exploration of franchise opportunities today versus a year or two ago?

Thanks, Ryan. Yes, I believe the broker channel is continuing to expand and we are optimistic about it. Some of this is due to the ongoing price competition, which benefits our Motto franchisees as they leverage pricing strategies to attract business. Our volume has increased significantly, almost 70% year-over-year. I attribute much of this growth to the current market conditions. We are focusing on enhancing our emphasis on brokerage, and the wholesalers are supporting us in selling more Mottos. They appreciate our connection to real estate companies, particularly as purchase money referrals are becoming more prevalent, especially since refinancing opportunities may diminish soon. The key question is who will dominate the purchase market, and Mottos are emerging as leaders in that space. For instance, we've successfully collaborated with some national brand teams, and they are experiencing impressive results and strong market capture. It’s thrilling for them to engage in the profitable mortgage sector, and they are actively endorsing us. We view this as a strong indication of the overall success of the broker channel.

Great, thanks very much.

Your next question comes from the line of Tommy McJoynt with KBW.

Good morning guys, thanks for taking my question. So you noted that Gadberry is profitable and some of the other recent tuck-in acquisitions are getting close to profitability. Could you just remind me of the business model there? Are those a la carte options for agents? Are they recurring monthly subscriptions or more transaction based? And what do the margins look like there longer term?

Sure. So from a First perspective, that's a subscription model. So I think the exciting thing there in terms of revenue contribution per agent is that it takes up our revenue contribution per agent by about 20%. It's about $500 of incremental revenue per agent to the top line on an entirely recurring revenue-based model. In terms of Gadberry also, generally recurring, those are contractual terms and recurring in nature. They roll through our franchise sales and other revenue line items. And then on the wemlo side, the thing from that perspective is while it is more transactional, it very much balances out the Motto revenue, which is 100% recurring. So the wemlo revenue is tied to the number of loans that are processed through the wemlo platform. And so that is a fee per transaction cost. So anywhere kind of between $700 and $1,100 per file and that tied to transaction. So as we look at scale over the long term, again, with Motto and wemlo being combined, we think that, that business over the long term has the same margin characteristics as the RE/MAX brand as we look over time and scale consistent with what I was talking about earlier. And then from a First and a Gadberry perspective, still very excited about the opportunities there a little bit earlier in the pipeline, but definitely contributing to the overall value proposition.

That's great detail. Are you guys seeing any or expecting any outsized attrition of agents from the conversion from INTEGRA to the owned franchise? I don't know if you've looked at previous acquisitions and kind of what's normal? And how INTEGRA is progressing so far?

No. Overall, we don't. Because keep in mind, we have the same franchisees that were part of the RE/MAX system, and we have a number of the key leaders that will remain in those positions moving forward. So more about the synergies of scale of bringing them all under our umbrella, but still independently operating as they were prior to, so no.

Great, thanks. And then just last one. Is the incremental margin on broker fees, the 1% of commission that flows up for the owned regions, does that come on at nearly like 100% margin? Or are there any actual opex there in terms of processing or supporting those transactions?

The vast majority of that does flow through, but obviously, we look at just how we need to support the business and the franchisees that we're collecting that money from. It's all kind of tied through from that perspective as well.

Your next question comes from the line of Stephen Sheldon of William Blair.

Alright thanks, good morning. It's been two quarters of strong sequential agent growth in Canada, and you've added, I think, over 1,000 net new agents there so far this year. And I know the strong market position that is helping, but is there anything notable that you're doing to drive the increased recruiting traction in Canada?

Yes. Similar to the U.S., obviously, we have a focus on a lot of the programs that have been rolled out over the past several quarters that are impacting it. But I think the key thing in Canada that as you know, it's a very strong real estate market, but what really helps us drive that growth during a strong market is the amount of market share that we have across the country. I mean, on average, it's over 30%. And so to have that strong of a market share position, we see that in markets even here through the U.S., those markets where we have the highest percentage of overall market share, make it easier to recruit and grow in strong markets all around.

Got it. And then I guess for Karri. I think a couple of quarters ago, you talked about the technology acquisitions and a drag to earnings this year and then becoming a tailwind to earnings in 2022. I think if I remember correctly, but close to maybe $10 million. Any updates on how your thoughts there, especially with the better-than-expected bottom line performance you talked about for these assets so far this year?

Yes, that's a great question, Stephen. We remain very enthusiastic about all of our acquisitions. Some, like Gadberry, are already starting to show profitability sooner than expected, and we continue to invest in Gadberry, First, and wemlo. Back in February, we mentioned that, assuming the housing market holds steady and there are no macro disruptions, we would be disappointed if we didn't see an overall increase in profit of around $10 million across the organization next year. We still feel positive about this goal and believe it is achievable. This projection does not include any contributions from INTEGRA. While we aren't providing guidance for 2022 at this moment, we still feel good about that initial $10 million and the potential for an additional $10 million from the expected contributions of INTEGRA in the first six months of next year.

At this time, there are no further questions. I'll turn it back over to Andy Schulz for closing comments.

Thank you, operator, and thanks to everyone for joining us on the call today. Have a great week. This concludes the call.

Thank you. Ladies and gentlemen, you may now disconnect.