Vector Group Ltd. (NYSE:VGR) today announced financial results
for the three and six months ended June 30, 2017.
GAAP Financial Results
Second quarter of 2017 revenues were $472.0 million, compared to
revenues of $438.3 million in the second quarter of 2016. The
Company recorded operating income of $73.8 million in the second
quarter of 2017, compared to operating income of $70.7 million in
the second quarter of 2016. Net income attributed to Vector Group
Ltd. for the second quarter of 2017 was $26.8 million, or $0.20 per
diluted common share, compared to net income of $24.0 million, or
$0.19 per diluted common share, in the second quarter of 2016.
For the six months ended June 30, 2017 revenues were $887.2
million, compared to revenues of $819.1 million for the six months
ended June 30, 2016. The Company recorded operating income of
$126.7 million for the six months ended June 30, 2017, compared to
operating income of $132.9 million for the six months ended June
30, 2016. Net income attributed to Vector Group Ltd. for the six
months ended June 30, 2017 was $22.6 million, or $0.16 per diluted
common share, compared to net income of $43.4 million, or $0.34 per
diluted common share for the six months ended June 30, 2016.
Non-GAAP Financial Measures
Non-GAAP financial measures also include adjustments for
purchase accounting associated with the Company's acquisition of
its additional 20.59% interest in Douglas Elliman Realty, LLC in
December 2013, litigation settlement and judgment expenses in the
Tobacco segment, settlements of long-standing disputes related to
the Master Settlement Agreement in the Tobacco segment,
restructuring and pension settlement expense in the Tobacco
segment, stock-based compensation expense (for purposes of Adjusted
EBITDA only) and non-cash interest expense associated with the
Company's convertible debt. Reconciliations of non-GAAP financial
results to the comparable GAAP financial results for the three and
six months ended June 30, 2017 and 2016 are included in Tables 2
through 7.
Three months ended June 30, 2017 compared to the three months
ended June 30, 2016
Second quarter of 2017 Adjusted EBITDA attributed to Vector
Group (as described in Table 2 attached hereto) were $76.3 million
compared to $75.1 million for the second quarter of 2016.
Adjusted Net Income (as described in Table 3 attached hereto)
was $32.7 million or $0.25 per diluted share for the second quarter
of 2017 and $24.6 million or $0.19 per diluted share for the second
quarter of 2016.
Adjusted Operating Income (as described in Table 4 attached
hereto) was $74.3 million for the second quarter of 2017 compared
to $71.5 million for the second quarter of 2016.
Six months ended June 30, 2017 compared to the six months ended
June 30, 2016
Adjusted EBITDA attributed to Vector Group (as described below
and in Table 2 attached hereto) were $137.6 million for the six
months ended June 30, 2017 compared to $144.7 million in 2016.
Adjusted Net Income (as described below and in Table 3 attached
hereto) was $51.2 million or $0.38 per diluted share for the six
months ended June 30, 2017 and $42.7 million or $0.33 per diluted
share for the six months ended June 30, 2016.
Adjusted Operating Income (as described below and in Table 4
attached hereto) was $128.3 million for the six months ended June
30, 2017 and $136.8 million for the six months ended June 30,
2016.
Tobacco Segment Financial Results
For the second quarter of 2017, the Tobacco segment had revenues
of $272.2 million, compared to $255.5 million for the second
quarter of 2016. The increase in revenues was primarily due to a
7.4% increase in unit sales volume.
For the six months ended June 30, 2017, the Tobacco segment had
revenues of $529.6 million, compared to $476.5 million for the six
months ended June 30, 2016. The increase in revenues was primarily
driven by a 13.6% increase in unit sales volume.
Operating Income from the Tobacco segment was $64.4 million and
$124.2 million for the three and six months ended June 30, 2017
compared to $66.0 million and $127.5 million for the three and six
months ended June 30, 2016, respectively.
Non-GAAP Financial Measures
Tobacco Adjusted Operating Income (as described in Table 5
attached hereto) for the second quarter of 2017 and 2016 was $64.5
million and $66.0 million, respectively. Tobacco Adjusted Operating
Income for the six months ended June 30, 2017 and 2016 was $125.0
million and $129.9 million, respectively.
For the second quarter of 2017, the Tobacco segment had
conventional cigarette (wholesale) shipments of approximately 2.29
billion units compared to 2.13 billion units for the second quarter
of 2016. For the six months ended June 30, 2017, the Tobacco
segment had conventional cigarette (wholesale) shipments of
approximately 4.46 billion units compared to 3.93 billion for the
six months ended June 30, 2016.
Liggett's retail market share increased to approximately 3.8%
during the second quarter of 2017 and the six months ended June 30,
2017. Compared to the second quarter of 2016, Liggett's retail
shipments increased 5.0% while the overall industry's retail
shipments declined by 5.5%, according to data from Management
Science Associates, Inc. Compared to the six months
ended June 30, 2016, Liggett's retail shipments increased 5.7%
while the overall industry's retail shipments declined by 4.2%,
according to data from Management Science Associates,
Inc.
Real Estate Segment Financial Results
For the second quarter of 2017, the Real Estate segment had
revenues of $199.8 million, compared to $182.8 million for the
second quarter of 2016. For the six months ended June 30, 2017, the
Real Estate segment had revenues of $357.6 million compared to
$342.5 million for the six months ended June 30, 2016. For the
second quarter of 2017, the Real Estate segment reported a net
income of $16.0 million, compared to net income of $6.5 million for
the second quarter of 2016. For the six months ended June 30, 2017,
the Real Estate segment reported Net Income of $23.1 million
compared to $9.6 million for the six months ended June 30,
2016.
Douglas Elliman's results are included in Vector Group Ltd.'s
Real Estate segment. For the second quarter of 2017, Douglas
Elliman had revenues of $198.7 million, compared to $181.7 million
for the second quarter of 2016. For the six months ended June 30,
2017, Douglas Elliman had revenues of $354.2 million compared to
$339.3 million for the six months ended June 30, 2016. For the
second quarter of 2017, Douglas Elliman reported net income of
$16.1 million, compared to $11.4 million for the second quarter of
2016. For the six months ended June 30, 2017, the Douglas Elliman
Net Income of $16.3 million compared to $18.5 million for the six
months ended June 30, 2016.
Non-GAAP Financial Measures
For the second quarter of 2017, Real Estate Adjusted EBITDA
attributed to the Company (as described in Table 6 attached hereto)
were $13.3 million, compared to $10.6 million for the second
quarter of 2016.
For the six months ended June 30, 2017, Real Estate Adjusted
EBITDA attributed to the Company were $15.8 million compared to
$18.1 million for the six months ended June 30, 2016.
Douglas Elliman's results are included in Vector Group Ltd.'s
Real Estate segment. For the second quarter of 2017, Douglas
Elliman's Adjusted EBITDA (as described in Table 7 attached hereto)
were $18.2 million ($12.9 million attributed to the Company),
compared to $14.8 million ($10.5 million attributed to the Company)
for the second quarter of 2016.
For the six months ended June 30, 2017, Douglas Elliman's
Adjusted EBITDA were $20.0 million ($14.1 million attributed to the
Company), compared to $23.9 million ($16.9 million attributed to
the Company) for the six months ended June 30, 2016.
For the three and six months ended June 30, 2017, Douglas
Elliman achieved closed sales of approximately $7.2 billion and
$12.7 billion, compared to $6.4 billion and $12.1 billion for the
three and six months ended June 30, 2016.
Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted Net Income, Adjusted Operating Income,
Tobacco Adjusted Operating Income, New Valley LLC Adjusted EBITDA
and Douglas Elliman Realty, LLC Adjusted EBITDA ("the Non-GAAP
Financial Measures") are financial measures not prepared in
accordance with generally accepted accounting principles (“GAAP”).
The Company believes that the Non-GAAP Financial Measures are
important measures that supplement discussions and analysis of its
results of operations and enhances an understanding of its
operating performance. The Company believes the Non-GAAP Financial
Measures provide investors and analysts with a useful measure of
operating results unaffected by differences in capital structures
and ages of related assets among otherwise comparable
companies.
Management uses the Non-GAAP Financial Measures as measures to
review and assess operating performance of the Company's business,
and management and investors should review both the overall
performance (GAAP net income) and the operating performance (the
Non-GAAP Financial Measures) of the Company's business. While
management considers the Non-GAAP Financial Measures to be
important, they should be considered in addition to, but not as
substitutes for or superior to, other measures of financial
performance prepared in accordance with GAAP, such as operating
income, net income and cash flows from operations. In addition, the
Non-GAAP Financial Measures are susceptible to varying calculations
and the Company's measurement of the Non-GAAP Financial Measures
may not be comparable to those of other companies. Attached hereto
as Tables 2 through 7 is information relating to the Company's
Non-GAAP Financial Measures for the six months ended June 30, 2017
and 2016.
Conference Call to Discuss Second Quarter Results
As previously announced, the Company will host a conference call
and webcast on Friday, August 4, 2017 at 9:00 AM (ET) to discuss
second quarter 2017 results. Investors can access the call by
dialing 800-859-8150 and entering 59415962 as the conference ID
number. The call will also be available via live webcast at
www.investorcalendar.com. Webcast participants should allot extra
time to register before the webcast begins.
A replay of the call will be available shortly after the call
ends on August 4, 2017 through August 18, 2017. To access the
replay, dial 877-656-8905 and enter 59415962 as the conference ID
number. The archived webcast will also be available at
www.investorcalendar.com for one year.
Vector Group is a holding company that indirectly owns Liggett
Group LLC and Vector Tobacco Inc. and directly owns New Valley LLC,
which owns a controlling interest in Douglas Elliman Realty, LLC.
Additional information concerning the company is available on the
Company's website, www.VectorGroupLtd.com.
[Financial Tables Follow]
TABLE 1
VECTOR GROUP LTD. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Dollars in
Thousands, Except Per Share Amounts)
Three Months Ended Six Months Ended June 30, June 30, 2017
2016 2017 2016 (Unaudited) (Unaudited)
Revenues Tobacco* $ 272,177 $ 255,498 $ 529,631 $ 476,513 Real
estate 199,812 182,765 357,566 342,512 E-cigarettes — 10
— 48 Total Revenues 471,989 438,273 887,197
819,073 Expenses: Cost of sales: Tobacco* 186,907 168,607
362,661 305,345 Real estate 127,987 115,017 228,156 214,695
E-cigarettes — 7 — 13 Total cost of
sales 314,894 283,631 590,817 520,053 Operating, selling,
administrative and general expenses 83,183 83,922 167,952 163,750
Litigation settlement and judgment expense 102 — 1,687 2,350
Restructuring charges — — — 41
Operating income 73,810 70,720 126,741 132,879 Other income
(expenses): Interest expense (46,691 ) (36,369 ) (92,912 ) (67,089
) Loss on extinguishment of debt — — (34,110 ) — Change in fair
value of derivatives embedded within convertible debt 8,134 7,416
16,705 17,110 Equity in earnings from real estate ventures 15,291
2,813 26,404 2,306 Equity in (losses) earnings from investments
(1,459 ) 1,089 (2,520 ) (582 ) Gain on sale of investment
securities available for sale 37 139 187 706 Impairment of
investment securities available for sale (87 ) (49 ) (126 ) (4,862
) Other, net 1,338 581 2,997 1,628
Income before provision for income taxes 50,373 46,340 43,366
82,096 Income tax expense 18,827 19,003 16,045
33,366 Net income 31,546 27,337 27,321 48,730
Net income attributed to non-controlling interest (4,735 ) (3,322 )
(4,737 ) (5,377 ) Net income attributed to Vector Group Ltd.
$ 26,811 $ 24,015 $ 22,584 $ 43,353
Per basic common share: Net income applicable to
common share attributed to Vector Group Ltd. $ 0.20 $ 0.19
$ 0.16 $ 0.34 Per diluted common share:
Net income applicable to common share attributed to Vector
Group Ltd. $ 0.20 $ 0.19 $ 0.16 $ 0.34
Dividends declared per share $ 0.40 $ 0.38 $
0.80 $ 0.76
* Revenues and cost of sales include
federal excise taxes of $115,194, $106,861, $224,562 and $197,707,
respectively.
TABLE 2
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF ADJUSTED
EBITDA
(Unaudited)
(Dollars in
Thousands)
LTM Three Months Ended Six Months Ended June 30, June 30,
June 30, 2017 2017 2016 2017 2016
Net income attributed to Vector Group Ltd. $ 50,358 $ 26,811
$ 24,015 $ 22,584 $ 43,353 Interest expense 168,805 46,691 36,369
92,912 67,089 Income tax expense 31,842 18,827 19,003 16,045 33,366
Net income attributed to non-controlling interest 5,499 4,735 3,322
4,737 5,377 Depreciation and amortization 20,967 4,613
5,870 9,642 11,034 EBITDA $ 277,471 $
101,677 $ 88,579 $ 145,920 $ 160,219 Change in fair value of
derivatives embedded within convertible debt (a) (31,305 ) (8,134 )
(7,416 ) (16,705 ) (17,110 ) Equity in losses (earnings) from
investments (b) 4,692 1,459 (1,089 ) 2,520 582 Gain on sale of
investment securities available for sale (2,388 ) (37 ) (139 ) (187
) (706 ) Impairment of investment securities available for sale 645
87 49 126 4,862 Equity in (earnings) losses from real estate
ventures (c) (29,298 ) (15,291 ) (2,813 ) (26,404 ) (2,306 ) Loss
on extinguishment of debt 34,110 — — 34,110 — Stock-based
compensation expense (d) 11,239 3,020 2,532 6,026 4,839 Litigation
settlement and judgment expense (e) 19,337 102 — 1,687 2,350 Impact
of MSA settlement (f) (648 ) — — (895 ) — Restructuring charges — —
— — 41 Purchase accounting adjustments (g) 4,939 144 348 257 548
Other, net (6,101 ) (1,338 ) (581 ) (2,997 ) (1,628 ) Adjusted
EBITDA $ 282,693 $ 81,689 $ 79,470 $ 143,458 $ 151,691 Adjusted
EBITDA attributed to non-controlling interest (9,531 ) (5,347 )
(4,358 ) (5,832 ) (6,997 ) Adjusted EBITDA attributed to Vector
Group Ltd. $ 273,162 $ 76,342 $ 75,112 $
137,626 $ 144,694
Adjusted EBITDA by
Segment Tobacco $ 263,783 $ 66,863 $ 68,536 $ 129,764 $ 134,871
E-cigarettes (1,197 ) (1 ) (91 ) (78 ) (284 ) Real Estate (h)
35,161 18,643 14,997 21,598 25,153 Corporate and Other (15,054 )
(3,816 ) (3,972 ) (7,826 ) (8,049 ) Total $ 282,693 $ 81,689
$ 79,470 $ 143,458 $ 151,691
Adjusted EBITDA Attributed to Vector Group Ltd. by Segment
Tobacco $ 263,783 $ 66,863 $ 68,536 $ 129,764 $ 134,871
E-cigarettes (1,197 ) (1 ) (91 ) (78 ) (284 ) Real Estate (i)
25,630 13,296 10,639 15,766 18,156 Corporate and Other (15,054 )
(3,816 ) (3,972 ) (7,826 ) (8,049 ) Total $ 273,162 $ 76,342
$ 75,112 $ 137,626 $ 144,694
a. Represents income or losses recognized from
changes in the fair value of the derivatives embedded in the
Company's convertible debt. b. Represents equity in losses
(earnings) recognized from investments that the Company accounts
for under the equity method.
c.
Represents equity in (earnings) losses recognized from the
Company's investment in certain real estate businesses that are not
consolidated in its financial results. d. Represents amortization
of stock-based compensation. e. Represents accruals for settlements
of judgment expenses in the Engle progeny tobacco litigation. f.
Represents the Company's tobacco segment's settlement of a
long-standing dispute related to the Master Settlement Agreement.
g. Amounts represent purchase accounting adjustments recorded in
the periods presented in connection with the increase of the
Company's ownership of Douglas Elliman Realty, LLC, which occurred
in 2013. h. Includes Adjusted EBITDA for Douglas Elliman Realty,
LLC of $32,756 for the last twelve months ended June 30, 2017 and
$18,225, $14,818, $19,981 and $23,882 for the three and six months
ended June 30, 2017 and 2016, respectively. Amounts reported in
this footnote reflect 100% of Douglas Elliman Realty, LLC's entire
Adjusted EBITDA. i. Includes Adjusted EBITDA for Douglas Elliman
Realty, LLC less non-controlling interest of $23,123 for the last
twelve months ended and $12,865, $10,460, $14,105 and $16,858 for
the three and six months ended June 30, 2017 and 2016,
respectively. Amounts reported in this footnote have adjusted
Douglas Elliman Realty, LLC's Adjusted EBITDA for non-controlling
interest.
TABLE 3
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF ADJUSTED NET
INCOME
(Unaudited)
(Dollars in
Thousands, Except Per Share Amounts)
Three Months Ended Six Months Ended June 30, June 30, 2017
2016 2017 2016 Net income
attributed to Vector Group Ltd. $ 26,811 $ 24,015 $ 22,584 $ 43,353
Change in fair value of derivatives embedded within
convertible debt (8,134 ) (7,416 ) (16,705 ) (17,110 ) Non-cash
amortization of debt discount on convertible debt 13,426 9,170
25,479 17,456 Loss on extinguishment of debt — — 34,110 —
Litigation settlement and judgment expense (a) 102 — 1,687 2,350
Impact of interest expense capitalized to real estate ventures, net
4,212 (1,315 ) 3,767 (4,835 ) Impact of MSA settlement (b) — — (895
) — Restructuring charges — — — 41 Douglas Elliman Realty, LLC
purchase accounting adjustments (c) 251 581 572
1,057 Total adjustments 9,857 1,020 48,015 (1,041 )
Tax (expense) benefit related to adjustments (3,944 ) (424 )
(19,436 ) 433 Adjusted Net Income
attributed to Vector Group Ltd. $ 32,724 $ 24,611 $
51,163 $ 42,745 Per diluted common share:
Adjusted Net Income applicable to common shares attributed
to Vector Group Ltd. $ 0.25 $ 0.19 $ 0.38 $
0.33 a. Represents accruals for
settlements of judgment expenses in the Engle progeny tobacco
litigation. b. Represents the Company's tobacco segment's
settlement of a long-standing dispute related to the Master
Settlement Agreement. c. Represents 70.59% of purchase accounting
adjustments in the periods presented for assets acquired in
connection with the increase of the Company's ownership of Douglas
Elliman Realty, LLC, which occurred in 2013.
TABLE 4
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF ADJUSTED OPERATING
INCOME
(Unaudited)
(Dollars in
Thousands)
LTM Three Months Ended Six Months Ended June 30, June 30,
June 30, 2017 2017 2016 2017 2016
Operating income $ 226,859 $ 73,810 $ 70,720 $ 126,741 $
132,879 Litigation settlement and judgment expense (a)
19,337 102 — 1,687 2,350 Restructuring expense — — — — 41 Impact of
MSA settlement (b) (648 ) — — (895 ) — Douglas Elliman Realty, LLC
purchase accounting adjustments (c) 6,477 355 823
810 1,497 Total adjustments 25,166 457 823 1,602
3,888 Adjusted Operating Income (d) $ 252,025 $
74,267 $ 71,543 $ 128,343 $ 136,767
a. Represents accruals for settlements of judgment
expenses in the Engle progeny tobacco litigation. b. Represents the
Company's tobacco segment's settlement of a long-standing dispute
related to the Master Settlement Agreement. c. Amounts represent
purchase accounting adjustments recorded in the periods presented
in connection with the increase of the Company's ownership of
Douglas Elliman Realty, LLC, which occurred in 2013. d. Does not
include a reduction for 29.41% non-controlling interest in Douglas
Elliman Realty, LLC.
TABLE 5
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF TOBACCO ADJUSTED
OPERATING INCOME
AND TOBACCO ADJUSTED EBITDA
(Unaudited)
(Dollars in
Thousands)
LTM Three Months Ended Six Months Ended June 30, June 30,
June 30, 2017 2017 2016 2017 2016
Tobacco Adjusted Operating Income: Operating income
from tobacco segment $ 234,971 $ 64,407 $ 66,016 $ 124,177 $
127,499
Litigation settlement and judgment expense (a) 19,337 102 — 1,687
2,350 Restructuring expense — — — — 41 Impact of MSA settlement (b)
(648 ) — — (895 ) — Total adjustments 18,689 102 —
792 2,391 Tobacco Adjusted Operating Income $ 253,660
$ 64,509 $ 66,016 $ 124,969 $ 129,890
LTM Three Months
Ended Six Months Ended June 30, June 30, June 30, 2017 2017
2016 2017 2016
Tobacco Adjusted
EBITDA: Operating income from tobacco segment $ 234,971 $
64,407 $ 66,016 $ 124,177 $ 127,499 Litigation settlement
and judgment expense (a) 19,337 102 — 1,687 2,350 Restructuring
expense — — — — 41 Impact of MSA settlement (b) (648 ) — —
(895 ) — Total adjustments 18,689 102 — 792 2,391
Tobacco Adjusted Operating Income 253,660 64,509 66,016 124,969
129,890 Depreciation and amortization 10,038 2,333 2,499
4,753 4,939 Stock-based compensation expense 85 21 21
42 42 Total adjustments 10,123 2,354 2,520 4,795
4,981 Tobacco Adjusted EBITDA $ 263,783 $ 66,863
$ 68,536 $ 129,764 $ 134,871 a.
Represents accruals for settlements of judgment expenses in
the Engle progeny tobacco litigation. b. Represents the Company's
tobacco segment's settlement of a long-standing dispute related to
the Master Settlement Agreement.
TABLE 6
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF REAL ESTATE SEGMENT
(NEW VALLEY LLC) ADJUSTED EBITDA
(Unaudited)
(Dollars in
Thousands)
LTM Three Months Ended Six Months Ended June 30, June 30,
June 30, 2017 2017 2016 2017 2016
Net income attributed to Vector Group Ltd. from subsidiary
non-guarantors (a) $ 27,042 $ 16,030 $ 6,527 $ 23,135 $ 9,570
Interest expense (a) 25 6 4 12 7 Income tax expense (a) 18,194
11,367 5,038 16,320 7,461 Net income attributed to non-controlling
interest (a) 5,499 4,735 3,322 4,737 5,377 Depreciation and
amortization 9,395 1,913 2,943 4,135
5,225 EBITDA $ 60,155 $ 34,051 $ 17,834 $ 48,339 $ 27,640
Loss from non-guarantors other than New Valley LLC 105 37 42 83 76
Equity in earnings from real estate ventures (b) (29,298 ) (15,291
) (2,813 ) (26,404 ) (2,306 ) Purchase accounting adjustments (c)
4,939 144 348 257 548 Other, net (780 ) (302 ) (430 ) (681 ) (840 )
Adjusted EBITDA $ 35,121 $ 18,639 $ 14,981 $ 21,594 $ 25,118
Adjusted EBITDA attributed to non-controlling interest (9,531 )
(5,347 ) (4,358 ) (5,832 ) (6,997 ) Adjusted EBITDA attributed to
New Valley LLC $ 25,590 $ 13,292 $ 10,623 $
15,762 $ 18,121 Adjusted EBITDA by Segment
Real Estate (d) $ 35,161 $ 18,643 $ 14,997 $ 21,598 $ 25,153
Corporate and Other (40 ) (4 ) (16 ) (4 ) (35 ) Total (f) $ 35,121
$ 18,639 $ 14,981 $ 21,594 $ 25,118
Adjusted EBITDA Attributed to New Valley LLC by
Segment Real Estate (e) $ 25,630 $ 13,296 $ 10,639 $ 15,766 $
18,156 Corporate and Other (40 ) (4 ) (16 ) (4 ) (35 ) Total (f) $
25,590 $ 13,292 $ 10,623 $ 15,762 $
18,121 a. Amounts are derived from
Vector Group Ltd.'s Condensed Consolidated Financial Statements.
See Note entitled "Condensed Consolidating Financial Information"
contained in Vector Group Ltd.'s Form 10-Q for the six months ended
June 30, 2017. b. Represents equity in earnings recognized from the
Company's investment in certain real estate businesses that are not
consolidated in its financial results. c. Amounts represent
purchase accounting adjustments recorded in the periods presented
in connection with the increase of the Company's ownership of
Douglas Elliman Realty, LLC, which occurred in 2013. d. Includes
Adjusted EBITDA for Douglas Elliman Realty, LLC of $32,756 for the
last twelve months ended June 30, 2017 and $18,225, $14,818,
$19,981 and $23,882 for the three and six months ended June 30,
2017 and 2016, respectively. Amounts reported in this footnote
reflect 100% of Douglas Elliman Realty, LLC's entire Adjusted
EBITDA. e. Includes Adjusted EBITDA for Douglas Elliman Realty, LLC
less non-controlling interest of $23,123 or the last twelve months
ended June 30, 2017 and $12,865, $10,460, $14,105 and $16,858 for
the three and six months ended June 30, 2017 and 2016,
respectively. Amounts reported in this footnote have adjusted
Douglas Elliman Realty, LLC's Adjusted EBITDA for non-controlling
interest. f. New Valley's Adjusted EBITDA does not include an
allocation of Vector Group Ltd.'s "Corporate and Other" segment's
expenses (for purposes of computing Adjusted EBITDA contained in
Table 2 of this press release) of $15,054 for the last twelve
months ended and $3,816, $3,972, $7,826 and $8,049 for the three
and six months ended June 30, 2017 and 2016, respectively.
TABLE 7
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF DOUGLAS ELLIMAN
REALTY, LLC ADJUSTED EBITDA
AND DOUGLAS ELLIMAN REALTY, LLC
ADJUSTED EBITDA ATTRIBUTED TO REAL ESTATE SEGMENT
(Unaudited)
(Dollars in
Thousands)
LTM Three Months Ended Six Months Ended June 30, June 30,
June 30, 2017 2017 2016 2017 2016
Net income attributed to Douglas Elliman Realty, LLC $
18,825 $ 16,141 $ 11,420 $ 16,254 $ 18,497 Income tax expense 888
370 390 400 638 Depreciation and amortization 8,990 1,813
2,859 3,933 5,059 Douglas Elliman
Realty, LLC EBITDA $ 28,703 $ 18,324 $ 14,669 $ 20,587 $ 24,194
Equity in earnings from real estate ventures (a) (1,150 ) (265 )
(154 ) (845 ) (757 ) Purchase accounting adjustments (b) 4,939 144
348 257 548 Other, net 264 22 (45 ) (18 ) (103 )
Douglas Elliman Realty, LLC Adjusted EBITDA $ 32,756 $ 18,225 $
14,818 $ 19,981 $ 23,882 Douglas Elliman Realty, LLC Adjusted
EBITDA attributed to non-controlling interest (9,633 ) (5,360 )
(4,358 ) (5,876 ) (7,024 ) Douglas Elliman Realty, LLC Adjusted
EBITDA attributed to Real Estate Segment $ 23,123 $ 12,865
$ 10,460 $ 14,105 $ 16,858
a. Represents equity income recognized from the
Company's investment in certain real estate businesses that are not
consolidated in its financial results. b. Amounts represent
purchase accounting adjustments recorded in the periods presented
in connection with the increase of the Company's ownership of
Douglas Elliman Realty, LLC, which occurred in 2013.
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version on businesswire.com: http://www.businesswire.com/news/home/20170804005214/en/
Sard Verbinnen & CoEmily Claffey/Columbia
Clancy212-687-8080orSard Verbinnen & Co - EuropeConrad
Harrington, +44 (0)20 3178 8914orVector Group Ltd.J. Bryant
Kirkland III, 305-579-8000
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