Vector Group Ltd. (NYSE:VGR) today announced financial results
for the three and six months ended June 30, 2019.
GAAP Financial Results
Second quarter 2019 revenues were $538.4 million, compared to
revenues of $481.5 million in the second quarter of 2018. The
Company recorded operating income of $76.2 million in the second
quarter of 2019, compared to operating income of $61.9 million in
the second quarter of 2018. Net income attributed to Vector Group
Ltd. for the second quarter of 2019 was $39.3 million, or $0.27 per
diluted common share, compared to net income of $17.8 million, or
$0.12 per diluted common share, in the second quarter of 2018.
For the six months ended June 30, 2019 revenues were $959.4
million, compared to revenues of $910.5 million for the six months
ended June 30, 2018. The Company recorded operating income of
$118.8 million for the six months ended June 30, 2019, compared to
operating income of $109.9 million for the six months ended June
30, 2018. Net income attributed to Vector Group Ltd. for the six
months ended June 30, 2019 was $54.3 million, or $0.35 per diluted
common share, compared to a net income of $25.0 million, or $0.15
per diluted common share, for the six months ended June 30,
2018.
Non-GAAP Financial Measures
Non-GAAP financial measures also include adjustments for
purchase accounting associated with the Company’s 2013 acquisition
of an additional 20.59% interest in Douglas Elliman Realty, LLC,
the impact of non-controlling interest associated with the 29.41%
of Douglas Elliman Realty, LLC that was purchased by the Company on
December 31, 2018, litigation settlements and judgments,
settlements of long-standing disputes related to the Master
Settlement Agreement in the Tobacco segment, net interest expense
capitalized to real estate ventures, 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 measures to the comparable
GAAP financial results for the three and six months ended June 30,
2019 and 2018 are included in Tables 2 through 7.
Three months ended June 30, 2019 compared to the three months
ended June 30, 2018
Second quarter of 2019 Adjusted EBITDA attributed to Vector
Group (as described in Table 2 attached hereto) were $83.5 million,
compared to $67.5 million for the second quarter of 2018.
Adjusted Net Income (as described in Table 3 attached hereto)
was $43.2 million, or $0.29 per diluted share, for the second
quarter of 2019, and $27.8 million or $0.19 per diluted share for
the second quarter of 2018.
Adjusted Operating Income (as described in Table 4 attached
hereto) was $76.9 million for the second quarter of 2019, compared
to $60.0 million for the second quarter of 2018.
Six months ended June 30, 2019 compared to the six months ended
June 30, 2018
Adjusted EBITDA attributed to Vector Group Ltd. (as described in
Table 2 attached hereto) were $133.2 million for the six months
ended June 30, 2019 compared to $118.0 million for the six months
ended June 30, 2018.
Adjusted Net Income (as described in Table 3 attached hereto)
was $56.1 million, or $0.37 per diluted share, for the six months
ended June 30, 2019, and $33.4 million, or $0.21 per diluted share
for the six months ended June 30, 2018.
Adjusted Operating Income (as described in Table 4 attached
hereto) was $119.5 million for the six months ended June 30, 2019
compared to $102.5 million for the six months ended June 30,
2018.
Tobacco Segment Financial Results
For the second quarter of 2019, the Tobacco segment had revenues
of $294.5 million, compared to $274.8 million for the second
quarter of 2018. For the six months ended June 30, 2019, the
Tobacco segment had revenues of $551.3 million, compared to $541.9
million for the six months ended June 30, 2018.
Operating Income from the Tobacco segment was $68.7 million and
$128.8 million for the three and six months ended June 30, 2019,
compared to $62.5 million and $125.9 million for the three and six
months ended June 30, 2018.
Non-GAAP Financial Measures
Tobacco Adjusted Operating Income (as described in Table 5
attached hereto) for the second quarter of 2019 and 2018 was $69.3
million and $60.2 million, respectively. Tobacco Adjusted Operating
Income for the six months ended June 30, 2019 and 2018 was $129.5
million and $120.2 million, respectively.
For the second quarter of 2019, the Tobacco segment had
conventional cigarette (wholesale) shipments of approximately 2.38
billion units, compared to 2.30 billion units for the second
quarter of 2018. For the six months ended June 30, 2019, the
Tobacco segment had conventional cigarette (wholesale) shipments of
approximately 4.46 billion units compared to 4.54 billion units for
the six months ended June 30, 2018.
Liggett’s retail market share increased to 4.2% for both the
second quarter and the six months ended June 30, 2019, compared to
4.1% for both the second quarter and the six months ended June 30,
2018. Compared to the second quarter of 2018, Liggett’s retail
shipments declined by 3.4% while the overall industry’s retail
shipments declined by 6.1%. Compared to the six months ended June
30, 2018, Liggett’s retail shipments declined by 2.8% while the
overall industry’s retail shipments declined by 5.8%, according to
data from Management Science Associates, Inc.
Real Estate Segment Financial Results
For the second quarter of 2019, the Real Estate segment had
revenues of $243.9 million, compared to $206.7 million for the
second quarter of 2018. For the six months ended June 30, 2019, the
Real Estate segment had revenues of $408.1 million, compared to
$368.5 million for the six months ended June 30, 2018. For the
second quarter of 2019, the Real Estate segment reported net income
of $15.3 million, compared to a net income of $2.9 million for the
second quarter of 2018. For the six months ended June 30, 2019, the
Real Estate segment reported a net income of $6.2 million, compared
to net loss of $5.6 million for the six months ended June 30,
2018.
Douglas Elliman’s results are included in Vector Group Ltd.’s
Real Estate segment. For the second quarter of 2019, Douglas
Elliman had revenues of $243.0 million, compared to $205.6 million
for the second quarter of 2018. For the six months ended June 30,
2019, Douglas Elliman had revenues of $404.8 million, compared to
$365.0 million for the six months ended June 30, 2018. For the
second quarter of 2019, Douglas Elliman reported a net income of
$15.1 million, compared to net income of $5.9 million for the
second quarter of 2018. For the six months ended June 30, 2019,
Douglas Elliman reported net income of $4.7 million, compared to
net loss of $2.2 million for the six months ended June 30,
2018.
Non-GAAP Financial Measures
For the second quarter of 2019, Real Estate Adjusted EBITDA
attributed to the Company (as described in Table 6 attached hereto)
were $16.5 million, compared to $9.0 million for the second quarter
of 2018.
For the six months ended June 30, 2019, Real Estate Adjusted
EBITDA attributed to the Company were $8.6 million, compared to
$1.4 million for the six months ended June 30, 2018.
Douglas Elliman’s results are included in Vector Group Ltd.’s
Real Estate segment. For the second quarter of 2019, Douglas
Elliman’s Adjusted EBITDA (as described in Table 7 attached hereto)
were $16.6 million, compared to $8.4 million for the second quarter
of 2018.
For the six months ended June 30, 2019, Douglas Elliman’s
Adjusted EBITDA were $7.7 million, compared to a loss of $0.2
million for the six months ended June 30, 2018.
For the three and six months ended June 30, 2019, Douglas
Elliman achieved closed sales of approximately $8.9 billion and
$14.7 billion, respectively, compared to $7.5 billion and $13.6
billion for the three and six months ended June 30, 2018,
respectively.
Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted Net Income, Adjusted Operating Income,
Tobacco Adjusted Operating Income, Tobacco Adjusted EBITDA, 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.
On December 31, 2018, New Valley LLC, the real estate subsidiary
of Vector Group Ltd, acquired the 29.41% interest in Douglas
Elliman Realty, LLC it did not previously own. Vector Group Ltd.
has adjusted its presentation of Non-GAAP Financial Measures in
Tables 2, 3, 6 and 7 to assume the transaction occurred on January
1, 2018 and to improve comparability between the three and six
months ended June 30, 2019 and 2018, respectively, as well as the
twelve months ended June 30, 2019. Please refer to Vector Group
Ltd.’s Form 8-K, which is dated May 3, 2019, for additional
information.
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 three and six months ended June
30, 2019 and 2018.
Conference Call to Discuss Second Quarter 2019
Results
As previously announced, the Company will host a conference call
and webcast on Wednesday, August 7, 2019 at 8:30 AM (ET) to discuss
its second quarter 2019 results. Investors can access the call by
dialing 800-859-8150 and entering 92558590 as the conference ID
number. The call will also be available via live webcast at
https://www.investornetwork.com/event/presentation/51729. 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 7, 2019 through August 21, 2019. To access the
replay, dial 877-656-8905 and enter 92558590 as the conference ID
number. The archived webcast will also be available at
https://www.investornetwork.com/event/presentation/51729 for one
year.
Vector Group is a holding company for Liggett Group LLC, Vector
Tobacco Inc., New Valley LLC, and 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
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Dollars
in Thousands, Except Per Share Amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2019
2018
2019
2018
(Unaudited)
(Unaudited)
Revenues:
Tobacco*
$
294,501
$
274,833
$
551,257
$
541,949
Real estate
243,931
206,655
408,099
368,505
Total revenues
538,432
481,488
959,356
910,454
Expenses:
Cost of sales:
Tobacco*
204,461
192,761
381,764
377,723
Real estate
163,713
140,005
272,430
249,318
Total cost of sales
368,174
332,766
654,194
627,041
Operating, selling, administrative and
general expenses
93,359
86,336
185,673
175,412
Litigation settlement and judgment expense
(income)
655
525
655
(1,944
)
Operating income
76,244
61,861
118,834
109,945
Other income (expenses):
Interest expense
(32,753
)
(48,421
)
(70,273
)
(94,368
)
Change in fair value of derivatives
embedded within convertible debt
3,788
10,717
14,137
21,284
Equity in earnings (losses) from real
estate ventures
6,391
(2,112
)
3,952
(8,672
)
Other, net
3,096
9,711
11,898
9,179
Income before provision for income
taxes
56,766
31,756
78,548
37,368
Income tax expense
17,459
12,760
24,208
14,708
Net income
39,307
18,996
54,340
22,660
Net loss (income) attributed to
non-controlling interest
—
(1,178
)
(80
)
2,369
Net income attributed to Vector Group
Ltd.
$
39,307
$
17,818
$
54,260
$
25,029
Per basic common share:
Net income applicable to common share
attributed to Vector Group Ltd.
$
0.27
$
0.12
$
0.36
$
0.15
Per diluted common share:
Net income applicable to common share
attributed to Vector Group Ltd.
$
0.27
$
0.12
$
0.35
$
0.15
* Revenues and cost of sales include federal excise taxes of
$119,943, $115,970, $224,576 and $228,771, 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,
2019
2019
2018
2019
2018
Net income attributed to Vector Group
Ltd.
$
87,336
$
39,307
$
17,818
$
54,260
$
25,029
Interest expense
179,685
32,753
48,421
70,273
94,368
Income tax expense
31,052
17,459
12,760
24,208
14,708
Net income (loss) attributed to
non-controlling interest
2,351
—
1,178
80
(2,369
)
Depreciation and amortization
18,403
4,224
4,749
8,932
9,336
EBITDA
$
318,827
$
93,743
$
84,926
$
157,753
$
141,072
Change in fair value of derivatives
embedded within convertible debt (a)
(37,842
)
(3,788
)
(10,717
)
(14,137
)
(21,284
)
Equity in (earnings) losses from real
estate ventures (b)
(27,070
)
(6,391
)
2,112
(3,952
)
8,672
Loss on extinguishment of debt
4,066
—
—
—
—
Stock-based compensation expense (c)
9,885
2,338
2,456
4,774
4,840
Litigation settlement and judgment expense
(income) (d)
815
655
525
655
(1,944
)
Impact of MSA settlement (e)
—
—
(2,808
)
—
(6,298
)
Purchase accounting adjustments (f)
247
—
179
—
361
Other, net
(6,640
)
(3,096
)
(9,711
)
(11,898
)
(9,179
)
Adjusted EBITDA
$
262,288
$
83,461
$
66,962
$
133,195
$
116,240
Adjusted EBITDA attributed to
non-controlling interest
(5,109
)
—
(1,906
)
—
1,790
Adjustment to reflect additional 29.41% of
Adjusted EBITDA from Douglas Elliman Realty, LLC (g)
3,385
—
2,464
—
(66
)
Adjusted EBITDA attributed to Vector Group
Ltd.
$
260,564
$
83,461
$
67,520
$
133,195
$
117,964
Adjusted EBITDA by Segment
Tobacco
$
258,280
$
71,256
$
62,328
$
133,378
$
124,307
Real Estate (h)
20,017
16,477
8,464
8,569
(294
)
Corporate and Other
(16,009
)
(4,272
)
(3,830
)
(8,752
)
(7,773
)
Total
$
262,288
$
83,461
$
66,962
$
133,195
$
116,240
Adjusted EBITDA Attributed to Vector
Group Ltd. by Segment
Tobacco
$
258,280
$
71,256
$
62,328
$
133,378
$
124,307
Real Estate (h)
18,293
16,477
9,022
8,569
1,430
Corporate and Other
(16,009
)
(4,272
)
(3,830
)
(8,752
)
(7,773
)
Total
$
260,564
$
83,461
$
67,520
$
133,195
$
117,964
- Represents income recognized from changes in the fair value of
the derivatives embedded in the Company’s convertible debt.
- Represents equity in (earnings) losses recognized from the
Company’s investment in certain real estate businesses that are not
consolidated in its financial results.
- Represents amortization of stock-based compensation.
- Represents accruals for settlements of judgment expenses in the
Engle progeny tobacco litigation and proceeds received from a
litigation award at Douglas Elliman Realty, LLC.
- Represents the Company’s tobacco segment’s settlement of a
long-standing dispute related to the Master Settlement
Agreement.
- Represents 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.
- Represents 29.41% of Douglas Elliman Realty LLC's Adjusted
EBITDA in the respective periods. On December 31, 2018, the Company
increased its ownership of Douglas Elliman Realty, LLC from 70.59%
to 100%.
- Includes Adjusted EBITDA for Douglas Elliman Realty, LLC of
$19,166 for the last twelve months ended June 30, 2019 and $16,649,
$8,379, $7,658 and negative $224 for the three and six months ended
June 30, 2019 and 2018, respectively. Amounts reported in this
footnote reflect 100% of Douglas Elliman Realty, LLC’s entire
Adjusted EBITDA.
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,
2019
2018
2019
2018
Net income attributed to Vector Group
Ltd.
$
39,307
$
17,818
$
54,260
$
25,029
Change in fair value of derivatives
embedded within convertible debt
(3,788
)
(10,717
)
(14,137
)
(21,284
)
Non-cash amortization of debt discount on
convertible debt
5,447
20,386
13,972
38,579
Litigation settlement and judgment income
(a)
655
525
655
(1,944
)
Impact of MSA settlement (b)
—
(2,808
)
—
(6,298
)
Impact of net interest expense capitalized
to real estate ventures
3,006
4,324
2,076
2,371
Douglas Elliman Realty, LLC purchase
accounting adjustments (c)
—
380
—
755
Adjustment to reflect additional 29.41% of
net income from Douglas Elliman Realty, LLC (d)
—
1,737
—
(644
)
Total adjustments
5,320
13,827
2,566
11,535
Tax expense related to adjustments
(1,467
)
(3,868
)
(705
)
(3,213
)
Adjusted Net Income attributed to Vector
Group Ltd.
$
43,160
$
27,777
$
56,121
$
33,351
Per diluted common share:
Adjusted Net Income applicable to common
shares attributed to Vector Group Ltd.
$
0.29
$
0.19
$
0.37
$
0.21
- Represents accruals for settlements of judgment expenses in the
Engle progeny tobacco litigation and proceeds received from a
litigation award at Douglas Elliman Realty, LLC, net of
non-controlling interest.
- Represents the Company’s tobacco segment’s settlement of a
long-standing dispute related to the Master Settlement
Agreement.
- Represents 100% of purchase accounting adjustments in the
periods presented for assets acquired in connection with the
Company’s acquisition of the 20.59% of Douglas Elliman Realty, LLC
on December 31, 2013.
- Represents 29.41% of Douglas Elliman Realty LLC's net income in
the respective 2018 period. On December 31, 2018, the Company
increased its ownership of Douglas Elliman Realty, LLC from 70.59%
to 100%.
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,
2019
2019
2018
2019
2018
Operating income
$
232,938
$
76,244
$
61,861
$
118,834
$
109,945
Litigation settlement and judgment expense
(income) (a)
815
655
525
655
(1,944
)
Impact of MSA settlement (b)
—
—
(2,808
)
—
(6,298
)
Douglas Elliman Realty, LLC purchase
accounting adjustments (c)
651
—
380
—
755
Total adjustments
1,466
655
(1,903
)
655
(7,487
)
Adjusted Operating Income (d)
$
234,404
$
76,899
$
59,958
$
119,489
$
102,458
- Represents accruals for settlements of judgment expenses in the
Engle progeny tobacco litigation and proceeds received from a
litigation award at Douglas Elliman Realty, LLC.
- Represents the Company’s tobacco segment’s settlement of a
long-standing dispute related to the Master Settlement
Agreement.
- 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.
- Does not include a reduction for 29.41% non-controlling
interest in Douglas Elliman Realty, LLC. for the last twelve months
ended June 30, 2019 and three and six months ended June 30,
2018.
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,
2019
2019
2018
2019
2018
Tobacco Adjusted Operating
Income:
Operating income from tobacco segment
$
249,396
$
68,651
$
62,515
$
128,795
$
125,926
Litigation settlement and judgment expense
(a)
815
655
525
655
525
Impact of MSA settlement (b)
—
—
(2,808
)
—
(6,298
)
Total adjustments
815
655
(2,283
)
655
(5,773
)
Tobacco Adjusted Operating Income
$
250,211
$
69,306
$
60,232
$
129,450
$
120,153
LTM
Three Months Ended
Six Months Ended
June 30,
June 30,
June 30,
2019
2019
2018
2019
2018
Tobacco Adjusted EBITDA:
Operating income from tobacco segment
$
249,396
$
68,651
$
62,515
$
128,795
$
125,926
Litigation settlement and judgment expense
(a)
815
655
525
655
525
Impact of MSA settlement (b)
—
—
(2,808
)
—
(6,298
)
Total adjustments
815
655
(2,283
)
655
(5,773
)
Tobacco Adjusted Operating Income
250,211
69,306
60,232
129,450
120,153
Depreciation and amortization
8,005
1,950
2,075
3,907
4,112
Stock-based compensation expense
64
—
21
21
42
Total adjustments
8,069
1,950
2,096
3,928
4,154
Tobacco Adjusted EBITDA
$
258,280
$
71,256
$
62,328
$
133,378
$
124,307
- Represents accruals for settlements of judgment expenses in the
Engle progeny tobacco litigation.
- 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,
2019
2019
2018
2019
2018
Net income (loss) attributed to Vector
Group Ltd. from subsidiary non-guarantors (a)
$
26,619
$
15,307
$
2,926
$
6,222
$
(5,618
)
Interest expense (a)
468
228
7
457
56
Income tax expense (benefit) (a)
10,236
5,909
(803
)
2,490
(3,797
)
Net income (loss) attributed to
non-controlling interest (a)
2,351
—
1,178
80
(2,369
)
Depreciation and amortization
9,398
2,024
2,418
4,525
4,707
EBITDA
$
49,072
$
23,468
$
5,726
$
13,774
$
(7,021
)
Loss from non-guarantors other than New
Valley LLC
75
14
19
42
53
Equity in (earnings) losses from real
estate ventures (b)
(27,070
)
(6,391
)
2,112
(3,952
)
8,672
Purchase accounting adjustments (c)
247
—
179
—
361
Litigation settlement and judgment income
(d)
—
—
—
—
(2,469
)
Other, net
(2,383
)
(632
)
(336
)
(1,336
)
(678
)
Adjusted EBITDA
$
19,941
$
16,459
$
7,700
$
8,528
$
(1,082
)
Adjusted EBITDA attributed to
non-controlling interest
(5,109
)
—
(1,906
)
—
1,790
Adjustment to reflect additional 29.41% of
Adjusted EBITDA from Douglas Elliman Realty, LLC (e)
3,385
—
2,464
—
(66
)
Adjusted EBITDA attributed to New Valley
LLC
$
18,217
$
16,459
$
8,258
$
8,528
$
642
Adjusted EBITDA by Segment
Real Estate (f)
$
20,017
$
16,477
$
8,464
$
8,569
$
(294
)
Corporate and Other
(76
)
(18
)
(764
)
(41
)
(788
)
Total (g)
$
19,941
$
16,459
$
7,700
$
8,528
$
(1,082
)
Adjusted EBITDA Attributed to New Valley
LLC by Segment
Real Estate (f)
$
18,293
$
16,477
$
9,022
$
8,569
$
1,430
Corporate and Other
(76
)
(18
)
(764
)
(41
)
(788
)
Total (g)
$
18,217
$
16,459
$
8,258
$
8,528
$
642
- 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 three and six months ended June 30,
2019.
- Represents equity in (earnings) losses recognized from the
Company’s investment in certain real estate businesses that are not
consolidated in its financial results.
- Represents 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.
- Represents proceeds received from a litigation award at Douglas
Elliman Realty, LLC.
- Represents 29.41% of Douglas Elliman Realty LLC's Adjusted
EBITDA in the respective periods. On December 31, 2018, the Company
increased its ownership of Douglas Elliman Realty, LLC from 70.59%
to 100%.
- Includes Adjusted EBITDA for Douglas Elliman Realty, LLC of
$19,166 for the last twelve months ended June 30, 2019 and $16,649,
$8,379, $7,658 and negative $224 for the three and six months ended
June 30, 2019 and 2018, respectively. Amounts reported in this
footnote reflect 100% of Douglas Elliman Realty, LLC’s entire
Adjusted EBITDA.
- New Valley’s Adjusted EBITDA does not include an allocation of
Vector Group Ltd.’s “Corporate and Other” segment expenses (for
purposes of computing Adjusted EBITDA contained in Table 2 of this
press release) of $16,009 for the last twelve months ended June 30,
2019 and $4,272, $3,830, $8,752 and $7,773 for the three and six
months ended June 30, 2019 and 2018, 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,
2019
2019
2018
2019
2018
Net income (loss) attributed to Douglas
Elliman Realty, LLC
$
12,113
$
15,138
$
5,905
$
4,724
$
(2,192
)
Interest expense
10
2
3
5
48
Income tax expense
15
101
266
101
486
Depreciation and amortization
8,991
1,922
2,315
4,322
4,502
Douglas Elliman Realty, LLC EBITDA
$
21,129
$
17,163
$
8,489
$
9,152
$
2,844
Equity in earnings from real estate
ventures (a)
(1,300
)
(285
)
(252
)
(934
)
(877
)
Purchase accounting adjustments (b)
247
—
179
—
361
Litigation settlement and judgment income
(c)
—
—
—
—
(2,469
)
Other, net
(910
)
(229
)
(37
)
(560
)
(83
)
Douglas Elliman Realty, LLC Adjusted
EBITDA
$
19,166
$
16,649
$
8,379
$
7,658
$
(224
)
Douglas Elliman Realty, LLC Adjusted
EBITDA attributed to non-controlling interest
(3,385
)
—
(2,464
)
—
66
Adjustment to reflect additional 29.41% of
Adjusted EBITDA from Douglas Elliman Realty, LLC, which represents
the additional interest acquired on December 31, 2018 (d)
3,385
—
2,464
—
(66
)
Douglas Elliman Realty, LLC Adjusted
EBITDA attributed to Real Estate Segment
$
19,166
$
16,649
$
8,379
$
7,658
$
(224
)
- Represents equity in earnings recognized from the Company’s
investment in certain real estate businesses that are not
consolidated in its financial results.
- Represents 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.
- Represents proceeds received from a litigation award at Douglas
Elliman Realty, LLC.
- Represents 29.41% of Douglas Elliman Realty LLC's Adjusted
EBITDA in the respective periods. On December 31, 2018, the Company
increased its ownership of Douglas Elliman Realty, LLC from 70.59%
to 100%.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190807005303/en/
Emily Claffey/Benjamin Spicehandler/Columbia Clancy Sard
Verbinnen & Co 212-687-8080 Conrad Harrington Sard Verbinnen
& Co - Europe +44 (0)20 3178 8914 J. Bryant Kirkland III,
Vector Group Ltd. 305-579-8000
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