Vector Group Ltd. (NYSE:VGR) today announced financial results
for the three and nine months ended September 30, 2019.
GAAP Financial Results
Third quarter 2019 revenues were $504.8 million, compared to
revenues of $513.9 million in the third quarter of 2018. The
Company recorded operating income of $66.7 million in the third
quarter of 2019, compared to operating income of $66.0 million in
the third quarter of 2018. Net income attributed to Vector Group
Ltd. for the third quarter of 2019 was $36.0 million, or $0.23 per
diluted common share, compared to net income of $12.0 million, or
$0.07 per diluted common share, in the third quarter of 2018.
For the nine months ended September 30, 2019 revenues were
$1.464 billion, compared to revenues of $1.424 billion for the nine
months ended September 30, 2018. The Company recorded operating
income of $185.6 million for the nine months ended September 30,
2019, compared to operating income of $176.0 million for the nine
months ended September 30, 2018. Net income attributed to Vector
Group Ltd. for the nine months ended September 30, 2019 was $90.3
million, or $0.56 per diluted common share, compared to a net
income of $37.0 million, or $0.22 per diluted common share, for the
nine months ended September 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 nine months ended
September 30, 2019 and 2018 are included in Tables 2 through 7.
Three months ended September 30, 2019 compared to the three
months ended September 30, 2018
Third quarter of 2019 Adjusted EBITDA attributed to Vector Group
(as described in Table 2 attached hereto) were $73.7 million,
compared to $73.4 million for the third quarter of 2018.
Adjusted Net Income (as described in Table 3 attached hereto)
was $36.2 million, or $0.23 per diluted share, for the third
quarter of 2019, and $23.1 million, or $0.15 per diluted share, for
the third quarter of 2018.
Adjusted Operating Income (as described in Table 4 attached
hereto) was $67.0 million for the third quarter of 2019, compared
to $66.4 million for the third quarter of 2018.
Nine months ended September 30, 2019 compared to the nine months
ended September 30, 2018
Adjusted EBITDA attributed to Vector Group Ltd. (as described in
Table 2 attached hereto) were $206.9 million for the nine months
ended September 30, 2019, compared to $191.4 million for the nine
months ended September 30, 2018.
Adjusted Net Income (as described in Table 3 attached hereto)
was $92.3 million, or $0.59 per diluted share, for the nine months
ended September 30, 2019, and $56.5 million, or $0.35 per diluted
share, for the nine months ended September 30, 2018.
Adjusted Operating Income (as described in Table 4 attached
hereto) was $186.4 million for the nine months ended September 30,
2019, compared to $168.9 million for the nine months ended
September 30, 2018.
Tobacco Segment Financial Results
For the third quarter of 2019, the Tobacco segment had revenues
of $303.3 million, compared to $302.0 million for the third quarter
of 2018. For the nine months ended September 30, 2019, the Tobacco
segment had revenues of $854.5 million, compared to $844.0 million
for the nine months ended September 30, 2018.
Operating Income from the Tobacco segment was $72.8 million and
$201.6 million for the three and nine months ended September 30,
2019, respectively, compared to $63.3 million and $189.2 million
for the three and nine months ended September 30, 2018,
respectively.
Non-GAAP Financial Measures
Tobacco Adjusted Operating Income (as described in Table 5
attached hereto) for the third quarter of 2019 and 2018 was $73.0
million and $63.3 million, respectively. Tobacco Adjusted Operating
Income for the nine months ended September 30, 2019 and 2018 was
$202.5 million and $183.4 million, respectively.
For the third quarter of 2019, the Tobacco segment had
conventional cigarette (wholesale) shipments of approximately 2.44
billion units, compared to 2.59 billion units for the third quarter
of 2018. For the nine months ended September 30, 2019, the Tobacco
segment had conventional cigarette (wholesale) shipments of
approximately 6.90 billion units, compared to 7.13 billion units
for the nine months ended September 30, 2018.
Liggett’s retail market share increased to 4.3% for the third
quarter of 2019 and 4.2% for the nine months ended September 30,
2019, compared to 4.2% for the third quarter of 2018 and 4.1% for
the nine months ended September 30, 2018. Compared to the third
quarter of 2018, Liggett’s retail shipments declined by 3.5% while
the overall industry’s retail shipments declined by 6.4%. Compared
to the nine months ended September 30, 2018, Liggett’s retail
shipments declined by 2.9% while the overall industry’s retail
shipments declined by 5.9%, according to data from Management
Science Associates, Inc.
Real Estate Segment Financial Results
For the third quarter of 2019, the Real Estate segment had
revenues of $201.5 million, compared to $211.9 million for the
third quarter of 2018. For the nine months ended September 30,
2019, the Real Estate segment had revenues of $609.6 million,
compared to $580.4 million for the nine months ended September 30,
2018. For the third quarter of 2019, the Real Estate segment
reported net income of $7.2 million, compared to a net income of
$4.7 million for the third quarter of 2018. For the nine months
ended September 30, 2019, the Real Estate segment reported a net
income of $13.5 million, compared to net loss of $0.9 million for
the nine months ended September 30, 2018.
Douglas Elliman’s results are included in Vector Group Ltd.’s
Real Estate segment. For the third quarter of 2019, Douglas Elliman
had revenues of $201.2 million, compared to $211.5 million for the
third quarter of 2018. For the nine months ended September 30,
2019, Douglas Elliman had revenues of $606.0 million, compared to
$576.5 million for the nine months ended September 30, 2018. For
the third quarter of 2019, Douglas Elliman reported net income of
$1.9 million, compared to net income of $10.0 million for the third
quarter of 2018. For the nine months ended September 30, 2019,
Douglas Elliman reported net income of $6.6 million, compared to
net income of $7.8 million for the nine months ended September 30,
2018.
Non-GAAP Financial Measures
For the third quarter of 2019, Real Estate Adjusted EBITDA
attributed to the Company (as described in Table 6 attached hereto)
were $2.9 million, compared to $11.6 million for the third quarter
of 2018.
For the nine months ended September 30, 2019, Real Estate
Adjusted EBITDA attributed to the Company were $11.4 million,
compared to $13.0 million for the nine months ended September 30,
2018.
For the third quarter of 2019, Douglas Elliman’s Adjusted EBITDA
(as described in Table 7 attached hereto) were $3.4 million,
compared to $12.0 million for the third quarter of 2018.
For the nine months ended September 30, 2019, Douglas Elliman’s
Adjusted EBITDA were $11.0 million, compared to $11.8 million for
the nine months ended September 30, 2018.
For the three and nine months ended September 30, 2019, Douglas
Elliman achieved closed sales of approximately $7.4 billion and
$22.1 billion, respectively, compared to $7.8 billion and $21.4
billion for the three and nine months ended September 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 nine
months ended September 30, 2019 and 2018, respectively, as well as
the twelve months ended September 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 nine months ended
September 30, 2019 and 2018.
Conference Call to Discuss Third Quarter 2019 Results
As previously announced, the Company will host a conference call
and webcast on Tuesday, November 5, 2019 at 4:30 PM (ET) to discuss
its third quarter 2019 results. Investors can access the call by
dialing 800-859-8150 and entering 38104109 as the conference ID
number. The call will also be available via live webcast at
https://www.investornetwork.com/event/presentation/56439. 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 November 5, 2019 through November 19, 2019. To access the
replay, dial 877-656-8905 and enter 38104109 as the conference ID
number. The archived webcast will also be available at
https://www.investornetwork.com/event/presentation/56439 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
Nine Months Ended
September 30,
September 30,
2019
2018
2019
2018
(Unaudited)
(Unaudited)
Revenues:
Tobacco*
$
303,260
$
302,009
$
854,517
$
843,958
Real estate
201,530
211,860
609,629
580,365
Total revenues
504,790
513,869
1,464,146
1,424,323
Expenses:
Cost of sales:
Tobacco*
209,192
219,769
590,956
597,492
Real estate
136,264
140,533
408,694
389,851
Total cost of sales
345,456
360,302
999,650
987,343
Operating, selling, administrative and
general expenses
92,374
87,549
278,047
262,961
Litigation settlement and judgment expense
(income)
240
—
895
(1,944
)
Operating income
66,720
66,018
185,554
175,963
Other income (expenses):
Interest expense
(32,963
)
(51,084
)
(103,236
)
(145,452
)
Change in fair value of derivatives
embedded within convertible debt
6,182
10,005
20,319
31,289
Equity in earnings (losses) from real
estate ventures
8,050
294
12,002
(8,378
)
Other, net
1,755
4,481
13,653
13,660
Income before provision for income
taxes
49,744
29,714
128,292
67,082
Income tax expense
13,736
14,686
37,944
29,394
Net income
36,008
15,028
90,348
37,688
Net income attributed to non-controlling
interest
—
(3,026
)
(80
)
(657
)
Net income attributed to Vector Group
Ltd.
$
36,008
$
12,002
$
90,268
$
37,031
Per basic common share:
Net income applicable to common share
attributed to Vector Group Ltd.
$
0.23
$
0.07
$
0.57
$
0.23
Per diluted common share:
Net income applicable to common share
attributed to Vector Group Ltd.
$
0.23
$
0.07
$
0.56
$
0.22
* Revenues and cost of sales include federal excise taxes of
$122,951, $130,428, $347,527 and $359,199, respectively.
TABLE 2
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF ADJUSTED
EBITDA
(Unaudited)
(Dollars
in Thousands)
LTM
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
2019
2019
2018
2019
2018
Net income attributed to Vector Group
Ltd.
$
111,342
$
36,008
$
12,002
$
90,268
$
37,031
Interest expense
161,564
32,963
51,084
103,236
145,452
Income tax expense
30,102
13,736
14,686
37,944
29,394
Net (loss) income attributed to
non-controlling interest
(675
)
—
3,026
80
657
Depreciation and amortization
18,126
4,430
4,707
13,362
14,043
EBITDA
$
320,459
$
87,137
$
85,505
$
244,890
$
226,577
Change in fair value of derivatives
embedded within convertible debt (a)
(34,019
)
(6,182
)
(10,005
)
(20,319
)
(31,289
)
Equity in (earnings) losses from real
estate ventures (b)
(34,826
)
(8,050
)
(294
)
(12,002
)
8,378
Loss on extinguishment of debt
4,066
—
—
—
—
Stock-based compensation expense (c)
9,649
2,348
2,584
7,122
7,424
Litigation settlement and judgment expense
(income) (d)
1,055
240
—
895
(1,944
)
Impact of MSA settlement (e)
—
—
—
—
(6,298
)
Purchase accounting adjustments (f)
63
—
184
—
545
Other, net
(3,914
)
(1,755
)
(4,481
)
(13,653
)
(13,660
)
Adjusted EBITDA
$
262,533
$
73,738
$
73,493
$
206,933
$
189,733
Adjusted EBITDA attributed to
non-controlling interest
(1,471
)
—
(3,638
)
—
(1,848
)
Adjustment to reflect additional 29.41% of
Adjusted EBITDA from Douglas Elliman Realty, LLC (g)
(158
)
—
3,543
—
3,477
Adjusted EBITDA attributed to Vector Group
Ltd.
$
260,904
$
73,738
$
73,398
$
206,933
$
191,362
Adjusted EBITDA by Segment
Tobacco
$
267,921
$
74,980
$
65,339
$
208,358
$
189,646
Real Estate (h)
11,188
2,868
11,697
11,437
11,403
Corporate and Other
(16,576
)
(4,110
)
(3,543
)
(12,862
)
(11,316
)
Total
$
262,533
$
73,738
$
73,493
$
206,933
$
189,733
Adjusted EBITDA Attributed to Vector
Group Ltd. by Segment
Tobacco
$
267,921
$
74,980
$
65,339
$
208,358
$
189,646
Real Estate (h)
9,559
2,868
11,602
11,437
13,032
Corporate and Other
(16,576
)
(4,110
)
(3,543
)
(12,862
)
(11,316
)
Total
$
260,904
$
73,738
$
73,398
$
206,933
$
191,362
- 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
$10,486 for the last twelve months ended September 30, 2019 and
$3,368, $12,048, $11,026 and $11,824 for the three and nine months
ended September 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
Nine Months Ended
September 30,
September 30,
2019
2018
2019
2018
Net income attributed to Vector Group
Ltd.
$
36,008
$
12,002
$
90,268
$
37,031
Change in fair value of derivatives
embedded within convertible debt
(6,182
)
(10,005
)
(20,319
)
(31,289
)
Non-cash amortization of debt discount on
convertible debt
5,746
22,871
19,718
61,450
Litigation settlement and judgment expense
(income) (a)
240
—
895
(1,944
)
Impact of MSA settlement (b)
—
—
—
(6,298
)
Impact of net interest expense capitalized
to real estate ventures
412
(596
)
2,488
1,775
Douglas Elliman Realty, LLC purchase
accounting adjustments (c)
—
385
—
1,140
Adjustment to reflect additional 29.41% of
net income from Douglas Elliman Realty, LLC (d)
—
2,931
—
2,287
Total adjustments
216
15,586
2,782
27,121
Tax expense related to adjustments
(59
)
(4,459
)
(764
)
(7,672
)
Adjusted Net Income attributed to Vector
Group Ltd.
$
36,165
$
23,129
$
92,286
$
56,480
Per diluted common share:
Adjusted Net Income applicable to common
shares attributed to Vector Group Ltd.
$
0.23
$
0.15
$
0.59
$
0.35
- 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 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
Nine Months Ended
September 30,
September 30,
September 30,
2019
2019
2018
2019
2018
Operating income
$
233,640
$
66,720
$
66,018
$
185,554
$
175,963
Litigation settlement and judgment expense
(income) (a)
1,055
240
—
895
(1,944
)
Impact of MSA settlement (b)
—
—
—
—
(6,298
)
Douglas Elliman Realty, LLC purchase
accounting adjustments (c)
265
—
385
—
1,140
Total adjustments
1,320
240
385
895
(7,102
)
Adjusted Operating Income (d)
$
234,960
$
66,960
$
66,403
$
186,449
$
168,861
- 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 September 30, 2019 and three and nine months ended September
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
Nine Months Ended
September 30,
September 30,
September 30,
2019
2019
2018
2019
2018
Tobacco Adjusted Operating
Income:
Operating income from tobacco segment
$
258,936
$
72,799
$
63,259
$
201,594
$
189,185
Litigation settlement and judgment expense
(a)
1,055
240
—
895
525
Impact of MSA settlement (b)
—
—
—
—
(6,298
)
Total adjustments
1,055
240
—
895
(5,773
)
Tobacco Adjusted Operating Income
$
259,991
$
73,039
$
63,259
$
202,489
$
183,412
LTM
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
2019
2019
2018
2019
2018
Tobacco Adjusted EBITDA:
Operating income from tobacco segment
$
258,936
$
72,799
$
63,259
$
201,594
$
189,185
Litigation settlement and judgment expense
(a)
1,055
240
—
895
525
Impact of MSA settlement (b)
—
—
—
—
(6,298
)
Total adjustments
1,055
240
—
895
(5,773
)
Tobacco Adjusted Operating Income
259,991
73,039
63,259
202,489
183,412
Depreciation and amortization
7,887
1,941
2,059
5,848
6,171
Stock-based compensation expense
43
—
21
21
63
Total adjustments
7,930
1,941
2,080
5,869
6,234
Tobacco Adjusted EBITDA
$
267,921
$
74,980
$
65,339
$
208,358
$
189,646
- 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
Nine Months Ended
September 30,
September 30,
September 30,
2019
2019
2018
2019
2018
Net income (loss) attributed to Vector
Group Ltd. from subsidiary non-guarantors (a)
$
29,162
$
7,246
$
4,703
$
13,468
$
(915
)
Interest expense (a)
689
228
7
685
63
Income tax expense (benefit) (a)
11,288
3,023
1,971
5,513
(1,826
)
Net (loss) income attributed to
non-controlling interest (a)
(675
)
—
3,026
80
657
Depreciation and amortization
9,240
2,240
2,398
6,765
7,105
EBITDA
$
49,704
$
12,737
$
12,105
$
26,511
$
5,084
Loss from non-guarantors other than New
Valley LLC
72
15
18
57
71
Equity in (earnings) losses from real
estate ventures (b)
(34,826
)
(8,050
)
(294
)
(12,002
)
8,378
Purchase accounting adjustments (c)
63
—
184
—
545
Litigation settlement and judgment income
(d)
—
—
—
—
(2,469
)
Other, net
(3,849
)
(1,808
)
(342
)
(3,144
)
(1,020
)
Adjusted EBITDA
$
11,164
$
2,894
$
11,671
$
11,422
$
10,589
Adjusted EBITDA attributed to
non-controlling interest
(1,471
)
—
(3,638
)
—
(1,848
)
Adjustment to reflect additional 29.41% of
Adjusted EBITDA from Douglas Elliman Realty, LLC (e)
(158
)
—
3,543
—
3,477
Adjusted EBITDA attributed to New Valley
LLC
$
9,535
$
2,894
$
11,576
$
11,422
$
12,218
Adjusted EBITDA by Segment
Real Estate (f)
$
11,188
$
2,868
$
11,697
$
11,437
$
11,403
Corporate and Other
(24
)
26
(26
)
(15
)
(814
)
Total (g)
$
11,164
$
2,894
$
11,671
$
11,422
$
10,589
Adjusted EBITDA Attributed to New Valley
LLC by Segment
Real Estate (f)
$
9,559
$
2,868
$
11,602
$
11,437
$
13,032
Corporate and Other
(24
)
26
(26
)
(15
)
(814
)
Total (g)
$
9,535
$
2,894
$
11,576
$
11,422
$
12,218
- 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 nine months ended September 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
$10,486 for the last twelve months ended September 30, 2019 and
$3,368, $12,048, $11,026 and $11,824 for the three and nine months
ended September 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 $16,576 for the last twelve months ended
September 30, 2019 and $4,110, $3,543, $12,862 and $11,316 for the
three and nine months ended September 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
Nine Months Ended
September 30,
September 30,
September 30,
2019
2019
2018
2019
2018
Net income attributed to Douglas Elliman
Realty, LLC
$
4,041
$
1,893
$
9,965
$
6,617
$
7,773
Interest expense
8
1
3
6
51
Income tax expense (benefit)
365
265
(85
)
366
401
Depreciation and amortization
8,831
2,135
2,295
6,457
6,797
Douglas Elliman Realty, LLC EBITDA
$
13,245
$
4,294
$
12,178
$
13,446
$
15,022
Equity in earnings from real estate
ventures (a)
(1,484
)
(458
)
(274
)
(1,392
)
(1,151
)
Purchase accounting adjustments (b)
63
—
184
—
545
Litigation settlement and judgment income
(c)
—
—
—
—
(2,469
)
Other, net
(1,338
)
(468
)
(40
)
(1,028
)
(123
)
Douglas Elliman Realty, LLC Adjusted
EBITDA
$
10,486
$
3,368
$
12,048
$
11,026
$
11,824
Douglas Elliman Realty, LLC Adjusted
EBITDA attributed to non-controlling interest
158
—
(3,543
)
—
(3,477
)
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)
(158
)
—
3,543
—
3,477
Douglas Elliman Realty, LLC Adjusted
EBITDA attributed to Real Estate Segment
$
10,486
$
3,368
$
12,048
$
11,026
$
11,824
- 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/20191105006042/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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