Vector Group Ltd. (NYSE:VGR) today announced financial results
for the three months and year ended December 31, 2019.
GAAP Financial Results
Fourth quarter 2019 revenues were $439.6 million, compared to
revenues of $445.9 million in the fourth quarter of 2018. The
Company recorded operating income of $45.6 million in the fourth
quarter of 2019, compared to operating income of $48.1 million in
the fourth quarter of 2018. Net income attributed to Vector Group
Ltd. for the fourth quarter of 2019 was $10.7 million, or $0.06 per
diluted common share, compared to net income of $21.1 million, or
$0.13 per diluted common share, in the fourth quarter of 2018.
For the year ended December 31, 2019 revenues were $1.90
billion, compared to revenues of $1.87 billion for the year ended
December 31, 2018. The Company recorded operating income of $231.1
million for the year ended December 31, 2019, compared to operating
income of $224.0 million for the year ended December 31, 2018. Net
income attributed to Vector Group Ltd. for the year ended December
31, 2019 was $101.0 million, or $0.63 per diluted common share,
compared to a net income of $58.1 million, or $0.35 per diluted
common share, for the year ended December 31, 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, adjustment for the derivative associated with
acquisition of 29.41% of Douglas Elliman Realty, LLC, 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 fourth quarter and
full year ended December 31, 2019 and 2018 are included in Tables 2
through 7.
Three months ended December 31, 2019 compared to the three
months ended December 31, 2018
Fourth quarter of 2019 Adjusted EBITDA attributed to Vector
Group (as described in Table 2 attached hereto) were $52.5 million,
compared to $54.0 million for the fourth quarter of 2018.
Adjusted Net Income (as described in Table 3 attached hereto)
was $17.8 million, or $0.11 per diluted share, for the fourth
quarter of 2019, and $31.8 million, or $0.20 per diluted share, for
the fourth quarter of 2018.
Adjusted Operating Income (as described in Table 4 attached
hereto) was $45.7 million for the fourth quarter of 2019, compared
to $48.5 million for the fourth quarter of 2018.
Year ended December 31, 2019 compared to the year ended December
31, 2018
Adjusted EBITDA attributed to Vector Group Ltd. (as described in
Table 2 attached hereto) were $259.4 million for the year ended
December 31, 2019, compared to $245.3 million for the year ended
December 31, 2018.
Adjusted Net Income (as described in Table 3 attached hereto)
was $110.1 million, or $0.70 per diluted share, for the year ended
December 31, 2019, and $88.2 million, or $0.55 per diluted share,
for the year ended December 31, 2018.
Adjusted Operating Income (as described in Table 4 attached
hereto) was $232.1 million for the year ended December 31, 2019,
compared to $217.4 million for the year ended December 31,
2018.
Tobacco Segment Financial Results
For the fourth quarter of 2019, the Tobacco segment had revenues
of $260.3 million, compared to $267.1 million for the fourth
quarter of 2018. For the year ended December 31, 2019, the Tobacco
segment had revenues of $1.115 billion, compared to $1.111 billion
for the year ended December 31, 2018.
Operating Income from the Tobacco segment was $60.0 million and
$261.6 million for the three months and year ended December 31,
2019, respectively, compared to $57.3 million and $246.5 million
for the three months and year ended December 31, 2018,
respectively.
Non-GAAP Financial Measures
Tobacco Adjusted Operating Income (as described in Table 5
attached hereto) for the fourth quarter of 2019 and 2018 was $60.1
million and $57.5 million, respectively. Tobacco Adjusted Operating
Income for the year ended December 31, 2019 and 2018 was $262.6
million and $240.9 million, respectively.
For the fourth quarter of 2019, the Tobacco segment had
conventional cigarette (wholesale) shipments of approximately 2.07
billion units, compared to 2.20 billion units for the fourth
quarter of 2018. For the year ended December 31, 2019, the Tobacco
segment had conventional cigarette (wholesale) shipments of
approximately 8.97 billion units, compared to 9.33 billion units
for the year ended December 31, 2018.
Liggett’s retail market share increased to 4.2% for the fourth
quarter of 2019 and 4.2% for the year ended December 31, 2019,
compared to 4.1% for the fourth quarter of 2018 and 4.1% for the
year ended December 31, 2018. Compared to the fourth quarter of
2018, Liggett’s retail shipments declined by 2.7% while the overall
industry’s retail shipments declined by 5.0%. Compared to the year
ended December 31, 2018, Liggett’s retail shipments declined by
2.8% while the overall industry’s retail shipments declined by
5.7%, according to data from Management Science Associates,
Inc.
Real Estate Segment Financial Results
For the fourth quarter of 2019, the Real Estate segment had
revenues of $179.2 million, compared to $178.8 million for the
fourth quarter of 2018. For the year ended December 31, 2019, the
Real Estate segment had revenues of $788.9 million, compared to
$759.2 million for the year ended December 31, 2018. For the fourth
quarter of 2019, the Real Estate segment reported a net loss of
$24.9 million, compared to a net income of $15.7 million for the
fourth quarter of 2018. For the year ended December 31, 2019, the
Real Estate segment reported a net loss of $11.4 million, compared
to net income of $14.8 million for the year ended December 31,
2018.
Douglas Elliman’s results are included in Vector Group Ltd.’s
Real Estate segment. For the fourth quarter of 2019, Douglas
Elliman had revenues of $178.1 million, compared to $177.6 million
for the fourth quarter of 2018. For the year ended December 31,
2019, Douglas Elliman had revenues of $784.1 million, compared to
$754.1 million for the year ended December 31, 2018. For the fourth
quarter of 2019, Douglas Elliman reported a net loss of $0.4
million, compared to a net loss of $2.6 million for the fourth
quarter of 2018. For the year ended December 31, 2019, Douglas
Elliman reported net income of $6.2 million, compared to net income
of $5.2 million for the year ended December 31, 2018.
Non-GAAP Financial Measures
For the fourth quarter of 2019, Real Estate Adjusted EBITDA
attributed to the Company (as described in Table 6 attached hereto)
were negative $5.3 million, compared to negative $1.9 million for
the fourth quarter of 2018.
For the year ended December 31, 2019, Real Estate Adjusted
EBITDA attributed to the Company were $6.1 million, compared to
$11.2 million for the year ended December 31, 2018.
For the fourth quarter of 2019, Douglas Elliman’s Adjusted
EBITDA (as described in Table 7 attached hereto) were negative $5.7
million, compared to negative $0.5 million for the fourth quarter
of 2018.
For the year ended December 31, 2019, Douglas Elliman’s Adjusted
EBITDA were $5.3 million, compared to $11.3 million for the year
ended December 31, 2018.
For the three months and year ended December 31, 2019, Douglas
Elliman achieved closed sales of approximately $6.6 billion and
$28.8 billion, respectively, compared to $6.7 billion and $28.1
billion for the three months and year ended December 31, 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 months and
year ended December 31, 2019 and 2018, respectively. 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 fourth quarter and full year
ended December 31, 2019 and 2018.
Conference Call to Discuss Fourth Quarter and Full-Year 2019
Results
As previously announced, the Company will host a conference call
and webcast on Friday, February 28, 2020 at 9:00AM (ET) to discuss
its fourth quarter 2019 results. Investors can access the call by
dialing 800-859-8150 and entering 59308659 as the conference ID
number. The call will also be available via live webcast at
https://www.webcaster4.com/Webcast/Page/2271/33131. 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 February 28, 2020 through March 13, 2020. To access the
replay, dial 877-656-8905 and enter 59308659 as the conference ID
number. The archived webcast will also be available at
https://www.webcaster4.com/Webcast/Page/2271/33131 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
Year Ended
December 31,
December 31,
2019
2018
2019
2018
(Unaudited)
(Unaudited)
Revenues:
Tobacco*
$
260,323
$
267,136
$
1,114,840
$
1,111,094
Real estate
179,242
178,803
788,871
759,168
Total revenues
439,565
445,939
1,903,711
1,870,262
Expenses:
Cost of sales:
Tobacco*
180,174
189,759
771,130
787,251
Real estate
121,755
115,382
530,449
505,233
Total cost of sales
301,929
305,141
1,301,579
1,292,484
Operating, selling, administrative and
general expenses
91,960
92,552
370,007
355,513
Litigation settlement and judgment expense
(income)
95
160
990
(1,784
)
Operating income
45,581
48,086
231,135
224,049
Other income (expenses):
Interest expense
(35,212
)
(58,328
)
(138,448
)
(203,780
)
Loss on extinguishment of debt
(4,301
)
(4,066
)
(4,301
)
(4,066
)
Change in fair value of derivatives
embedded within convertible debt
6,106
13,700
26,425
44,989
Equity in (losses) earnings from real
estate ventures
(31,290
)
22,824
(19,288
)
14,446
Other, net
24,652
(9,739
)
38,305
3,921
Income before provision for income
taxes
5,536
12,477
133,828
79,559
Income tax (benefit) expense
(5,131
)
(7,842
)
32,813
21,552
Net income
10,667
20,319
101,015
58,007
Net loss (income) attributed to
non-controlling interest
39
755
(41
)
98
Net income attributed to Vector Group
Ltd.
$
10,706
$
21,074
$
100,974
$
58,105
Per basic common share:
Net income applicable to common share
attributed to Vector Group Ltd.
$
0.06
$
0.13
$
0.64
$
0.35
Per diluted common share:
Net income applicable to common share
attributed to Vector Group Ltd.
$
0.06
$
0.13
$
0.63
$
0.35
* Revenues and cost of sales include
federal excise taxes of $103,729, $110,637, $451,256 and $469,836,
respectively.
TABLE 2
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF ADJUSTED
EBITDA
(Unaudited)
(Dollars
in Thousands)
Three Months Ended
Year Ended
December 31,
December 31,
2019
2018
2019
2018
Net income attributed to Vector Group
Ltd.
$
10,706
$
21,074
$
100,974
$
58,105
Interest expense
35,212
58,328
138,448
203,780
Income tax (benefit) expense
(5,131
)
(7,842
)
32,813
21,552
Net (loss) income attributed to
non-controlling interest
(39
)
(755
)
41
(98
)
Depreciation and amortization
4,489
4,764
17,851
18,807
EBITDA
$
45,237
$
75,569
$
290,127
$
302,146
Change in fair value of derivatives
embedded within convertible debt (a)
(6,106
)
(13,700
)
(26,425
)
(44,989
)
Equity in losses (earnings) from real
estate ventures (b)
31,290
(22,824
)
19,288
(14,446
)
Loss on extinguishment of debt
4,301
4,066
4,301
4,066
Stock-based compensation expense (c)
2,347
2,527
9,469
9,951
Litigation settlement and judgment expense
(income) (d)
95
160
990
(1,784
)
Impact of MSA settlement (e)
—
—
—
(6,298
)
Purchase accounting adjustments (f)
—
63
—
608
Other, net
(24,652
)
9,739
(38,305
)
(3,921
)
Adjusted EBITDA
$
52,512
$
55,600
$
259,445
$
245,333
Adjusted EBITDA attributed to
non-controlling interest
—
(1,471
)
—
(3,319
)
Adjustment to reflect additional 29.41% of
Adjusted EBITDA from Douglas Elliman Realty, LLC (g)
—
(158
)
—
3,319
Adjusted EBITDA attributed to Vector Group
Ltd.
$
52,512
$
53,971
$
259,445
$
245,333
Adjusted EBITDA by Segment
Tobacco
$
62,107
$
59,563
$
270,465
$
249,209
Real Estate (h)
(5,334
)
(249
)
6,103
11,154
Corporate and Other
(4,261
)
(3,714
)
(17,123
)
(15,030
)
Total
$
52,512
$
55,600
$
259,445
$
245,333
Adjusted EBITDA Attributed to Vector
Group Ltd. by Segment
Tobacco
$
62,107
$
59,563
$
270,465
$
249,209
Real Estate (h)
(5,334
)
(1,878
)
6,103
11,154
Corporate and Other
(4,261
)
(3,714
)
(17,123
)
(15,030
)
Total
$
52,512
$
53,971
$
259,445
$
245,333
- Represents income recognized from changes in the fair value of
the derivatives embedded in the Company’s convertible debt.
- Represents equity in losses (earnings) 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
negative $5,693, negative $540, $5,333 and $11,284 for the fourth
quarter and full year ended December 31, 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
Year Ended
December 31,
December 31,
2019
2018
2019
2018
Net income attributed to Vector Group
Ltd.
$
10,706
$
21,074
$
100,974
$
58,105
Change in fair value of derivatives
embedded within convertible debt
(6,106
)
(13,700
)
(26,425
)
(44,989
)
Non-cash amortization of debt discount on
convertible debt
5,095
25,173
24,813
86,623
Loss on extinguishment of debt
4,301
4,066
4,301
4,066
Litigation settlement and judgment expense
(income) (a)
95
160
990
(1,784
)
Impact of MSA settlement (b)
—
—
—
(6,298
)
Impact of net interest expense capitalized
to real estate ventures
10,701
(472
)
13,189
1,303
Adjustment for derivative associated with
acquisition of 29.41% of Douglas Elliman Realty, LLC
(3,157
)
—
(3,157
)
—
Douglas Elliman Realty, LLC purchase
accounting adjustments (c)
—
265
—
1,406
Adjustment to reflect additional 29.41% of
net income from Douglas Elliman Realty, LLC (d)
—
(758
)
—
1,529
Total adjustments
10,929
14,734
13,711
41,856
Tax expense related to adjustments
(3,789
)
(4,046
)
(4,553
)
(11,718
)
Adjusted Net Income attributed to Vector
Group Ltd.
$
17,846
$
31,762
$
110,132
$
88,243
Per diluted common share:
Adjusted Net Income applicable to common
shares attributed to Vector Group Ltd.
$
0.11
$
0.20
$
0.70
$
0.55
a. 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.
b. Represents the Company’s tobacco
segment’s settlement of a long-standing dispute related to the
Master Settlement Agreement.
c. 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.
d. 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)
Three Months Ended
Year Ended
December 31,
December 31,
2019
2018
2019
2018
Operating income
$
45,581
$
48,086
$
231,135
$
224,049
Litigation settlement and judgment expense
(income) (a)
95
160
990
(1,784
)
Impact of MSA settlement (b)
—
—
—
(6,298
)
Douglas Elliman Realty, LLC purchase
accounting adjustments (c)
—
265
—
1,406
Total adjustments
95
425
990
(6,676
)
Adjusted Operating Income (d)
$
45,676
$
48,511
$
232,125
$
217,373
a. 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.
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. for the
three months and year ended December 31, 2018.
TABLE 5
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF TOBACCO
ADJUSTED OPERATING INCOME
AND TOBACCO ADJUSTED
EBITDA
(Unaudited)
(Dollars
in Thousands)
Three Months Ended
Year Ended
December 31,
December 31,
2019
2018
2019
2018
Tobacco Adjusted Operating
Income:
Operating income from tobacco segment
$
60,036
$
57,342
$
261,630
$
246,527
Litigation settlement and judgment expense
(a)
95
160
990
685
Impact of MSA settlement (b)
—
—
—
(6,298
)
Total adjustments
95
160
990
(5,613
)
Tobacco Adjusted Operating Income
$
60,131
$
57,502
$
262,620
$
240,914
Three Months Ended
Year Ended
December 31,
December 31,
2019
2018
2019
2018
Tobacco Adjusted EBITDA:
Operating income from tobacco segment
$
60,036
$
57,342
$
261,630
$
246,527
Litigation settlement and judgment expense
(a)
95
160
990
685
Impact of MSA settlement (b)
—
—
—
(6,298
)
Total adjustments
95
160
990
(5,613
)
Tobacco Adjusted Operating Income
60,131
57,502
262,620
240,914
Depreciation and amortization
1,976
2,039
7,824
8,210
Stock-based compensation expense
—
22
21
85
Total adjustments
1,976
2,061
7,845
8,295
Tobacco Adjusted EBITDA
$
62,107
$
59,563
$
270,465
$
249,209
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)
Three Months Ended
Year Ended
December 31,
December 31,
2019
2018
2019
2018
Net (loss) income attributed to Vector
Group Ltd. from subsidiary non-guarantors (a)
$
(24,908
)
$
15,694
$
(11,440
)
$
14,779
Interest expense (a)
228
4
913
67
Income tax (benefit) expense (a)
(11,397
)
5,775
(5,884
)
3,949
Net (loss) income attributed to
non-controlling interest (a)
(39
)
(755
)
41
(98
)
Depreciation and amortization
2,268
2,475
9,033
9,580
EBITDA
$
(33,848
)
$
23,193
$
(7,337
)
$
28,277
(Income) loss from non-guarantors other
than New Valley LLC
(6
)
15
51
86
Equity in losses (earnings) from real
estate ventures (b)
31,290
(22,824
)
19,288
(14,446
)
Purchase accounting adjustments (c)
—
63
—
608
Litigation settlement and judgment income
(d)
—
—
—
(2,469
)
Other, net
(2,785
)
(705
)
(5,929
)
(1,725
)
Adjusted EBITDA
$
(5,349
)
$
(258
)
$
6,073
$
10,331
Adjusted EBITDA attributed to
non-controlling interest
—
(1,471
)
—
(3,319
)
Adjustment to reflect additional 29.41% of
Adjusted EBITDA from Douglas Elliman Realty, LLC (e)
—
(158
)
—
3,319
Adjusted EBITDA attributed to New Valley
LLC
$
(5,349
)
$
(1,887
)
$
6,073
$
10,331
Adjusted EBITDA by Segment
Real Estate (f)
$
(5,334
)
$
(249
)
$
6,103
$
11,154
Corporate and Other
(15
)
(9
)
(30
)
(823
)
Total (g)
$
(5,349
)
$
(258
)
$
6,073
$
10,331
Adjusted EBITDA Attributed to New Valley
LLC by Segment
Real Estate (f)
$
(5,334
)
$
(1,878
)
$
6,103
$
11,154
Corporate and Other
(15
)
(9
)
(30
)
(823
)
Total (g)
$
(5,349
)
$
(1,887
)
$
6,073
$
10,331
- 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-K for the three months and year ended December 31,
2019.
- Represents equity in losses (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%.
- Includes Adjusted EBITDA for Douglas Elliman Realty, LLC of
negative $5,693, negative $540, $5,333 and $11,284 for the three
months and year ended December 31, 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 $4,261, $3,714, $17,123 and $15,030 for the three
months and year ended December 31, 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)
Three Months Ended
Year Ended
December 31,
December 31,
2019
2018
2019
2018
Net (loss) income attributed to Douglas
Elliman Realty, LLC
$
(432
)
$
(2,576
)
$
6,185
$
5,197
Interest expense
2
2
8
53
Income tax expense (benefit)
2
(1
)
368
400
Depreciation and amortization
2,181
2,374
8,638
9,171
Douglas Elliman Realty, LLC EBITDA
$
1,753
$
(201
)
$
15,199
$
14,821
Equity in earnings from real estate
ventures (a)
(7,080
)
(92
)
(8,472
)
(1,243
)
Purchase accounting adjustments (b)
—
63
—
608
Litigation settlement and judgment income
(c)
—
—
—
(2,469
)
Other, net
(366
)
(310
)
(1,394
)
(433
)
Douglas Elliman Realty, LLC Adjusted
EBITDA
$
(5,693
)
$
(540
)
$
5,333
$
11,284
Douglas Elliman Realty, LLC Adjusted
EBITDA attributed to non-controlling interest
—
158
—
(3,319
)
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
)
—
3,319
Douglas Elliman Realty, LLC Adjusted
EBITDA attributed to Real Estate Segment
$
(5,693
)
$
(540
)
$
5,333
$
11,284
- 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/20200228005207/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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