Strong Liggett Tobacco Revenues and
Earnings;
Cost Reduction Initiatives at Douglas
Elliman to Address Impacts of COVID-19
Vector Group Ltd. (NYSE:VGR) today announced financial results
for the three and six months ended June 30, 2020.
“We are pleased with Vector Group’s results and the significant
progress made during the second quarter,” said Howard Lorber,
President and Chief Executive Officer of Vector Group. “Our Liggett
subsidiary continues to increase tobacco unit volume, market share
and profits, and we took the necessary steps to position the real
estate business for long-term success.”
“Liggett continues to perform exceptionally well with increased
revenues of 8.8% and operating income of 15.3% for the year-to-date
period,” Mr. Lorber continued. “While the Douglas Elliman real
estate business experienced a decline in revenue due primarily to
the COVID-19 pandemic, we successfully implemented cost reduction
initiatives to address the impacts of the pandemic on the real
estate industry.”
GAAP Financial Results
Second quarter 2020 revenues were $445.8 million, compared to
revenues of $538.4 million in the second quarter of 2019. The
Company recorded operating income of $66.8 million in the second
quarter of 2020, compared to operating income of $76.2 million in
the second quarter of 2019. Net income attributed to Vector Group
Ltd. for the second quarter of 2020 was $25.8 million, or $0.16 per
diluted common share, compared to net income of $39.3 million, or
$0.25 per diluted common share, in the second quarter of 2019.
Operating income and net income for the second quarter of 2020
included pre-tax restructuring charges of $3.0 million in the
Company’s Real Estate segment.
For the six months ended June 30, 2020, revenues were $900.2
million, compared to revenues of $959.4 million for the six months
ended June 30, 2019. The Company recorded operating income of $61.9
million for the six months ended June 30, 2020, compared to
operating income of $118.8 million for the six months ended June
30, 2019. Net income attributed to Vector Group Ltd. for the six
months ended June 30, 2020 was $22.5 million, or $0.14 per diluted
common share, compared to net income of $54.3 million, or $0.33 per
diluted common share, for the six months ended June 30, 2019.
Operating income and net income for the six months ended June 30,
2020 included pre-tax and non-cash impairment charges of $58.3
million and pre-tax restructuring charges of $3.0 million in the
Company’s Real Estate segment.
Non-GAAP Financial Measures
Non-GAAP financial measures include adjustments for litigation
settlements and judgments, restructuring charges, settlements of
long-standing disputes related to the Master Settlement Agreement
in the Tobacco segment, stock-based compensation expense (for
purposes of Adjusted EBITDA only), impairment charges of goodwill
and intangible assets, net interest expense capitalized to real
estate ventures, the derivative associated with the 2018
acquisition of 29.41% of Douglas Elliman Realty, LLC 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,
2020 and 2019 are included in Tables 2 through 7.
Three months ended June 30, 2020 compared to the Three months
ended June 30, 2019
Second quarter of 2020 Adjusted EBITDA attributed to Vector
Group (as described in Table 2 attached hereto) were $76.5 million,
compared to $83.5 million for the second quarter of 2019.
Adjusted Net Income (as described in Table 3 attached hereto)
was $28.7 million, or $0.19 per diluted share, for the second
quarter of 2020, and $43.2 million or $0.28 per diluted share, for
the second quarter of 2019.
Adjusted Operating Income (as described in Table 4 attached
hereto) was $69.8 million for the second quarter of 2020, compared
to $76.9 million for the second quarter of 2019.
Six months ended June 30, 2020 compared to the six months ended
June 30, 2019
Adjusted EBITDA attributed to Vector Group Ltd. (as described in
Table 2 attached hereto) were $136.7 million for the six months
ended June 30, 2020, compared to $133.2 million for the six months
ended June 30, 2019.
Adjusted Net Income (as described in Table 3 attached hereto)
was $68.6 million, or $0.45 per diluted share, for the six months
ended June 30, 2020, compared to $56.1 million, or $0.36 per
diluted share, for the six months ended June 30, 2019.
Adjusted Operating Income (as described in Table 4 attached
hereto) was $123.2 million for the six months ended June 30, 2020,
compared to $119.5 million for the six months ended June 30,
2019.
Tobacco Segment Financial Results
For the second quarter of 2020, the Tobacco segment had revenues
of $312.5 million, compared to $294.5 million for the second
quarter of 2019. For the six months ended June 30, 2020, the
Tobacco segment had revenues of $599.6 million, compared to $551.3
million for the six months ended June 30, 2019.
Operating Income from the Tobacco segment was $79.3 million and
$148.5 million for the three and six months ended June 30, 2020
compared to $68.7 million and $128.8 million for the three and six
months ended June 30, 2019.
Non-GAAP Financial Measures
Tobacco Adjusted Operating Income (as described in Table 5
attached hereto) for the second quarter of 2020 and 2019 was $79.4
million and $69.3 million, respectively. Tobacco Adjusted Operating
Income for the six months ended June 30, 2020 was $148.5 million,
compared to $129.5 million for the six months ended June 30,
2019.
For the second quarter of 2020, the Tobacco segment had
conventional cigarette (wholesale) shipments of approximately 2.41
billion units, compared to 2.38 billion units for the second
quarter of 2019. For the six months ended June 30, 2020, the
Tobacco segment had conventional cigarette (wholesale) shipments of
approximately 4.66 billion units, compared to 4.46 billion units
for the six months ended June 30, 2019.
Liggett’s retail market share increased to 4.3% for both the
second quarter of 2020 and the six months ended June 30, 2020,
compared to 4.2% for both the second quarter and the six months
ended June 30, 2019. Compared to the second quarter of 2019,
Liggett’s retail shipments in the second quarter of 2020 increased
by 0.2% while the overall industry’s retail shipments declined by
2.2%, according to data from Management Science Associates, Inc.
Compared to the six months ended June 30, 2019, Liggett’s retail
shipments for six months ended June 30, 2020 increased by 1.2%
while the overall industry’s retail shipments declined by 1.3%,
according to data from Management Science Associates, Inc.
Real Estate Segment Financial Results
For the second quarter of 2020, the Real Estate segment had
revenues of $133.3 million compared to $243.9 million for the
second quarter of 2019. For the six months ended June 30, 2020, the
Real Estate segment had revenues of $300.7 million, compared to
$408.1 million for the six months ended June 30, 2019. For the
second quarter of 2020, the Real Estate segment reported a net loss
of $12.4 million compared to net income of $15.3 million for the
second quarter of 2019. For the six months ended June 30, 2020, the
Real Estate segment reported a net loss of $66.8 million, compared
to net income of $6.2 million for the six months ended June 30,
2019.
Douglas Elliman’s results are included in the Company’s Real
Estate segment. For the second quarter of 2020, Douglas Elliman had
revenues of $132.9 million, compared to $243.0 million for the
second quarter of 2019. For the six months ended June 30, 2020,
Douglas Elliman had revenues of $298.5 million, compared to $404.8
million for the six months ended June 30, 2019. For the second
quarter of 2020, Douglas Elliman reported a net loss of $5.0
million compared to net income of $15.1 million for the second
quarter of 2019. For the six months ended June 30, 2020, Douglas
Elliman reported a net loss of $74.1 million, compared to net
income of $4.7 million for the six months ended June 30, 2019.
Net loss from the Real Estate segment and Douglas Elliman for
the second quarter of 2020 included pre-tax restructuring charges
of $3.0 million and the Real Estate segment’s and Douglas Elliman’s
net loss for the six months ended June 30, 2020 included pre-tax
and non-cash impairment charges of $58.3 million and pre-tax
restructuring charges of $3.0 million.
Non-GAAP Financial Measures
For the second quarter of 2020, Real Estate Adjusted EBITDA
attributed to the Company (as described in Table 6 attached hereto)
were a loss of $1.7 million compared to income of $16.5 million for
the second quarter of 2019.
For the six months ended June 30, 2020, Real Estate Adjusted
EBITDA attributed to the Company were a loss of $8.6 million,
compared to income of $8.6 million for the six months ended June
30, 2019.
Douglas Elliman’s results are included in the Company’s Real
Estate segment. For the second quarter of 2020, Douglas Elliman’s
Adjusted EBITDA (as described in Table 7 attached hereto) were a
loss of $1.1 million compared to income of $16.6 million for the
second quarter of 2019.
For the six months ended June 30, 2020, Douglas Elliman’s
Adjusted EBITDA were a loss of $8.8 million, compared to income of
$7.7 million for the six months ended June 30, 2019.
For the three and six months ended June 30, 2020, Douglas
Elliman achieved closed sales of approximately of $4.7 billion and
$10.8 billion, respectively, compared to $8.9 billion and $13.4
billion for the three and six months ended June 30, 2019,
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.
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, 2020 and 2019.
Conference Call to Discuss Second Quarter 2020
Results
As previously announced, the Company will host a conference call
and webcast on Thursday, August 6, 2020 at 8:30AM (ET) to discuss
its second quarter 2020 results. Investors can access the call by
dialing 877-271-1828 and entering 80177697 as the conference ID
number. The call will also be available via live webcast at
https://www.webcaster4.com/Webcast/Page/2271/36417. 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 6, 2020 through August 20, 2020. To access the
replay, dial 877-656-8905 and enter 80177697 as the conference ID
number. The archived webcast will also be available at
https://www.webcaster4.com/Webcast/Page/2271/36417 for one
year.
About Vector Group Ltd.
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.
Forward-Looking and Cautionary Statements
This press release includes forward-looking statements within
the meaning of the federal securities law. All statements other
than statements of historical or current facts, including
statements regarding the current or anticipated impact of the
COVID-19 pandemic on our business, made in this document are
forward-looking. We identify forward-looking statements in this
document by using words or phrases such as “anticipate,” “believe,”
“estimate,” “expect,” “intend,” “may be,” “objective,” “plan,”
“seek,” “predict,” “project” and “will be” and similar words or
phrases or their negatives. Forward-looking statements reflect our
current expectations and are inherently uncertain. Actual results
could differ materially for a variety of reasons. In particular,
the extent, duration and severity of the spread of the COVID-19
pandemic and economic consequences stemming from the COVID-19
crisis (including a potential significant economic contraction) as
well as related risks and the impact of any of the foregoing on our
business, results of operations and liquidity could affect our
future results and cause actual results to differ materially from
those expressed in forward-looking statements.
Risks and uncertainties that could cause our actual results to
differ significantly from our current expectations are described in
our 2019 Annual Report on Form 10-K and in our Quarterly Report on
Form 10-Q for the quarter ended June 30, 2020. We undertake no
responsibility to publicly update or revise any forward-looking
statement except as required by applicable law.
[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,
2020
2019
2020
2019
(Unaudited)
(Unaudited)
Revenues:
Tobacco*
$
312,510
$
294,501
$
599,579
$
551,257
Real estate
133,250
243,931
300,669
408,099
Total revenues
445,760
538,432
900,248
959,356
Expenses:
Cost of sales:
Tobacco*
214,067
204,461
411,357
381,764
Real estate
90,818
163,713
204,151
272,430
Total cost of sales
304,885
368,174
615,508
654,194
Operating, selling, administrative and
general expenses
71,064
93,359
161,581
185,673
Litigation settlement and judgment
expense
53
655
53
655
Impairments of goodwill and intangible
assets
—
—
58,252
—
Restructuring charges
2,961
—
2,961
—
Operating income
66,797
76,244
61,893
118,834
Other income (expenses):
Interest expense
(29,358
)
(32,753
)
(64,985
)
(70,273
)
Change in fair value of derivatives
embedded within convertible debt
1,669
3,788
4,999
14,137
Equity in earnings (losses) from
investments
2,207
(1,685
)
52,359
(323
)
Equity in (losses) earnings from real
estate ventures
(12,260
)
6,391
(18,765
)
3,952
Other, net
7,635
4,781
(3,020
)
12,221
Income before provision for income
taxes
36,690
56,766
32,481
78,548
Income tax expense
10,916
17,459
9,938
24,208
Net income
25,774
39,307
22,543
54,340
Net income attributed to non-controlling
interest
—
—
—
(80
)
Net income attributed to Vector Group
Ltd.
$
25,774
$
39,307
$
22,543
$
54,260
Per basic common share:
Net income applicable to common share
attributed to Vector Group Ltd.
$
0.17
$
0.25
$
0.14
$
0.34
Per diluted common share:
Net income applicable to common share
attributed to Vector Group Ltd.
$
0.16
$
0.25
$
0.14
$
0.33
* Revenues and cost of sales include federal excise taxes of
$121,170, $119,943, $234,309 and $224,576, 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,
2020
2020
2019
2020
2019
Net income attributed to Vector Group
Ltd.
$
69,257
$
25,774
$
39,307
$
22,543
$
54,260
Interest expense
133,160
29,358
32,753
64,985
70,273
Income tax expense
18,543
10,916
17,459
9,938
24,208
Net (loss) income attributed to
non-controlling interest
(39
)
—
—
—
80
Depreciation and amortization
17,906
4,412
4,224
8,987
8,932
EBITDA
$
238,827
$
70,460
$
93,743
$
106,453
$
157,753
Change in fair value of derivatives
embedded within convertible debt (a)
(17,287
)
(1,669
)
(3,788
)
(4,999
)
(14,137
)
Equity in (earnings) losses from
investments (b)
(69,682
)
(2,207
)
1,685
(52,359
)
323
Equity in losses (earnings) from real
estate ventures (c)
42,005
12,260
(6,391
)
18,765
(3,952
)
Loss on extinguishment of debt
4,301
—
—
—
—
Stock-based compensation expense (d)
9,236
2,283
2,338
4,541
4,774
Litigation settlement and judgment expense
(e)
388
53
655
53
655
Restructuring charges (f)
2,961
2,961
—
2,961
—
Impairments of goodwill and intangible
assets (g)
58,252
—
—
58,252
—
Other, net
(6,064
)
(7,635
)
(4,781
)
3,020
(12,221
)
Adjusted EBITDA
$
262,937
$
76,506
$
83,461
$
136,687
$
133,195
Adjusted EBITDA attributed to Vector Group
Ltd.
$
262,937
$
76,506
$
83,461
$
136,687
$
133,195
Adjusted EBITDA Attributed to Vector
Group Ltd. by Segment
Tobacco
$
289,677
$
81,362
$
71,256
$
152,590
$
133,378
Real Estate (h)
(11,092
)
(1,716
)
16,477
(8,626
)
8,569
Corporate and Other
(15,648
)
(3,140
)
(4,272
)
(7,277
)
(8,752
)
Total
$
262,937
$
76,506
$
83,461
$
136,687
$
133,195
- Represents income recognized from changes in the fair value of
the derivatives embedded in the Company’s convertible debt.
- Represents equity in earnings recognized from investments that
the Company accounts for under the equity method. Included in the
amount are equity in earnings of $16,452 from Castle Brands for the
twelve months ended June 30, 2020 and equity in earnings of
$53,627, $0 and $53,052 from Ladenburg Thalmann Financial Services
for the twelve months ended June 30, 2020 and for the three and six
months ended June 30, 2020, respectively.
- Represents equity in losses (earnings) recognized from the
Company’s investment in certain real estate businesses that are
accounted for under the equity method and are not consolidated in
the Company’s financial results.
- Represents amortization of stock-based compensation.
- Represents accruals for product liability litigation in the
Company’s tobacco segment.
- Represents restructuring charges related to Douglas Elliman
Realty, LLC’s realignment of administrative support functions,
office locations and business model to serve its clients more
efficiently.
- Represents non-cash intangible asset impairment charges in the
Company’s Real Estate segment related to the goodwill and trademark
of the Douglas Elliman Realty, LLC reporting unit.
- Includes Adjusted EBITDA for Douglas Elliman Realty, LLC of
loss of $11,083 for the last twelve months ended June 30, 2020,
loss of $1,054, gain of $16,649, loss of $8,758, and gain of $7,658
for the three and six months ended June 30, 2020 and 2019,
respectively.
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,
2020
2019
2020
2019
Net income attributed to Vector Group
Ltd.
$
25,774
$
39,307
$
22,543
$
54,260
Change in fair value of derivatives
embedded within convertible debt
(1,669
)
(3,788
)
(4,999
)
(14,137
)
Non-cash amortization of debt discount on
convertible debt
759
5,447
5,276
13,972
Litigation settlement and judgment expense
(a)
53
655
53
655
Impact of net interest expense capitalized
to real estate ventures
1,531
3,006
3,050
2,076
Adjustment for derivative associated with
acquisition of 29.41% of Douglas Elliman Realty, LLC
234
—
(1,831
)
—
Restructuring charges (b)
2,961
—
2,961
—
Impairments of goodwill and intangible
assets (c)
—
—
58,252
—
Total adjustments
3,869
5,320
62,762
2,566
Tax expense related to adjustments
(981
)
(1,467
)
(16,694
)
(705
)
Adjusted Net Income attributed to Vector
Group Ltd.
$
28,662
$
43,160
$
68,611
$
56,121
Per diluted common share:
Adjusted Net Income applicable to common
shares attributed to Vector Group Ltd.
$
0.19
$
0.28
$
0.45
$
0.36
- Represents accruals for product liability litigation in the
Company’s tobacco segment.
- Represents restructuring charges related to Douglas Elliman
Realty, LLC’s realignment of administrative support functions,
office locations and business model to serve its clients more
efficiently.
- Represents non-cash intangible asset impairment charges in the
Company’s Real Estate segment related to the goodwill and trademark
of the Douglas Elliman Realty, LLC reporting unit.
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,
2020
2020
2019
2020
2019
Operating income
$
174,194
$
66,797
$
76,244
$
61,893
$
118,834
Litigation settlement and judgment expense
(a)
388
53
655
53
655
Restructuring charges (b)
2,961
2,961
—
2,961
—
Impairments of goodwill and intangible
assets (c)
58,252
—
—
58,252
—
Total adjustments
61,601
3,014
655
61,266
655
Adjusted Operating Income
$
235,795
$
69,811
$
76,899
$
123,159
$
119,489
- Represents accruals for product liability litigation in the
Company’s tobacco segment.
- Represents restructuring charges related to Douglas Elliman
Realty, LLC’s realignment of administrative support functions,
office locations and business model to serve its clients more
efficiently.
- Represents non-cash intangible asset impairment charges in the
Real Estate segment related to the goodwill and trademark of the
Douglas Elliman Realty, LLC reporting unit.
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,
2020
2020
2019
2020
2019
Tobacco Adjusted Operating
Income:
Operating income from tobacco segment
$
281,330
$
79,309
$
68,651
$
148,495
$
128,795
Litigation settlement and judgment expense
(a)
388
53
655
53
655
Total adjustments
388
53
655
53
655
Tobacco Adjusted Operating Income
$
281,718
$
79,362
$
69,306
$
148,548
$
129,450
LTM
Three Months Ended
Six Months Ended
June 30,
June 30,
June 30,
2020
2020
2019
2020
2019
Tobacco Adjusted EBITDA:
Operating income from tobacco segment
$
281,330
$
79,309
$
68,651
$
148,495
$
128,795
Litigation settlement and judgment expense
(a)
388
53
655
53
655
Total adjustments
388
53
655
53
655
Tobacco Adjusted Operating Income
281,718
79,362
69,306
148,548
129,450
Depreciation and amortization
7,959
2,000
1,950
4,042
3,907
Stock-based compensation expense
—
—
—
—
21
Total adjustments
7,959
2,000
1,950
4,042
3,928
Tobacco Adjusted EBITDA
$
289,677
$
81,362
$
71,256
$
152,590
$
133,378
a. Represents accruals for product liability litigation in the
Company’s tobacco segment.
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,
2020
2020
2019
2020
2019
Net (loss) income attributed to Vector
Group Ltd. from subsidiary non-guarantors (a)
$
(84,511
)
$
(12,417
)
$
15,307
$
(66,849
)
$
6,222
Interest expense (a)
678
106
228
222
457
Income tax (benefit) expense (a)
(32,712
)
(4,529
)
5,909
(24,338
)
2,490
Net (loss) income attributed to
non-controlling interest (a)
(39
)
—
—
—
80
Depreciation and amortization
9,019
2,198
2,024
4,511
4,525
EBITDA
$
(107,565
)
$
(14,642
)
$
23,468
$
(86,454
)
$
13,774
Loss from non-guarantors other than New
Valley LLC
53
15
14
44
42
Equity in losses (earnings) from real
estate ventures (b)
42,005
12,260
(6,391
)
18,765
(3,952
)
Restructuring charges (c)
2,961
2,961
—
2,961
—
Impairments of goodwill and intangible
assets (d)
58,252
—
—
58,252
—
Other, net
(6,875
)
(2,325
)
(632
)
(2,282
)
(1,336
)
Adjusted EBITDA attributed to New Valley
LLC
$
(11,169
)
$
(1,731
)
$
16,459
$
(8,714
)
$
8,528
Adjusted EBITDA Attributed to New Valley
LLC by Segment
Real Estate (e)
$
(11,092
)
$
(1,716
)
$
16,477
$
(8,626
)
$
8,569
Corporate and Other
(77
)
(15
)
(18
)
(88
)
(41
)
Total (f)
$
(11,169
)
$
(1,731
)
$
16,459
$
(8,714
)
$
8,528
- 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,
2020.
- Represents equity in losses (earnings) recognized from the
Company’s investment in certain real estate businesses that are
accounted for under the equity method and are not consolidated in
the Company’s financial results.
- Represents restructuring charges related to Douglas Elliman
Realty, LLC’s realignment of administrative support functions,
office locations and business model to serve its clients more
efficiently.
- Represents non-cash intangible asset impairment charges in the
Real Estate segment related to the goodwill and trademark of the
Douglas Elliman Realty, LLC reporting unit.
- Includes Adjusted EBITDA for Douglas Elliman Realty, LLC of
losses of $11,083 for the last twelve months ended June 30, 2020,
losses of $1,054, gains of $16,649, losses of $8,758 and gains of
$7,658 for the three and six months ended June 30, 2020 and 2019,
respectively.
- 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 $15,648 for the last twelve months ended June 30,
2020 and $3,140, $4,272, $7,277, and $8,752 for the three and six
months ended June 30, 2020 and 2019, respectively.
TABLE 7
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF 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,
2020
2020
2019
2020
2019
Net (loss) income attributed to Douglas
Elliman Realty, LLC
$
(72,621
)
$
(5,042
)
$
15,138
$
(74,082
)
$
4,724
Interest expense
4
—
2
1
5
Income tax expense
269
2
101
2
101
Depreciation and amortization
8,628
2,089
1,922
4,312
4,322
Douglas Elliman Realty, LLC EBITDA
$
(63,720
)
$
(2,951
)
$
17,163
$
(69,767
)
$
9,152
Equity in earnings from real estate
ventures (a)
(7,561
)
—
(285
)
(23
)
(934
)
Restructuring charges (b)
2,961
2,961
—
2,961
—
Impairments of goodwill and intangible
assets (c)
58,252
—
—
58,252
—
Other, net
(1,015
)
(1,064
)
(229
)
(181
)
(560
)
Douglas Elliman Realty, LLC Adjusted
EBITDA attributed to Real Estate Segment
$
(11,083
)
$
(1,054
)
$
16,649
$
(8,758
)
$
7,658
- Represents equity in earnings recognized from the Company’s
investment in certain real estate businesses that are accounted for
under the equity method and are not consolidated in the Company’s
financial results.
- Represents restructuring charges related to Douglas Elliman
Realty, LLC’s realignment of administrative support functions,
office locations and business model to serve its clients more
efficiently.
- Represents non-cash intangible asset impairment charges related
to the goodwill and trademark of Douglas Elliman Realty, LLC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200805006017/en/
Emily Claffey/Benjamin Spicehandler /Columbia Clancy Sard
Verbinnen & Co 212-687-8080
Eve Young Sard Verbinnen & Co - Europe +44 (0)20 3178
8914
J. Bryant Kirkland III, Vector Group Ltd. 305-579-8000
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