Vector Group Reports Second Quarter 2020 Financial Results
Strong Liggett Tobacco Revenues and Earnings;
Cost Reduction Initiatives at Douglas Elliman to Address Impacts of COVID-19
“We are pleased with Vector Group’s results and the significant progress made during the second quarter,” said
“Liggett continues to perform exceptionally well with increased revenues of 8.8% and operating income of 15.3% for the year-to-date period,”
GAAP Financial Results
Second quarter 2020 revenues were
For the six months ended
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
Three months ended
Second quarter of 2020 Adjusted EBITDA attributed to
Adjusted Net Income (as described in Table 3 attached hereto) was
Adjusted Operating Income (as described in Table 4 attached hereto) was
Six months ended
Adjusted EBITDA attributed to
Adjusted Net Income (as described in Table 3 attached hereto) was
Adjusted Operating Income (as described in Table 4 attached hereto) was
Tobacco Segment Financial Results
For the second quarter of 2020, the Tobacco segment had revenues of
Operating Income from the Tobacco segment was
Non-GAAP Financial Measures
Tobacco Adjusted Operating Income (as described in Table 5 attached hereto) for the second quarter of 2020 and 2019 was
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
Liggett’s retail market share increased to 4.3% for both the second quarter of 2020 and the six months ended
Real Estate Segment Financial Results
For the second quarter of 2020, the Real Estate segment had revenues of
Douglas Elliman’s results are included in the Company’s Real Estate segment. For the second quarter of 2020, Douglas Elliman had revenues of
Net loss from the Real Estate segment and Douglas Elliman for the second quarter of 2020 included pre-tax restructuring charges of
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
For the six months ended
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
For the six months ended
For the three and six months ended
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
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
Conference Call to Discuss Second Quarter 2020 Results
As previously announced, the Company will host a conference call and webcast on
A replay of the call will be available shortly after the call ends on
About
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
[Financial Tables Follow]
|
TABLE 1 CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share Amounts) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
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 |
$ |
25,774 |
|
|
$ |
39,307 |
|
|
$ |
22,543 |
|
|
$ |
54,260 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Per basic common share: |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income applicable to common share attributed to |
$ |
0.17 |
|
|
$ |
0.25 |
|
|
$ |
0.14 |
|
|
$ |
0.34 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Per diluted common share: |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income applicable to common share attributed to |
$ |
0.16 |
|
|
$ |
0.25 |
|
|
$ |
0.14 |
|
|
$ |
0.33 |
|
|
* Revenues and cost of sales include federal excise taxes of
|
TABLE 2 RECONCILIATION OF ADJUSTED EBITDA (Unaudited) (Dollars in Thousands) |
||||||||||||||||||||
|
|
LTM |
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Net income attributed to |
$ |
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 |
$ |
262,937 |
|
|
$ |
76,506 |
|
|
$ |
83,461 |
|
|
$ |
136,687 |
|
|
$ |
133,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Adjusted EBITDA Attributed to |
|
|
|
|
|
|
|
|
|
|||||||||||
|
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 fromCastle Brands for the twelve months endedJune 30, 2020 and equity in earnings of$53,627 ,$0 and$53,052 from Ladenburg Thalmann Financial Services for the twelve months endedJune 30, 2020 and for the three and six months endedJune 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 endedJune 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 endedJune 30, 2020 and 2019, respectively.
|
TABLE 3 RECONCILIATION OF ADJUSTED NET INCOME (Unaudited) (Dollars in Thousands, Except Per Share Amounts) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
|
|
|
|
|
|||||||||||||
|
Net income attributed to |
$ |
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 |
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 |
$ |
28,662 |
|
|
$ |
43,160 |
|
|
$ |
68,611 |
|
|
$ |
56,121 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Per diluted common share: |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Adjusted Net Income applicable to common shares attributed to |
$ |
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 RECONCILIATION OF ADJUSTED OPERATING INCOME (Unaudited) (Dollars in Thousands) |
||||||||||||||||||||
|
|
LTM |
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
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 RECONCILIATION OF TOBACCO ADJUSTED OPERATING INCOME AND TOBACCO ADJUSTED EBITDA (Unaudited) (Dollars in Thousands) |
||||||||||||||||||||
|
|
LTM |
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
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 |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
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 RECONCILIATION OF REAL ESTATE SEGMENT ( (Unaudited) (Dollars in Thousands) |
||||||||||||||||||||
|
|
LTM |
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Net (loss) income attributed to |
$ |
(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 |
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 |
$ |
(11,169 |
) |
|
$ |
(1,731 |
) |
|
$ |
16,459 |
|
|
$ |
(8,714 |
) |
|
$ |
8,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Adjusted EBITDA Attributed to |
|
|
|
|
|
|
|
|
|
|||||||||||
|
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 endedJune 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 endedJune 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 endedJune 30, 2020 and$3,140 ,$4,272 ,$7,277 , and$8,752 for the three and six months endedJune 30, 2020 and 2019, respectively.
|
TABLE 7 RECONCILIATION OF DOUGLAS ELLIMAN REALTY, LLC ADJUSTED EBITDA ATTRIBUTED TO REAL ESTATE SEGMENT (Unaudited) (Dollars in Thousands) |
||||||||||||||||||||
|
|
LTM |
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Net (loss) income attributed to |
$ |
(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 |
|
||||||
|
|
$ |
(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 |
) |
||||||
|
|
$ |
(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/
/
212-687-8080
+44 (0)20 3178 8914
J. Bryant Kirkland III,
305-579-8000
Source: