Vector Group Reports Third Quarter 2021 Financial Results
Record High Quarterly Revenues and Robust Operating Income
Continued Strong Earnings Momentum in Tobacco and Real Estate Segments
Company Separately Announces Plan to Spin-Off
Third Quarter 2021 Highlights:
- Consolidated revenues of
$652.6 million , up 19% or$104.8 million compared to the prior year period- Real Estate segment revenues of
$354.7 million , up 55% or$125.7 million compared to the prior year period - Douglas Elliman’s closed sales volume of
$12.6 billion , up 62% or$4.8 billion compared to the prior year period
- Real Estate segment revenues of
- Reported net income attributed to
Vector Group of$48.9 million or$0.32 per diluted share, up$10.8 million compared to the prior year period; Adjusted Net Income of$52.6 million or$0.34 per diluted share, up$14.3 million compared to the prior year period - Reported operating income of
$107.5 million , up$11.6 million compared to the prior year period- Tobacco segment operating income of
$91.8 million , up$0.5 million compared to the prior year period - Real Estate segment operating income of
$24.7 million , up$13.9 million compared to the prior year period
- Tobacco segment operating income of
- Adjusted EBITDA of
$116.5 million , up 13% or$13.2 million compared to the prior year period- Tobacco segment Adjusted EBITDA of
$93.4 million , down$0.2 million compared to the prior year period - Real Estate segment Adjusted EBITDA of
$27.1 million , up$13.8 million compared to the prior year period
- Tobacco segment Adjusted EBITDA of
Year-to-date 2021 Highlights:
- Consolidated revenues of
$1.93 billion , up 33% or$477.9 million compared to the prior year period- Real Estate segment revenues of
$1.0 billion , up 94% or$500.4 million compared to the prior year period - Douglas Elliman’s closed sales volume of
$37.2 billion , up 100% or$18.6 billion compared to the prior year period
- Real Estate segment revenues of
- Reported net income attributed to
Vector Group of$174.2 million or$1.13 per diluted share, up$113.5 million compared to the prior year period; Adjusted Net Income of$194.3 million or$1.26 per diluted share, up$87.4 million compared to the prior year period - Reported operating income of
$334.8 million , up$177.0 million compared to the prior year period- Tobacco segment operating income of
$276.6 million , up 15% or$36.7 million compared to the prior year period - Real Estate segment operating income of
$82.3 million , up$145.8 million compared to the prior year period
- Tobacco segment operating income of
- Adjusted EBITDA of
$355.1 million , up 48% or$115.0 million compared to the prior year period- Tobacco segment Adjusted EBITDA of
$278.9 million , up 13% or$32.7 million compared to the prior year period - Real Estate segment Adjusted EBITDA of
$89.2 million , up$84.5 million compared to the prior year period
- Tobacco segment Adjusted EBITDA of
- Strong liquidity with cash and cash equivalents of
$524 million and investment securities and long-term investments of$214 million atSeptember 30, 2021 - Cash dividends of
$95 million returned to stockholders at a rate of$0.60 per common share
Last Twelve Months ended
- Consolidated revenues of
$2.5 billion - Tobacco segment revenues of
$1.2 billion - Real Estate segment revenues of
$1.3 billion - Douglas Elliman’s closed sales volume of
$47.7 billion
- Tobacco segment revenues of
- Net income of
$206.4 million - Real Estate segment net income of
$61.9 million
- Real Estate segment net income of
- Operating income of
$422.1 million - Tobacco segment operating income of
$356.3 million
- Tobacco segment operating income of
- Adjusted EBITDA of
$448.4 million - Tobacco segment Adjusted EBITDA of
$360.8 million - Real Estate segment Adjusted EBITDA of
$106.2 million
- Tobacco segment Adjusted EBITDA of
“Vector had another outstanding quarter, achieving all-time high quarterly revenues and significantly increased operating income,” said
“We are excited by the continued strong performance of our tobacco business which validates our market strategy and reflects the competitive advantages we have in the deep discount segment. Our
In a separate press release issued today,
GAAP Financial Results
Three months ended
Nine months ended
Non-GAAP Financial Measures
Non-GAAP financial measures include adjustments for change in fair value of derivatives embedded within convertible debt, loss on extinguishment of debt, litigation settlements and judgment expense, impact of Master Settlement Agreement settlements, restructuring charges, net gains on sales of assets (for purposes of Adjusted EBITDA and Adjusted Operating Income only), and impairments of goodwill and other intangible assets. For purposes of Adjusted EBITDA only, adjustments include equity in earnings from investments, equity in (earnings) losses from real estate ventures, stock-based compensation expense, and other, net. For purposes of Adjusted Net Income only, adjustments include non-cash amortization of debt discount on convertible debt, net interest expense capitalized to real estate ventures, and the derivative associated with the 2018 acquisition of 29.41% of
Three months ended
Adjusted EBITDA attributed to Vector (as described in Table 2 attached hereto) were
Adjusted Net Income (as described in Table 3 attached hereto) was
Adjusted Operating Income (as described in Table 4 attached hereto) was
Nine months ended
Adjusted EBITDA attributed to Vector (as described in Table 2 attached hereto) were
Adjusted Net Income (as described in Table 3 attached hereto) was
Adjusted Operating Income (as described in Table 4 attached hereto) was
Last twelve months ended
For the last twelve months ended
For the last twelve months ended
Consolidated Balance Sheet
Vector maintained significant liquidity at
Vector continued its longstanding history of paying a quarterly cash dividend in the third quarter of 2021. For the nine months ended
Tobacco Segment Financial Results
For the third quarter of 2021, 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 third quarter of 2021 and 2020 was
For the third quarter of 2021, the Tobacco segment had conventional cigarette (wholesale) shipments of approximately 2.11 billion units, compared to 2.39 billion units for the third quarter of 2020. For the nine months ended
According to data from
Real Estate Segment Financial Results
For the third quarter of 2021, the Real Estate segment had revenues of
Douglas Elliman’s results are included in the Company’s Real Estate segment. For the third quarter of 2021,
Results for the third quarter of 2020 for the Real Estate segment and
Non-GAAP Financial Measures
For the third quarter of 2021, Real Estate Adjusted EBITDA attributed to Vector (as described in Table 6 attached hereto) were
For the nine months ended
For the last twelve months ended
For the third quarter of 2021, Douglas Elliman’s Adjusted EBITDA (as described in Table 7 attached hereto) were
For the nine months ended
For the last twelve months ended
For the three and nine months ended
Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted Net Income, Adjusted Operating Income, Tobacco Adjusted Operating Income, Tobacco Adjusted EBITDA, Real Estate Segment (
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 8 is information relating to the Company’s Non-GAAP Financial Measures for the last twelve months ended
Conference Call to Discuss Third Quarter 2021 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
Investors and others should note that we may post information about the Company or its subsidiaries on our website at www.VectorGroupLtd.com and/or at the websites of those subsidiaries or, if applicable, on their accounts on Facebook, Instagram, LinkedIn,
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,” “continue’” “could,” “potential,” “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 2020 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 |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(Unaudited) |
|
(Unaudited) |
||||||||||||
|
Revenues: |
|
|
|
|
|
|
|
||||||||
|
Tobacco* |
$ |
297,942 |
|
|
$ |
318,850 |
|
|
$ |
895,901 |
|
|
$ |
918,429 |
|
|
Real estate |
354,704 |
|
|
228,981 |
|
|
1,030,038 |
|
|
529,650 |
|
||||
|
Total revenues |
652,646 |
|
|
547,831 |
|
|
1,925,939 |
|
|
1,448,079 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Expenses: |
|
|
|
|
|
|
|
||||||||
|
Cost of sales: |
|
|
|
|
|
|
|
||||||||
|
Tobacco* |
186,398 |
|
|
204,101 |
|
|
556,574 |
|
|
615,458 |
|
||||
|
Real estate |
260,692 |
|
|
170,474 |
|
|
754,468 |
|
|
374,625 |
|
||||
|
Total cost of sales |
447,090 |
|
|
374,575 |
|
|
1,311,042 |
|
|
990,083 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Operating, selling, administrative and general expenses |
98,925 |
|
|
77,019 |
|
|
280,982 |
|
|
238,600 |
|
||||
|
Litigation settlement and judgment expense |
12 |
|
|
— |
|
|
17 |
|
|
53 |
|
||||
|
Net gains on sales of assets |
(910 |
) |
|
— |
|
|
(910 |
) |
|
— |
|
||||
|
Impairments of goodwill and other intangible assets |
— |
|
|
— |
|
|
— |
|
|
58,252 |
|
||||
|
Restructuring charges |
— |
|
|
320 |
|
|
— |
|
|
3,281 |
|
||||
|
Operating income |
107,529 |
|
|
95,917 |
|
|
334,808 |
|
|
157,810 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Other income (expenses): |
|
|
|
|
|
|
|
||||||||
|
Interest expense |
(28,287 |
) |
|
(28,163 |
) |
|
(85,153 |
) |
|
(93,148 |
) |
||||
|
Loss on extinguishment of debt |
— |
|
|
— |
|
|
(21,362 |
) |
|
— |
|
||||
|
Change in fair value of derivatives embedded within convertible debt |
— |
|
|
— |
|
|
— |
|
|
4,999 |
|
||||
|
Equity in earnings from investments |
44 |
|
|
1,840 |
|
|
1,562 |
|
|
54,199 |
|
||||
|
Equity in (losses) earnings from real estate ventures |
(5,869 |
) |
|
(8,536 |
) |
|
12,405 |
|
|
(27,301 |
) |
||||
|
Other, net |
(969 |
) |
|
(5,096 |
) |
|
7,363 |
|
|
(8,116 |
) |
||||
|
Income before provision for income taxes |
72,448 |
|
|
55,962 |
|
|
249,623 |
|
|
88,443 |
|
||||
|
Income tax expense |
23,679 |
|
|
17,823 |
|
|
75,592 |
|
|
27,761 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net income |
48,769 |
|
|
38,139 |
|
|
174,031 |
|
|
60,682 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net loss attributed to non-controlling interest |
120 |
|
|
— |
|
|
120 |
|
|
— |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net income attributed to |
$ |
48,889 |
|
|
$ |
38,139 |
|
|
$ |
174,151 |
|
|
$ |
60,682 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Per basic common share: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net income applicable to common share attributed to |
$ |
0.32 |
|
|
$ |
0.25 |
|
|
$ |
1.13 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Per diluted common share: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net income applicable to common share attributed to |
$ |
0.32 |
|
|
$ |
0.25 |
|
|
$ |
1.13 |
|
|
$ |
0.39 |
|
* Revenues and cost of sales include federal excise taxes of
| TABLE 2
RECONCILIATION OF ADJUSTED EBITDA (Unaudited) (Dollars in Thousands) |
|||||||||||||||||||||||
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Net income attributed to |
$ |
206,407 |
|
|
$ |
92,938 |
|
|
$ |
48,889 |
|
|
$ |
38,139 |
|
|
$ |
174,151 |
|
|
$ |
60,682 |
|
|
Interest expense |
113,546 |
|
|
121,541 |
|
|
28,287 |
|
|
28,163 |
|
|
85,153 |
|
|
93,148 |
|
||||||
|
Income tax expense |
89,608 |
|
|
41,777 |
|
|
23,679 |
|
|
17,823 |
|
|
75,592 |
|
|
27,761 |
|
||||||
|
Net loss attributed to non-controlling interest |
(120 |
) |
|
— |
|
|
(120 |
) |
|
— |
|
|
(120 |
) |
|
— |
|
||||||
|
Depreciation and amortization |
16,626 |
|
|
17,629 |
|
|
4,062 |
|
|
4,346 |
|
|
12,330 |
|
|
13,333 |
|
||||||
|
EBITDA |
$ |
426,067 |
|
|
$ |
273,885 |
|
|
$ |
104,797 |
|
|
$ |
88,471 |
|
|
$ |
347,106 |
|
|
$ |
194,924 |
|
|
Change in fair value of derivatives embedded within convertible debt (a) |
— |
|
|
(4,999 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(4,999 |
) |
||||||
|
Equity in earnings from investments (b) |
(3,631 |
) |
|
(56,268 |
) |
|
(44 |
) |
|
(1,840 |
) |
|
(1,562 |
) |
|
(54,199 |
) |
||||||
|
Equity in losses (earnings) from real estate ventures (c) |
4,992 |
|
|
44,698 |
|
|
5,869 |
|
|
8,536 |
|
|
(12,405 |
) |
|
27,301 |
|
||||||
|
Loss on extinguishment of debt |
21,362 |
|
|
— |
|
|
— |
|
|
— |
|
|
21,362 |
|
|
— |
|
||||||
|
Stock-based compensation expense (d) |
10,586 |
|
|
9,483 |
|
|
2,375 |
|
|
2,471 |
|
|
8,115 |
|
|
7,012 |
|
||||||
|
Litigation settlement and judgment expense (e) |
301 |
|
|
337 |
|
|
12 |
|
|
— |
|
|
17 |
|
|
53 |
|
||||||
|
Impact of MSA settlement (f) |
(2,709 |
) |
|
299 |
|
|
— |
|
|
286 |
|
|
(2,722 |
) |
|
286 |
|
||||||
|
Restructuring charges (g) |
101 |
|
|
3,382 |
|
|
— |
|
|
320 |
|
|
— |
|
|
3,281 |
|
||||||
|
Transaction expenses (h) |
3,426 |
|
|
— |
|
|
3,426 |
|
|
— |
|
|
3,426 |
|
|
— |
|
||||||
|
Net gains on sales of assets |
(2,024 |
) |
|
(1,114 |
) |
|
(910 |
) |
|
— |
|
|
(910 |
) |
|
— |
|
||||||
|
Impairments of goodwill and other intangible assets (i) |
— |
|
|
58,252 |
|
|
— |
|
|
— |
|
|
— |
|
|
58,252 |
|
||||||
|
Other, net |
(10,023 |
) |
|
5,456 |
|
|
969 |
|
|
5,096 |
|
|
(7,363 |
) |
|
8,116 |
|
||||||
|
Adjusted EBITDA attributed to |
$ |
448,448 |
|
|
$ |
333,411 |
|
|
$ |
116,494 |
|
|
$ |
103,340 |
|
|
$ |
355,064 |
|
|
$ |
240,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Adjusted EBITDA Attributed to |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Tobacco |
$ |
360,769 |
|
|
$ |
328,049 |
|
|
$ |
93,350 |
|
|
$ |
93,570 |
|
|
$ |
278,880 |
|
|
$ |
246,160 |
|
|
Real Estate (j) |
106,239 |
|
|
21,782 |
|
|
27,098 |
|
|
13,337 |
|
|
89,168 |
|
|
4,711 |
|
||||||
|
Corporate and Other |
(18,560 |
) |
|
(16,420 |
) |
|
(3,954 |
) |
|
(3,567 |
) |
|
(12,984 |
) |
|
(10,844 |
) |
||||||
|
Total |
$ |
448,448 |
|
|
$ |
333,411 |
|
|
$ |
116,494 |
|
|
$ |
103,340 |
|
|
$ |
355,064 |
|
|
$ |
240,027 |
|
- 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 from Ladenburg Thalmann Financial Services of
$0 for the last twelve months endedSeptember 30, 2021 ,$53,424 for the year endedDecember 31, 2020 ,$372 for the three months endedSeptember 30, 2020 and$53,424 for the nine months endedSeptember 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 amortization of stock-based compensation.
- Represents accruals for product liability litigation in the Company’s Tobacco segment.
- Represents the Company’s Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement.
- Represents restructuring charges related to
Douglas Elliman Realty , LLC’s realignment of administrative support functions, office locations and business model. - Transaction expenses include expenses incurred in connection with the Company’s intended spin-off of its real estate brokerage business and related property technology (“PropTech”) investments into a standalone, publicly traded company.
- 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$106,178 for the last twelve months endedSeptember 30, 2021 ,$22,054 for the year endedDecember 31, 2020 ,$27,824 ,$14,089 ,$89,455 and$5,331 for the three and nine months endedSeptember 30, 2021 and 2020, respectively.
|
TABLE 3 RECONCILIATION OF ADJUSTED NET INCOME (Unaudited) (Dollars in Thousands, Except Per Share Amounts) |
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
|
|
||||||||||||
|
Net income attributed to |
$ |
48,889 |
|
|
$ |
38,139 |
|
|
$ |
174,151 |
|
|
$ |
60,682 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in fair value of derivatives embedded within convertible debt |
— |
|
|
— |
|
|
— |
|
|
(4,999 |
) |
||||
|
Non-cash amortization of debt discount on convertible debt |
— |
|
|
— |
|
|
— |
|
|
5,276 |
|
||||
|
Loss on extinguishment of debt |
— |
|
|
— |
|
|
21,362 |
|
|
— |
|
||||
|
Litigation settlement and judgment expense (a) |
12 |
|
|
— |
|
|
17 |
|
|
53 |
|
||||
|
Impact of MSA settlement (b) |
— |
|
|
286 |
|
|
(2,722 |
) |
|
286 |
|
||||
|
Impact of net interest expense capitalized to real estate ventures |
702 |
|
|
(35 |
) |
|
(167 |
) |
|
3,015 |
|
||||
|
Adjustment for derivative associated with acquisition of 29.41% of |
(271 |
) |
|
(252 |
) |
|
3,252 |
|
|
(2,083 |
) |
||||
|
Restructuring charges (c) |
— |
|
|
320 |
|
|
— |
|
|
3,281 |
|
||||
|
Transaction expenses (d) |
3,426 |
|
|
— |
|
|
3,426 |
|
|
— |
|
||||
|
Impairments of goodwill and other intangible assets (e) |
— |
|
|
— |
|
|
— |
|
|
58,252 |
|
||||
|
Total adjustments |
3,869 |
|
|
319 |
|
|
25,168 |
|
|
63,081 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Tax benefit (expense) related to adjustments |
(192 |
) |
|
(154 |
) |
|
(4,990 |
) |
|
(16,848 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted Net Income attributed to |
$ |
52,566 |
|
|
$ |
38,304 |
|
|
$ |
194,329 |
|
|
$ |
106,915 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Per diluted common share: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted Net Income applicable to common shares attributed to |
$ |
0.34 |
|
|
$ |
0.25 |
|
|
$ |
1.26 |
|
|
$ |
0.70 |
|
- Represents accruals for product liability litigation in the Company’s Tobacco segment.
- Represents the Company’s Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement.
- Represents restructuring charges related to
Douglas Elliman Realty , LLC’s realignment of administrative support functions, office locations and business model. - Transaction expenses include expenses incurred in connection with the Company’s intended spin-off of its real estate brokerage business and related PropTech investments into a standalone, publicly traded company.
- 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 |
|
Year Ended |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Operating income |
$ |
422,141 |
|
|
$ |
245,143 |
|
|
$ |
107,529 |
|
|
$ |
95,917 |
|
|
$ |
334,808 |
|
|
$ |
157,810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Litigation settlement and judgment expense (a) |
301 |
|
|
337 |
|
|
12 |
|
|
— |
|
|
17 |
|
|
53 |
|
||||||
|
Restructuring charges (b) |
101 |
|
|
3,382 |
|
|
— |
|
|
320 |
|
|
— |
|
|
3,281 |
|
||||||
|
Transaction expenses (c) |
3,426 |
|
|
— |
|
|
3,426 |
|
|
— |
|
|
3,426 |
|
|
— |
|
||||||
|
Impact of MSA settlement (d) |
(2,709 |
) |
|
299 |
|
|
— |
|
|
286 |
|
|
(2,722 |
) |
|
286 |
|
||||||
|
Net gains on sales of assets |
(2,024 |
) |
|
(1,114 |
) |
|
(910 |
) |
|
— |
|
|
(910 |
) |
|
— |
|
||||||
|
Impairments of goodwill and other intangible assets (e) |
— |
|
|
58,252 |
|
|
— |
|
|
— |
|
|
— |
|
|
58,252 |
|
||||||
|
Total adjustments |
(905 |
) |
|
61,156 |
|
|
2,528 |
|
|
606 |
|
|
(189 |
) |
|
61,872 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Adjusted Operating Income |
$ |
421,236 |
|
|
$ |
306,299 |
|
|
$ |
110,057 |
|
|
$ |
96,523 |
|
|
$ |
334,619 |
|
|
$ |
219,682 |
|
- 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. - Transaction expenses include expenses incurred in connection with the Company’s intended spin-off of its real estate brokerage business and related PropTech investments into a standalone, publicly traded company.
- Represents the Company’s Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement.
- 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 5 RECONCILIATION OF TOBACCO ADJUSTED OPERATING INCOME AND TOBACCO ADJUSTED EBITDA (Unaudited) (Dollars in Thousands) |
|||||||||||||||||||||||
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Tobacco Adjusted Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating income from Tobacco segment |
$ |
356,279 |
|
|
$ |
319,536 |
|
|
$ |
91,779 |
|
|
$ |
91,319 |
|
|
$ |
276,557 |
|
|
$ |
239,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Litigation settlement and judgment expense (a) |
301 |
|
|
337 |
|
|
12 |
|
|
— |
|
|
17 |
|
|
53 |
|
||||||
|
Impact of MSA settlement (b) |
(2,709 |
) |
|
299 |
|
|
— |
|
|
286 |
|
|
(2,722 |
) |
|
286 |
|
||||||
|
Total adjustments |
(2,408 |
) |
|
636 |
|
|
12 |
|
|
286 |
|
|
(2,705 |
) |
|
339 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Tobacco Adjusted Operating Income |
$ |
353,871 |
|
|
$ |
320,172 |
|
|
$ |
91,791 |
|
|
$ |
91,605 |
|
|
$ |
273,852 |
|
|
$ |
240,153 |
|
|
|
|||||||||||||||||||||||
|
|
|||||||||||||||||||||||
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Tobacco Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating income from Tobacco segment |
$ |
356,279 |
|
|
$ |
319,536 |
|
|
$ |
91,779 |
|
|
$ |
91,319 |
|
|
$ |
276,557 |
|
|
$ |
239,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Litigation settlement and judgment expense (a) |
301 |
|
|
337 |
|
|
12 |
|
|
— |
|
|
17 |
|
|
53 |
|
||||||
|
Impact of MSA settlement (b) |
(2,709 |
) |
|
299 |
|
|
— |
|
|
286 |
|
|
(2,722 |
) |
|
286 |
|
||||||
|
Total adjustments |
(2,408 |
) |
|
636 |
|
|
12 |
|
|
286 |
|
|
(2,705 |
) |
|
339 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Tobacco Adjusted Operating Income |
353,871 |
|
|
320,172 |
|
|
91,791 |
|
|
91,605 |
|
|
273,852 |
|
|
240,153 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Depreciation and amortization |
6,877 |
|
|
7,877 |
|
|
1,550 |
|
|
1,965 |
|
|
5,007 |
|
|
6,007 |
|
||||||
|
Stock-based compensation expense |
21 |
|
|
— |
|
|
9 |
|
|
— |
|
|
21 |
|
|
— |
|
||||||
|
Total adjustments |
6,898 |
|
|
7,877 |
|
|
1,559 |
|
|
1,965 |
|
|
5,028 |
|
|
6,007 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Tobacco Adjusted EBITDA |
$ |
360,769 |
|
|
$ |
328,049 |
|
|
$ |
93,350 |
|
|
$ |
93,570 |
|
|
$ |
278,880 |
|
|
$ |
246,160 |
|
- Represents accruals for product liability litigation in the Company’s Tobacco segment.
- Represents the Company’s Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement.
|
TABLE 6 RECONCILIATION OF REAL ESTATE SEGMENT ( (Unaudited) (Dollars in Thousands) |
|||||||||||||||||||||||
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Net income (loss) attributed to |
$ |
61,942 |
|
|
$ |
(75,910 |
) |
|
$ |
15,486 |
|
|
$ |
(4,053 |
) |
|
$ |
66,950 |
|
|
$ |
(70,902 |
) |
|
Interest expense (a) |
165 |
|
|
268 |
|
|
61 |
|
|
17 |
|
|
136 |
|
|
239 |
|
||||||
|
Income tax expense (benefit) (a) |
23,313 |
|
|
(27,674 |
) |
|
3,800 |
|
|
(1,634 |
) |
|
25,015 |
|
|
(25,972 |
) |
||||||
|
Net loss attributed to non-controlling interest (a) |
(120 |
) |
|
— |
|
|
(120 |
) |
|
— |
|
|
(120 |
) |
|
— |
|
||||||
|
Depreciation and amortization |
9,465 |
|
|
8,874 |
|
|
2,493 |
|
|
2,167 |
|
|
7,269 |
|
|
6,678 |
|
||||||
|
EBITDA |
$ |
94,765 |
|
|
$ |
(94,442 |
) |
|
$ |
21,720 |
|
|
$ |
(3,503 |
) |
|
$ |
99,250 |
|
|
$ |
(89,957 |
) |
|
(Income) loss from non-guarantors other than |
(549 |
) |
|
45 |
|
|
(200 |
) |
|
17 |
|
|
(533 |
) |
|
61 |
|
||||||
|
Equity in losses (earnings) from real estate ventures (b) |
4,992 |
|
|
44,698 |
|
|
5,869 |
|
|
8,536 |
|
|
(12,405 |
) |
|
27,301 |
|
||||||
|
Restructuring charges (c) |
101 |
|
|
3,382 |
|
|
— |
|
|
320 |
|
|
— |
|
|
3,281 |
|
||||||
|
Loss on sale of asset |
1,169 |
|
|
1,169 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||
|
Impairments of goodwill and other intangible assets (d) |
— |
|
|
58,252 |
|
|
— |
|
|
— |
|
|
— |
|
|
58,252 |
|
||||||
|
Other, net |
5,701 |
|
|
8,575 |
|
|
(314 |
) |
|
7,967 |
|
|
2,811 |
|
|
5,685 |
|
||||||
|
Adjusted EBITDA attributed to |
$ |
106,179 |
|
|
$ |
21,679 |
|
|
$ |
27,075 |
|
|
$ |
13,337 |
|
|
$ |
89,123 |
|
|
$ |
4,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Adjusted EBITDA Attributed to |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Real Estate (e) |
$ |
106,239 |
|
|
$ |
21,782 |
|
|
$ |
27,098 |
|
|
$ |
13,337 |
|
|
$ |
89,168 |
|
|
$ |
4,711 |
|
|
Corporate and Other |
(60 |
) |
|
(103 |
) |
|
(23 |
) |
|
— |
|
|
(45 |
) |
|
(88 |
) |
||||||
|
Total (f) |
$ |
106,179 |
|
|
$ |
21,679 |
|
|
$ |
27,075 |
|
|
$ |
13,337 |
|
|
$ |
89,123 |
|
|
$ |
4,623 |
|
- Amounts are derived from Vector Group Ltd.’s Condensed Consolidated Financial Statements. See Exhibit 99.2 “Condensed Consolidating Financial Information” contained in Vector Group Ltd.’s Form 10-K for the period ended
December 31, 2020 , Form 10-Q for the period endedSeptember 30, 2021 and Form 10-Q for the period endedSeptember 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. - 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$106,178 for the last twelve months endedSeptember 30, 2021 ,$22,054 for the year endedDecember 31, 2020 ,$27,824 ,$14,089 ,$89,455 and$5,331 for the three and nine months endedSeptember 30, 2021 and 2020, 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
$18,560 for the last twelve months endedSeptember 30, 2021 ,$16,420 for the year endedDecember 31, 2020 ,$3,954 ,$3,567 ,$12,984 and$10,844 for the three and nine months endedSeptember 30, 2021 and 2020, respectively.
|
TABLE 7 RECONCILIATION OF DOUGLAS ELLIMAN REALTY, LLC ADJUSTED EBITDA ATTRIBUTED TO REAL ESTATE SEGMENT (Unaudited) (Dollars in Thousands) |
|||||||||||||||||||||||
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net income (loss) attributed to |
$ |
96,196 |
|
|
$ |
(48,210 |
) |
|
$ |
25,078 |
|
|
$ |
11,838 |
|
|
$ |
82,162 |
|
|
$ |
(62,244 |
) |
|
Interest expense |
25 |
|
|
1 |
|
|
22 |
|
|
— |
|
|
25 |
|
|
1 |
|
||||||
|
Income tax expense (benefit) |
1,602 |
|
|
(5 |
) |
|
597 |
|
|
(179 |
) |
|
1,430 |
|
|
(177 |
) |
||||||
|
Depreciation and amortization |
8,541 |
|
|
8,537 |
|
|
2,189 |
|
|
2,093 |
|
|
6,409 |
|
|
6,405 |
|
||||||
|
|
$ |
106,364 |
|
|
$ |
(39,677 |
) |
|
$ |
27,886 |
|
|
$ |
13,752 |
|
|
$ |
90,026 |
|
|
$ |
(56,015 |
) |
|
Equity in earnings from real estate ventures (a) |
(79 |
) |
|
(30 |
) |
|
— |
|
|
(3 |
) |
|
(75 |
) |
|
(26 |
) |
||||||
|
Restructuring charges (b) |
101 |
|
|
3,382 |
|
|
— |
|
|
320 |
|
|
— |
|
|
3,281 |
|
||||||
|
Loss on sale of asset |
1,169 |
|
|
1,169 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||
|
Impairments of goodwill and other intangible assets (c) |
— |
|
|
58,252 |
|
|
— |
|
|
— |
|
|
— |
|
|
58,252 |
|
||||||
|
Other, net |
(1,377 |
) |
|
(1,042 |
) |
|
(62 |
) |
|
20 |
|
|
(496 |
) |
|
(161 |
) |
||||||
|
|
$ |
106,178 |
|
|
$ |
22,054 |
|
|
$ |
27,824 |
|
|
$ |
14,089 |
|
|
$ |
89,455 |
|
|
$ |
5,331 |
|
- 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. - Represents non-cash intangible asset impairment charges related to the goodwill and trademark of
Douglas Elliman Realty, LLC .
|
TABLE 8 RECONCILIATION OF REVENUES (Unaudited) (Dollars in Thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
LTM |
|
Year Ended |
|
Nine Months Ended |
||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
||||||||
|
Tobacco (a) |
|
$ |
1,181,973 |
|
|
$ |
1,204,501 |
|
|
$ |
895,901 |
|
|
$ |
918,429 |
|
|
Real estate (b) |
|
1,298,556 |
|
|
798,168 |
|
|
1,030,038 |
|
|
529,650 |
|
||||
|
Total revenues |
|
$ |
2,480,529 |
|
|
$ |
2,002,669 |
|
|
$ |
1,925,939 |
|
|
$ |
1,448,079 |
|
- Tobacco segment revenues include federal excise taxes of
$429,760 ,$461,532 ,$322,857 and$354,629 for the last twelve months endedSeptember 30, 2021 , the year endedDecember 31, 2020 and the nine months endedSeptember 30, 2021 and 2020, respectively. - Real Estate segment revenues include revenues from Douglas Elliman of
$1,286,373 ,$773,987 ,$1,018,912 and$506,526 for the last twelve months endedSeptember 30, 2021 , the year endedDecember 31, 2020 and the nine months endedSeptember 30, 2021 and 2020, respectively.
View source version on businesswire.com: https://www.businesswire.com/news/home/20211108006103/en/
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+44 (0)20 3178 8914
J. Bryant Kirkland III,
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Source: