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 | |||||||
| |||||||||||||||
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 | |||||
| |||||||||||||||
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 | |||||
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View source version on businesswire.com: https://www.businesswire.com/news/home/20200228005207/en/
Contacts:
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
