AP NEWS
Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

Vector Group Reports Third Quarter 2019 Financial Results

November 5, 2019

MIAMI--(BUSINESS WIRE)--Nov 5, 2019--

Vector Group Ltd. (NYSE:VGR) today announced financial results for the three and nine months ended September 30, 2019.

GAAP Financial Results

Third quarter 2019 revenues were $504.8 million, compared to revenues of $513.9 million in the third quarter of 2018. The Company recorded operating income of $66.7 million in the third quarter of 2019, compared to operating income of $66.0 million in the third quarter of 2018. Net income attributed to Vector Group Ltd. for the third quarter of 2019 was $36.0 million, or $0.23 per diluted common share, compared to net income of $12.0 million, or $0.07 per diluted common share, in the third quarter of 2018.

For the nine months ended September 30, 2019 revenues were $1.464 billion, compared to revenues of $1.424 billion for the nine months ended September 30, 2018. The Company recorded operating income of $185.6 million for the nine months ended September 30, 2019, compared to operating income of $176.0 million for the nine months ended September 30, 2018. Net income attributed to Vector Group Ltd. for the nine months ended September 30, 2019 was $90.3 million, or $0.56 per diluted common share, compared to a net income of $37.0 million, or $0.22 per diluted common share, for the nine months ended September 30, 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, 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 three and nine months ended September 30, 2019 and 2018 are included in Tables 2 through 7.

Three months ended September 30, 2019 compared to the three months ended September 30, 2018

Third quarter of 2019 Adjusted EBITDA attributed to Vector Group (as described in Table 2 attached hereto) were $73.7 million, compared to $73.4 million for the third quarter of 2018.

Adjusted Net Income (as described in Table 3 attached hereto) was $36.2 million, or $0.23 per diluted share, for the third quarter of 2019, and $23.1 million, or $0.15 per diluted share, for the third quarter of 2018.

Adjusted Operating Income (as described in Table 4 attached hereto) was $67.0 million for the third quarter of 2019, compared to $66.4 million for the third quarter of 2018.

Nine months ended September 30, 2019 compared to the nine months ended September 30, 2018

Adjusted EBITDA attributed to Vector Group Ltd. (as described in Table 2 attached hereto) were $206.9 million for the nine months ended September 30, 2019, compared to $191.4 million for the nine months ended September 30, 2018.

Adjusted Net Income (as described in Table 3 attached hereto) was $92.3 million, or $0.59 per diluted share, for the nine months ended September 30, 2019, and $56.5 million, or $0.35 per diluted share, for the nine months ended September 30, 2018.

Adjusted Operating Income (as described in Table 4 attached hereto) was $186.4 million for the nine months ended September 30, 2019, compared to $168.9 million for the nine months ended September 30, 2018.

Tobacco Segment Financial Results

For the third quarter of 2019, the Tobacco segment had revenues of $303.3 million, compared to $302.0 million for the third quarter of 2018. For the nine months ended September 30, 2019, the Tobacco segment had revenues of $854.5 million, compared to $844.0 million for the nine months ended September 30, 2018.

Operating Income from the Tobacco segment was $72.8 million and $201.6 million for the three and nine months ended September 30, 2019, respectively, compared to $63.3 million and $189.2 million for the three and nine months ended September 30, 2018, respectively.

Non-GAAP Financial Measures

Tobacco Adjusted Operating Income (as described in Table 5 attached hereto) for the third quarter of 2019 and 2018 was $73.0 million and $63.3 million, respectively. Tobacco Adjusted Operating Income for the nine months ended September 30, 2019 and 2018 was $202.5 million and $183.4 million, respectively.

For the third quarter of 2019, the Tobacco segment had conventional cigarette (wholesale) shipments of approximately 2.44 billion units, compared to 2.59 billion units for the third quarter of 2018. For the nine months ended September 30, 2019, the Tobacco segment had conventional cigarette (wholesale) shipments of approximately 6.90 billion units, compared to 7.13 billion units for the nine months ended September 30, 2018.

Liggett’s retail market share increased to 4.3% for the third quarter of 2019 and 4.2% for the nine months ended September 30, 2019, compared to 4.2% for the third quarter of 2018 and 4.1% for the nine months ended September 30, 2018. Compared to the third quarter of 2018, Liggett’s retail shipments declined by 3.5% while the overall industry’s retail shipments declined by 6.4%. Compared to the nine months ended September 30, 2018, Liggett’s retail shipments declined by 2.9% while the overall industry’s retail shipments declined by 5.9%, according to data from Management Science Associates, Inc.

Real Estate Segment Financial Results

For the third quarter of 2019, the Real Estate segment had revenues of $201.5 million, compared to $211.9 million for the third quarter of 2018. For the nine months ended September 30, 2019, the Real Estate segment had revenues of $609.6 million, compared to $580.4 million for the nine months ended September 30, 2018. For the third quarter of 2019, the Real Estate segment reported net income of $7.2 million, compared to a net income of $4.7 million for the third quarter of 2018. For the nine months ended September 30, 2019, the Real Estate segment reported a net income of $13.5 million, compared to net loss of $0.9 million for the nine months ended September 30, 2018.

Douglas Elliman’s results are included in Vector Group Ltd.’s Real Estate segment. For the third quarter of 2019, Douglas Elliman had revenues of $201.2 million, compared to $211.5 million for the third quarter of 2018. For the nine months ended September 30, 2019, Douglas Elliman had revenues of $606.0 million, compared to $576.5 million for the nine months ended September 30, 2018. For the third quarter of 2019, Douglas Elliman reported net income of $1.9 million, compared to net income of $10.0 million for the third quarter of 2018. For the nine months ended September 30, 2019, Douglas Elliman reported net income of $6.6 million, compared to net income of $7.8 million for the nine months ended September 30, 2018.

Non-GAAP Financial Measures

For the third quarter of 2019, Real Estate Adjusted EBITDA attributed to the Company (as described in Table 6 attached hereto) were $2.9 million, compared to $11.6 million for the third quarter of 2018.

For the nine months ended September 30, 2019, Real Estate Adjusted EBITDA attributed to the Company were $11.4 million, compared to $13.0 million for the nine months ended September 30, 2018.

For the third quarter of 2019, Douglas Elliman’s Adjusted EBITDA (as described in Table 7 attached hereto) were $3.4 million, compared to $12.0 million for the third quarter of 2018.

For the nine months ended September 30, 2019, Douglas Elliman’s Adjusted EBITDA were $11.0 million, compared to $11.8 million for the nine months ended September 30, 2018.

For the three and nine months ended September 30, 2019, Douglas Elliman achieved closed sales of approximately $7.4 billion and $22.1 billion, respectively, compared to $7.8 billion and $21.4 billion for the three and nine months ended September 30, 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 and nine months ended September 30, 2019 and 2018, respectively, as well as the twelve months ended September 30, 2019. 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 three and nine months ended September 30, 2019 and 2018.

Conference Call to Discuss Third Quarter 2019 Results

As previously announced, the Company will host a conference call and webcast on Tuesday, November 5, 2019 at 4:30 PM (ET) to discuss its third quarter 2019 results. Investors can access the call by dialing 800-859-8150 and entering 38104109 as the conference ID number. The call will also be available via live webcast at https://www.investornetwork.com/event/presentation/56439. 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 November 5, 2019 through November 19, 2019. To access the replay, dial 877-656-8905 and enter 38104109 as the conference ID number. The archived webcast will also be available at https://www.investornetwork.com/event/presentation/56439 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

 

Nine Months Ended

 

September 30,

 

September 30,

 

2019

 

2018

 

2019

 

2018

 

(Unaudited)

 

(Unaudited)

Revenues:

 

 

 

 

 

 

 

Tobacco*

$

 

303,260

 

 

$

 

302,009

 

 

$

 

854,517

 

 

$

 

843,958

 

Real estate

 

201,530

 

 

 

211,860

 

 

 

609,629

 

 

 

580,365

 

Total revenues

 

504,790

 

 

 

513,869

 

 

 

1,464,146

 

 

 

1,424,323

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

Cost of sales:

 

 

 

 

 

 

 

Tobacco*

 

209,192

 

 

 

219,769

 

 

 

590,956

 

 

 

597,492

 

Real estate

 

136,264

 

 

 

140,533

 

 

 

408,694

 

 

 

389,851

 

Total cost of sales

 

345,456

 

 

 

360,302

 

 

 

999,650

 

 

 

987,343

 

 

 

 

 

 

 

 

 

Operating, selling, administrative and general expenses

 

92,374

 

 

 

87,549

 

 

 

278,047

 

 

 

262,961

 

Litigation settlement and judgment expense (income)

 

240

 

 

 

 

 

895

 

 

 

(1,944

)

Operating income

 

66,720

 

 

 

66,018

 

 

 

185,554

 

 

 

175,963

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

Interest expense

 

(32,963

)

 

 

(51,084

)

 

 

(103,236

)

 

 

(145,452

)

Change in fair value of derivatives embedded within convertible debt

 

6,182

 

 

 

10,005

 

 

 

20,319

 

 

 

31,289

 

Equity in earnings (losses) from real estate ventures

 

8,050

 

 

 

294

 

 

 

12,002

 

 

 

(8,378

)

Other, net

 

1,755

 

 

 

4,481

 

 

 

13,653

 

 

 

13,660

 

Income before provision for income taxes

 

49,744

 

 

 

29,714

 

 

 

128,292

 

 

 

67,082

 

Income tax expense

 

13,736

 

 

 

14,686

 

 

 

37,944

 

 

 

29,394

 

 

 

 

 

 

 

 

 

Net income

 

36,008

 

 

 

15,028

 

 

 

90,348

 

 

 

37,688

 

 

 

 

 

 

 

 

 

Net income attributed to non-controlling interest

 

 

 

(3,026

)

 

 

(80

)

 

 

(657

)

 

 

 

 

 

 

 

 

Net income attributed to Vector Group Ltd.

$

 

36,008

 

 

$

 

12,002

 

 

$

 

90,268

 

 

$

 

37,031

 

 

 

 

 

 

 

 

 

Per basic common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income applicable to common share attributed to Vector Group Ltd.

$

 

0.23

 

 

$

 

0.07

 

 

$

 

0.57

 

 

$

 

0.23

 

 

 

 

 

 

 

 

 

Per diluted common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income applicable to common share attributed to Vector Group Ltd.

$

 

0.23

 

 

$

 

0.07

 

 

$

 

0.56

 

 

$

 

0.22

 

* Revenues and cost of sales include federal excise taxes of $122,951, $130,428, $347,527 and $359,199, respectively.

TABLE 2

VECTOR GROUP LTD. AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED EBITDA

(Unaudited)

( Dollars in Thousands )

 

 

LTM

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

September 30,

 

2019

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

Net income attributed to Vector Group Ltd.

$

 

111,342

 

 

$

 

36,008

 

 

$

 

12,002

 

 

$

 

90,268

 

 

$

 

37,031

 

Interest expense

 

161,564

 

 

 

32,963

 

 

 

51,084

 

 

 

103,236

 

 

 

145,452

 

Income tax expense

 

30,102

 

 

 

13,736

 

 

 

14,686

 

 

 

37,944

 

 

 

29,394

 

Net (loss) income attributed to non-controlling interest

 

(675

)

 

 

 

 

3,026

 

 

 

80

 

 

 

657

 

Depreciation and amortization

 

18,126

 

 

 

4,430

 

 

 

4,707

 

 

 

13,362

 

 

 

14,043

 

EBITDA

$

 

320,459

 

 

$

 

87,137

 

 

$

 

85,505

 

 

$

 

244,890

 

 

$

 

226,577

 

Change in fair value of derivatives embedded within convertible debt (a)

 

(34,019

)

 

 

(6,182

)

 

 

(10,005

)

 

 

(20,319

)

 

 

(31,289

)

Equity in (earnings) losses from real estate ventures (b)

 

(34,826

)

 

 

(8,050

)

 

 

(294

)

 

 

(12,002

)

 

 

8,378

 

Loss on extinguishment of debt

 

4,066

 

 

 

 

 

 

 

 

 

Stock-based compensation expense (c)

 

9,649

 

 

 

2,348

 

 

 

2,584

 

 

 

7,122

 

 

 

7,424

 

Litigation settlement and judgment expense (income) (d)

 

1,055

 

 

 

240

 

 

 

 

 

895

 

 

 

(1,944

)

Impact of MSA settlement (e)

 

 

 

 

 

 

 

 

 

(6,298

)

Purchase accounting adjustments (f)

 

63

 

 

 

 

 

184

 

 

 

 

 

545

 

Other, net

 

(3,914

)

 

 

(1,755

)

 

 

(4,481

)

 

 

(13,653

)

 

 

(13,660

)

Adjusted EBITDA

$

 

262,533

 

 

$

 

73,738

 

 

$

 

73,493

 

 

$

 

206,933

 

 

$

 

189,733

 

Adjusted EBITDA attributed to non-controlling interest

 

(1,471

)

 

 

 

 

(3,638

)

 

 

 

 

(1,848

)

Adjustment to reflect additional 29.41% of Adjusted EBITDA from Douglas Elliman Realty, LLC (g)

 

(158

)

 

 

 

 

3,543

 

 

 

 

 

3,477

 

Adjusted EBITDA attributed to Vector Group Ltd.

$

 

260,904

 

 

$

 

73,738

 

 

$

 

73,398

 

 

$

 

206,933

 

 

$

 

191,362

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA by Segment

 

 

 

 

 

 

 

 

 

Tobacco

$

 

267,921

 

 

$

 

74,980

 

 

$

 

65,339

 

 

$

 

208,358

 

 

$

 

189,646

 

Real Estate (h)

 

11,188

 

 

 

2,868

 

 

 

11,697

 

 

 

11,437

 

 

 

11,403

 

Corporate and Other

 

(16,576

)

 

 

(4,110

)

 

 

(3,543

)

 

 

(12,862

)

 

 

(11,316

)

Total

$

 

262,533

 

 

$

 

73,738

 

 

$

 

73,493

 

 

$

 

206,933

 

 

$

 

189,733

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Attributed to Vector Group Ltd. by Segment

 

 

 

 

 

 

 

 

 

Tobacco

$

 

267,921

 

 

$

 

74,980

 

 

$

 

65,339

 

 

$

 

208,358

 

 

$

 

189,646

 

Real Estate (h)

 

9,559

 

 

 

2,868

 

 

 

11,602

 

 

 

11,437

 

 

 

13,032

 

Corporate and Other

 

(16,576

)

 

 

(4,110

)

 

 

(3,543

)

 

 

(12,862

)

 

 

(11,316

)

Total

$

 

260,904

 

 

$

 

73,738

 

 

$

 

73,398

 

 

$

 

206,933

 

 

$

 

191,362

 

TABLE 3

VECTOR GROUP LTD. AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED NET INCOME

(Unaudited)

( Dollars in Thousands, Except Per Share Amounts )

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2019

 

2018

 

2019

 

2018

 

 

 

 

Net income attributed to Vector Group Ltd.

$

 

36,008

 

 

$

 

12,002

 

 

$

 

90,268

 

 

$

 

37,031

 

 

 

 

 

 

 

 

 

Change in fair value of derivatives embedded within convertible debt

 

(6,182

)

 

 

(10,005

)

 

 

(20,319

)

 

 

(31,289

)

Non-cash amortization of debt discount on convertible debt

 

5,746

 

 

 

22,871

 

 

 

19,718

 

 

 

61,450

 

Litigation settlement and judgment expense (income) (a)

 

240

 

 

 

 

 

895

 

 

 

(1,944

)

Impact of MSA settlement (b)

 

 

 

 

 

 

 

(6,298

)

Impact of net interest expense capitalized to real estate ventures

 

412

 

 

 

(596

)

 

 

2,488

 

 

 

1,775

 

Douglas Elliman Realty, LLC purchase accounting adjustments (c)

 

 

 

385

 

 

 

 

 

1,140

 

Adjustment to reflect additional 29.41% of net income from Douglas Elliman Realty, LLC (d)

 

 

 

2,931

 

 

 

 

 

2,287

 

Total adjustments

 

216

 

 

 

15,586

 

 

 

2,782

 

 

 

27,121

 

 

 

 

 

 

 

 

 

Tax expense related to adjustments

 

(59

)

 

 

(4,459

)

 

 

(764

)

 

 

(7,672

)

 

 

 

 

 

 

 

 

Adjusted Net Income attributed to Vector Group Ltd.

$

 

36,165

 

 

$

 

23,129

 

 

$

 

92,286

 

 

$

 

56,480

 

 

 

 

 

 

 

 

 

Per diluted common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income applicable to common shares attributed to Vector Group Ltd.

$

 

0.23

 

 

$

 

0.15

 

 

$

 

0.59

 

 

$

 

0.35

 

TABLE 4

VECTOR GROUP LTD. AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED OPERATING INCOME

(Unaudited)

( Dollars in Thousands )

 

 

LTM

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

September 30,

 

2019

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

Operating income

$

 

233,640

 

 

$

 

66,720

 

 

$

 

66,018

 

 

$

 

185,554

 

 

$

 

175,963

 

 

 

 

 

 

 

 

 

 

 

Litigation settlement and judgment expense (income) (a)

 

1,055

 

 

 

240

 

 

 

 

 

895

 

 

 

(1,944

)

Impact of MSA settlement (b)

 

 

 

 

 

 

 

 

 

(6,298

)

Douglas Elliman Realty, LLC purchase accounting adjustments (c)

 

265

 

 

 

 

 

385

 

 

 

 

 

1,140

 

Total adjustments

 

1,320

 

 

 

240

 

 

 

385

 

 

 

895

 

 

 

(7,102

)

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (d)

$

 

234,960

 

 

$

 

66,960

 

 

$

 

66,403

 

 

$

 

186,449

 

 

$

 

168,861

 

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

 

Nine Months Ended

 

September 30,

 

September 30,

 

September 30,

 

2019

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

Tobacco Adjusted Operating Income:

 

 

 

 

 

 

 

 

 

Operating income from tobacco segment

$

 

258,936

 

 

$

 

72,799

 

 

$

 

63,259

 

 

$

 

201,594

 

 

$

 

189,185

 

 

 

 

 

 

 

 

 

 

 

Litigation settlement and judgment expense (a)

 

1,055

 

 

 

240

 

 

 

 

 

895

 

 

 

525

 

Impact of MSA settlement (b)

 

 

 

 

 

 

 

 

 

(6,298

)

Total adjustments

 

1,055

 

 

 

240

 

 

 

 

 

895

 

 

 

(5,773

)

 

 

 

 

 

 

 

 

 

 

Tobacco Adjusted Operating Income

$

 

259,991

 

 

$

 

73,039

 

 

$

 

63,259

 

 

$

 

202,489

 

 

$

 

183,412

 

 
 

 

LTM

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

September 30,

 

2019

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

Tobacco Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

Operating income from tobacco segment

$

 

258,936

 

 

$

 

72,799

 

 

$

 

63,259

 

 

$

 

201,594

 

 

$

 

189,185

 

 

 

 

 

 

 

 

 

 

 

Litigation settlement and judgment expense (a)

 

1,055

 

 

 

240

 

 

 

 

 

895

 

 

 

525

 

Impact of MSA settlement (b)

 

 

 

 

 

 

 

 

 

(6,298

)

Total adjustments

 

1,055

 

 

 

240

 

 

 

 

 

895

 

 

 

(5,773

)

 

 

 

 

 

 

 

 

 

 

Tobacco Adjusted Operating Income

 

259,991

 

 

 

73,039

 

 

 

63,259

 

 

 

202,489

 

 

 

183,412

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

7,887

 

 

 

1,941

 

 

 

2,059

 

 

 

5,848

 

 

 

6,171

 

Stock-based compensation expense

 

43

 

 

 

 

 

21

 

 

 

21

 

 

 

63

 

Total adjustments

 

7,930

 

 

 

1,941

 

 

 

2,080

 

 

 

5,869

 

 

 

6,234

 

 

 

 

 

 

 

 

 

 

 

Tobacco Adjusted EBITDA

$

 

267,921

 

 

$

 

74,980

 

 

$

 

65,339

 

 

$

 

208,358

 

 

$

 

189,646

 

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

 

Nine Months Ended

 

September 30,

 

September 30,

 

September 30,

 

2019

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

Net income (loss) attributed to Vector Group Ltd. from subsidiary non-guarantors (a)

$

 

29,162

 

 

$

 

7,246

 

 

$

 

4,703

 

 

$

 

13,468

 

 

$

 

(915

)

Interest expense (a)

 

689

 

 

 

228

 

 

 

7

 

 

 

685

 

 

 

63

 

Income tax expense (benefit) (a)

 

11,288

 

 

 

3,023

 

 

 

1,971

 

 

 

5,513

 

 

 

(1,826

)

Net (loss) income attributed to non-controlling interest (a)

 

(675

)

 

 

 

 

3,026

 

 

 

80

 

 

 

657

 

Depreciation and amortization

 

9,240

 

 

 

2,240

 

 

 

2,398

 

 

 

6,765

 

 

 

7,105

 

EBITDA

$

 

49,704

 

 

$

 

12,737

 

 

$

 

12,105

 

 

$

 

26,511

 

 

$

 

5,084

 

Loss from non-guarantors other than New Valley LLC

 

72

 

 

 

15

 

 

 

18

 

 

 

57

 

 

 

71

 

Equity in (earnings) losses from real estate ventures (b)

 

(34,826

)

 

 

(8,050

)

 

 

(294

)

 

 

(12,002

)

 

 

8,378

 

Purchase accounting adjustments (c)

 

63

 

 

 

 

 

184

 

 

 

 

 

545

 

Litigation settlement and judgment income (d)

 

 

 

 

 

 

 

 

 

(2,469

)

Other, net

 

(3,849

)

 

 

(1,808

)

 

 

(342

)

 

 

(3,144

)

 

 

(1,020

)

Adjusted EBITDA

$

 

11,164

 

 

$

 

2,894

 

 

$

 

11,671

 

 

$

 

11,422

 

 

$

 

10,589

 

Adjusted EBITDA attributed to non-controlling interest

 

(1,471

)

 

 

 

 

(3,638

)

 

 

 

 

(1,848

)

Adjustment to reflect additional 29.41% of Adjusted EBITDA from Douglas Elliman Realty, LLC (e)

 

(158

)

 

 

 

 

3,543

 

 

 

 

 

3,477

 

Adjusted EBITDA attributed to New Valley LLC

$

 

9,535

 

 

$

 

2,894

 

 

$

 

11,576

 

 

$

 

11,422

 

 

$

 

12,218

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA by Segment

 

 

 

 

 

 

 

 

 

Real Estate (f)

$

 

11,188

 

 

$

 

2,868

 

 

$

 

11,697

 

 

$

 

11,437

 

 

$

 

11,403

 

Corporate and Other

 

(24

)

 

 

26

 

 

 

(26

)

 

 

(15

)

 

 

(814

)

Total (g)

$

 

11,164

 

 

$

 

2,894

 

 

$

 

11,671

 

 

$

 

11,422

 

 

$

 

10,589

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Attributed to New Valley LLC by Segment

 

 

 

 

 

 

 

 

 

Real Estate (f)

$

 

9,559

 

 

$

 

2,868

 

 

$

 

11,602

 

 

$

 

11,437

 

 

$

 

13,032

 

Corporate and Other

 

(24

)

 

 

26

 

 

 

(26

)

 

 

(15

)

 

 

(814

)

Total (g)

$

 

9,535

 

 

$

 

2,894

 

 

$

 

11,576

 

 

$

 

11,422

 

 

$

 

12,218

 

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 )

 

 

LTM

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

September 30,

 

2019

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

Net income attributed to Douglas Elliman Realty, LLC

$

 

4,041

 

 

$

 

1,893

 

 

$

 

9,965

 

 

$

 

6,617

 

 

$

 

7,773

 

Interest expense

 

8

 

 

 

1

 

 

 

3

 

 

 

6

 

 

 

51

 

Income tax expense (benefit)

 

365

 

 

 

265

 

 

 

(85

)

 

 

366

 

 

 

401

 

Depreciation and amortization

 

8,831

 

 

 

2,135

 

 

 

2,295

 

 

 

6,457

 

 

 

6,797

 

Douglas Elliman Realty, LLC EBITDA

$

 

13,245

 

 

$

 

4,294

 

 

$

 

12,178

 

 

$

 

13,446

 

 

$

 

15,022

 

Equity in earnings from real estate ventures (a)

 

(1,484

)

 

 

(458

)

 

 

(274

)

 

 

(1,392

)

 

 

(1,151

)

Purchase accounting adjustments (b)

 

63

 

 

 

 

 

184

 

 

 

 

 

545

 

Litigation settlement and judgment income (c)

 

 

 

 

 

 

 

 

 

(2,469

)

Other, net

 

(1,338

)

 

 

(468

)

 

 

(40

)

 

 

(1,028

)

 

 

(123

)

Douglas Elliman Realty, LLC Adjusted EBITDA

$

 

10,486

 

 

$

 

3,368

 

 

$

 

12,048

 

 

$

 

11,026

 

 

$

 

11,824

 

Douglas Elliman Realty, LLC Adjusted EBITDA attributed to non-controlling interest

 

158

 

 

 

 

 

(3,543

)

 

 

 

 

(3,477

)

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

)

 

 

 

 

3,543

 

 

 

 

 

3,477

 

Douglas Elliman Realty, LLC Adjusted EBITDA attributed to Real Estate Segment

$

 

10,486

 

 

$

 

3,368

 

 

$

 

12,048

 

 

$

 

11,026

 

 

$

 

11,824

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191105006042/en/

CONTACT: Emily Claffey/Benjamin Spicehandler/Columbia Clancy

Sard Verbinnen & Co

212-687-8080

Conrad Harrington

Sard Verbinnen & Co - Europe

+44 (0)20 3178 8914

J. Bryant Kirkland III, Vector Group Ltd.

305-579-8000

KEYWORD: UNITED STATES NORTH AMERICA FLORIDA

INDUSTRY KEYWORD: RETAIL OTHER CONSTRUCTION & PROPERTY RESIDENTIAL BUILDING & REAL ESTATE TOBACCO COMMERCIAL BUILDING & REAL ESTATE SPECIALTY CONSTRUCTION & PROPERTY

SOURCE: Vector Group Ltd.

Copyright Business Wire 2019.

PUB: 11/05/2019 04:15 PM/DISC: 11/05/2019 04:15 PM

http://www.businesswire.com/news/home/20191105006042/en