VECTOR GROUP LTD. |
DELAWARE |
(State or Other Jurisdiction of Incorporation) |
1-5759 | 65-0949535 | |
(Commission File Number) | (I.R.S. Employer Identification No.) | |
4400 Biscayne Boulevard, Miami, Florida | 33137 | |
(Address of Principal Executive Offices) | (Zip Code) |
(305) 579-8000 |
(Registrant’s Telephone Number, Including Area Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(c) | Exhibit. |
Exhibit No. | Exhibit | |
99.1 | Press Release issued on November 2, 2015 |
VECTOR GROUP LTD. | ||
By: | /s/ J. Bryant Kirkland III | |
J. Bryant Kirkland III | ||
Vice President, Treasurer and Chief Financial Officer |
Contact: | Emily Deissler/Benjamin Spicehandler/Spencer Waybright | |
Sard Verbinnen & Co | ||
212-687-8080 | ||
Jonathan Doorley/Conrad Harrington | ||
Sard Verbinnen & Co - Europe | ||
+44 (0)20 3178 8914 | ||
J. Bryant Kirkland III, Vector Group Ltd. | ||
305-579-8000 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
Revenues | |||||||||||||||
Tobacco* | $ | 264,170 | $ | 264,520 | $ | 747,145 | $ | 748,468 | |||||||
Real estate | 185,563 | 153,748 | 478,841 | 415,280 | |||||||||||
E-Cigarettes | 201 | 1,608 | 881 | 9,977 | |||||||||||
Total revenues | 449,934 | 419,876 | 1,226,867 | 1,173,725 | |||||||||||
Expenses: | |||||||||||||||
Cost of sales: | |||||||||||||||
Tobacco* | 174,418 | 189,728 | 506,315 | 537,667 | |||||||||||
Real estate | 121,078 | 96,442 | 309,306 | 261,531 | |||||||||||
E-Cigarettes | 421 | 1,066 | 1,518 | 6,357 | |||||||||||
Total cost of sales | 295,917 | 287,236 | 817,139 | 805,555 | |||||||||||
Operating, selling, administrative and general expenses | 79,114 | 69,431 | 232,737 | 200,431 | |||||||||||
Litigation settlement and judgment expense | 3,750 | 225 | 5,843 | 1,725 | |||||||||||
Restructuring expense | 1,548 | — | 1,548 | — | |||||||||||
Operating income | 69,605 | 62,984 | 169,600 | 166,014 | |||||||||||
Other income (expenses): | |||||||||||||||
Interest expense | (32,898 | ) | (44,034 | ) | (96,405 | ) | (123,670 | ) | |||||||
Change in fair value of derivatives embedded within convertible debt | 7,044 | 7,127 | 18,760 | 7,447 | |||||||||||
Acceleration of interest expense related to debt conversion | — | (994 | ) | — | (5,112 | ) | |||||||||
Equity (loss) income from real estate ventures | (916 | ) | 3,258 | 1,278 | 3,002 | ||||||||||
Equity (loss) income from investments | (579 | ) | 829 | (2,273 | ) | 1,462 | |||||||||
(Loss) gain on sale of investment securities available for sale | (821 | ) | 33 | 12,018 | (38 | ) | |||||||||
Impairment of investment securities available for sale | (12,211 | ) | — | (12,211 | ) | — | |||||||||
Other, net | 133 | 2,466 | 3,554 | 8,167 | |||||||||||
Income before provision for income taxes | 29,357 | 31,669 | 94,321 | 57,272 | |||||||||||
Income tax expense | 13,508 | 11,964 | 37,551 | 21,007 | |||||||||||
Net income | 15,849 | 19,705 | 56,770 | 36,265 | |||||||||||
Net income attributed to non-controlling interest | (3,644 | ) | (4,826 | ) | (5,741 | ) | (10,881 | ) | |||||||
Net income attributed to Vector Group Ltd. | $ | 12,205 | $ | 14,879 | $ | 51,029 | $ | 25,384 | |||||||
Per basic common share: | |||||||||||||||
Net income applicable to common shares attributed to Vector Group Ltd. | $ | 0.10 | $ | 0.13 | $ | 0.42 | $ | 0.23 | |||||||
Per diluted common share: | |||||||||||||||
Net income applicable to common shares attributed to Vector Group Ltd. | $ | 0.10 | $ | 0.13 | $ | 0.42 | $ | 0.23 | |||||||
Cash distributions and dividends declared per share | $ | 0.38 | $ | 0.36 | $ | 1.14 | $ | 1.09 |
LTM | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
Revenues | $ | 1,644,457 | $ | 449,934 | $ | 419,876 | $ | 1,226,867 | $ | 1,173,725 | |||||||||
Purchase accounting adjustments (a) | 1,529 | 481 | — | 1,444 | 1,683 | ||||||||||||||
Total adjustments | 1,529 | 481 | — | 1,444 | 1,683 | ||||||||||||||
Pro-forma Adjusted Revenues (b) | $ | 1,645,986 | $ | 450,415 | $ | 419,876 | $ | 1,228,311 | $ | 1,175,408 | |||||||||
Pro-forma Adjusted Revenues by Segment | |||||||||||||||||||
Tobacco (b) | $ | 1,019,936 | $ | 264,170 | $ | 264,520 | $ | 747,145 | $ | 748,468 | |||||||||
E-cigarettes | (507 | ) | 201 | 1,608 | 881 | 9,977 | |||||||||||||
Real Estate (c) | 626,557 | 186,044 | 153,748 | 480,285 | 416,963 | ||||||||||||||
Corporate and Other | — | — | — | — | — | ||||||||||||||
Total (b) | $ | 1,645,986 | $ | 450,415 | $ | 419,876 | $ | 1,228,311 | $ | 1,175,408 |
a. | 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. |
b. | Includes excise taxes of $437,696 for the last twelve months ended September 30, 2015 and $112,773, $115,323, $319,044 and $327,434 for the three and nine months ended September 30, 2015 and 2014,respectively. |
c. | Includes Pro-forma Adjusted Revenues from Douglas Elliman Realty, LLC of $620,371 for the last twelve months ended September 30, 2015 and $185,481, $153,205, $475,807, and $398,666 for the three and nine months ended September 30, 2015 and 2014, respectively. |
LTM | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
Net income attributed to Vector Group Ltd. | $ | 62,623 | $ | 12,205 | $ | 14,879 | $ | 51,029 | $ | 25,384 | |||||||||
Interest expense | 133,726 | 32,898 | 44,034 | 96,405 | 123,670 | ||||||||||||||
Income tax expense | 49,795 | 13,508 | 11,964 | 37,551 | 21,007 | ||||||||||||||
Net income attributed to non-controlling interest | 7,118 | 3,644 | 4,826 | 5,741 | 10,881 | ||||||||||||||
Depreciation and amortization | 25,296 | 6,673 | 6,045 | 19,396 | 18,599 | ||||||||||||||
EBITDA | $ | 278,558 | $ | 68,928 | $ | 81,748 | $ | 210,122 | $ | 199,541 | |||||||||
Change in fair value of derivatives embedded within convertible debt (a) | (30,722 | ) | (7,044 | ) | (7,127 | ) | (18,760 | ) | (7,447 | ) | |||||||||
Equity loss (income) from investments (b) | 2,493 | 579 | (829 | ) | 2,273 | (1,462 | ) | ||||||||||||
(Gain) loss on sale of investment securities available for sale | (12,045 | ) | 821 | (33 | ) | (12,018 | ) | 38 | |||||||||||
Impairment of investment securities available for sale | 12,211 | 12,211 | — | 12,211 | — | ||||||||||||||
Equity income (loss) from real estate ventures (c) | (2,379 | ) | 916 | (3,258 | ) | (1,278 | ) | (3,002 | ) | ||||||||||
Pension settlement charge | 1,607 | — | — | 1,607 | — | ||||||||||||||
Acceleration of interest expense related to debt conversion | 93 | — | 994 | — | 5,112 | ||||||||||||||
Stock-based compensation expense (d) | 4,872 | 1,248 | 1,040 | 3,648 | 2,027 | ||||||||||||||
Litigation settlement and judgment expense (e) | 6,593 | 3,750 | 225 | 5,843 | 1,725 | ||||||||||||||
Impact of MSA settlement (f) | (5,715 | ) | (5,715 | ) | — | (5,715 | ) | (1,419 | ) | ||||||||||
Restructuring expense | 1,548 | 1,548 | — | 1,548 | — | ||||||||||||||
Purchase accounting adjustments (g) | 1,521 | 366 | 407 | 1,056 | 1,013 | ||||||||||||||
Other, net | (5,939 | ) | (133 | ) | (2,466 | ) | (3,554 | ) | (8,167 | ) | |||||||||
Pro-forma Adjusted EBITDA | $ | 252,696 | $ | 77,475 | $ | 70,701 | $ | 196,983 | $ | 187,959 | |||||||||
Pro-forma Adjusted EBITDA attributed to non-controlling interest | (10,976 | ) | (4,735 | ) | (5,660 | ) | (8,732 | ) | (13,614 | ) | |||||||||
Pro-forma Adjusted EBITDA attributed to Vector Group Ltd. | $ | 241,720 | $ | 72,740 | $ | 65,041 | $ | 188,251 | $ | 174,345 | |||||||||
Pro-forma Adjusted EBITDA by Segment | |||||||||||||||||||
Tobacco | $ | 236,462 | $ | 66,084 | $ | 56,097 | $ | 181,580 | $ | 156,285 | |||||||||
E-cigarettes | (13,733 | ) | (2,146 | ) | (2,910 | ) | (7,710 | ) | (7,100 | ) | |||||||||
Real Estate (h) | 40,145 | 15,981 | 19,369 | 31,698 | 47,589 | ||||||||||||||
Corporate and Other | (10,178 | ) | (2,444 | ) | (1,855 | ) | (8,585 | ) | (8,815 | ) | |||||||||
Total | $ | 252,696 | $ | 77,475 | $ | 70,701 | $ | 196,983 | $ | 187,959 | |||||||||
Pro-forma Adjusted EBITDA Attributed to Vector Group by Segment | |||||||||||||||||||
Tobacco | $ | 236,462 | $ | 66,084 | $ | 56,097 | $ | 181,580 | $ | 156,285 | |||||||||
E-cigarettes | (13,733 | ) | (2,146 | ) | (2,910 | ) | (7,710 | ) | (7,100 | ) | |||||||||
Real Estate (i) | 29,169 | 11,246 | 13,709 | 22,966 | 33,975 | ||||||||||||||
Corporate and Other | (10,178 | ) | (2,444 | ) | (1,855 | ) | (8,585 | ) | (8,815 | ) | |||||||||
Total | $ | 241,720 | $ | 72,740 | $ | 65,041 | $ | 188,251 | $ | 174,345 |
a. | Represents income or losses recognized from changes in the fair value of the derivatives embedded in the Company's convertible debt. |
b. | Represents income or losses recognized from investments that the Company accounts for under the equity method. |
c. | Represents equity income (loss) recognized from the Company's investment in certain real estate businesses that are not consolidated in its financial results. |
d. | Represents amortization of stock-based compensation. |
e. | Represents accruals for settlements of judgment expenses in the Engle progeny tobacco litigation. |
f. | Represents the Company's tobacco segment's settlement of a long-standing dispute related to the Master Settlement Agreement. |
g. | 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. |
h. | Includes Pro-forma Adjusted EBITDA for Douglas Elliman Realty, LLC of $36,010 for the last twelve months ended September 30, 2015 and $16,294, $21,355, $29,885,and $44,530 for the three and nine months ended September 30, 2015 and 2014, respectively. Amounts reported in this footnote reflect 100% of Douglas Elliman Realty, LLC's entire Pro-forma Adjusted EBITDA. |
i. | Includes Pro-forma Adjusted EBITDA for Douglas Elliman Realty, LLC less non-controlling interest of $25,420 for the last twelve months ended September 30, 2015 and $11,502, $15,074, $21,096, and $31,434 the three and nine months ended September 30, 2015 and 2014, respectively. Amounts reported in this footnote have adjusted Douglas Elliman Realty, LLC's Pro-forma Adjusted EBITDA for non-controlling interest. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income attributed to Vector Group Ltd. | $ | 12,205 | $ | 14,879 | $ | 51,029 | $ | 25,384 | |||||||
Acceleration of interest expense related to debt conversion | — | 994 | — | 5,112 | |||||||||||
Change in fair value of derivatives embedded within convertible debt | (7,044 | ) | (7,127 | ) | (18,760 | ) | (7,447 | ) | |||||||
Non-cash amortization of debt discount on convertible debt | 7,187 | 14,581 | 19,646 | 41,728 | |||||||||||
Loss on extinguishment of 11% Senior Secured Notes due 2015 | — | — | — | — | |||||||||||
Litigation settlement and judgment expense (a) | 3,750 | 225 | 5,843 | 1,725 | |||||||||||
Pension settlement charge | — | — | 1,607 | — | |||||||||||
Impact of MSA settlement (b) | (5,715 | ) | — | (5,715 | ) | (1,419 | ) | ||||||||
Restructuring expense | 1,548 | — | 1,548 | — | |||||||||||
Out-of-period adjustment related to Douglas Elliman acquisition in 2013 (c) | — | — | — | (1,231 | ) | ||||||||||
Douglas Elliman Realty, LLC purchase accounting adjustments (d) | 1,351 | 1,252 | 3,945 | 4,831 | |||||||||||
Total adjustments | 1,077 | 9,925 | 8,114 | 43,299 | |||||||||||
Tax expense related to adjustments | (448 | ) | (4,104 | ) | (3,376 | ) | (17,904 | ) | |||||||
Adjustments to income tax expense due to purchase accounting (e) | — | 1,305 | — | 1,305 | |||||||||||
Pro-forma Adjusted Net Income attributed to Vector Group Ltd. | $ | 12,834 | $ | 22,005 | $ | 55,767 | $ | 52,084 | |||||||
Per diluted common share: | |||||||||||||||
Pro-forma Adjusted Net Income applicable to common shares attributed to Vector Group Ltd. | $ | 0.11 | $ | 0.20 | $ | 0.46 | $ | 0.47 |
b. | Represents the Company's tobacco segment's settlement of a long-standing dispute related to the Master Settlement Agreement. |
c. | Represents an out-of-period adjustment related to a non-accrual of a receivable from Douglas Elliman Realty in the fourth quarter of 2013 and would have increased the Company's gain on acquisition of Douglas Elliman in 2013. |
d. | Represents 70.59% of purchase accounting adjustments in the periods presented for assets acquired in connection with the increase of the Company's ownership of Douglas Elliman Realty, LLC, which occurred in 2013. |
e. | Represents adjustments to income tax expense due to a change in the Company's marginal income tax rate from 40.6% to 41.35% as a result of its acquisition of 20.59% of Douglas Elliman Realty, LLC on December 13, 2013. |
LTM | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
Operating income | $ | 216,974 | $ | 69,605 | $ | 62,984 | $ | 169,600 | $ | 166,014 | |||||||||
Litigation settlement and judgment expense (a) | 6,593 | 3,750 | 225 | 5,843 | 1,725 | ||||||||||||||
Pension settlement charge | 1,607 | — | — | 1,607 | — | ||||||||||||||
Restructuring expense | 1,548 | 1,548 | — | 1,548 | — | ||||||||||||||
Impact of MSA settlement (b) | (5,715 | ) | (5,715 | ) | — | (5,715 | ) | (1,419 | ) | ||||||||||
Douglas Elliman Realty, LLC purchase accounting adjustments (c) | 7,272 | 1,913 | 1,773 | 5,588 | 6,843 | ||||||||||||||
Total adjustments | 11,305 | 1,496 | 1,998 | 8,871 | 7,149 | ||||||||||||||
Pro-forma Adjusted Operating Income (d) | $ | 228,279 | $ | 71,101 | $ | 64,982 | $ | 178,471 | $ | 173,163 |
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. |
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. |
LTM | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
Operating income from tobacco segment | $ | 221,239 | $ | 63,630 | $ | 52,993 | $ | 169,515 | $ | 147,395 | |||||||||
Litigation settlement and judgment expense (a) | 6,593 | 3,750 | 225 | 5,843 | 1,725 | ||||||||||||||
Pension settlement charge | 1,607 | — | — | 1,607 | — | ||||||||||||||
Restructuring expense | 1,548 | 1,548 | — | 1,548 | — | ||||||||||||||
Impact of MSA settlement (b) | (5,715 | ) | (5,715 | ) | — | (5,715 | ) | (1,419 | ) | ||||||||||
Total adjustments | 4,033 | (417 | ) | 225 | 3,283 | 306 | |||||||||||||
Tobacco Adjusted Operating Income | $ | 225,272 | $ | 63,213 | $ | 53,218 | $ | 172,798 | $ | 147,701 |
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. |
LTM | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
New Valley LLC revenues | $ | 625,028 | $ | 185,563 | $ | 153,748 | $ | 478,841 | $ | 415,280 | |||||||||
Purchase accounting adjustments (a) | 1,529 | 481 | — | 1,444 | 1,683 | ||||||||||||||
Total adjustments | 1,529 | 481 | — | 1,444 | 1,683 | ||||||||||||||
New Valley LLC Pro-forma Adjusted Revenues (b) | $ | 626,557 | $ | 186,044 | $ | 153,748 | $ | 480,285 | $ | 416,963 |
a. | Amounts represent purchase accounting adjustments recorded in connection with the increase of the Company's ownership of Douglas Elliman Realty, LLC., which occurred in 2013. |
b. | Includes Pro-forma Adjusted Revenues from Douglas Elliman Realty, LLC of $620,371 for the last twelve months ended September 30, 2015 and $185,481, $153,205, $475,807,and $398,666 for the three and nine months ended September 30, 2015 and 2014, respectively. |
LTM | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
Net income attributed to Vector Group Ltd. from subsidiary non-guarantors (a) | $ | 13,974 | $ | 4,695 | $ | 8,202 | $ | 10,215 | $ | 17,661 | |||||||||
Interest expense (a) | 5 | 1 | 3 | 4 | 40 | ||||||||||||||
Income tax expense (a) | 9,912 | 3,395 | 6,630 | 7,904 | 15,420 | ||||||||||||||
Net income attributed to non-controlling interest (a) | 7,118 | 3,644 | 4,826 | 5,741 | 10,881 | ||||||||||||||
Depreciation and amortization | 11,867 | 3,388 | 2,740 | 9,372 | 9,709 | ||||||||||||||
EBITDA | $ | 42,876 | $ | 15,123 | $ | 22,401 | $ | 33,236 | $ | 53,711 | |||||||||
Income (loss) from non-guarantors other than New Valley | 73 | (1 | ) | 21 | 66 | 86 | |||||||||||||
Equity income (loss) from real estate ventures (b) | (2,379 | ) | 916 | (3,258 | ) | (1,278 | ) | (3,002 | ) | ||||||||||
Purchase accounting adjustments (c) | 1,521 | 366 | 407 | 1,056 | 1,013 | ||||||||||||||
Other, net | (1,775 | ) | (305 | ) | (234 | ) | (1,286 | ) | (4,297 | ) | |||||||||
Pro-forma Adjusted EBITDA | $ | 40,316 | $ | 16,099 | $ | 19,337 | $ | 31,794 | $ | 47,511 | |||||||||
Pro-forma Adjusted EBITDA attributed to non-controlling interest | (10,976 | ) | (4,735 | ) | (5,660 | ) | (8,732 | ) | (13,614 | ) | |||||||||
Pro-forma Adjusted EBITDA attributed to New Valley LLC | $ | 29,340 | $ | 11,364 | $ | 13,677 | $ | 23,062 | $ | 33,897 | |||||||||
Pro-forma Adjusted EBITDA by Segment | |||||||||||||||||||
Real Estate (d) | $ | 40,145 | $ | 15,981 | $ | 19,369 | $ | 31,698 | $ | 47,589 | |||||||||
Corporate and Other | 171 | 118 | (32 | ) | 96 | (78 | ) | ||||||||||||
Total (f) | $ | 40,316 | $ | 16,099 | $ | 19,337 | $ | 31,794 | $ | 47,511 | |||||||||
Pro-forma Adjusted EBITDA Attributed to New Valley LLC by Segment | |||||||||||||||||||
Real Estate (e) | $ | 29,169 | $ | 11,246 | $ | 13,709 | $ | 22,966 | $ | 33,975 | |||||||||
Corporate and Other | 171 | 118 | (32 | ) | 96 | (78 | ) | ||||||||||||
Total (f) | $ | 29,340 | $ | 11,364 | $ | 13,677 | $ | 23,062 | $ | 33,897 |
a. | Amounts are derived from Vector Group Ltd.'s Consolidated Financial Statements. See Note entitled "Vector Group Ltd.'s Condensed Consolidating Financial Information" contained in Vector Group Ltd.'s Form 10-K and Form 10-Q for the year ended December 31, 2014 and the quarterly period ended September 30, 2015. |
b. | Represents equity income (loss) recognized from the Company's investment in certain real estate businesses that are not consolidated in its financial results. |
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. | Includes Pro-forma Adjusted EBITDA for Douglas Elliman Realty, LLC of $36,010 for the twelve months ended September 30, 2015 and $16,294, $21,355, $29,885,and $44,530 for the three and nine months ended September 30, 2015 and 2014, respectively. Amounts reported in this footnote reflect 100% of Douglas Elliman Realty, LLC's entire Pro-forma Adjusted EBITDA. |
e. | Includes Pro-forma Adjusted EBITDA for Douglas Elliman Realty, LLC less non-controlling interest of $25,420 for the last twelve months ended September 30, 2015 and $11,502, $15,074, $21,096, and $31,434 for the three and nine months ended September 30, 2015 and 2014, respectively. Amounts reported in this footnote have adjusted Douglas Elliman Realty, LLC's Pro-forma Adjusted EBITDA for non-controlling interest. |
f. | New Valley's Pro-forma Adjusted EBITDA does not include an allocation of Vector Group Ltd.'s "Corporate and Other" segment's expenses (for purposes of computing Pro-Forma Adjusted EBITDA contained in Table 3 of this press release) of $10,178 for the last twelve months ended September 30, 2015 and $2,444, $1,855, $8,585 and $8,815 for the three and nine months ended September 30, 2015 and 2014, respectively. |
LTM | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
Douglas Elliman Realty, LLC revenues | $ | 618,842 | $ | 185,000 | $ | 153,205 | $ | 474,363 | $ | 396,983 | |||||||||
Purchase accounting adjustments (a) | 1,529 | 481 | — | 1,444 | 1,683 | ||||||||||||||
Total adjustments | 1,529 | 481 | — | 1,444 | 1,683 | ||||||||||||||
Douglas Elliman Realty, LLC Pro-forma Adjusted Revenues | $ | 620,371 | $ | 185,481 | $ | 153,205 | $ | 475,807 | $ | 398,666 |
a. | 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. |
LTM | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
Net income attributed to Douglas Elliman Realty, LLC | $ | 24,395 | $ | 12,437 | $ | 16,407 | $ | 19,713 | $ | 33,732 | |||||||||
Interest expense | 4 | — | 3 | 3 | 37 | ||||||||||||||
Income tax expense | 1,149 | 349 | 513 | 876 | 1,101 | ||||||||||||||
Depreciation and amortization | 11,625 | 3,329 | 2,661 | 9,195 | 9,425 | ||||||||||||||
Douglas Elliman Realty, LLC EBITDA | $ | 37,173 | $ | 16,115 | $ | 19,584 | $ | 29,787 | $ | 44,295 | |||||||||
Equity (loss) income from real estate ventures (a) | (932 | ) | (211 | ) | 2,027 | (908 | ) | (86 | ) | ||||||||||
Purchase accounting adjustments (b) | (162 | ) | 366 | 2,090 | 1,056 | 2,696 | |||||||||||||
Other, net | (69 | ) | 24 | (2,346 | ) | (50 | ) | (2,375 | ) | ||||||||||
Douglas Elliman Realty, LLC Pro-forma Adjusted EBITDA | $ | 36,010 | $ | 16,294 | $ | 21,355 | $ | 29,885 | $ | 44,530 |
a. | Represents equity income recognized from the Company's investment in certain real estate businesses that are not consolidated in its financial results. |
b. | 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. |
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