Douglas Elliman Inc. Reports Fourth Quarter and Full Year 2022 Financial Results
Douglas Elliman Inc. (NYSE:DOUG) reported disappointing financial results for Q4 and the full year 2022. Consolidated revenues fell to $207.3 million in Q4, down from $334.2 million in Q4 2021, and $1.15 billion for the year, compared to $1.35 billion in 2021. The company faced an operating loss of $21.9 million in Q4 and $4.5 million for the year, a stark contrast to prior year profits. Net loss for Q4 was $18.4 million ($0.24 per share), compared to net income of $20.2 million in Q4 2021. Adjusted EBITDA also declined significantly, indicating a challenging market environment.
- Douglas Elliman maintained a strong cash position with $163.9 million in cash and cash equivalents.
- The average price per transaction in Q4 was $1.573 million, indicating premium market activity.
- Q4 revenues dropped 38% year-over-year, indicating significant market challenges.
- The company's operating loss in Q4 was $21.9 million, compared to an operating income of $19.2 million in Q4 2021.
- Net loss attributed to Douglas Elliman for Q4 was $18.4 million, a stark contrast to a net income of $20.2 million in the prior year.
- Adjusted EBITDA for 2022 fell to $15.0 million from $110.7 million in 2021.
Fourth Quarter 2022 Highlights:
-
Consolidated revenues of
$207.3 million $334.2 million -
Douglas Elliman’s real estate brokerage segment achieved gross transaction value of approximately
$7.5 billion $12.6 billion -
Douglas Elliman’s real estate brokerage segment reported an average price per transaction of
$1.57 3 million
-
Douglas Elliman’s real estate brokerage segment achieved gross transaction value of approximately
-
Consolidated operating loss of
$21.9 million $15.6 million $19.2 million $19.2 million -
Net loss attributed to
Douglas Elliman of$18.4 million $0.24 $20.2 million $0.26 -
Adjusted EBITDA attributed to
Douglas Elliman of a loss of$17.1 million $21.3 million -
Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment of a loss of
$12.6 million $21.3 million
Full Year 2022 Highlights:
-
Consolidated revenues of
$1.15 billion $1.35 billion -
Douglas Elliman’s real estate brokerage segment achieved gross transaction value of approximately
$42.9 billion $51.2 billion -
Douglas Elliman’s real estate brokerage segment reported an average price per transaction of
$1.61 6 million
-
Douglas Elliman’s real estate brokerage segment achieved gross transaction value of approximately
-
Consolidated operating loss of
$4.5 million $22.0 million $102.1 million $102.1 million -
Net loss attributed to
Douglas Elliman of$5.6 million $0.08 $98.8 million $1.27 -
Adjusted EBITDA attributed to
Douglas Elliman of$15.0 million $110.7 million -
Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment of
$34.5 million $110.7 million
“Douglas Elliman’s team of world class agents met the challenges of the fourth quarter, which was marked by limited listing inventory and significantly increased mortgage rates,” said
GAAP Financial Results
Three months ended
Year ended
Non-GAAP Financial Measures
Non-GAAP financial measures include an adjustment for change in fair value of contingent liability (for purposes of Adjusted EBITDA and Adjusted Net Income) and income related to Tax Disaffiliation indemnification (for purposes of Adjusted Net Income, which is included in other, net for Adjusted EBITDA). For purposes of Adjusted EBITDA only, adjustments also include stock-based compensation, equity in earnings (losses) from equity method investments and other, net. Reconciliations of non-GAAP financial measures to the comparable GAAP financial results for the three months and full years ended
Three months ended
Adjusted EBITDA attributed to Douglas Elliman (as described in Table 2 attached hereto) were a loss of
Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment (as described in Table 2 attached hereto) were a loss of
Adjusted Net Loss attributed to Douglas Elliman (as described in Table 3 attached hereto) was
Year ended
Adjusted EBITDA attributed to Douglas Elliman (as described in Table 2 attached hereto) were
Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment (as described in Table 2 attached hereto) were
Adjusted Net Loss attributed to Douglas Elliman (as described in Table 3 attached hereto) was
Gross Transaction Value
For the three months ended
For the year ended
Consolidated Balance Sheet
Douglas Elliman maintained a strong balance sheet with cash and cash equivalents of
Conference Call to Discuss Fourth Quarter and Full Year 2022 Results
As previously announced, the Company will host a conference call and webcast on
An archived replay of the call will be available shortly after the call ends on
Non-GAAP Financial Measures
Adjusted EBITDA attributed to Douglas Elliman and Adjusted Net Income attributed to Douglas Elliman (referred to as 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 discussion and analysis of its results of operations and enhance 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.
Management uses the Non-GAAP Financial Measures as measures to review and assess operating performance of the Company’s business, and management does 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, 3 and 4 is information relating to the Company’s Non-GAAP Financial Measures for the three months and full years ended
About
Investors and others should note that we may post information about Douglas Elliman on our website at investors.elliman.com or, if applicable, on our 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 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.
Risks and uncertainties that could cause our actual results to differ significantly from our current expectations are described in our Annual Report on Form 10-K for the year ended
[Financial Tables Follow]
TABLE 1
CONDENSED COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Amounts)
For comparability purposes,
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
|
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
|
(Unaudited) |
|
(Unaudited) |
|||||||||||||
Revenues: |
|
|
|
|
|
|
|
|||||||||
Commissions and other brokerage income |
$ |
195,968 |
|
|
$ |
318,368 |
|
|
$ |
1,099,885 |
|
|
$ |
1,292,416 |
|
|
Property management |
|
8,236 |
|
|
|
9,056 |
|
|
|
36,022 |
|
|
|
37,345 |
|
|
Other ancillary services |
|
3,126 |
|
|
|
6,802 |
|
|
|
17,270 |
|
|
|
23,377 |
|
|
Total revenues |
|
207,330 |
|
|
|
334,226 |
|
|
|
1,153,177 |
|
|
|
1,353,138 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Expenses: |
|
|
|
|
|
|
|
|||||||||
Real estate agent commissions |
|
150,363 |
|
|
|
247,756 |
|
|
|
836,803 |
|
|
|
985,523 |
|
|
Sales and marketing |
|
21,618 |
|
|
|
17,843 |
|
|
|
85,763 |
|
|
|
77,174 |
|
|
Operations and support |
|
17,074 |
|
|
|
14,944 |
|
|
|
72,946 |
|
|
|
71,641 |
|
|
General and administrative |
|
32,194 |
|
|
|
28,317 |
|
|
|
131,421 |
|
|
|
92,798 |
|
|
Technology |
|
5,964 |
|
|
|
4,041 |
|
|
|
22,773 |
|
|
|
15,343 |
|
|
Depreciation and amortization |
|
1,979 |
|
|
|
2,152 |
|
|
|
8,012 |
|
|
|
8,561 |
|
|
Operating (loss) income |
|
(21,862 |
) |
|
|
19,173 |
|
|
|
(4,541 |
) |
|
|
102,098 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Other income (expenses): |
|
|
|
|
|
|
|
|||||||||
Interest income |
|
1,215 |
|
|
|
18 |
|
|
|
1,779 |
|
|
|
83 |
|
|
Equity in losses from equity-method investments |
|
(86 |
) |
|
|
(160 |
) |
|
|
(563 |
) |
|
|
(278 |
) |
|
Change in fair value of contingent liability |
|
— |
|
|
|
1,605 |
|
|
|
— |
|
|
|
(1,647 |
) |
|
Investment and other income (loss) |
|
403 |
|
|
|
(37 |
) |
|
|
3,429 |
|
|
|
529 |
|
|
(Loss) income before provision for income taxes |
|
(20,330 |
) |
|
|
20,599 |
|
|
|
104 |
|
|
|
100,785 |
|
|
Income tax (benefit) expense |
|
(1,670 |
) |
|
|
477 |
|
|
|
6,503 |
|
|
|
2,133 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income |
|
(18,660 |
) |
|
|
20,122 |
|
|
|
(6,399 |
) |
|
|
98,652 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net loss attributed to non-controlling interest |
|
245 |
|
|
|
66 |
|
|
|
777 |
|
|
|
186 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income attributed to |
$ |
(18,415 |
) |
|
$ |
20,188 |
|
|
$ |
(5,622 |
) |
|
$ |
98,838 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Per basic common share: |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income applicable to common shares attributed to |
$ |
(0.24 |
) |
|
$ |
0.26 |
|
|
$ |
(0.08 |
) |
|
$ |
1.27 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Per diluted common share: |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income applicable to common shares attributed to |
$ |
(0.24 |
) |
|
$ |
0.26 |
|
|
$ |
(0.08 |
) |
|
$ |
1.27 |
|
|
TABLE 2
RECONCILIATION OF ADJUSTED EBITDA
(Unaudited)
(Dollars in Thousands)
Table 2 provides a reconciliation of GAAP to Non-GAAP financial measures. For comparability purposes,
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
|
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
|
|
|
|
|||||||||||||
Net (loss) income attributed to |
$ |
(18,415 |
) |
|
$ |
20,188 |
|
|
$ |
(5,622 |
) |
|
$ |
98,838 |
|
|
Interest (income) expense |
|
(1,215 |
) |
|
|
(18 |
) |
|
|
(1,779 |
) |
|
|
(83 |
) |
|
Income tax (benefit) expense |
|
(1,670 |
) |
|
|
477 |
|
|
|
6,503 |
|
|
|
2,133 |
|
|
Net loss attributed to non-controlling interest |
|
(245 |
) |
|
|
(66 |
) |
|
|
(777 |
) |
|
|
(186 |
) |
|
Depreciation and amortization |
|
1,979 |
|
|
|
2,152 |
|
|
|
8,012 |
|
|
|
8,561 |
|
|
EBITDA |
$ |
(19,566 |
) |
|
$ |
22,733 |
|
|
$ |
6,337 |
|
|
$ |
109,263 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Equity in losses from equity-method investments (a) |
|
86 |
|
|
|
160 |
|
|
|
563 |
|
|
|
278 |
|
|
Change in fair value of contingent liability |
|
— |
|
|
|
(1,605 |
) |
|
|
— |
|
|
|
1,647 |
|
|
Stock-based compensation expense (b) |
|
2,662 |
|
|
|
— |
|
|
|
11,138 |
|
|
|
— |
|
|
Other, net |
|
(403 |
) |
|
|
37 |
|
|
|
(3,429 |
) |
|
|
(529 |
) |
|
Adjusted EBITDA |
|
(17,221 |
) |
|
|
21,325 |
|
|
|
14,609 |
|
|
|
110,659 |
|
|
Adjusted EBITDA attributed to non-controlling interest |
|
119 |
|
|
|
(17 |
) |
|
|
342 |
|
|
|
40 |
|
|
Adjusted EBITDA attributed to |
$ |
(17,102 |
) |
|
$ |
21,308 |
|
|
$ |
14,951 |
|
|
$ |
110,699 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating (loss) income by Segment: |
|
|
|
|
|
|
|
|||||||||
Real estate brokerage |
$ |
(15,626 |
) |
|
$ |
19,173 |
|
|
$ |
21,993 |
|
|
$ |
102,098 |
|
|
Corporate and other |
|
(6,236 |
) |
|
|
— |
|
|
|
(26,534 |
) |
|
|
— |
|
|
Total |
$ |
(21,862 |
) |
|
$ |
19,173 |
|
|
$ |
(4,541 |
) |
|
$ |
102,098 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate brokerage segment |
|
|
|
|
|
|
|
|||||||||
Operating (loss) income |
$ |
(15,626 |
) |
|
$ |
19,173 |
|
|
$ |
21,993 |
|
|
$ |
102,098 |
|
|
Depreciation and amortization |
|
1,979 |
|
|
|
2,152 |
|
|
|
8,012 |
|
|
|
8,561 |
|
|
Stock-based compensation |
|
917 |
|
|
|
— |
|
|
|
4,195 |
|
|
|
— |
|
|
Adjusted EBITDA |
|
(12,730 |
) |
|
|
21,325 |
|
|
|
34,200 |
|
|
|
110,659 |
|
|
Adjusted EBITDA attributed to non-controlling interest |
|
119 |
|
|
|
(17 |
) |
|
|
342 |
|
|
|
40 |
|
|
Adjusted EBITDA attributed to |
$ |
(12,611 |
) |
|
$ |
21,308 |
|
|
$ |
34,542 |
|
|
$ |
110,699 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporate and other segment |
|
|
|
|
|
|
|
|||||||||
Operating loss |
$ |
(6,236 |
) |
|
$ |
— |
|
|
$ |
(26,534 |
) |
|
$ |
— |
|
|
Stock-based compensation |
|
1,745 |
|
|
|
— |
|
|
|
6,943 |
|
|
|
— |
|
|
Adjusted EBITDA attributed to |
$ |
(4,491 |
) |
|
$ |
— |
|
|
$ |
(19,591 |
) |
|
$ |
— |
||
| ________________________ | ||
a. |
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. |
|
b. |
Represents amortization of stock-based compensation of |
|
TABLE 3
RECONCILIATION OF ADJUSTED NET (LOSS) INCOME
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
Table 3 provides a reconciliation of GAAP to Non-GAAP financial measures. For comparability purposes,
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
|
|
||||||||||||
Net (loss) income attributed to |
$ |
(18,415 |
) |
|
$ |
20,188 |
|
|
$ |
(5,622 |
) |
|
$ |
98,838 |
|
|
|
|
|
|
|
|
|
||||||||
Change in fair value of contingent liability |
|
— |
|
|
|
(1,605 |
) |
|
|
— |
|
|
|
1,647 |
|
Income related to Tax Disaffiliation indemnification |
|
(8 |
) |
|
|
— |
|
|
|
(589 |
) |
|
|
— |
|
Total adjustments |
|
(8 |
) |
|
|
(1,605 |
) |
|
|
(589 |
) |
|
|
1,647 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net (loss) income attributed to |
$ |
(18,423 |
) |
|
$ |
18,583 |
|
|
$ |
(6,211 |
) |
|
$ |
100,485 |
|
|
|
|
|
|
|
|
|
||||||||
Per diluted common share: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Adjusted net (loss) income applicable to common shares attributed to |
$ |
(0.24 |
) |
|
$ |
0.24 |
|
|
$ |
(0.09 |
) |
|
$ |
1.29 |
|
TABLE 4 |
||||||||||||
|
||||||||||||
RECONCILIATION OF REVENUES |
||||||||||||
(Unaudited) |
||||||||||||
(Dollars in Thousands) |
||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||
|
|
|
|
|||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||
Revenues: |
|
|
|
|
|
|
|
|||||
Commissions and other brokerage income |
$ |
195,968 |
|
$ |
318,368 |
|
$ |
1,099,885 |
|
$ |
1,292,416 |
|
Property management |
|
8,236 |
|
|
9,056 |
|
|
36,022 |
|
|
37,345 |
|
Other ancillary services |
|
3,126 |
|
|
6,802 |
|
|
17,270 |
|
|
23,377 |
|
Total revenues |
$ |
207,330 |
|
$ |
334,226 |
|
$ |
1,153,177 |
|
$ |
1,353,138 |
|
|
|
|
|
|
|
|
|
|||||
Gross transaction value (in billions) |
$ |
7.5 |
|
$ |
12.6 |
|
$ |
42.9 |
|
$ |
51.2 |
|
Total transactions |
|
4,776 |
|
|
8,307 |
|
|
26,573 |
|
|
32,400 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230309005745/en/
917-902-2503
212-687-8080 (
44(0)2031788914(
J. Bryant Kirkland III,
305-579-8000
Source:
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