Douglas Elliman Reports Fourth Quarter and Full Year 2021 Financial Results
Douglas Elliman Inc. (NYSE:DOUG) reported impressive financial results for Q4 and the full year of 2021, marking its strong performance as an independent public company. In Q4, consolidated revenues reached $334.2 million, a 25% increase year-over-year, while annual revenues totaled $1.35 billion, up 75%. The company achieved a record Gross Transaction Value of $51.2 billion, with 32,400 total transactions. Operating income for Q4 was $19.2 million, up 44%, and $102.1 million for the full year, a significant turnaround from a loss the previous year.
- Q4 revenues increased to $334.2 million, up 25% year-over-year.
- Annual revenues reached $1.35 billion, a 75% increase.
- Gross Transaction Value for 2021 was $51.2 billion, versus $29.1 billion in 2020.
- Operating income for Q4 was $19.2 million, a 44% increase from the prior year.
- Net income for the year was $98.8 million, compared to a loss of $46.4 million in 2020.
- None.
Insights
Analyzing...
Strong Momentum in First Earnings Report as an
Achieves Record Annual Gross Transaction Value and Transactions, with
Fourth Quarter 2021 Highlights:
-
Consolidated revenues of
$334.2 million 25% or$66.8 million -
Reported operating income of
$19.2 million 44% or$5.9 million -
Adjusted EBITDA of
$21.3 million 28% or$4.6 million
Full Year 2021 Highlights:
-
Consolidated revenues of
$1.35 billion 75% or$579.2 million -
Reported operating income of
$102.1 million $151.4 million -
Adjusted EBITDA of
$110.7 million 402% or$88.6 million
“Douglas Elliman’s strong performance during our first quarterly reporting period as a stand-alone public company is a testament to the hard work of our agents and employees and represents a solid platform for our continued growth,” said
GAAP Financial Results
Three months ended
Year ended
Non-GAAP Financial Measures
Non-GAAP financial measures include adjustments for change in fair value of contingent liability, impairments of goodwill and other intangible assets, loss on disposal of assets, and restructuring (for purposes of Adjusted EBITDA and Adjusted Net Income). For purposes of Adjusted EBITDA only, adjustments also include equity in losses from equity method investments and other, net. Reconciliations of non-GAAP financial measures to the comparable GAAP financial results for the fourth quarter and full year ended
Three months ended
Adjusted EBITDA attributed to Douglas Elliman (as described in Table 2 attached hereto) were
Adjusted Net Income 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 Net Income attributed to Douglas Elliman (as described in Table 3 attached hereto) was
Gross Transaction Value (Closed Sales)
For the three months ended
For the year ended
Transactions
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 2021 Results
As previously announced, the Company will host a conference call and webcast on
A replay of the call will be available shortly after the call ends on
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted Net Income 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.
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 and 3 is information relating to the Company’s Non-GAAP Financial Measures for the fourth quarter and full year ended
About
Investors and others should note that we may post information about Douglas Elliman on our website at www.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, including statements regarding the current or anticipated impact of the COVID-19 pandemic on our business, made in this document are forward-looking. We identify forward-looking statements in this document by using words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may be,” “continue” “could,” “potential,” “objective,” “plan,” “seek,” “predict,” “project” and “will be” and similar words or phrases or their negatives. Forward-looking statements reflect our current expectations and are inherently uncertain. Actual results could differ materially for a variety of reasons. In particular, the extent, duration and severity of the spread of the COVID-19 pandemic and economic consequences stemming from the COVID-19 crisis (including a potential significant economic contraction) as well as related risks and the impact of any of the foregoing on our business, results of operations and liquidity could affect our future results and cause actual results to differ materially from those expressed in forward-looking statements.
Risks and uncertainties that could cause our actual results to differ significantly from our current expectations are described in our Registration Statement on Form S-1 filed with the
[Financial Tables Follow]
TABLE 1
CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share Amounts) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
||||||||||||
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
(Unaudited) |
|
(Unaudited) |
||||||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Commissions and other brokerage income |
$ |
318,368 |
|
|
$ |
256,031 |
|
|
$ |
1,292,416 |
|
|
$ |
733,751 |
|
Property management |
|
9,056 |
|
|
|
8,920 |
|
|
|
37,345 |
|
|
|
35,115 |
|
Other ancillary services |
|
6,802 |
|
|
|
2,510 |
|
|
|
23,377 |
|
|
|
5,121 |
|
Total revenues |
|
334,226 |
|
|
|
267,461 |
|
|
|
1,353,138 |
|
|
|
773,987 |
|
|
|
|
|
|
|
|
|
||||||||
Expenses: |
|
|
|
|
|
|
|
||||||||
Real estate agent commissions |
|
247,756 |
|
|
|
195,623 |
|
|
|
985,523 |
|
|
|
546,948 |
|
Sales and marketing |
|
17,843 |
|
|
|
23,448 |
|
|
|
77,174 |
|
|
|
64,097 |
|
Operations and support |
|
14,944 |
|
|
|
14,086 |
|
|
|
71,641 |
|
|
|
49,895 |
|
General and administrative |
|
28,317 |
|
|
|
13,859 |
|
|
|
92,798 |
|
|
|
76,134 |
|
Technology |
|
4,041 |
|
|
|
3,721 |
|
|
|
15,343 |
|
|
|
14,858 |
|
Depreciation and amortization |
|
2,152 |
|
|
|
2,132 |
|
|
|
8,561 |
|
|
|
8,537 |
|
Loss on disposal of assets |
|
— |
|
|
|
1,169 |
|
|
|
— |
|
|
|
1,169 |
|
Impairments of goodwill and other intangible assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
58,252 |
|
Restructuring |
|
— |
|
|
|
101 |
|
|
|
— |
|
|
|
3,382 |
|
Operating income (loss) |
|
19,173 |
|
|
|
13,322 |
|
|
|
102,098 |
|
|
|
(49,285 |
) |
|
|
|
|
|
|
|
|
||||||||
Other income (expenses): |
|
|
|
|
|
|
|
||||||||
Interest income |
|
18 |
|
|
|
42 |
|
|
|
83 |
|
|
|
190 |
|
Equity in (losses) earnings from equity-method investments |
|
(160 |
) |
|
|
(29 |
) |
|
|
(278 |
) |
|
|
(225 |
) |
Change in fair value of contingent liability |
|
1,605 |
|
|
|
67 |
|
|
|
(1,647 |
) |
|
|
2,149 |
|
Investment income (loss) |
|
(37 |
) |
|
|
843 |
|
|
|
529 |
|
|
|
843 |
|
Income (loss) before provision for income taxes |
|
20,599 |
|
|
|
14,245 |
|
|
|
100,785 |
|
|
|
(46,328 |
) |
Income tax expense |
|
477 |
|
|
|
212 |
|
|
|
2,133 |
|
|
|
44 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
20,122 |
|
|
|
14,033 |
|
|
|
98,652 |
|
|
|
(46,372 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss attributed to non-controlling interest |
|
66 |
|
|
|
— |
|
|
|
186 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributed to |
$ |
20,188 |
|
|
$ |
14,033 |
|
|
$ |
98,838 |
|
|
$ |
(46,372 |
) |
|
|
|
|
|
|
|
|
||||||||
Per basic common share: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) applicable to common shares attributed to |
$ |
0.26 |
|
|
$ |
0.18 |
|
|
$ |
1.27 |
|
|
$ |
(0.60 |
) |
|
|
|
|
|
|
|
|
||||||||
Per diluted common share: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) applicable to common shares attributed to |
$ |
0.26 |
|
|
$ |
0.18 |
|
|
$ |
1.27 |
|
|
$ |
(0.60 |
) |
TABLE 2
RECONCILIATION OF ADJUSTED EBITDA (Unaudited) (Dollars in Thousands) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
||||||||||||
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
||||||||||||
Net income (loss) attributed to |
$ |
20,188 |
|
|
$ |
14,033 |
|
|
$ |
98,838 |
|
|
$ |
(46,372 |
) |
Interest income |
|
(18 |
) |
|
|
(42 |
) |
|
|
(83 |
) |
|
|
(190 |
) |
Income tax expense |
|
477 |
|
|
|
212 |
|
|
|
2,133 |
|
|
|
44 |
|
Depreciation and amortization |
|
2,152 |
|
|
|
2,132 |
|
|
|
8,561 |
|
|
|
8,537 |
|
EBITDA |
$ |
22,799 |
|
|
$ |
16,335 |
|
|
$ |
109,449 |
|
|
$ |
(37,981 |
) |
Equity in losses from equity-method investments (a) |
|
160 |
|
|
|
29 |
|
|
|
278 |
|
|
|
225 |
|
Change in fair value of contingent liability |
|
(1,605 |
) |
|
|
(67 |
) |
|
|
1,647 |
|
|
|
(2,149 |
) |
Loss on disposal of assets |
|
— |
|
|
|
1,169 |
|
|
|
— |
|
|
|
1,169 |
|
Impairments of goodwill and other intangible assets (b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
58,252 |
|
Restructuring (c) |
|
— |
|
|
|
101 |
|
|
|
— |
|
|
|
3,382 |
|
Other, net |
|
(29 |
) |
|
|
(843 |
) |
|
|
(715 |
) |
|
|
(843 |
) |
Adjusted EBITDA |
$ |
21,325 |
|
|
$ |
16,724 |
|
|
$ |
110,659 |
|
|
$ |
22,055 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA Attributed to |
|
|
|
|
|
|
|
||||||||
Real Estate Brokerage |
$ |
21,325 |
|
|
$ |
16,724 |
|
|
$ |
110,659 |
|
|
$ |
22,055 |
|
Corporate and Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total |
$ |
21,325 |
|
|
$ |
16,724 |
|
|
$ |
110,659 |
|
|
$ |
22,055 |
|
- Represents equity in losses recognized from the Company’s investment in certain real estate businesses that are accounted for under the equity method and are not consolidated in the Company’s financial results.
- Represents non-cash intangible asset impairment charges related to goodwill and other intangible assets.
- Represents restructuring charges related to the Company’s real estate brokerage segment’s realignment of administrative support functions, office locations and business model.
TABLE 3
RECONCILIATION OF ADJUSTED NET INCOME (Unaudited) (Dollars in Thousands, Except Per Share Amounts) |
||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||
|
|
|
|
|||||||||||
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|||||||||||
Net income (loss) attributed to |
$ |
20,188 |
|
|
$ |
14,033 |
|
|
$ |
98,838 |
|
$ |
(46,372 |
) |
|
|
|
|
|
|
|
|
|||||||
Change in fair value of contingent liability |
|
(1,605 |
) |
|
|
(67 |
) |
|
|
1,647 |
|
|
(2,149 |
) |
Impairments of goodwill and other intangible assets (a) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
58,252 |
|
Loss on disposal of assets |
|
— |
|
|
|
1,169 |
|
|
|
— |
|
|
1,169 |
|
Restructuring (b) |
|
— |
|
|
|
101 |
|
|
|
— |
|
|
3,382 |
|
Total adjustments |
|
(1,605 |
) |
|
|
1,203 |
|
|
|
1,647 |
|
|
60,654 |
|
|
|
|
|
|
|
|
|
|||||||
Tax benefit (expense) related to adjustments |
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
(172 |
) |
|
|
|
|
|
|
|
|
|||||||
Adjusted Net Income attributed to |
$ |
18,583 |
|
|
$ |
15,232 |
|
|
$ |
100,485 |
|
$ |
14,110 |
|
|
|
|
|
|
|
|
|
|||||||
Per diluted common share: |
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Adjusted Net Income applicable to common shares attributed to |
$ |
0.24 |
|
|
$ |
0.18 |
|
|
$ |
1.29 |
|
$ |
0.17 |
|
- Represents non-cash intangible asset impairment charges related to the goodwill and other intangible assets.
- Represents restructuring charges related to the Company’s real estate brokerage segment’s realignment of administrative support functions, office locations and business model.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220301006103/en/
917-902-2503
212-687-8080
+44 (0)20 3178 8914
J. Bryant Kirkland III,
305-579-8000
Source:
FAQ
What were Douglas Elliman's earnings results for Q4 2021?
How did Douglas Elliman perform in 2021 compared to 2020?
What was the Gross Transaction Value for Douglas Elliman in 2021?
What was the operating income for Douglas Elliman in Q4 2021?
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