Vector Group Reports Second Quarter 2021 Financial Results
Vector Group Ltd. (NYSE: VGR) reported second quarter 2021 revenues of $729.5 million, up from $445.8 million a year prior, marking an all-time high. Operating income surged to $137.1 million versus $66.8 million in Q2 2020. Net income reached $93.3 million or $0.61 per diluted share, compared to $25.8 million or $0.16 per share previously. Its Tobacco segment showed strong performance with revenues of $329.5 million, while the Real Estate segment, led by Douglas Elliman, saw revenues soar 195% year-on-year. The company continues to provide quarterly dividends, returning $63 million to shareholders.
- Record quarterly revenue of $729.5 million, a 64% increase year-over-year.
- Operating income increased to $137.1 million from $66.8 million in Q2 2020.
- Net income reached $93.3 million, up from $25.8 million in Q2 2020.
- Douglas Elliman's revenue increased by 195% year-over-year, contributing significantly to overall growth.
- Continued strong performance in the Tobacco segment with $329.5 million in revenue.
- Liggett's retail market share declined to 4.09% from 4.31% year-over-year.
- Conventional cigarette shipments decreased by 7% in Q2 2021 compared to the same period in 2020.
Vector Group Ltd. (NYSE:VGR) today announced second quarter 2021 financial results.
“Vector had another outstanding quarter, achieving all-time high quarterly revenues and significantly increased operating income in both our Tobacco and Real Estate segments,” said Howard Lorber, President and Chief Executive Officer of Vector Group.
“We are excited by the continued strong performance of our tobacco business which validates our market strategy and reflects the competitive advantages we have in the deep discount segment, as demonstrated by increased Adjusted EBITDA during the quarter. Our Douglas Elliman subsidiary also delivered record revenues up
GAAP Financial Results
Three months ended June 30, 2021 and 2020. Second quarter 2021 revenues were
Six months ended June 30, 2021 and 2020. For the six months ended June 30, 2021, revenues were
Non-GAAP Financial Measures
Non-GAAP financial measures include adjustments for change in fair value of derivatives embedded within convertible debt, loss on extinguishment of debt, litigation settlements and judgment expense, impact of Master Settlement Agreement settlements, restructuring charges, net gains on sales of assets (for purposes of Adjusted EBITDA and Adjusted Operating Income only), and impairments of goodwill and other intangible assets. For purposes of Adjusted EBITDA only, adjustments include equity in earnings from investments, equity in (earnings) losses from real estate ventures, stock-based compensation expense, and other, net. For purposes of Adjusted Net Income only, adjustments include non-cash amortization of debt discount on convertible debt, net interest expense capitalized to real estate ventures, and the derivative associated with the 2018 acquisition of
Three months ended June 30, 2021 compared to the three months ended June 30, 2020
Adjusted EBITDA attributed to Vector (as described in Table 2 attached hereto) were
Adjusted Net Income (as described in Table 3 attached hereto) was
Adjusted Operating Income (as described in Table 4 attached hereto) was
Six months ended June 30, 2021 compared to the six months ended June 30, 2020
Adjusted EBITDA attributed to Vector (as described in Table 2 attached hereto) were
Adjusted Net Income (as described in Table 3 attached hereto) was
Adjusted Operating Income (as described in Table 4 attached hereto) was
Last twelve months ended June 30, 2021
For the last twelve months ended June 30, 2021, revenues were
For the last twelve months ended June 30, 2021, Adjusted EBITDA attributed to Vector (as described in Table 2 attached hereto) were
Consolidated Balance Sheet
Vector maintained significant liquidity at June 30, 2021 with cash and cash equivalents of
Vector continued its longstanding history of paying a quarterly cash dividend in the second quarter of 2021. For the six months ended June 30, 2021, Vector returned a total of
Tobacco Segment Financial Results
For the second quarter of 2021, the Tobacco segment had revenues of
Operating Income from the Tobacco segment was
Non-GAAP Financial Measures
Tobacco Adjusted Operating Income (as described in Table 5 attached hereto) for the second quarter of 2021 and 2020 was
For the second quarter of 2021, the Tobacco segment had conventional cigarette (wholesale) shipments of approximately 2.36 billion units, compared to 2.41 billion units for the second quarter of 2020. For the six months ended June 30, 2021, the Tobacco segment had conventional cigarette (wholesale) shipments of approximately 4.30 billion units, compared to 4.66 billion units for the six months ended June 30, 2020.
According to data from Management Science Associates, for the second quarter of 2021, Liggett’s retail market share declined to
Real Estate Segment Financial Results
For the second quarter of 2021, the Real Estate segment had revenues of
Douglas Elliman’s results are included in the Company’s Real Estate segment. For the second quarter of 2021, Douglas Elliman had revenues of
Results for the second quarter of 2020 for the Real Estate segment and Douglas Elliman included pre-tax restructuring charges of
Non-GAAP Financial Measures
For the second quarter of 2021, Real Estate Adjusted EBITDA attributed to Vector (as described in Table 6 attached hereto) were
For the six months ended June 30, 2021, Real Estate Adjusted EBITDA attributed to Vector were
For the last twelve months ended June 30, 2021, Real Estate net income was
For the second quarter of 2021, Douglas Elliman’s Adjusted EBITDA (as described in Table 7 attached hereto) were
For the six months ended June 30, 2021, Douglas Elliman’s Adjusted EBITDA were
For the last twelve months ended June 30, 2021, Douglas Elliman’s net income was
For the three and six months ended June 30, 2021, Douglas Elliman achieved closed sales of approximately
Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted Net Income, Adjusted Operating Income, Tobacco Adjusted Operating Income, Tobacco Adjusted EBITDA, New Valley Adjusted EBITDA, Douglas Elliman Adjusted EBITDA and financial measures for the last twelve months (“LTM”) ended June 30, 2021 (“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.
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 8 is information relating to the Company’s Non-GAAP Financial Measures for the last twelve months ended June 30, 2021 and the three and six months ended June 30, 2021 and 2020.
Conference Call to Discuss Second Quarter 2021 Results
As previously announced, the Company will host a conference call and webcast on Thursday, August 5, 2021 at 8:30 AM (ET) to discuss its second quarter 2021 results. Investors can access the call by dialing 877-271-1828 and entering 18383182 as the conference ID number. The call will also be available via live webcast at https://www.webcaster4.com/Webcast/Page/2271/42138. 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 August 5, 2021 through August 19, 2021. To access the replay, dial 877-656-8905 and enter 18383182 as the conference ID number. The archived webcast will also be available at https://www.webcaster4.com/Webcast/Page/2271/42138 for one year.
About Vector Group Ltd.
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.
Investors and others should note that we may post information about the Company or its subsidiaries on our website at www.VectorGroupLtd.com and/or at the websites of those subsidiaries or, if applicable, on their accounts on Facebook, Instagram, LinkedIn, TikTok, Twitter, YouTube or other social media platforms. It is possible that the postings or releases could include information deemed to be material information. Therefore, we encourage investors, the media and others interested in the Company to review the information we post on our website at www.VectorGroupLtd.com, on the websites of our subsidiaries and on their social media accounts.
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 2020 Annual Report on Form 10-K and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2021. We undertake no responsibility to publicly update or revise any forward-looking statement except as required by applicable law.
[Financial Tables Follow]
TABLE 1 |
||||||||||||||||
VECTOR GROUP LTD. AND SUBSIDIARIES |
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Dollars in Thousands, Except Per Share Amounts) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
June 30, |
|
June 30, |
|||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
|
(Unaudited) |
(Unaudited) |
||||||||||||||
Revenues: |
|
|
|
|
||||||||||||
Tobacco* |
$ |
329,496 |
|
$ |
312,510 |
|
$ |
597,959 |
|
$ |
599,579 |
|
||||
Real estate |
400,033 |
|
133,250 |
|
675,334 |
|
300,669 |
|
||||||||
Total revenues |
729,529 |
|
445,760 |
|
1,273,293 |
|
900,248 |
|
||||||||
|
|
|
|
|
||||||||||||
Expenses: |
|
|
|
|
||||||||||||
Cost of sales: |
|
|
|
|
||||||||||||
Tobacco* |
206,145 |
|
214,067 |
|
370,176 |
|
411,357 |
|
||||||||
Real estate |
294,265 |
|
90,818 |
|
493,776 |
|
204,151 |
|
||||||||
Total cost of sales |
500,410 |
|
304,885 |
|
863,952 |
|
615,508 |
|
||||||||
|
|
|
|
|
||||||||||||
Operating, selling, administrative and general expenses |
92,043 |
|
71,064 |
|
182,057 |
|
161,581 |
|
||||||||
Litigation settlement and judgment expense |
— |
|
53 |
|
5 |
|
53 |
|
||||||||
Impairments of goodwill and other intangible assets |
— |
|
— |
|
— |
|
58,252 |
|
||||||||
Restructuring charges |
— |
|
2,961 |
|
— |
|
2,961 |
|
||||||||
Operating income |
137,076 |
|
66,797 |
|
227,279 |
|
61,893 |
|
||||||||
|
|
|
|
|
||||||||||||
Other income (expenses): |
|
|
|
|
||||||||||||
Interest expense |
(28,115 |
) |
(29,358 |
) |
(56,866 |
) |
(64,985 |
) |
||||||||
Loss on extinguishment of debt |
— |
|
— |
|
(21,362 |
) |
— |
|
||||||||
Change in fair value of derivatives embedded within convertible debt |
— |
|
1,669 |
|
— |
|
4,999 |
|
||||||||
Equity in earnings from investments |
941 |
|
2,207 |
|
1,518 |
|
52,359 |
|
||||||||
Equity in earnings (losses) from real estate ventures |
16,685 |
|
(12,260 |
) |
18,274 |
|
(18,765 |
) |
||||||||
Other, net |
5,578 |
|
7,635 |
|
8,332 |
|
(3,020 |
) |
||||||||
Income before provision for income taxes |
132,165 |
|
36,690 |
|
177,175 |
|
32,481 |
|
||||||||
Income tax expense |
38,860 |
|
10,916 |
|
51,913 |
|
9,938 |
|
||||||||
|
|
|
|
|
||||||||||||
Net income |
93,305 |
|
25,774 |
|
125,262 |
|
22,543 |
|
||||||||
|
|
|
|
|
||||||||||||
Net loss (income) attributed to non-controlling interest |
— |
|
— |
|
— |
|
— |
|
||||||||
|
|
|
|
|
||||||||||||
Net income attributed to Vector Group Ltd. |
$ |
93,305 |
|
$ |
25,774 |
|
$ |
125,262 |
|
$ |
22,543 |
|
||||
|
|
|
|
|
||||||||||||
Per basic common share: |
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Net income applicable to common share attributed to Vector Group Ltd. |
$ |
0.61 |
|
$ |
0.17 |
|
$ |
0.81 |
|
$ |
0.14 |
|
||||
|
|
|
|
|
||||||||||||
Per diluted common share: |
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Net income applicable to common share attributed to Vector Group Ltd. |
$ |
0.61 |
|
$ |
0.16 |
|
$ |
0.81 |
|
$ |
0.14 |
|
||||
* Revenues and cost of sales include federal excise taxes of |
TABLE 2 |
||||||||||||||||||||||||
VECTOR GROUP LTD. AND SUBSIDIARIES |
||||||||||||||||||||||||
RECONCILIATION OF ADJUSTED EBITDA |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
(Dollars in Thousands) |
||||||||||||||||||||||||
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
June 30, |
|
December 31, |
|
June 30, |
|
June 30, |
|||||||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||||||
|
|
|
|
|
||||||||||||||||||||
Net income attributed to Vector Group Ltd. |
$ |
195,657 |
|
$ |
92,938 |
|
$ |
93,305 |
|
$ |
25,774 |
|
$ |
125,262 |
|
$ |
22,543 |
|
||||||
Interest expense |
113,422 |
|
121,541 |
|
28,115 |
|
29,358 |
|
56,866 |
|
64,985 |
|
||||||||||||
Income tax expense |
83,752 |
|
41,777 |
|
38,860 |
|
10,916 |
|
51,913 |
|
9,938 |
|
||||||||||||
Depreciation and amortization |
16,910 |
|
17,629 |
|
4,089 |
|
4,412 |
|
8,268 |
|
8,987 |
|
||||||||||||
EBITDA |
$ |
409,741 |
|
$ |
273,885 |
|
$ |
164,369 |
|
$ |
70,460 |
|
$ |
242,309 |
|
$ |
106,453 |
|
||||||
Change in fair value of derivatives embedded within convertible debt (a) |
— |
|
(4,999 |
) |
— |
|
(1,669 |
) |
— |
|
(4,999 |
) |
||||||||||||
Equity in earnings from investments (b) |
(5,427 |
) |
(56,268 |
) |
(941 |
) |
(2,207 |
) |
(1,518 |
) |
(52,359 |
) |
||||||||||||
Equity in losses (earnings) from real estate ventures (c) |
7,659 |
|
44,698 |
|
(16,685 |
) |
12,260 |
|
(18,274 |
) |
18,765 |
|
||||||||||||
Loss on extinguishment of debt |
21,362 |
|
— |
|
— |
|
— |
|
21,362 |
|
— |
|
||||||||||||
Stock-based compensation expense (d) |
10,682 |
|
9,483 |
|
3,080 |
|
2,283 |
|
5,740 |
|
4,541 |
|
||||||||||||
Litigation settlement and judgment expense (e) |
289 |
|
337 |
|
— |
|
53 |
|
5 |
|
53 |
|
||||||||||||
Impact of MSA settlement (f) |
(2,423 |
) |
299 |
|
— |
|
— |
|
(2,722 |
) |
— |
|
||||||||||||
Restructuring charges (g) |
421 |
|
3,382 |
|
— |
|
2,961 |
|
— |
|
2,961 |
|
||||||||||||
Net gains on sales of assets |
(1,114 |
) |
(1,114 |
) |
— |
|
— |
|
— |
|
— |
|
||||||||||||
Impairments of goodwill and other intangible assets (h) |
— |
|
58,252 |
|
— |
|
— |
|
— |
|
58,252 |
|
||||||||||||
Other, net |
(5,896 |
) |
5,456 |
|
(5,578 |
) |
(7,635 |
) |
(8,332 |
) |
3,020 |
|
||||||||||||
Adjusted EBITDA attributed to Vector Group Ltd. |
$ |
435,294 |
|
$ |
333,411 |
|
$ |
144,245 |
|
$ |
76,506 |
|
$ |
238,570 |
|
$ |
136,687 |
|
||||||
|
|
|
|
|
|
|
||||||||||||||||||
Adjusted EBITDA Attributed to Vector Group Ltd. by Segment |
|
|
|
|
|
|
||||||||||||||||||
Tobacco |
$ |
360,989 |
|
$ |
328,049 |
|
$ |
104,885 |
|
$ |
81,362 |
|
$ |
185,530 |
|
$ |
152,590 |
|
||||||
Real Estate (i) |
92,478 |
|
21,782 |
|
44,588 |
|
(1,716 |
) |
62,070 |
|
(8,626 |
) |
||||||||||||
Corporate and Other |
(18,173 |
) |
(16,420 |
) |
(5,228 |
) |
(3,140 |
) |
(9,030 |
) |
(7,277 |
) |
||||||||||||
Total |
$ |
435,294 |
|
$ |
333,411 |
|
$ |
144,245 |
|
$ |
76,506 |
|
$ |
238,570 |
|
$ |
136,687 |
|
||||||
__________________
- Represents income recognized from changes in the fair value of the derivatives embedded in the Company’s convertible debt.
-
Represents equity in earnings recognized from investments that the Company accounts for under the equity method. Included in the amount are equity in earnings from Ladenburg Thalmann Financial Services of
$372 for the last twelve months ended June 30, 2021,$53,424 for the year ended December 31, 2020, and$53,052 for the six months ended June 30, 2020. - Represents equity in losses (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.
- Represents amortization of stock-based compensation.
- Represents accruals for product liability litigation in the Company’s Tobacco segment.
- Represents the Company’s Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement.
- Represents restructuring charges related to Douglas Elliman Realty, LLC’s realignment of administrative support functions, office locations and business model.
- Represents non-cash intangible asset impairment charges in the Company’s Real Estate segment related to the goodwill and trademark of the Douglas Elliman Realty, LLC reporting unit.
-
Includes Adjusted EBITDA for Douglas Elliman Realty, LLC of
$92,443 for the last twelve months ended June 30, 2021,$22,054 for the year ended December 31, 2020,$45,280 , loss of$1,054 ,$61,631 and loss of$8,758 for the three and six months ended June 30, 2021 and 2020, respectively.
TABLE 3 |
||||||||||||||||
VECTOR GROUP LTD. AND SUBSIDIARIES |
||||||||||||||||
RECONCILIATION OF ADJUSTED NET INCOME |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(Dollars in Thousands, Except Per Share Amounts) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
June 30, |
|
June 30, |
|||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
|
|
|
||||||||||||||
Net income attributed to Vector Group Ltd. |
$ |
93,305 |
|
$ |
25,774 |
|
$ |
125,262 |
|
$ |
22,543 |
|
||||
|
|
|
|
|
||||||||||||
Change in fair value of derivatives embedded within convertible debt |
— |
|
(1,669 |
) |
— |
|
(4,999 |
) |
||||||||
Non-cash amortization of debt discount on convertible debt |
— |
|
759 |
|
— |
|
5,276 |
|
||||||||
Loss on extinguishment of debt |
— |
|
— |
|
21,362 |
|
— |
|
||||||||
Litigation settlement and judgment expense (a) |
— |
|
53 |
|
5 |
|
53 |
|
||||||||
Impact of MSA settlement (b) |
— |
|
— |
|
(2,722 |
) |
— |
|
||||||||
Impact of net interest expense capitalized to real estate ventures |
(559 |
) |
1,531 |
|
(869 |
) |
3,050 |
|
||||||||
Adjustment for derivative associated with acquisition of |
3,595 |
|
234 |
|
3,523 |
|
(1,831 |
) |
||||||||
Restructuring charges (c) |
— |
|
2,961 |
|
— |
|
2,961 |
|
||||||||
Impairments of goodwill and other intangible assets (d) |
— |
|
— |
|
— |
|
58,252 |
|
||||||||
Total adjustments |
3,036 |
|
3,869 |
|
21,299 |
|
62,762 |
|
||||||||
|
|
|
|
|
||||||||||||
Tax benefit (expense) related to adjustments |
151 |
|
(981 |
) |
(4,798 |
) |
(16,694 |
) |
||||||||
|
|
|
|
|
||||||||||||
Adjusted Net Income attributed to Vector Group Ltd. |
$ |
96,492 |
|
$ |
28,662 |
|
$ |
141,763 |
|
$ |
68,611 |
|
||||
|
|
|
|
|
||||||||||||
Per diluted common share: |
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Adjusted Net Income applicable to common shares attributed to Vector Group Ltd. |
$ |
0.63 |
|
$ |
0.19 |
|
$ |
0.92 |
|
$ |
0.45 |
|
||||
__________________
- Represents accruals for product liability litigation in the Company’s Tobacco segment.
- Represents the Company’s Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement.
- Represents restructuring charges related to Douglas Elliman Realty, LLC’s realignment of administrative support functions, office locations and business model.
- Represents non-cash intangible asset impairment charges in the Company’s Real Estate segment related to the goodwill and trademark of the Douglas Elliman Realty, LLC reporting unit.
TABLE 4 |
|||||||||||||||||||||||
VECTOR GROUP LTD. AND SUBSIDIARIES |
|||||||||||||||||||||||
RECONCILIATION OF ADJUSTED OPERATING INCOME |
|||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||
(Dollars in Thousands) |
|||||||||||||||||||||||
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
June 30, |
|
December 31, |
|
June 30, |
|
June 30, |
||||||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||
Operating income |
$ |
410,529 |
|
|
$ |
245,143 |
|
|
$ |
137,076 |
|
|
$ |
66,797 |
|
|
$ |
227,279 |
|
|
$ |
61,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Litigation settlement and judgment expense (a) |
289 |
|
|
337 |
|
|
— |
|
|
53 |
|
|
5 |
|
|
53 |
|
||||||
Restructuring charges (b) |
421 |
|
|
3,382 |
|
|
— |
|
|
2,961 |
|
|
— |
|
|
2,961 |
|
||||||
Impact of MSA settlement (c) |
(2,423 |
) |
|
299 |
|
|
— |
|
|
— |
|
|
(2,722 |
) |
|
— |
|
||||||
Net gains on sales of assets |
(1,114 |
) |
|
(1,114 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||
Impairments of goodwill and other intangible assets (d) |
— |
|
|
58,252 |
|
|
— |
|
|
— |
|
|
— |
|
|
58,252 |
|
||||||
Total adjustments |
(2,827 |
) |
|
61,156 |
|
|
— |
|
|
3,014 |
|
|
(2,717 |
) |
|
61,266 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted Operating Income |
$ |
407,702 |
|
|
$ |
306,299 |
|
|
$ |
137,076 |
|
|
$ |
69,811 |
|
|
$ |
224,562 |
|
|
$ |
123,159 |
|
__________________
- Represents accruals for product liability litigation in the Company’s Tobacco segment.
- Represents restructuring charges related to Douglas Elliman Realty, LLC’s realignment of administrative support functions, office locations and business model.
- Represents the Company’s Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement.
- Represents non-cash intangible asset impairment charges in the Company’s Real Estate segment related to the goodwill and trademark of the Douglas Elliman Realty, LLC reporting unit.
TABLE 5 |
||||||||||||||||||||||||
VECTOR GROUP LTD. AND SUBSIDIARIES |
||||||||||||||||||||||||
RECONCILIATION OF TOBACCO ADJUSTED OPERATING INCOME |
||||||||||||||||||||||||
AND TOBACCO ADJUSTED EBITDA |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
(Dollars in Thousands) |
||||||||||||||||||||||||
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
June 30, |
|
December 31, |
|
June 30, |
|
June 30, |
|||||||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Tobacco Adjusted Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income from Tobacco segment |
$ |
355,819 |
|
|
$ |
319,536 |
|
|
$ |
103,179 |
|
|
$ |
79,309 |
|
|
$ |
184,778 |
|
|
$ |
148,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Litigation settlement and judgment expense (a) |
289 |
|
|
337 |
|
|
— |
|
|
53 |
|
|
5 |
|
|
53 |
|
|||||||
Impact of MSA settlement (b) |
(2,423 |
) |
|
299 |
|
|
— |
|
|
— |
|
|
(2,722 |
) |
|
— |
|
|||||||
Total adjustments |
(2,134 |
) |
|
636 |
|
|
— |
|
|
53 |
|
|
(2,717 |
) |
|
53 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Tobacco Adjusted Operating Income |
$ |
353,685 |
|
|
$ |
320,172 |
|
|
$ |
103,179 |
|
|
$ |
79,362 |
|
|
$ |
182,061 |
|
|
$ |
148,548 |
|
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
June 30, |
|
December 31, |
|
June 30, |
|
June 30, |
|||||||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Tobacco Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income from Tobacco segment |
$ |
355,819 |
|
|
$ |
319,536 |
|
|
$ |
103,179 |
|
|
$ |
79,309 |
|
|
$ |
184,778 |
|
|
$ |
148,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Litigation settlement and judgment expense (a) |
289 |
|
|
337 |
|
|
— |
|
|
53 |
|
|
5 |
|
|
53 |
|
|||||||
Impact of MSA settlement (b) |
(2,423 |
) |
|
299 |
|
|
— |
|
|
— |
|
|
(2,722 |
) |
|
— |
|
|||||||
Total adjustments |
(2,134 |
) |
|
636 |
|
|
— |
|
|
53 |
|
|
(2,717 |
) |
|
53 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Tobacco Adjusted Operating Income |
353,685 |
|
|
320,172 |
|
|
103,179 |
|
|
79,362 |
|
|
182,061 |
|
|
148,548 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Depreciation and amortization |
7,292 |
|
|
7,877 |
|
|
1,697 |
|
|
2,000 |
|
|
3,457 |
|
|
4,042 |
|
|||||||
Stock-based compensation expense |
12 |
|
|
— |
|
|
9 |
|
|
— |
|
|
12 |
|
|
— |
|
|||||||
Total adjustments |
7,304 |
|
|
7,877 |
|
|
1,706 |
|
|
2,000 |
|
|
3,469 |
|
|
4,042 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Tobacco Adjusted EBITDA |
$ |
360,989 |
|
|
$ |
328,049 |
|
|
$ |
104,885 |
|
|
$ |
81,362 |
|
|
$ |
185,530 |
|
|
$ |
152,590 |
|
|
__________________
- Represents accruals for product liability litigation in the Company’s Tobacco segment.
- Represents the Company’s Tobacco segment’s settlement of long-standing disputes 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) |
||||||||||||||||||||||||
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
June 30, |
|
December 31, |
|
June 30, |
|
June 30, |
|||||||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||||||
|
|
|
|
|
||||||||||||||||||||
Net income (loss) attributed to Vector Group Ltd. from subsidiary non-guarantors (a) |
$ |
42,403 |
|
$ |
(75,910 |
) |
$ |
39,398 |
|
$ |
(12,417 |
) |
$ |
51,464 |
|
$ |
(66,849 |
) |
||||||
Interest expense (a) |
121 |
|
268 |
|
44 |
|
106 |
|
75 |
|
222 |
|
||||||||||||
Income tax expense (benefit) (a) |
17,879 |
|
(27,674 |
) |
16,508 |
|
(4,529 |
) |
21,215 |
|
(24,338 |
) |
||||||||||||
Depreciation and amortization |
9,139 |
|
8,874 |
|
2,374 |
|
2,198 |
|
4,776 |
|
4,511 |
|
||||||||||||
EBITDA |
$ |
69,542 |
|
$ |
(94,442 |
) |
$ |
58,324 |
|
$ |
(14,642 |
) |
$ |
77,530 |
|
$ |
(86,454 |
) |
||||||
(Income) loss from non-guarantors other than New Valley LLC |
(332 |
) |
45 |
|
(174 |
) |
15 |
|
(333 |
) |
44 |
|
||||||||||||
Equity in losses (earnings) from real estate ventures (b) |
7,659 |
|
44,698 |
|
(16,685 |
) |
12,260 |
|
(18,274 |
) |
18,765 |
|
||||||||||||
Restructuring charges (c) |
421 |
|
3,382 |
|
— |
|
2,961 |
|
— |
|
2,961 |
|
||||||||||||
Loss on sale of asset |
1,169 |
|
1,169 |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||
Impairments of goodwill and other intangible assets (d) |
— |
|
58,252 |
|
— |
|
— |
|
— |
|
58,252 |
|
||||||||||||
Other, net |
13,982 |
|
8,575 |
|
3,121 |
|
(2,325 |
) |
3,125 |
|
(2,282 |
) |
||||||||||||
Adjusted EBITDA attributed to New Valley LLC |
$ |
92,441 |
|
$ |
21,679 |
|
$ |
44,586 |
|
$ |
(1,731 |
) |
$ |
62,048 |
|
$ |
(8,714 |
) |
||||||
|
|
|
|
|
|
|
||||||||||||||||||
Adjusted EBITDA Attributed to New Valley LLC by Segment |
|
|
|
|
|
|
||||||||||||||||||
Real Estate (e) |
$ |
92,478 |
|
$ |
21,782 |
|
$ |
44,588 |
|
$ |
(1,716 |
) |
$ |
62,070 |
|
$ |
(8,626 |
) |
||||||
Corporate and Other |
(37 |
) |
(103 |
) |
(2 |
) |
(15 |
) |
(22 |
) |
(88 |
) |
||||||||||||
Total (f) |
$ |
92,441 |
|
$ |
21,679 |
|
$ |
44,586 |
|
$ |
(1,731 |
) |
$ |
62,048 |
|
$ |
(8,714 |
) |
||||||
__________________
- Amounts are derived from Vector Group Ltd.’s Condensed Consolidated Financial Statements. See Exhibit 99.2 “Condensed Consolidating Financial Information” contained in Vector Group Ltd.’s Form 10-K for the period ended December 31, 2020, Form 10-Q for the period ended June 30, 2021 and Note 14 contained in Vector Group Ltd.’s Form 10-Q for the period ended June 30, 2020.
- Represents equity in losses (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.
- Represents restructuring charges related to Douglas Elliman Realty, LLC’s realignment of administrative support functions, office locations and business model.
- Represents non-cash intangible asset impairment charges in the Company’s Real Estate segment related to the goodwill and trademark of the Douglas Elliman Realty, LLC reporting unit.
-
Includes Adjusted EBITDA for Douglas Elliman Realty, LLC of
$92,443 for the last twelve months ended June 30, 2021,$22,054 for the year ended December 31, 2020,$45,280 , loss of$1,054 ,$61,631 and loss of$8,758 for the three and six months ended June 30, 2021 and 2020, respectively. -
New Valley’s Adjusted EBITDA does not include an allocation of Vector Group Ltd.’s “Corporate and Other” segment expenses (for purposes of computing Adjusted EBITDA contained in Table 2 of this press release) of
$18,173 for the last twelve months ended June 30, 2021,$16,420 for the year ended December 31, 2020,$5,228 ,$3,140 ,$9,030 and$7,277 for the three and six months ended June 30, 2021 and 2020, respectively.
TABLE 7 |
||||||||||||||||||||||||
VECTOR GROUP LTD. AND SUBSIDIARIES |
||||||||||||||||||||||||
RECONCILIATION OF DOUGLAS ELLIMAN REALTY, LLC ADJUSTED EBITDA |
||||||||||||||||||||||||
ATTRIBUTED TO REAL ESTATE SEGMENT |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
(Dollars in Thousands) |
||||||||||||||||||||||||
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||
|
June 30, |
|
December 31, |
|
June 30, |
|
June 30, |
|||||||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Net income (loss) attributed to Douglas Elliman Realty, LLC |
$ |
82,956 |
|
$ |
(48,210 |
) |
$ |
43,160 |
|
$ |
(5,042 |
) |
$ |
57,084 |
|
$ |
(74,082 |
) |
||||||
Interest expense |
3 |
|
1 |
|
1 |
|
— |
|
3 |
|
1 |
|
||||||||||||
Income tax expense (benefit) |
826 |
|
(5 |
) |
590 |
|
2 |
|
833 |
|
2 |
|
||||||||||||
Depreciation and amortization |
8,445 |
|
8,537 |
|
2,097 |
|
2,089 |
|
4,220 |
|
4,312 |
|
||||||||||||
Douglas Elliman Realty, LLC EBITDA |
$ |
92,230 |
|
$ |
(39,677 |
) |
$ |
45,848 |
|
$ |
(2,951 |
) |
$ |
62,140 |
|
$ |
(69,767 |
) |
||||||
Equity in earnings from real estate ventures (a) |
(82 |
) |
(30 |
) |
(75 |
) |
— |
|
(75 |
) |
(23 |
) |
||||||||||||
Restructuring charges (b) |
421 |
|
3,382 |
|
— |
|
2,961 |
|
— |
|
2,961 |
|
||||||||||||
Loss on sale of asset |
1,169 |
|
1,169 |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||
Impairments of goodwill and other intangible assets (c) |
— |
|
58,252 |
|
— |
|
— |
|
— |
|
58,252 |
|
||||||||||||
Other, net |
(1,295 |
) |
(1,042 |
) |
(493 |
) |
(1,064 |
) |
(434 |
) |
(181 |
) |
||||||||||||
Douglas Elliman Realty, LLC Adjusted EBITDA attributed to Real Estate Segment |
$ |
92,443 |
|
$ |
22,054 |
|
$ |
45,280 |
|
$ |
(1,054 |
) |
$ |
61,631 |
|
$ |
(8,758 |
) |
||||||
__________________
- 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.
- Represents restructuring charges related to Douglas Elliman Realty, LLC’s realignment of administrative support functions, office locations and business model.
- Represents non-cash intangible asset impairment charges related to the goodwill and trademark of Douglas Elliman Realty, LLC.
TABLE 8 |
||||||||||||||||
VECTOR GROUP LTD. AND SUBSIDIARIES |
||||||||||||||||
RECONCILIATION OF REVENUES |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(Dollars in Thousands) |
||||||||||||||||
|
|
LTM |
|
Year Ended |
|
Six Months Ended |
||||||||||
|
|
June 30, |
|
December 31, |
|
June 30, |
|
June 30, |
||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Tobacco (a) |
|
$ |
1,202,881 |
|
|
$ |
1,204,501 |
|
|
$ |
597,959 |
|
|
$ |
599,579 |
|
Real estate (b) |
|
1,172,833 |
|
|
798,168 |
|
|
675,334 |
|
|
300,669 |
|
||||
Total revenues |
|
$ |
2,375,714 |
|
|
$ |
2,002,669 |
|
|
$ |
1,273,293 |
|
|
$ |
900,248 |
|
__________________
-
Tobacco segment revenues include federal excise taxes of
$443,672 ,$461,532 ,$216,449 and$234,309 for the last twelve months ended June 30, 2021, the year ended December 31, 2020 and the six months ended June 30, 2021 and 2020, respectively. -
Real Estate segment revenues include revenues from Douglas Elliman of
$1,140,208 ,$773,987 ,$664,751 and$298,530 for the last twelve months ended June 30, 2021, the year ended December 31, 2020 and the six months ended June 30, 2021 and 2020, respectively.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210804006131/en/
FAQ
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