Vector Group Ltd. (NYSE:VGR) today announced financial results
for the fourth quarter and year ended December 31,
2016.
GAAP Financial Results
Fourth quarter 2016 revenues were $412.8 million, compared to
revenues of $430.3 million in the fourth quarter of 2015. The
Company recorded operating income of $30.8 million in the fourth
quarter of 2016, compared to operating income of $31.0 million in
the fourth quarter of 2015. Net income attributed to Vector Group
Ltd. for the 2016 fourth quarter was $4.6 million, or $0.04 per
diluted common share, compared to net income of $7.9 million, or
$0.06 per diluted common share, in the 2015 fourth quarter.
For the year ended December 31, 2016 revenues were $1.691
billion, compared to revenues of $1.657 billion for the year ended
December 31, 2015. The Company recorded operating income of
$233.0 million for the year ended December 31, 2016, compared
to operating income of $199.9 million for the year ended
December 31, 2015. Net income attributed to Vector Group Ltd.
for the year ended December 31, 2016 was $71.1 million, or
$0.55 per diluted common share, compared to net income of $59.2
million, or $0.46 per diluted common share for the year ended
December 31, 2015.
Non-GAAP Financial Measures
Non-GAAP financial measures also include adjustments for
purchase accounting associated with the Company's acquisition of
its additional 20.59% interest in Douglas Elliman Realty, LLC in
December 2013, litigation settlement and judgment expenses in the
Tobacco segment, settlements of long-standing disputes related to
the Master Settlement Agreement in the Tobacco segment,
restructuring and pension settlement expense in the Tobacco
segment, stock-based compensation expense (for purposes of Adjusted
EBITDA only) and non-cash interest items associated with the
Company's convertible debt. Reconciliations of non-GAAP financial
results to the comparable GAAP financial results for the three
months and years ended December 31, 2016 and 2015 are included
in Tables 2 through 10.
Three months ended December 31, 2016 compared to the three
months ended December 31, 2015
Fourth quarter 2016 Adjusted Revenues (as described in Table 2
attached hereto) were $412.8 million compared to $430.8 million in
2015.
Adjusted EBITDA attributed to Vector Group (as described
below and in Table 3 attached hereto) were $60.5 million for the
fourth quarter of 2016 compared to $58.4 million for the fourth
quarter of 2015.
Adjusted Net Income (as described below and in Table 4 attached
hereto) was $16.4 million or $0.13 per diluted share for the three
months ended December 31, 2016 and $16.4 million or $0.13 per
diluted share for the three months ended December 31, 2015.
Adjusted Operating Income (as described below and in Table 5
attached hereto) was $52.5 million for the three months ended
December 31, 2016 compared to $54.2 million for the three months
ended December 31, 2015.
Year ended December 31, 2016 compared to the year ended
December 31, 2015
For the year ended December 31, 2016 Adjusted Revenues (as
described in Table 2 attached hereto) were $1.691 billion compared
to $1.659 billion in 2015.
Adjusted EBITDA attributed to Vector Group (as described
below and in Table 3 attached hereto) were $280.2 million for the
year ended December 31, 2016 compared to $245.9 million in
2015.
Adjusted Net Income (as described below and in Table 4 attached
hereto) was $83.4 million or $0.65 per diluted share for the year
ended December 31, 2016 and $72.5 million or $0.57 per diluted
share for the year ended December 31, 2015.
Adjusted Operating Income (as described below and in Table 5
attached hereto) was $260.4 million for the year ended
December 31, 2016 and $232.0 million for the year ended
December 31, 2015.
Tobacco Segment Financial Results
For the fourth quarter 2016, the Tobacco segment had revenues of
$260.9 million, compared to $270.6 million for the fourth quarter
2015. The decline in revenues was primarily due to a 5.2% decline
in unit sales volume partially offset by favorable net pricing
variances.
For the year ended December 31, 2016, the Tobacco segment
had revenues of $1.012 billion, compared to $1.018 billion for the
year ended December 31, 2015. The decline in revenues was
primarily due to a 2.6% decline in unit sales volume partially
offset by favorable net pricing variances.
Operating Income from the Tobacco segment was $43.8 million and
$238.3 million for the three months and year ended
December 31, 2016 compared to $39.9 million and $209.4 million
for the three months and year ended December 31, 2015,
respectively.
Non-GAAP Financial Measures
Tobacco Adjusted Operating Income (described below and included
in Table 6 attached hereto) for the fourth quarter 2016 and 2015
was $62.1 million and $61.2 million, respectively. Tobacco Adjusted
Operating Income for the years ended December 31, 2016 and 2015 was
$258.6 million and $234.0 million, respectively.
For the three months ended December 31, 2016, the Tobacco
segment had conventional cigarette (wholesale) shipments of
approximately 2.23 billion units compared to 2.35 billion units for
the three months ended December 31, 2015. For the year ended
December 31, 2016, the Tobacco segment had conventional
cigarette (wholesale) shipments of approximately 8.46 billion units
compared to 8.69 billion units for the year ended December 31,
2015.
Liggett's retail market share increased to approximately 3.5%
during the year ended December 31, 2016. Compared to the year
ended December 31, 2015, Liggett's retail shipments increased
1.4% while the overall industry's retail shipments declined by
2.2%, according to data from Management Science Associates,
Inc.
Real Estate Segment Financial Results
For the fourth quarter 2016, the Real Estate segment had
revenues of $152.7 million, compared to $162.6 million for the
fourth quarter 2015. For the year ended December 31, 2016, the
Real Estate segment had revenues of $680.1 million compared to
$641.4 million for the year ended December 31, 2015. For the
fourth quarter 2016, the Real Estate segment reported a net loss of
$0.8 million, compared to net income of $1.5 million for the fourth
quarter 2015. For the year ended December 31, 2016, the Real
Estate segment reported net income of $13.5 million compared to
$11.7 million for the year ended December 31, 2015.
Douglas Elliman's results are included in Vector Group Ltd.'s
Real Estate segment. For the fourth quarter 2016, Douglas Elliman
had revenues of $151.5 million, compared to $160.7 million for the
fourth quarter 2015. For the year ended December 31, 2016,
Douglas Elliman had revenues of $675.3 million compared to $635.1
million for the year ended December 31, 2015. For fourth
quarter 2016, Douglas Elliman reported a net loss of $6.1 million,
compared to net income of $2.5 million for the fourth quarter 2015.
For the year ended December 31, 2016, Douglas Elliman net
income of $21.1 million compared to $22.2 million for the year
ended December 31, 2015.
Non-GAAP Financial Measures
For the fourth quarter 2016, the Real Estate segment had
Adjusted Revenues of $152.7 million, compared to $163.0 million for
the fourth quarter 2015. For the fourth quarter 2016, Real Estate
Adjusted EBITDA attributed to the Company were $0.6 million,
compared to $3.9 million for the fourth quarter 2015.
For the year ended December 31, 2016, the Real Estate
segment had Adjusted Revenues of $680.1 million compared to $643.3
million for the year ended December 31, 2015. The increase in
revenues was primarily due to an increase in commissions and other
brokerage income at Douglas Elliman. For the year ended
December 31, 2016, Real Estate Adjusted EBITDA attributed to
the Company were $28.0 million compared to $26.8 million for the
year ended December 31, 2015.
Douglas Elliman's results are included in Vector Group Ltd.'s
Real Estate segment. Douglas Elliman's Adjusted Revenues for
the fourth quarter 2016 were $151.5 million, compared to $161.2
million for the fourth quarter 2015.
For the fourth quarter 2016, Douglas Elliman's Adjusted EBITDA
were a loss of $0.5 million (a loss of $0.4 million attributed to
the Company), compared to income of $5.9 million ($4.1 million
attributed to the Company) for the fourth quarter 2015.
For the year ended December 31, 2016, Douglas Elliman's
Adjusted Revenues were $675.3 million compared to $637.0 million
for the year ended December 31, 2015.
For the year ended December 31, 2016, Douglas Elliman's
Adjusted EBITDA were $36.7 million ($25.9 million attributed to the
Company), compared to $35.7 million ($25.2 million attributed to
the Company) for the year ended December 31, 2015.
For the three months and year ended December 31, 2016,
Douglas Elliman achieved closed sales of approximately $5.7 billion
and $24.6 billion, compared to $6.2 billion and $22.4 billion for
the three months and year ended December 31, 2015.
E-cigarettes Segment Financial Results
For the fourth quarter of 2016, the E-cigarette segment had a
loss of Adjusted EBITDA of $1.0 million compared to a loss of
Adjusted EBITDA of $5.3 million for the fourth quarter 2015.
For the year ended December 31, 2016, the E-cigarette
segment had a loss of Adjusted EBITDA of $1.4 million compared to a
loss of Adjusted EBITDA of $13.0 million for the year ended
December 31, 2015.
Non-GAAP Financial Measures
Adjusted Revenues, New Valley LLC Adjusted Revenues and Douglas
Elliman Realty, LLC Adjusted Revenues (hereafter referred to as
"the Non-GAAP Revenue Financial Measures") and Adjusted EBITDA,
Adjusted Net Income, Adjusted Operating Income, Tobacco Adjusted
Operating Income, New Valley LLC Adjusted EBITDA and Douglas
Elliman Realty, LLC Adjusted EBITDA (hereafter, along with the
Non-GAAP Revenue Measures 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 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. In the case of
the Non-GAAP Revenue Financial Measures, management believes
revenue growth in its real estate segment is an important measure
of growth because increased revenues generally result in increased
gross margin as a result of absorption of fixed operating costs,
which management believes will lead to increased future
profitability as well as increased capacity to expand into new and
existing markets. A key strategy of the Company is its ability to
move into new markets and therefore gross revenues provide
information with respect to the Company's ability to achieve its
strategic objectives. Management also believes increased revenues
generally indicate increased market share in existing markets as
well as expansion into new markets. Consequently, management
believes the Non-GAAP Revenue Financial Measures are meaningful
indicators of operating performance.
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 10 is information relating to the Company's
Non-GAAP Financial Measures for the three and twelve months ended
December 31, 2016 and 2015.
Conference Call to Discuss Fourth
quarter 2016 Results
As previously announced, the Company will host a conference call
and webcast on Wednesday, March 1, 2017 at 4:30 PM (ET)
to discuss fourth quarter 2016 results. Investors
can access the call by dialing 800-859-8150 and entering
48737139 as the conference ID number. The call will also be
available via live webcast at www.investorcalendar.com. 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 March 1, 2017 through March 15, 2017. To access
the replay, dial 877-656-8905 and enter 48737139 as the
conference ID number. The archived webcast will also be available
at www.investorcalendar.com for one year.
Vector Group is a holding company that indirectly
owns Liggett Group LLC and Vector Tobacco Inc. and
directly owns New Valley LLC, which owns a controlling
interest in 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
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Dollars in
Thousands, Except Per Share Amounts)
Three Months Ended Year ended
December 31, December 31, 2016 2015 2016 2015
(Unaudited) (Unaudited) Revenues Tobacco* $ 260,943 $ 270,616 $
1,011,620 $ 1,017,761 Real estate 152,657 162,565 680,105 641,406
E-Cigarettes (828 ) (2,851 ) (776 ) (1,970 ) Total revenues 412,772
430,330 1,690,949 1,657,197 Expenses: Cost of sales:
Tobacco* 180,743 191,585 672,431 697,900 Real estate 93,045 100,981
424,829 410,287 E-Cigarettes 61 22 84 1,540
Total cost of sales 273,849 292,588 1,097,344 1,109,727
Operating, selling, administrative and general expenses
90,519 86,772 340,567 320,221 Litigation, settlement and judgment
expense 17,650 14,229 20,000 20,072 Restructuring charges —
5,709 41 7,257 Operating income 30,754 31,032
232,997 199,920 Other income (expenses): Interest expense
(38,528 ) (24,286 ) (142,982 ) (120,691 ) Change in fair value of
derivatives embedded within convertible debt 8,488 5,695 31,710
24,455 Equity in earnings from real estate ventures 1,872 723 5,200
2,001 Equity in losses from investments (646 ) (26 ) (2,754 )
(2,681 ) Gain (loss) on sale of investment securities available for
sale 2,059 (880 ) 2,907 11,138 Impairment of investment securities
available for sale (465 ) (635 ) (5,381 ) (12,846 ) Other, net
1,776 1,308 4,732 6,409 Income before
provision for income taxes 5,310 12,931 126,429 107,705 Income tax
expense 2,481 3,494 49,163 41,233
Net income 2,829 9,437 77,266 66,472 Net loss
(income) attributed to non-controlling interest 1,770 (1,533
) (6,139 ) (7,274 ) Net income attributed to Vector Group
Ltd. $ 4,599 $ 7,904 $ 71,127 $ 59,198
Per basic common share: Net income applicable to
common shares attributed to Vector Group Ltd. $ 0.04 $ 0.06
$ 0.56 $ 0.46 Per diluted common share:
Net income applicable to common shares attributed to Vector
Group Ltd. $ 0.04 $ 0.06 $ 0.55 $ 0.46
Cash distributions declared per share $ 0.40 $ 0.38
$ 1.54 $ 1.47
* Revenues and cost of sales include federal excise taxes of
$112,249, $120,603, $425,980 and $439,647, respectively.
TABLE 2
VECTOR GROUP LTD. AND
SUBSIDIARIES
REVENUES AND RECONCILIATION OF ADJUSTED
REVENUES
(Unaudited)
(Dollars in
Thousands)
Three Months Ended Year ended
December 31, December 31, 2016 2015 2016 2015
Revenues $ 412,772 $ 430,330 $ 1,690,949 $ 1,657,197
Purchase accounting adjustments (a) — 481 —
1,925 Total adjustments — 481 — 1,925 Adjusted
Revenues (b) $ 412,772 $ 430,811 $ 1,690,949 $
1,659,122
Revenues by Segment Tobacco (b) $
260,943 $ 270,616 $ 1,011,620 $ 1,017,761 E-cigarettes (828 )
(2,851 ) (776 ) (1,970 ) Real Estate (c) 152,657 162,565 680,105
641,406 Corporate and Other — — — —
Total (b) $ 412,772 $ 430,330 $ 1,690,949 $
1,657,197
Adjusted Revenues by Segment Tobacco
(b) $ 260,943 $ 270,616 $ 1,011,620 $ 1,017,761 E-cigarettes (828 )
(2,851 ) (776 ) (1,970 ) Real Estate (c) 152,657 163,046 680,105
643,331 Corporate and Other — — — —
Total (b) $ 412,772 $ 430,811 $ 1,690,949 $
1,659,122 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 $112,249, $120,603, $425,980 and $439,647 for the quarters
and years ended December 31, 2016 and 2015, respectively. c.
Includes Adjusted Revenues from Douglas Elliman Realty, LLC of
$151,491, $161,193, $675,258 and $637,000 for the quarters and
years ended December 31, 2016 and 2015, respectively.
TABLE 3
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF ADJUSTED
EBITDA
(Unaudited)
(Dollars in
Thousands)
Three Months Ended Year ended December
31, December 31, 2016 2015 2016 2015 Net
income attributed to Vector Group Ltd. $ 4,599 $ 7,904 $ 71,127 $
59,198 Interest expense 38,528 24,286 142,982 120,691 Income tax
expense 2,481 3,494 49,163 41,233 Net income attributed to
non-controlling interest (1,770 ) 1,533 6,139 7,274 Depreciation
and amortization 5,492 6,258 22,359 25,654
EBITDA $ 49,330 $ 43,475 $ 291,770 $ 254,050 Change in fair
value of derivatives embedded within convertible debt (a) (8,488 )
(5,695 ) (31,710 ) (24,455 ) Equity in losses from investments (b)
646 26 2,754 2,681 Loss (gain) on sale of investment securities
available for sale (2,059 ) 880 (2,907 ) (11,138 ) Impairment of
investment securities available for sale 465 635 5,381 12,846
Equity in earnings from real estate ventures (c) (1,872 ) (723 )
(5,200 ) (2,001 ) Pension settlement charge — — — 1,607 Stock-based
compensation expense (d) 2,775 1,972 10,052 5,620 Litigation
settlement and judgment expense (e) 17,650 14,229 20,000 20,072
Impact of MSA settlement (f) 617 1,351 247 (4,364 ) Restructuring
charges — 5,709 41 7,257 Purchase accounting adjustments (g) 3,029
379 5,230 1,435 Other, net (1,776 ) (1,308 ) (4,732 ) (6,409 )
Adjusted EBITDA $ 60,317 $ 60,930 $ 290,926 $ 257,201 Adjusted
EBITDA attributed to non-controlling interest 153 (2,535 )
(10,696 ) (11,267 ) Adjusted EBITDA attributed to Vector Group Ltd.
$ 60,470 $ 58,395 $ 280,230 $ 245,934
Adjusted EBITDA by Segment Tobacco $ 64,598 $ 63,794
$ 268,890 $ 245,374 E-cigarettes (954 ) (5,327 ) (1,403 ) (13,037 )
Real Estate (h) 419 6,413 38,716 38,111 Corporate and Other (3,746
) (3,950 ) (15,277 ) (13,247 ) Total $ 60,317 $ 60,930
$ 290,926 $ 257,201
Adjusted EBITDA
Attributed to Vector Group Ltd. by Segment Tobacco $ 64,598 $
63,794 $ 268,890 $ 245,374 E-cigarettes (954 ) (5,327 ) (1,403 )
(13,037 ) Real Estate (i) 572 3,878 28,020 26,844 Corporate and
Other (3,746 ) (3,950 ) (15,277 ) (13,247 ) Total $ 60,470 $
58,395 $ 280,230 $ 245,934 a.
Represents income or losses recognized from changes in the fair
value of the derivatives embedded in the Company's convertible
debt. b. Represents equity in losses recognized from investments
that the Company accounts for under the equity method. c.
Represents equity in earnings 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 Adjusted EBITDA for Douglas Elliman Realty,
LLC of $(522), $5,855, $36,657 and $35,740 for the three months and
years ended December 31, 2016 and 2015, respectively. Amounts
reported in this footnote reflect 100% of Douglas Elliman Realty,
LLC's entire Adjusted EBITDA. i. Includes Adjusted EBITDA for
Douglas Elliman Realty, LLC less non-controlling interest of
$(368), $4,133, $25,876 and $25,229 for the three months and years
ended December 31, 2016 and 2015, respectively. Amounts reported in
this footnote have adjusted Douglas Elliman Realty, LLC's Adjusted
EBITDA for non-controlling interest.
TABLE 4
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF ADJUSTED NET
INCOME
(Unaudited)
(Dollars in
Thousands, Except Per Share Amounts)
Three Months Ended Year ended December
31, December 31, 2016 2015 2016 2015 Net
income attributed to Vector Group Ltd. $ 4,599 $ 7,904 $ 71,127 $
59,198 Change in fair value of derivatives embedded within
convertible debt (8,488 ) (5,695 ) (31,710 ) (24,455 ) Non-cash
amortization of debt discount on convertible debt 10,905 7,565
38,528 27,211 Litigation settlement and judgment expense (a) 17,650
14,229 20,000 20,072 Pension settlement charge — — — 1,607 Impact
of interest expense capitalized to real estate ventures, net (3,322
) (9,928 ) (11,433 ) (9,928 ) Impact of MSA settlement (b) 617
1,351 247 (4,364 ) Restructuring charges — 5,709 41 7,257 Douglas
Elliman Realty, LLC purchase accounting adjustments (c) 2,489
1,358 5,057 5,303 Total adjustments
19,851 14,589 20,730 22,703 Tax expense related to
adjustments (8,060 ) (6,089 ) (8,416 ) (9,447 )
Adjusted Net Income attributed to Vector Group Ltd. $
16,390 $ 16,404 $ 83,441 $ 72,454
Per diluted common share: Adjusted Net Income
applicable to common shares attributed to Vector Group Ltd. $ 0.13
$ 0.13 $ 0.65 $ 0.57 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. 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.
TABLE 5
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF ADJUSTED OPERATING
INCOME
(Unaudited)
(Dollars in
Thousands)
Three Months Ended Year ended December
31, December 31, 2016 2015 2016 2015 Operating
income $ 30,754 $ 31,032 $ 232,997 $ 199,920 Litigation
settlement and judgment expense (a) 17,650 14,229 20,000 20,072
Pension settlement charge — — — 1,607 Restructuring expense — 5,709
41 7,257 Impact of MSA settlement (b) 617 1,351 247 (4,364 )
Douglas Elliman Realty, LLC purchase accounting adjustments (c)
3,526 1,925 7,164 7,513 Total
adjustments 21,793 23,214 27,452 32,085 Adjusted Operating
Income (d) $ 52,547 $ 54,246 $ 260,449 $
232,005 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.
TABLE 6
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF TOBACCO ADJUSTED
OPERATING INCOME
AND TOBACCO ADJUSTED EBITDA
(Unaudited)
(Dollars in
Thousands)
Three Months Ended Year ended
December 31, December 31, 2016 2015 2016 2015
Tobacco Adjusted Operating Income: Operating income from
tobacco segment $ 43,820 $ 39,878 $ 238,293 $ 209,393
Litigation settlement and judgment expense (a) 17,650 14,229 20,000
20,072 Pension settlement charge — — — 1,607 Restructuring expense
— 5,709 41 7,257 Impact of MSA settlement (b) 617 1,351
247 (4,364 ) Total adjustments 18,267 21,289 20,288
24,572 Tobacco Adjusted Operating Income $ 62,087 $
61,167 $ 258,581 $ 233,965
Three Months Ended Year ended December
31, December 31, 2016 2015 2016 2015
Tobacco Adjusted EBITDA: Operating income from tobacco
segment $ 43,820 $ 39,878 $ 238,293 $ 209,393 Litigation
settlement and judgment expense (a) 17,650 14,229 20,000 20,072
Pension settlement charge — — — 1,607 Restructuring expense — 5,709
41 7,257 Impact of MSA settlement (b) 617 1,351 247
(4,364 ) Total adjustments 18,267 21,289 20,288 24,572
Tobacco Adjusted Operating Income 62,087 61,167 258,581
233,965 Depreciation and amortization 2,489 2,606 10,224
11,323 Stock-based compensation expense 22 21 85
86 Total adjustments 2,511 2,627 10,309 11,409
Tobacco Adjusted EBITDA $ 64,598 $ 63,794 $ 268,890
$ 245,374 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.
TABLE 7
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF REAL ESTATE SEGMENT
(NEW VALLEY LLC) ADJUSTED REVENUES
(Unaudited)
(Dollars in
Thousands)
Three Months Ended Year ended
December 31, December 31, 2016 2015 2016 2015
Real Estate Segment (New Valley LLC) revenues $ 152,657 $
162,565 $ 680,105 $ 641,406 Purchase accounting
adjustments (a) — 481 — 1,925 Total
adjustments — 481 — 1,925 Real Estate Segment (New Valley
LLC) Adjusted Revenues (b) $ 152,657 $ 163,046 $
680,105 $ 643,331 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 Adjusted Revenues from
Douglas Elliman Realty, LLC of $151,491, $161,193, $675,258 and
$637,000 for the three months and years ended December 31, 2016 and
2015, respectively.
TABLE 8
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF REAL SEGMENT (NEW
VALLEY LLC) ADJUSTED EBITDA
(Unaudited)
(Dollars in
Thousands)
Three Months Ended Year ended
December 31, December 31, 2016 2015 2016 2015
Net income attributed to Vector Group Ltd. from subsidiary
non-guarantors (a) $ (814 ) $ 1,453 $ 13,477 $ 11,668
Interest expense (a) 6 3 20 7 Income tax (benefit) expense (a) (556
) 986 9,335 8,890 Net (loss) income attributed to non-controlling
interest (a) (1,770 ) 1,533 6,139 7,274 Depreciation and
amortization 2,613 3,217 10,485 12,589
EBITDA $ (521 ) $ 7,192 $ 39,456 $ 40,428 Loss from non-guarantors
other than New Valley LLC 14 25 98 91 Equity in earnings from real
estate ventures (b) (1,872 ) (723 ) (5,200 ) (2,001 ) Purchase
accounting adjustments (c) 3,029 379 5,230 1,435 Other, net (235 )
(468 ) (939 ) (1,754 ) Adjusted EBITDA $ 415 $ 6,405 $ 38,645 $
38,199 Adjusted EBITDA attributed to non-controlling interest 153
(2,535 ) (10,696 ) (11,267 ) Adjusted EBITDA attributed to
New Valley LLC $ 568 $ 3,870 $ 27,949 $ 26,932
Adjusted EBITDA by Segment Real Estate (d) $ 419 $
6,413 $ 38,716 $ 38,111 Corporate and Other (4 ) (8 ) (71 ) 88
Total (f) $ 415 $ 6,405 $ 38,645 $
38,199 Adjusted EBITDA Attributed to New Valley LLC
by Segment Real Estate (e) $ 572 $ 3,878 $ 28,020 $ 26,844
Corporate and Other (4 ) (8 ) (71 ) 88 Total (f) $ 568
$ 3,870 $ 27,949 $ 26,932 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 for the years ended December 31, 2016 and
December 31, 2015, respectively. b. Represents equity in earnings
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 Adjusted EBITDA for Douglas Elliman Realty, LLC of
$(522), $5,855, $36,657 and $35,740 for the three months and years
ended December 31, 2016 and 2015, respectively. Amounts reported in
this footnote reflect 100% of Douglas Elliman Realty, LLC's entire
Adjusted EBITDA. e. Includes Adjusted EBITDA for Douglas Elliman
Realty, LLC less non-controlling interest of $(368), $4,133,
$25,876 and $25,229 for the three months and years ended December
31, 2016 and 2015, respectively. Amounts reported in this footnote
have adjusted Douglas Elliman Realty, LLC's Adjusted EBITDA for
non-controlling interest. f. New Valley's Adjusted EBITDA does not
include an allocation of Vector Group Ltd.'s "Corporate and Other"
segment's expenses (for purposes of computing Adjusted EBITDA
contained in Table 3 of this press release) of $3,746, $3,950,
$15,277 and $13,247 for the three months and years ended December
31, 2016 and 2015, respectively.
TABLE 9
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF DOUGLAS ELLIMAN
REALTY, LLC ADJUSTED REVENUES
(Unaudited)
(Dollars in
Thousands)
Three Months Ended Year ended
December 31, December 31, 2016 2015 2016 2015
Douglas Elliman Realty, LLC revenues $ 151,491 $ 160,712 $ 675,258
$ 635,075 Purchase accounting adjustments (a) —
481 — 1,925 Total adjustments — 481 — 1,925
Douglas Elliman Realty, LLC Adjusted Revenues $ 151,491
$ 161,193 $ 675,258 $ 637,000 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.
TABLE 10
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)
Three Months Ended Year ended December
31, December 31, 2016 2015 2016 2015 Net
(loss) income attributed to Douglas Elliman Realty, LLC $ (6,113 )
$ 2,450 $ 21,068 $ 22,163 Interest expense — 1 — 4 Income
tax expense (benefit) 177 (45 ) 1,126 831 Depreciation and
amortization 2,508 3,148 10,116 12,343
Douglas Elliman Realty, LLC EBITDA $ (3,428 ) $ 5,554 $ 32,310 $
35,341 Equity in earnings from real estate ventures (a) (70 ) (37 )
(1,062 ) (945 ) Purchase accounting adjustments (b) 3,029 379 5,230
1,435 Other, net (53 ) (41 ) 179 (91 ) Douglas Elliman
Realty, LLC Adjusted EBITDA $ (522 ) $ 5,855 $ 36,657 $ 35,740
Douglas Elliman Realty, LLC Adjusted EBITDA attributed to
non-controlling interest 154 (1,722 ) (10,781 ) (10,511 )
Douglas Elliman Realty, LLC Adjusted EBITDA attributed to Real
Estate Segment (368 ) 4,133 25,876 25,229
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170301006438/en/
Sard Verbinnen & CoEmily Claffey/Benjamin
Spicehandler/Columbia Clancy212-687-8080orSard Verbinnen & Co -
EuropeJonathan Doorley/Conrad Harrington+44 (0)20 3178 8914orVector
Group Ltd.J. Bryant Kirkland III, 305-579-8000
Vector (NYSE:VGR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Vector (NYSE:VGR)
Historical Stock Chart
From Apr 2023 to Apr 2024