CORRECTING and REPLACING Vector Group Reports First Quarter 2020 Financial Results
The corrected release reads:
VECTOR GROUP REPORTS FIRST QUARTER 2020 FINANCIAL RESULTS
GAAP Financial Results
First quarter 2020 revenues were
Non-GAAP Financial Measures
Non-GAAP financial measures also include adjustments for the derivative associated with the 2018 acquisition of 29.41% of
Three months ended
Adjusted EBITDA attributed to
Adjusted Net Income (as described in Table 3 attached hereto) was
Adjusted Operating Income (as described in Table 4 attached hereto) was
Tobacco Segment Financial Results
For the first quarter of 2020, 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 first quarter of 2020 was
For the three months ended
Liggett’s retail market share increased to 4.3% for the three months ended
Real Estate Segment Financial Results
For the first quarter of 2020, the Real Estate segment had revenues of
Douglas Elliman’s results are included in Vector Group Ltd.’s Real Estate segment. For the first quarter of 2020, Douglas Elliman had revenues of
Results for the first quarter of 2020 for the Real Estate segment and Douglas Elliman included non-cash impairment charges of
Non-GAAP Financial Measures
For the first quarter of 2020, Real Estate Adjusted EBITDA attributed to the Company (as described in Table 6 attached hereto) were a loss of
For the first quarter of 2020, Douglas Elliman’s Adjusted EBITDA (as described in Table 7 attached hereto) were a loss of
For the three months ended
Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted Net Income, Adjusted Operating Income, Tobacco Adjusted Operating Income, Tobacco Adjusted EBITDA, New Valley LLC Adjusted EBITDA and
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 7 is information relating to the Company’s Non-GAAP Financial Measures for the three months ended
Conference Call to Discuss First Quarter 2020 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
About
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,” “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 2019 Annual Report on Form 10-K and in our Quarterly Report on Form 10-Q for the quarter ended
[Financial Tables Follow]
TABLE 1 |
|||||||||
|
|||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||
(Dollars in Thousands, Except Per Share Amounts) |
|||||||||
|
Three Months Ended |
||||||||
|
|
||||||||
|
2020 |
|
2019 |
||||||
|
(Unaudited) |
||||||||
Revenues: |
|
|
|
||||||
Tobacco* |
$ |
|
287,069 |
|
|
$ |
|
256,756 |
|
Real estate |
|
167,419 |
|
|
|
164,168 |
|
||
Total revenues |
|
454,488 |
|
|
|
420,924 |
|
||
|
|
|
|
||||||
Expenses: |
|
|
|
||||||
Cost of sales: |
|
|
|
||||||
Tobacco* |
|
197,290 |
|
|
|
177,303 |
|
||
Real estate |
|
113,333 |
|
|
|
108,717 |
|
||
Total cost of sales |
|
310,623 |
|
|
|
286,020 |
|
||
|
|
|
|
||||||
Operating, selling, administrative and general expenses |
|
90,517 |
|
|
|
92,314 |
|
||
Impairments of goodwill and intangible assets |
58,252 |
— |
|||||||
Operating (loss) income |
|
(4,904) |
|
|
|
42,590 |
|
||
|
|
|
|
||||||
Other income (expenses): |
|
|
|
||||||
Interest expense |
|
(35,627 |
) |
|
|
(37,520 |
) |
||
Change in fair value of derivatives embedded within convertible debt |
|
3,330 |
|
|
|
10,349 |
|
||
Equity in losses from real estate ventures |
|
(6,505 |
) |
|
|
(2,439 |
) |
||
Equity in earnings from investments |
|
50,152 |
|
|
|
1,362 |
|
||
Other, net |
|
(10,655 |
) |
|
|
7,440 |
|
||
(Loss) income before provision for income taxes |
|
(4,209 |
) |
|
|
21,782 |
|
||
Income tax (benefit) expense |
|
(978 |
) |
|
|
6,749 |
|
||
|
|
|
|
||||||
Net (loss) income |
|
(3,231 |
) |
|
|
15,033 |
|
||
|
|
|
|
||||||
Net income attributed to non-controlling interest |
— |
|
|
|
(80 |
) |
|||
|
|
|
|
||||||
Net (loss) income attributed to |
$ |
|
(3,231 |
) |
|
$ |
|
14,953 |
|
|
|
|
|
||||||
Per basic common share: |
|
|
|
||||||
|
|
|
|
||||||
Net (loss) income applicable to common share attributed to |
$ |
|
(0.03 |
) |
|
$ |
|
0.09 |
|
|
|
|
|
||||||
Per diluted common share: |
|
|
|
||||||
|
|
|
|
||||||
Net (loss) income applicable to common share attributed to |
$ |
|
(0.03 |
) |
|
$ |
|
0.08 |
|
* Revenues and cost of sales include federal excise taxes of |
TABLE 2 |
||||||||||||||
|
||||||||||||||
RECONCILIATION OF ADJUSTED EBITDA |
||||||||||||||
(Unaudited) |
||||||||||||||
(Dollars in Thousands) |
||||||||||||||
|
LTM |
|
Three Months Ended |
|||||||||||
|
|
|
|
|||||||||||
|
2020 |
|
2020 |
|
2019 |
|||||||||
|
|
|
|
|||||||||||
Net income (loss) attributed to |
$ |
|
82,790 |
|
|
$ |
|
(3,231 |
) |
|
$ |
|
14,953 |
|
Interest expense |
|
136,555 |
|
|
|
35,627 |
|
|
|
37,520 |
|
|||
Income tax expense (benefit) |
|
25,086 |
|
|
|
(978 |
) |
|
|
6,749 |
|
|||
Net (loss) income attributed to non-controlling interest |
|
(39 |
) |
|
— |
|
|
|
80 |
|
||||
Depreciation and amortization |
|
17,718 |
|
|
|
4,575 |
|
|
|
4,708 |
|
|||
EBITDA |
$ |
|
262,110 |
|
|
$ |
|
35,993 |
|
|
$ |
|
64,010 |
|
Change in fair value of derivatives embedded within convertible debt (a) |
|
(19,406 |
) |
|
|
(3,330 |
) |
|
|
(10,349 |
) |
|||
Equity in earnings from investments (b) |
|
(65,790 |
) |
|
|
(50,152 |
) |
|
|
(1,362 |
) |
|||
Equity in losses from real estate ventures (c) |
|
23,354 |
|
|
|
6,505 |
|
|
|
2,439 |
|
|||
Stock-based compensation expense (d) |
|
9,291 |
|
|
|
2,258 |
|
|
|
2,436 |
|
|||
Litigation settlement and judgment expense (e) |
|
990 |
|
|
— |
|
|
— |
|
|||||
Impairments of goodwill and intangible assets (f) |
|
58,252 |
|
|
|
58,252 |
|
|
— |
|
||||
Other, net |
|
(3,210 |
) |
|
|
10,655 |
|
|
|
(7,440 |
) |
|||
Adjusted EBITDA attributed to |
$ |
|
269,892 |
|
|
$ |
|
60,181 |
|
|
$ |
|
49,734 |
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA Attributed to |
|
|
|
|
|
|||||||||
Tobacco |
$ |
|
279,571 |
|
|
$ |
|
71,228 |
|
|
$ |
|
62,122 |
|
Real Estate (g) |
|
7,101 |
|
|
|
(6,910 |
) |
|
|
(7,908 |
) |
|||
Corporate and Other |
|
(16,780 |
) |
|
|
(4,137 |
) |
|
|
(4,480 |
) |
|||
Total |
$ |
|
269,892 |
|
|
$ |
|
60,181 |
|
|
$ |
|
49,734 |
|
a. |
Represents income recognized from changes in the fair value of the derivatives embedded in the Company’s convertible debt. |
b. |
Represents equity in earnings recognized from investments that the Company accounts for under the equity method. Included in the amount are equity earnings from |
c. |
Represents equity in losses 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 non-cash intangible asset impairment charges within the Real Estate segment related to the |
g. |
Includes Adjusted EBITDA for |
TABLE 3 |
|||||||||
|
|||||||||
RECONCILIATION OF ADJUSTED NET INCOME |
|||||||||
(Unaudited) |
|||||||||
(Dollars in Thousands, Except Per Share Amounts) |
|||||||||
|
Three Months Ended |
||||||||
|
|
||||||||
|
2020 |
|
2019 |
||||||
|
|
||||||||
Net (loss) income attributed to |
$ |
|
(3,231 |
) |
|
$ |
|
14,953 |
|
|
|
|
|
||||||
Change in fair value of derivatives embedded within convertible debt |
|
(3,330 |
) |
|
|
(10,349 |
) |
||
Non-cash amortization of debt discount on convertible debt |
|
4,517 |
|
|
|
8,525 |
|
||
Impact of net interest expense capitalized to real estate ventures |
|
1,519 |
|
|
|
(930 |
) |
||
Adjustment for derivative associated with acquisition of 29.41% of |
|
(2,065 |
) |
|
— |
|
|||
Impairments of goodwill and intangible assets (a) |
|
58,252 |
|
|
— |
|
|||
Total adjustments |
|
58,893 |
|
|
|
(2,754 |
) |
||
|
|
|
|
||||||
Tax (expense) benefit related to adjustments |
|
(15,713 |
) |
|
|
763 |
|
||
|
|
|
|
||||||
Adjusted Net Income attributed to |
$ |
|
39,949 |
|
|
$ |
|
12,962 |
|
|
|
|
|
||||||
Per diluted common share: |
|
|
|
||||||
|
|
|
|
||||||
Adjusted Net Income applicable to common shares attributed to |
$ |
|
0.27 |
|
|
$ |
|
0.07 |
|
|
Represents non-cash intangible asset impairment charges within the Real Estate segment related to the |
TABLE 4 |
|||||||||||||||||
|
|||||||||||||||||
RECONCILIATION OF ADJUSTED OPERATING INCOME |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
(Dollars in Thousands) |
|||||||||||||||||
|
|||||||||||||||||
|
LTM |
|
Three Months Ended |
||||||||||||||
|
|
|
|
||||||||||||||
|
2020 |
|
2020 |
|
2019 |
||||||||||||
|
|
|
|
||||||||||||||
Operating income (loss) |
$ |
|
183,641 |
|
|
$ |
|
(4,904) |
|
|
$ |
|
42,590 |
|
|||
|
|
|
|
|
|
||||||||||||
Litigation settlement and judgment expense (a) |
|
990 |
|
|
— |
|
|
— |
|
||||||||
Impairments of goodwill and intangible assets (b) |
58,252 |
58,252 |
— |
||||||||||||||
Total adjustments |
|
59,242 |
|
|
58,252 |
|
|
— |
|
||||||||
|
|
|
|
|
|
||||||||||||
Adjusted Operating Income |
$ |
|
242,883 |
|
|
$ |
|
53,348 |
|
|
$ |
|
42,590 |
|
a. |
Represents accruals for settlements and judgment expenses in the Engle progeny tobacco litigation. |
|
b. | Represents non-cash intangible asset impairment charges within the Real Estate segment related to the |
TABLE 5 |
||||||||||||||
|
||||||||||||||
RECONCILIATION OF TOBACCO ADJUSTED OPERATING INCOME |
||||||||||||||
AND TOBACCO ADJUSTED EBITDA |
||||||||||||||
(Unaudited) |
||||||||||||||
(Dollars in Thousands) |
||||||||||||||
|
LTM |
|
Three Months Ended |
|||||||||||
|
|
|
|
|||||||||||
|
2020 |
|
2020 |
|
2019 |
|||||||||
|
|
|
|
|||||||||||
Tobacco Adjusted Operating Income: |
|
|
|
|
|
|||||||||
Operating income from tobacco segment |
$ |
|
270,672 |
|
|
$ |
|
69,186 |
|
|
$ |
|
60,144 |
|
|
|
|
|
|
|
|||||||||
Litigation settlement and judgment expense (a) |
|
990 |
|
|
— |
|
|
— |
|
|||||
Total adjustments |
|
990 |
|
|
— |
|
|
— |
|
|||||
|
|
|
|
|
|
|||||||||
Tobacco Adjusted Operating Income |
$ |
|
271,662 |
|
|
$ |
|
69,186 |
|
|
$ |
|
60,144 |
|
|
LTM |
|
Three Months Ended |
|||||||||||
|
|
|
|
|||||||||||
|
2020 |
|
2020 |
|
2019 |
|||||||||
|
|
|
|
|
|
|||||||||
Tobacco Adjusted EBITDA: |
|
|
|
|
|
|||||||||
Operating income from tobacco segment |
$ |
|
270,672 |
|
|
$ |
|
69,186 |
|
|
$ |
|
60,144 |
|
|
|
|
|
|
|
|||||||||
Litigation settlement and judgment expense (a) |
|
990 |
|
|
— |
|
|
— |
|
|||||
Total adjustments |
|
990 |
|
|
— |
|
|
— |
|
|||||
|
|
|
|
|
|
|||||||||
Tobacco Adjusted Operating Income |
|
271,662 |
|
|
|
69,186 |
|
|
|
60,144 |
|
|||
|
|
|
|
|
|
|||||||||
Depreciation and amortization |
|
7,909 |
|
|
|
2,042 |
|
|
|
1,957 |
|
|||
Stock-based compensation expense |
— |
|
|
— |
|
|
|
21 |
|
|||||
Total adjustments |
|
7,909 |
|
|
|
2,042 |
|
|
|
1,978 |
|
|||
|
|
|
|
|
|
|||||||||
Tobacco Adjusted EBITDA |
$ |
|
279,571 |
|
|
$ |
|
71,228 |
|
|
$ |
|
62,122 |
|
a. |
Represents accruals for settlements of judgment expenses in the Engle progeny tobacco litigation. |
TABLE 6 |
|||||||||||
|
|||||||||||
RECONCILIATION OF REAL ESTATE SEGMENT ( |
|||||||||||
(Unaudited) |
|||||||||||
(Dollars in Thousands) |
|||||||||||
|
LTM |
|
Three Months Ended |
||||||||
|
|
|
|
||||||||
|
2020 |
|
2020 |
|
2019 |
||||||
|
|
|
|
||||||||
Net loss attributed to |
$ |
(56,787 |
) |
|
$ |
(54,432 |
) |
|
$ |
(9,085 |
) |
Interest expense (a) |
800 |
|
|
116 |
|
|
229 |
|
|||
Income tax benefit (a) |
(22,274 |
) |
|
(19,809 |
) |
|
(3,419 |
) |
|||
Net (loss) income attributed to non-controlling interest (a) |
(39 |
) |
|
— |
|
|
80 |
|
|||
Depreciation and amortization |
8,845 |
|
|
2,313 |
|
|
2,501 |
|
|||
EBITDA |
$ |
(69,455 |
) |
|
$ |
(71,812 |
) |
|
$ |
(9,694 |
) |
Loss from non-guarantors other than |
52 |
|
|
29 |
|
|
28 |
|
|||
Equity in losses from real estate ventures (b) |
23,354 |
|
|
6,505 |
|
|
2,439 |
|
|||
Impairments of goodwill and intangible assets (c) |
58,252 |
|
|
58,252 |
|
|
— |
|
|||
Other, net |
(5,182 |
) |
|
43 |
|
|
(704 |
) |
|||
Adjusted EBITDA attributed to |
$ |
7,021 |
|
|
$ |
(6,983 |
) |
|
$ |
(7,931 |
) |
|
|
|
|
|
|
||||||
Adjusted EBITDA Attributed to |
|
|
|
|
|
||||||
Real Estate (d) |
$ |
7,101 |
|
|
$ |
(6,910 |
) |
|
$ |
(7,908 |
) |
Corporate and Other |
(80 |
) |
|
(73 |
) |
|
(23 |
) |
|||
Total (e) |
$ |
7,021 |
|
|
$ |
(6,983 |
) |
|
$ |
(7,931 |
) |
|
|
|
|
|
|
a. |
Amounts are derived from Vector Group Ltd.’s Condensed Consolidated Financial Statements. See Note entitled “Condensed Consolidating Financial Information” contained in Vector Group Ltd.’s Form 10-Q for the three months ended |
b. |
Represents equity in losses recognized from the Company’s investment in certain real estate businesses that are not consolidated in its financial results. |
c. |
Represents non-cash intangible asset impairment charges within the Real Estate segment related to the |
d. |
Includes Adjusted EBITDA for |
e. |
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 |
TABLE 7 |
||||||||||||||
|
||||||||||||||
RECONCILIATION OF DOUGLAS ELLIMAN REALTY, LLC ADJUSTED EBITDA |
||||||||||||||
AND |
||||||||||||||
(Unaudited) |
||||||||||||||
(Dollars in Thousands) |
||||||||||||||
|
LTM |
|
Three Months Ended |
|||||||||||
|
|
|
|
|||||||||||
|
2020 |
|
2020 |
|
2019 |
|||||||||
|
|
|
|
|||||||||||
Net loss attributed to |
$ |
|
(52,441 |
) |
|
$ |
|
(69,040 |
) |
|
$ |
|
(10,414 |
) |
Interest expense |
|
6 |
|
|
|
1 |
|
|
|
3 |
|
|||
Income tax expense |
|
368 |
|
|
— |
|
|
— |
|
|||||
Depreciation and amortization |
|
8,461 |
|
|
|
2,223 |
|
|
|
2,400 |
|
|||
|
$ |
|
(43,606 |
) |
|
$ |
|
(66,816 |
) |
|
$ |
|
(8,011 |
) |
Equity in earnings from real estate ventures (a) |
|
(7,846 |
) |
|
|
(23 |
) |
|
|
(649 |
) |
|||
Impairments of goodwill and intangible assets (b) |
|
58,252 |
|
|
|
58,252 |
|
|
— |
|
||||
Other, net |
|
(180 |
) |
|
|
883 |
|
|
|
(331 |
) |
|||
|
$ |
|
6,620 |
|
|
$ |
|
(7,704 |
) |
|
$ |
|
(8,991 |
) |
a.
|
Represents equity in earnings recognized from the Company’s investment in certain real estate businesses that are not consolidated in its financial results. |
|
b. |
Represents non-cash intangible asset impairment charges within the Real Estate segment related to the |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200508005133/en/
/
212-687-8080
+44 (0)20 3178 8914
J. Bryant Kirkland III,
305-579-8000
Source: