VECTOR GROUP LTD. |
DELAWARE |
(State or Other Jurisdiction of Incorporation) |
1-5759 | 65-0949535 | |
(Commission File Number) | (I.R.S. Employer Identification No.) | |
4400 Biscayne Boulevard, Miami, Florida | 33137 | |
(Address of Principal Executive Offices) | (Zip Code) |
(305) 579-8000 |
(Registrant’s Telephone Number, Including Area Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class: | Trading | Name of each exchange |
Symbol(s) | on which registered: | |
Common stock, par value $0.10 per share | VGR | New York Stock Exchange |
(c) | Exhibit. |
Exhibit No. | Exhibit | |
Non-GAAP Financial Measures (furnished pursuant to Regulation FD). |
VECTOR GROUP LTD. | ||
By: | /s/ J. Bryant Kirkland III | |
J. Bryant Kirkland III | ||
Senior Vice President, Treasurer and Chief Financial Officer |
Year Ended | |||||||||||||||
December 31, 2018 | December 31, 2017 | December 31, 2016 | December 31, 2015 | ||||||||||||
Net income attributed to Vector Group Ltd. | $ | 58,105 | $ | 84,572 | $ | 71,127 | $ | 59,198 | |||||||
Interest expense | 203,780 | 173,685 | 142,982 | 120,691 | |||||||||||
Income tax expense (benefit) | 21,552 | (1,582 | ) | 49,163 | 41,233 | ||||||||||
Net (loss) income attributed to non-controlling interest | (98 | ) | 6,178 | 6,139 | 7,274 | ||||||||||
Depreciation and amortization | 18,807 | 18,614 | 22,359 | 25,654 | |||||||||||
EBITDA | $ | 302,146 | $ | 281,467 | $ | 291,770 | $ | 254,050 | |||||||
Change in fair value of derivatives embedded within convertible debt (a) | (44,989 | ) | (35,919 | ) | (31,710 | ) | (24,455 | ) | |||||||
Equity in (earnings) losses on long-term investments (b) | (3,158 | ) | 765 | 2,754 | 2,681 | ||||||||||
Net losses recognized on investment securities | 9,570 | 660 | 3,487 | 2,129 | |||||||||||
Equity in earnings from real estate ventures (c) | (14,446 | ) | (21,395 | ) | (5,200 | ) | (2,001 | ) | |||||||
Loss on extinguishment of debt | 4,066 | 34,110 | — | — | |||||||||||
Stock-based compensation expense (d) | 9,951 | 10,887 | 10,052 | 5,620 | |||||||||||
Litigation settlement and judgment expense (e) | (1,784 | ) | 6,591 | 20,000 | 20,072 | ||||||||||
Impact of MSA Settlement (f) | (6,298 | ) | (2,721 | ) | 247 | (4,364 | ) | ||||||||
Restructuring expense | — | — | 41 | 1,819 | |||||||||||
Purchase accounting adjustments (g) | 608 | (2,102 | ) | 5,230 | 1,435 | ||||||||||
Other, net | (10,333 | ) | (5,426 | ) | (4,237 | ) | (814 | ) | |||||||
Adjusted EBITDA | $ | 245,333 | $ | 266,917 | $ | 292,434 | $ | 256,172 | |||||||
Adjusted EBITDA attributed to non-controlling interest | (3,319 | ) | (7,576 | ) | (10,696 | ) | (11,267 | ) | |||||||
Adjustment to reflect additional 29.41% of Douglas Elliman Realty, LLC Adjusted EBITDA (h) | 3,319 | 7,679 | 10,781 | 10,511 | |||||||||||
Adjusted EBITDA attributed to Vector Group Ltd. | $ | 245,333 | $ | 267,020 | $ | 292,519 | $ | 255,416 | |||||||
Adjusted EBITDA by Segment | |||||||||||||||
Tobacco | $ | 249,209 | $ | 253,181 | $ | 268,121 | $ | 243,067 | |||||||
Real Estate (i) | 11,154 | 27,848 | 38,716 | 38,111 | |||||||||||
Corporate and Other | (15,030 | ) | (14,112 | ) | (14,403 | ) | (25,006 | ) | |||||||
Total | $ | 245,333 | $ | 266,917 | $ | 292,434 | $ | 256,172 | |||||||
Adjusted EBITDA Attributed to Vector Group Ltd. by Segment | |||||||||||||||
Tobacco | $ | 249,209 | $ | 253,181 | $ | 268,121 | $ | 243,067 | |||||||
Real Estate (i) | 11,154 | 27,951 | 38,801 | 37,355 | |||||||||||
Corporate and Other | (15,030 | ) | (14,112 | ) | (14,403 | ) | (25,006 | ) | |||||||
Total | $ | 245,333 | $ | 267,020 | $ | 292,519 | $ | 255,416 |
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) 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 and proceeds received from a litigation award at Douglas Elliman Realty, LLC. |
f. | Represents the Company’s tobacco segment’s settlement of a long-standing dispute related to the Master Settlement Agreement. |
g. | Represents 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. | Represents 29.41% of Douglas Elliman Realty LLC's Adjusted EBITDA in the respective periods. On December 31, 2018, the Company increased its ownership of Douglas Elliman Realty, LLC from 70.59% to 100%. |
i. | Includes Adjusted EBITDA for Douglas Elliman Realty, LLC of $11,284, $26,110, $36,657, and $35,740 for the years ended December 31, 2018, 2017, 2016, and 2015, respectively. Amounts reported in this footnote reflect 100% of Douglas Elliman Realty, LLC's entire Adjusted EBITDA. |
Three Months Ended | |||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | ||||||||||||
Net income attributed to Vector Group Ltd. | $ | 21,074 | $ | 12,002 | $ | 17,818 | $ | 7,211 | |||||||
Interest expense | 58,328 | 51,084 | 48,421 | 45,947 | |||||||||||
Income tax (benefit) expense | (7,842 | ) | 14,686 | 12,760 | 1,948 | ||||||||||
Net (loss) income attributed to non-controlling interest | (755 | ) | 3,026 | 1,178 | (3,547 | ) | |||||||||
Depreciation and amortization | 4,764 | 4,707 | 4,749 | 4,587 | |||||||||||
EBITDA | $ | 75,569 | $ | 85,505 | $ | 84,926 | $ | 56,146 | |||||||
Change in fair value of derivatives embedded within convertible debt (a) | (13,700 | ) | (10,005 | ) | (10,717 | ) | (10,567 | ) | |||||||
Equity in losses (earnings) on long-term investments (b) | 6,047 | (3,230 | ) | (4,813 | ) | (1,162 | ) | ||||||||
Net losses recognized on investment securities | 9,264 | 797 | (3,236 | ) | 2,745 | ||||||||||
Equity in (earnings) losses from real estate ventures (c) | (22,824 | ) | (294 | ) | 2,112 | 6,560 | |||||||||
Loss on extinguishment of debt | 4,066 | — | — | — | |||||||||||
Stock-based compensation expense (d) | 2,527 | 2,584 | 2,456 | 2,384 | |||||||||||
Litigation settlement and judgment expense (e) | 160 | — | 525 | (2,469 | ) | ||||||||||
Impact of MSA Settlement (f) | — | — | (2,808 | ) | (3,490 | ) | |||||||||
Purchase accounting adjustments (g) | 63 | 184 | 179 | 182 | |||||||||||
Other, net | (5,572 | ) | (2,048 | ) | (1,662 | ) | (1,051 | ) | |||||||
Adjusted EBITDA | $ | 55,600 | $ | 73,493 | $ | 66,962 | $ | 49,278 | |||||||
Adjusted EBITDA attributed to non-controlling interest | (1,471 | ) | (3,638 | ) | (1,906 | ) | 3,696 | ||||||||
Adjustment to reflect additional 29.41% of Douglas Elliman Realty, LLC Adjusted EBITDA (h) | (158 | ) | 3,543 | 2,464 | (2,530 | ) | |||||||||
Adjusted EBITDA attributed to Vector Group Ltd. | $ | 53,971 | $ | 73,398 | $ | 67,520 | $ | 50,444 | |||||||
Adjusted EBITDA by Segment | |||||||||||||||
Tobacco | $ | 59,563 | $ | 65,339 | $ | 62,328 | $ | 61,979 | |||||||
Real Estate (i) | (249 | ) | 11,697 | 8,464 | (8,758 | ) | |||||||||
Corporate and Other | (3,714 | ) | (3,543 | ) | (3,830 | ) | (3,943 | ) | |||||||
Total | $ | 55,600 | $ | 73,493 | $ | 66,962 | $ | 49,278 | |||||||
Adjusted EBITDA Attributed to Vector Group Ltd. by Segment | |||||||||||||||
Tobacco | $ | 59,563 | $ | 65,339 | $ | 62,328 | $ | 61,979 | |||||||
Real Estate (i) | (1,878 | ) | 11,602 | 9,022 | (7,592 | ) | |||||||||
Corporate and Other | (3,714 | ) | (3,543 | ) | (3,830 | ) | (3,943 | ) | |||||||
Total | $ | 53,971 | $ | 73,398 | $ | 67,520 | $ | 50,444 |
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) losses recognized from investments that the Company accounts for under the equity method. |
c. | Represents equity in (earnings) 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 and proceeds received from a litigation award at Douglas Elliman Realty, LLC. |
f. | Represents the Company’s tobacco segment’s settlement of a long-standing dispute related to the Master Settlement Agreement. |
g. | Represents 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. | Represents 29.41% of Douglas Elliman Realty LLC's Adjusted EBITDA in the respective 2018 periods. On December 31, 2018, the Company increased its ownership of Douglas Elliman Realty, LLC from 70.59% to 100%. |
i. | Includes Adjusted EBITDA for Douglas Elliman Realty, LLC of $540, $12,048, $8,379 and negative $8,603 for the three months ended December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively. Amounts reported in this footnote reflect 100% of Douglas Elliman Realty, LLC’s entire Adjusted EBITDA. |
Three Months Ended | |||||||||||||||
December, 31 | September 30, | June 30, | March 31, | ||||||||||||
2018 | 2018 | 2018 | 2018 | ||||||||||||
Net income attributed to Vector Group Ltd. | $ | 21,074 | $ | 12,002 | $ | 17,818 | $ | 7,211 | |||||||
Change in fair value of derivatives embedded within convertible debt | (13,700 | ) | (10,005 | ) | (10,717 | ) | (10,567 | ) | |||||||
Non-cash amortization of debt discount on convertible debt | 25,173 | 22,871 | 20,386 | 18,193 | |||||||||||
Loss on extinguishment of debt | 4,066 | — | — | — | |||||||||||
Litigation settlement and judgment expense (income) (a) | 160 | — | 525 | (2,469 | ) | ||||||||||
Impact of MSA settlement (b) | — | — | (2,808 | ) | (3,490 | ) | |||||||||
Impact of net interest expense capitalized to real estate ventures | (472 | ) | (596 | ) | 4,324 | (1,953 | ) | ||||||||
Douglas Elliman Realty, LLC purchase accounting adjustments (c) | 265 | 385 | 380 | 375 | |||||||||||
Adjustment to reflect additional 29.41% of net income from Douglas Elliman Realty, LLC (d) | (758 | ) | 2,931 | 1,737 | (2,381 | ) | |||||||||
Total adjustments | 14,734 | 15,586 | 13,827 | (2,292 | ) | ||||||||||
Tax expense related to adjustments | (4,046 | ) | (4,459 | ) | (3,868 | ) | 655 | ||||||||
Adjusted Net Income attributed to Vector Group Ltd. | $ | 31,762 | $ | 23,129 | $ | 27,777 | $ | 5,574 | |||||||
Per diluted common share: | |||||||||||||||
Adjusted Net Income applicable to common shares attributed to Vector Group Ltd. | $ | 0.21 | $ | 0.15 | $ | 0.19 | $ | 0.03 |
a. | Represents accruals for settlements of judgment expenses in the Engle progeny tobacco litigation and proceeds received from a litigation award at Douglas Elliman Realty, LLC, net of non-controlling interest. |
b. | Represents the Company’s tobacco segment’s settlement of a long-standing dispute related to the Master Settlement Agreement. |
c. | Represents 100% of purchase accounting adjustments in the periods presented for assets acquired in connection with the accounting for the Company’s acquisition of the 20.59% of Douglas Elliman Realty, LLC on December 31, 2013. |
d. | Represents 29.41% of Douglas Elliman Realty LLC's net income in the respective 2018 periods. On December 31, 2018, the Company increased its ownership of Douglas Elliman Realty, LLC from 70.59% to 100%. |
Year Ended | |||||||||||||||
December 31, | |||||||||||||||
2018 | 2017 | 2016 | 2015 | ||||||||||||
Net income attributed to Vector Group Ltd. | $ | 58,105 | $ | 84,572 | $ | 71,127 | $ | 59,198 | |||||||
Acceleration of interest expense related to debt conversion | — | — | — | — | |||||||||||
Change in fair value of derivatives embedded within convertible debt | (44,989 | ) | (35,919 | ) | (31,710 | ) | (24,455 | ) | |||||||
Non-cash amortization of debt discount on convertible debt | 86,623 | 56,787 | 38,528 | 27,211 | |||||||||||
Loss on extinguishment of debt | 4,066 | 34,110 | — | — | |||||||||||
Litigation settlement and judgment (income) expense (a) | (1,784 | ) | 6,591 | 20,000 | 20,072 | ||||||||||
Impact of MSA settlement (b) | (6,298 | ) | (2,721 | ) | 247 | (4,364 | ) | ||||||||
Impact of net interest expense capitalized to real estate ventures | 1,303 | (6,385 | ) | (11,433 | ) | (9,928 | ) | ||||||||
Restructuring charges (c) | — | — | 41 | 7,257 | |||||||||||
Douglas Elliman Realty, LLC purchase accounting adjustments (d) | 1,405 | (1,133 | ) | 7,164 | 7,512 | ||||||||||
Adjustment to reflect additional 29.41% of net income from Douglas Elliman Realty, LLC (e) | 1,529 | 6,281 | 6,196 | 6,518 | |||||||||||
Total adjustments | 41,855 | 57,611 | 29,033 | 29,823 | |||||||||||
Tax expense related to adjustments | (11,718 | ) | (23,592 | ) | (10,932 | ) | (11,490 | ) | |||||||
Impact of income tax adjustments (f) | — | (28,845 | ) | — | — | ||||||||||
Adjusted Net Income attributed to Vector Group Ltd. | $ | 88,242 | $ | 89,746 | $ | 89,228 | $ | 77,531 | |||||||
Per diluted common share: | |||||||||||||||
Adjusted Net Income applicable to common shares attributed to Vector Group Ltd. | $ | 0.58 | $ | 0.60 | $ | 0.62 | $ | 0.55 |
a. | Represents accruals for settlements of judgment expenses in the Engle progeny tobacco litigation and proceeds received from a litigation award at Douglas Elliman Realty, LLC, net of non-controlling interest. |
b. | Represents the Company’s tobacco segment’s settlement of a long-standing dispute related to the Master Settlement Agreement. |
c. | Includes pension charges that were reclassified to “Other, net” as a result of the adoption of ASU 2017-07 during the first quarter of 2018. |
d. | Represents 100% of purchase accounting adjustments in the periods presented for assets acquired in connection with the accounting for the Company’s acquisition of the 20.59% of Douglas Elliman Realty, LLC on December 31, 2013. |
e. | Represents 29.41% of Douglas Elliman Realty, LLC's net income in the respective periods. On December 31, 2018, the Company increased its ownership of Douglas Elliman Realty, LLC from 70.59% to 100%. |
f. | Represents one-time benefit from change in tax rates to net deferred tax liabilities at December 31, 2017 as a result of Tax Cuts and Jobs Act of 2017. |
Year Ended | |||||||||||||||
December 31, 2018 | December 31, 2017 | December 31, 2016 | December 31, 2015 | ||||||||||||
Net income attributed to Vector Group Ltd. from subsidiary non-guarantors (a) | $ | 14,779 | $ | 37,610 | $ | 13,477 | $ | 11,668 | |||||||
Interest expense (a) | 67 | 35 | 20 | 7 | |||||||||||
Income tax (benefit) expense (a) | 3,949 | 210 | 9,335 | 8,890 | |||||||||||
Net income attributed to non-controlling interest (a) | (98 | ) | 6,178 | 6,139 | 7,274 | ||||||||||
Depreciation and amortization | 9,580 | 8,511 | 10,485 | 12,589 | |||||||||||
EBITDA | $ | 28,277 | $ | 52,544 | $ | 39,456 | $ | 40,428 | |||||||
Loss from non-guarantors other than New Valley LLC | 86 | 103 | 98 | 91 | |||||||||||
Equity in earnings from real estate ventures (b) | (14,446 | ) | (21,395 | ) | (5,200 | ) | (2,001 | ) | |||||||
Purchase accounting adjustments (c) | 608 | (2,102 | ) | 5,230 | 1,435 | ||||||||||
Litigation settlement and judgment income (d) | (2,469 | ) | — | — | — | ||||||||||
Other, net | (1,725 | ) | (1,324 | ) | (939 | ) | (1,754 | ) | |||||||
Adjusted EBITDA | $ | 10,331 | $ | 27,826 | $ | 38,645 | $ | 38,199 | |||||||
Adjusted EBITDA attributed to non-controlling interest | (3,319 | ) | (7,576 | ) | (10,696 | ) | (11,267 | ) | |||||||
Adjustment to reflect additional 29.41% of Douglas Elliman Realty, LLC Adjusted EBITDA (e) | 3,319 | 7,679 | 10,781 | 10,511 | |||||||||||
Adjusted EBITDA attributed to Vector Group Ltd. | $ | 10,331 | $ | 27,929 | $ | 38,730 | $ | 37,443 | |||||||
Adjusted EBITDA by Segment | |||||||||||||||
Real Estate (f) | $ | 11,154 | $ | 27,848 | $ | 38,716 | $ | 38,111 | |||||||
Corporate and Other | (823 | ) | (22 | ) | (71 | ) | 88 | ||||||||
Total (g) | $ | 10,331 | $ | 27,826 | $ | 38,645 | $ | 38,199 | |||||||
Adjusted EBITDA Attributed to Vector Group Ltd. by Segment | |||||||||||||||
Real Estate (f) | $ | 11,154 | $ | 27,951 | $ | 38,801 | $ | 37,355 | |||||||
Corporate and Other | (823 | ) | (22 | ) | (71 | ) | 88 | ||||||||
Total (g) | $ | 10,331 | $ | 27,929 | $ | 38,730 | $ | 37,443 |
a. | Amounts are derived from Vector Group Ltd.’s Condensed Consolidated Financial Statements. |
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. | Represents 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. | Represents proceeds received from a litigation award at Douglas Elliman Realty, LLC. |
e. | Represents 29.41% of Douglas Elliman Realty LLC's Adjusted EBITDA in the respective periods. On December 31, 2018, the Company increased its ownership of Douglas Elliman Realty, LLC from 70.59% to 100%. |
f. | Includes Adjusted EBITDA for Douglas Elliman Realty, LLC of $11,284, $26,110, $36,657, and $35,740 for the years ended December 31, 2018, 2017, 2016, and 2015, respectively. Amounts reported in this footnote reflect 100% of Douglas Elliman Realty, LLC's entire Adjusted EBITDA. |
g. | 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 1 of this press release) of $15,030, $13,224, $13,000 and $11,969 for the years ended December 31, 2018, 2017, 2016, and 2015, respectively. |
Three Months Ended | |||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | ||||||||||||
Net income attributed to Vector Group Ltd. from subsidiary non-guarantors (a) | $ | 15,694 | $ | 4,703 | $ | 2,926 | $ | (8,544 | ) | ||||||
Interest expense (a) | 4 | 7 | 7 | 49 | |||||||||||
Income tax (benefit) expense (a) | 5,775 | 1,971 | (803 | ) | (2,994 | ) | |||||||||
Net income (loss) attributed to non-controlling interest (a) | (755 | ) | 3,026 | 1,178 | (3,547 | ) | |||||||||
Depreciation and amortization | 2,475 | 2,398 | 2,418 | 2,289 | |||||||||||
EBITDA | $ | 23,193 | $ | 12,105 | $ | 5,726 | $ | (12,747 | ) | ||||||
Loss from non-guarantors other than New Valley LLC | 15 | 18 | 19 | 34 | |||||||||||
Equity in (earnings) losses from real estate ventures (b) | (22,824 | ) | (294 | ) | 2,112 | 6,560 | |||||||||
Purchase accounting adjustments (c) | 63 | 184 | 179 | 182 | |||||||||||
Litigation settlement and judgment income (d) | — | — | — | (2,469 | ) | ||||||||||
Other, net | (705 | ) | (342 | ) | (336 | ) | (342 | ) | |||||||
Adjusted EBITDA | $ | (258 | ) | $ | 11,671 | $ | 7,700 | $ | (8,782 | ) | |||||
Adjusted EBITDA attributed to non-controlling interest | (1,471 | ) | (3,638 | ) | (1,906 | ) | 3,696 | ||||||||
Adjustment to reflect additional 29.41% of Douglas Elliman Realty, LLC Adjusted EBITDA (e) | (158 | ) | 3,543 | 2,464 | (2,530 | ) | |||||||||
Adjusted EBITDA attributed to Vector Group Ltd. | $ | (1,887 | ) | $ | 11,576 | $ | 8,258 | $ | (7,616 | ) | |||||
Adjusted EBITDA by Segment | |||||||||||||||
Real Estate (f) | (249 | ) | 11,697 | 8,464 | (8,758 | ) | |||||||||
Corporate and Other | (9 | ) | (26 | ) | (764 | ) | (24 | ) | |||||||
Total (g) | $ | (258 | ) | $ | 11,671 | $ | 7,700 | $ | (8,782 | ) | |||||
Adjusted EBITDA Attributed to Vector Group Ltd. by Segment | |||||||||||||||
Real Estate (f) | $ | (1,878 | ) | $ | 11,602 | $ | 9,022 | $ | (7,592 | ) | |||||
Corporate and Other | (9 | ) | (26 | ) | (764 | ) | (24 | ) | |||||||
Total (g) | $ | (1,887 | ) | $ | 11,576 | $ | 8,258 | $ | (7,616 | ) |
a. | Amounts are derived from Vector Group Ltd.’s Condensed Consolidated Financial Statements. |
b. | Represents equity in (earnings) losses recognized from the Company’s investment in certain real estate businesses that are not consolidated in its financial results. |
c. | Represents 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. | Represents proceeds received from a litigation award at Douglas Elliman Realty, LLC. |
e. | Represents 29.41% of Douglas Elliman Realty LLC's Adjusted EBITDA in the respective 2018 periods. On December 31, 2018, the Company increased its ownership of Douglas Elliman Realty, LLC from 70.59% to 100%. |
f. | Includes Adjusted EBITDA for Douglas Elliman Realty, LLC of $540, $12,048, $8,379 and negative $8,603 for the three months ended December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively. Amounts reported in this footnote reflect 100% of Douglas Elliman Realty, LLC’s entire Adjusted EBITDA. |
g. | 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 $3,714, $3,543, $3,830 and $3,943 for the three months ended December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively. |