Luxury Markets Fuel 13.2% Revenue Growth to
$308.9 million from $272.8 million
First Quarter 2022 Highlights:
- Consolidated revenues of $308.9 million, an increase of
13.2% or $36.1 million compared to the prior year period
- For the first quarter of 2022, Douglas Elliman’s real estate
brokerage segment achieved gross transaction value of approximately
$11.7 billion, compared to approximately $10.1 billion for the
first quarter of 2021.
- For the last twelve months ended March 31, 2022 and the year
ended December 31, 2021, Douglas Elliman’s real estate brokerage
segment achieved gross transaction value of approximately $52.8
billion and $51.2 billion, respectively.
- For the last twelve months ended March 31, 2022, Douglas
Elliman’s real estate brokerage segment reported an average price
per transaction of $1.62 million.
- Consolidated operating income of $7.9 million and real
estate brokerage segment operating income of $14.5 million compared
to $14.2 million and $14.2 million, respectively, in the prior year
period.
- Net income attributed to Douglas Elliman of $6.5 million, or
$0.08 per diluted common share, compared to net income of $14.0
million, or $0.18 per diluted common share, in the prior year
period.
- Adjusted EBITDA attributed to Douglas Elliman of $12.7
million compared to $16.4 million in the prior year period,
reflecting stand-alone public company expenses.
- Adjusted EBITDA attributed to Douglas Elliman’s real estate
brokerage segment of $17.7 million, up 8.0% or $1.3 million
compared to $16.4 million in the prior year period.
Douglas Elliman Inc. (NYSE:DOUG) today announced financial
results for the three months ended March 31, 2022.
“Douglas Elliman’s strong momentum continued in the first
quarter of 2022,” said Howard M. Lorber, Chairman and Chief
Executive Officer of Douglas Elliman. “We are extremely proud of
the success we are achieving and we believe we are well-positioned
to capitalize on opportunities in the U.S. residential real estate
market to continue driving value for all stakeholders.”
GAAP Financial Results
First Quarter 2022 revenues were $308.9 million, compared to
revenues of $272.8 million for the first quarter of 2021. The
Company recorded operating income of $7.9 million for the first
quarter of 2022, compared to an operating income of $14.2 million
for the first quarter of 2021, reflecting the inclusion of
stand-alone public company expenses in the 2022 period. Net income
attributed to Douglas Elliman for the first quarter of 2022 was
$6.5 million, or $0.08 per diluted common share, compared to net
income of $14.0 million, or $0.18 per diluted common share, for the
first quarter of 2021.
Non-GAAP Financial Measures
Non-GAAP financial measures include an adjustment for change in
fair value of contingent liability (for purposes of Adjusted EBITDA
and Adjusted Net Income). For purposes of Adjusted EBITDA only,
adjustments also include stock-based compensation, equity in
earnings (losses) from equity method investments and other, net.
Reconciliations of non-GAAP financial measures to the comparable
GAAP financial results for the three months ended March 31, 2022
and 2021 and the last twelve months ended March 31, 2022 are
included in Tables 2, 3 and 4.
Three months ended March 31, 2022 compared to the three months
ended March 31, 2021
Adjusted EBITDA attributed to Douglas Elliman (as described in
Table 2 attached hereto) were $12.6 million for the first quarter
of 2022, compared to $16.4 million for the first quarter of
2021.
Adjusted EBITDA attributed to Douglas Elliman’s real estate
brokerage segment (as described in Table 2 attached hereto) were
$17.7 million for the first quarter of 2022, compared to $16.4
million for the first quarter of 2021.
Adjusted Net Income (as described in Table 3 attached hereto)
was $6.5 million, or $0.08 per diluted share, for the first quarter
of 2022, and $13.9 million, or $0.18 per diluted share, for the
first quarter of 2021.
Gross Transaction Value
For the first quarter of 2022, Douglas Elliman’s brokerage
segment achieved gross transaction value of approximately $11.7
billion, compared to approximately $10.1 billion for the first
quarter of 2021. For the last twelve months ended March 31, 2022
and the year ended December 31, 2021, Douglas Elliman’s brokerage
segment achieved gross transaction value of approximately $52.8
billion and $51.2 billion, respectively. For the last twelve months
ended March 31, 2022, Douglas Elliman’s brokerage segment reported
an average price per transaction of $1.62 million.
Consolidated Balance Sheet
Douglas Elliman maintained a strong balance sheet with cash and
cash equivalents of $203.7 million at March 31, 2022. This
significant liquidity places the Company in a position of strength
in the market.
Conference Call to Discuss First Quarter 2022 Results
As previously announced, the Company will host a conference call
and webcast on Tuesday, May 10, 2022 at 4:30 PM (ET) to discuss its
First Quarter 2022 results. Investors can access the call by
dialing 888-330-2506 and entering 46689 as the conference ID
number. The call will also be available via live webcast at
https://events.q4inc.com/attendee/620066759. 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 May 10, 2022 through May 24, 2022. To access the replay,
dial 800-770-2030 and enter 46689 as the conference ID number. The
archived webcast will also be available at
https://events.q4inc.com/attendee/620066759.
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted Net Income are financial measures
not prepared in accordance with generally accepted accounting
principles (“GAAP”). The Company believes that the Non-GAAP
Financial Measures are important measures that supplement
discussions and analysis of its results of operations and enhances
an understanding of its operating performance. The Company believes
the Non-GAAP Financial Measures provide investors and analysts with
a useful measure of operating results unaffected by differences in
capital structures and ages of related assets among otherwise
comparable companies.
Management uses the Non-GAAP Financial Measures as measures to
review and assess operating performance of the Company’s business,
and management and investors should review both the overall
performance (GAAP net income) and the operating performance (the
Non-GAAP Financial Measures) of the Company’s business. While
management considers the Non-GAAP Financial Measures to be
important, they should be considered in addition to, but not as
substitutes for or superior to, other measures of financial
performance prepared in accordance with GAAP, such as operating
income, net income and cash flows from operations. In addition, the
Non-GAAP Financial Measures are susceptible to varying calculations
and the Company’s measurement of the Non-GAAP Financial Measures
may not be comparable to those of other companies. Attached hereto
as Tables 2, 3 and 4 is information relating to the Company’s
Non-GAAP Financial Measures for the three months ended March 31,
2022 and 2021 and the last twelve months ended March 31, 2022.
About Douglas Elliman Inc.
Douglas Elliman Inc. (NYSE: DOUG, “Douglas Elliman” or the
“Company”) owns Douglas Elliman Realty, LLC, which is one of the
largest residential brokerage companies in the New York
metropolitan area, which includes New York City, Long Island,
Westchester, Connecticut, New Jersey and the Hamptons, and the
sixth largest in the U.S., with operations in California, Colorado,
Texas, Florida and Massachusetts, and provides other real estate
services, including development marketing, property management and
settlement and escrow services in select markets. In addition,
Douglas Elliman sources, uses and invests in early-stage,
disruptive property technology (“PropTech”) solutions and
companies. Additional information concerning Douglas Elliman is
available on its website, www.elliman.com.
Investors and others should note that we may post information
about Douglas Elliman on our website at www.elliman.com or, if
applicable, on our accounts on Facebook, Instagram, LinkedIn,
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 Douglas Elliman to
review the information we post on our website at www.elliman.com
and on our 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 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.
Risks and uncertainties that could cause our actual results to
differ significantly from our current expectations are described in
our 2021 Annual Report on Form 10-K and in our Quarterly Report on
Form 10-Q for the quarter ended March 31, 2022. We undertake no
responsibility to publicly update or revise any forward-looking
statement except as required by applicable law.
[Financial Tables Follow]
TABLE 1
DOUGLAS ELLIMAN INC. AND
SUBSIDIARIES
CONDENSED COMBINED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars
in Thousands, Except Per Share Amounts)
For comparability purposes, Douglas
Elliman Inc. (NYSE: DOUG) began operating as a standalone public
company on December 30, 2021 and did not incur any material public
company expenses until the first quarter of 2022.
Three Months Ended
March 31,
2022
2021
(Unaudited)
Revenues:
Commissions and other brokerage income
$
295,109
$
259,100
Property management
9,199
9,268
Other ancillary services
4,592
4,408
Total revenues
308,900
272,776
Expenses:
Real estate agent commissions
223,422
197,017
Sales and marketing
19,306
19,354
Operations and support
18,091
17,250
General and administrative
32,830
19,307
Technology
5,293
3,497
Depreciation and amortization
2,079
2,123
Operating income
7,879
14,228
Other income (expenses):
Interest income
39
47
Equity in earnings from equity-method
investments
532
—
Change in fair value of contingent
liability
—
73
Investment income (loss)
752
(102
)
Income before provision for income
taxes
9,202
14,246
Income tax expense
2,917
281
Net income
6,285
13,965
Net loss attributed to non-controlling
interest
225
—
Net income attributed to Douglas Elliman
Inc.
$
6,510
$
13,965
Per basic common share:
Net income applicable to common shares
attributed to Douglas Elliman Inc.
$
0.08
$
0.18
Per diluted common share:
Net income applicable to common shares
attributed to Douglas Elliman Inc.
$
0.08
$
0.18
TABLE 2
DOUGLAS ELLIMAN INC. AND
SUBSIDIARIES
RECONCILIATION OF ADJUSTED
EBITDA
(Unaudited)
(Dollars
in Thousands)
Table 2 provides reflects a reconciliation
of GAAP to Non-GAAP financial information. For comparability
purposes, Douglas Elliman Inc. (NYSE: DOUG) began operating as a
standalone public company on December 30, 2021 and did not incur
any material public company expenses until the first quarter of
2022. Its expenses incurred in its public company operations are
reported in the Corporate and Other Segment and the operations of
its brokerage businesses are reported in the Real Estate Brokerage
Segment.
LTM
Year Ended
Three Months Ended
March 31,
December 31,
March 31,
2022
2021
2022
2021
Net income attributed to Douglas Elliman
Inc.
$
91,383
$
98,838
$
6,510
$
13,965
Interest income
(75
)
(83
)
(39
)
(47
)
Income tax expense
4,769
2,133
2,917
281
Net loss attributed to non-controlling
interest
(411
)
(186
)
(225
)
—
Depreciation and amortization
8,517
8,561
2,079
2,123
EBITDA
$
104,183
$
109,263
$
11,242
$
16,322
Equity in (earnings) losses from
equity-method investments (a)
(254
)
278
(532
)
—
Change in fair value of contingent
liability
1,720
1,647
—
(73
)
Stock-based compensation expense (b)
2,652
—
2,652
—
Other, net
(1,383
)
(529
)
(752
)
102
Adjusted EBITDA
106,918
110,659
12,610
16,351
Adjusted EBITDA attributed to
non-controlling interest
157
40
117
—
Adjusted EBITDA attributed to Douglas
Elliman
$
107,075
$
110,699
$
12,727
$
16,351
Operating income by Segment:
Real estate brokerage
$
102,411
$
102,098
$
14,541
$
14,228
Corporate and other
(6,662
)
—
(6,662
)
—
Total
$
95,749
$
102,098
$
7,879
$
14,228
Adjusted EBITDA Attributed to Douglas
Elliman by Segment
Real estate brokerage
$
112,010
$
110,699
$
17,662
$
16,351
Corporate and other
(4,935
)
—
(4,935
)
—
Total
$
107,075
$
110,699
$
12,727
$
16,351
____________________
a.
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.
b.
Represents amortization of
stock-based compensation. $925 is attributable to the Real estate
brokerage segment and $1,727 is attributable to the Corporate and
other segment.
TABLE 3
DOUGLAS ELLIMAN INC. AND
SUBSIDIARIES
RECONCILIATION OF ADJUSTED NET
INCOME
(Unaudited)
(Dollars
in Thousands, Except Per Share Amounts)
Table 3 provides reflects a reconciliation
of GAAP to Non-GAAP financial information. For comparability
purposes, Douglas Elliman Inc. (NYSE: DOUG) began operating as a
standalone public company on December 30, 2021 and did not incur
any material public company expenses until the first quarter of
2022.
Three Months Ended
March 31,
2022
2021
Net income attributed to Douglas Elliman
Inc.
$
6,510
$
13,965
Change in fair value of contingent
liability
—
(73
)
Total adjustments
—
(73
)
Adjusted Net Income attributed to Douglas
Elliman Inc.
$
6,510
$
13,892
Per diluted common share:
Adjusted Net Income applicable to common
shares attributed to Douglas Elliman Inc.
$
0.08
$
0.18
TABLE 4
DOUGLAS ELLIMAN INC. AND
SUBSIDIARIES
RECONCILIATION OF
REVENUES
(Unaudited)
(Dollars
in Thousands)
LTM
Year Ended
Three Months Ended
March 31,
December 31,
March 31,
2022
2021
2022
2021
Revenues:
Commissions and other brokerage income
$
1,328,425
$
1,292,416
$
295,109
$
259,100
Property management
37,276
37,345
9,199
9,268
Other ancillary services
23,561
23,377
4,592
4,408
Total revenues
$
1,389,262
$
1,353,138
$
308,900
$
272,776
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220510006318/en/
Stephen Larkin, Douglas Elliman Inc. 917-902-2503
Emily Claffey/Benjamin Spicehandler/Columbia Clancy Sard
Verbinnen & Co 212-687-8080
Abi Genis Sard Verbinnen & Co - Europe +44 (0)20 3178
8914
J. Bryant Kirkland III, Douglas Elliman Inc. 305-579-8000
Douglas Elliman (NYSE:DOUG)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Douglas Elliman (NYSE:DOUG)
Historical Stock Chart
Von Apr 2023 bis Apr 2024