Attached files
| file | filename |
|---|---|
| EX-99.3 - EXHIBIT 99.3 - VECTOR GROUP LTD | vgr-2014613xex993sfd.htm |
| EX-99.2 - EXHIBIT 99.2 - VECTOR GROUP LTD | projectzoominvestorprese.htm |
| 8-K - 8-K - VECTOR GROUP LTD | vgr-2014613x8ksfd.htm |
EXHIBIT 99.1
TABLE 1
VECTOR GROUP LTD. AND SUBSIDIARIES
RECONCILIATION OF PRO-FORMA ADJUSTED REVENUES TO REVENUES
(Unaudited)
(Dollars in Thousands)
For the Three Months Ended | |||||||||||||||||||
March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | |||||||||||||||
Revenues, as revised | $ | 347,236 | $ | 299,585 | $ | 277,941 | $ | 256,226 | $ | 246,169 | |||||||||
Reclassification of revenues as a result of the consolidation of Douglas Elliman (a) | — | 100,732 | 127,537 | 113,647 | 74,537 | ||||||||||||||
Purchase accounting adjustments (b) | 1,654 | 1,357 | — | — | — | ||||||||||||||
Total adjustments | 1,654 | 102,089 | 127,537 | 113,647 | 74,537 | ||||||||||||||
Pro-forma Adjusted Revenues | $ | 348,890 | $ | 401,674 | $ | 405,478 | $ | 369,873 | $ | 320,706 | |||||||||
Pro-forma Adjusted Revenues by Segment | |||||||||||||||||||
Tobacco | $ | 233,392 | $ | 253,303 | $ | 271,516 | $ | 249,120 | $ | 240,402 | |||||||||
Real Estate (c) | 109,698 | 148,371 | 133,962 | 120,753 | 80,304 | ||||||||||||||
Corporate and Other | 5,800 | — | — | — | — | ||||||||||||||
Total | $ | 348,890 | $ | 401,674 | $ | 405,478 | $ | 369,873 | $ | 320,706 | |||||||||
a. | Represents revenues of Douglas Elliman Realty, LLC for the respective three month periods. For the three months ended December 31, 2013, represents revenues of Douglas Elliman Realty, LLC for the period from October 1, 2013 to December 13, 2013. On December 13, 2013, the Company increased its ownership of Douglas Elliman Realty, LLC from 50% to 70.59%. Consequently, after December 13, 2013, the Company consolidates the operations and financial position of Douglas Elliman Realty, LLC in its financial statements. The Company had previously accounted for its interest in Douglas Elliman Realty, LLC under the equity method and revenues from Douglas Elliman Realty, LLC were not included in the Company's revenues. |
b. | Amounts represent one-time purchase accounting adjustments to fair value for deferred revenues recorded in connection with the increase of the Company's ownership of Douglas Elliman Realty, LLC on December 13, 2013. |
c. | Includes Pro-forma Adjusted Revenues from Douglas Elliman Realty, LLC of $107,541, $124,463 $133,386, $119,539 and $78,164 for the three months ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. |
TABLE 1
VECTOR GROUP LTD. AND SUBSIDIARIES
RECONCILIATION OF PRO-FORMA ADJUSTED REVENUES TO REVENUES
(Unaudited)
(Dollars in Thousands)
Continued
Year Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | 2010 | ||||||||||||
Revenues, as revised | $ | 1,079,921 | $ | 1,095,533 | $ | 1,137,646 | $ | 1,066,546 | |||||||
Reclassification of revenues as a result of the consolidation of Douglas Elliman (a) | 416,453 | 378,175 | 346,309 | 348,136 | |||||||||||
Purchase accounting adjustments (b) | 1,357 | — | — | — | |||||||||||
Total adjustments | 417,810 | 378,175 | 346,309 | 348,136 | |||||||||||
Pro-forma Adjusted Revenues, as revised | $ | 1,497,731 | $ | 1,473,708 | $ | 1,483,955 | $ | 1,414,682 | |||||||
Pro-forma Adjusted Revenues by Segment | |||||||||||||||
Tobacco | $ | 1,014,341 | $ | 1,084,546 | $ | 1,133,380 | $ | 1,063,289 | |||||||
Real Estate (c) | 483,390 | 389,162 | 350,575 | 351,393 | |||||||||||
Corporate and Other | — | — | — | — | |||||||||||
Total | $ | 1,497,731 | $ | 1,473,708 | $ | 1,483,955 | $ | 1,414,682 | |||||||
a. | Represents revenues of Douglas Elliman Realty, LLC for the respective annual periods. For the year ended December 31, 2013, represents revenues from Douglas Elliman Realty, LLC for the period from January 1, 2013 to December 13, 2013. On December 13, 2013, the Company increased its ownership of Douglas Elliman Realty, LLC from 50% to 70.59%. Consequently, after December 13, 2013, the Company consolidates the operations and financial position of Douglas Elliman Realty, LLC in its financial statements. The Company had previously accounted for its interest in Douglas Elliman Realty, LLC under the equity method and revenues from Douglas Elliman Realty, LLC was not included in the Company's revenues. |
b. | Amounts represent one-time purchase accounting adjustments to fair value for deferred revenues recorded in connection with the increase of the Company's ownership of Douglas Elliman Realty, LLC on December 13, 2013. |
c. | Includes Pro-forma Adjusted Revenues from Douglas Elliman Realty, LLC of $455,552, $384,267, $346,309, and $348,136 for the years ended December 31, 2013, 2012, 2011, and 2010, respectively. |
TABLE 2
VECTOR GROUP LTD. AND SUBSIDIARIES
RECONCILIATION OF PRO-FORMA ADJUSTED EBITDA ATTRIBUTED TO VECTOR GROUP LTD. TO NET INCOME (LOSS) ATTRIBUTED TO VECTOR GROUP LTD.
(Unaudited)
(Dollars in Thousands)
Three Months Ended | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||
Net income (loss) attributed to Vector Group Ltd. | $ | 2,580 | $ | 64,005 | $ | (36,891 | ) | $ | 13,511 | $ | (1,681 | ) | |||||||
Interest expense | 35,453 | 33,102 | 33,583 | 32,086 | 33,376 | ||||||||||||||
Income tax expense (benefit) | 2,942 | 34,082 | (18,969 | ) | 10,017 | (335 | ) | ||||||||||||
Net income attributed to non-controlling interest | 949 | — | — | — | — | ||||||||||||||
Depreciation and amortization | 7,092 | 4,626 | 2,772 | 2,637 | 2,596 | ||||||||||||||
EBITDA | $ | 49,016 | $ | 135,815 | $ | (19,505 | ) | $ | 58,251 | $ | 33,956 | ||||||||
Change in fair value of derivatives embedded within convertible debt (a) | 1,650 | (10,636 | ) | (2,800 | ) | (2,450 | ) | (3,049 | ) | ||||||||||
Equity (gain) loss on long-term investments (b) | (906 | ) | (1,296 | ) | 53 | (846 | ) | 23 | |||||||||||
Loss (gain) on sale of investment securities available for sale | 53 | (42 | ) | 99 | 197 | (5,406 | ) | ||||||||||||
Equity income from non-consolidated real estate businesses (c) | (1,552 | ) | (6,151 | ) | (9,489 | ) | (6,804 | ) | (481 | ) | |||||||||
Loss on extinguishment of debt | — | — | — | — | 21,458 | ||||||||||||||
Acceleration of interest expense related to debt conversion | 3,679 | 12,414 | — | — | — | ||||||||||||||
Stock-based compensation expense (d) | 523 | 586 | 678 | 686 | 569 | ||||||||||||||
Litigation settlement and judgment expense (e) | 1,500 | 193 | 87,913 | — | — | ||||||||||||||
Impact of MSA Settlement (f) | — | (860 | ) | (4,016 | ) | (1,345 | ) | (5,602 | ) | ||||||||||
Gain on acquisition of Douglas Elliman | — | (60,842 | ) | — | — | — | |||||||||||||
Reclassification of EBITDA as a result of the consolidation of Douglas Elliman (g) | — | 13,804 | 18,359 | 13,554 | 923 | ||||||||||||||
Other, net | (2,126 | ) | (2,399 | ) | (2,871 | ) | (1,471 | ) | (809 | ) | |||||||||
Pro-forma Adjusted EBITDA | $ | 51,837 | $ | 80,586 | $ | 68,421 | $ | 59,772 | $ | 41,582 | |||||||||
Pro-forma Adjusted EBITDA attributed to non-controlling interest | (2,172 | ) | (4,060 | ) | (5,399 | ) | (3,986 | ) | (271 | ) | |||||||||
Pro-forma Adjusted EBITDA attributed to Vector Group Ltd. | $ | 49,665 | $ | 76,526 | $ | 63,022 | $ | 55,786 | $ | 41,311 | |||||||||
Pro-forma Adjusted EBITDA by Segment | |||||||||||||||||||
Tobacco | $ | 46,915 | $ | 51,746 | $ | 53,849 | $ | 49,323 | $ | 43,948 | |||||||||
Real Estate (h) | 9,091 | 33,235 | 17,447 | 13,299 | 1,137 | ||||||||||||||
Corporate and Other | (4,169 | ) | (4,395 | ) | (2,875 | ) | (2,850 | ) | (3,503 | ) | |||||||||
Total | $ | 51,837 | $ | 80,586 | $ | 68,421 | $ | 59,772 | $ | 41,582 | |||||||||
Pro-forma Adjusted EBITDA Attributed to Vector Group by Segment | |||||||||||||||||||
Tobacco | $ | 46,915 | $ | 51,746 | $ | 53,849 | $ | 49,323 | $ | 43,948 | |||||||||
Real Estate (i) | 6,919 | 29,175 | 12,048 | 9,313 | 866 | ||||||||||||||
Corporate and Other | (4,169 | ) | (4,395 | ) | (2,875 | ) | (2,850 | ) | (3,503 | ) | |||||||||
Total | $ | 49,665 | $ | 76,526 | $ | 63,022 | $ | 55,786 | $ | 41,311 | |||||||||
a. | Represents income or losses recognized from changes in the fair value of the derivatives embedded in the Company's convertible debt. |
b. | Represents income or losses recognized on long-term investments that the Company accounts for under the equity method. |
c. | Represents equity income 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 accrual for a settlement of an Engle progeny judgment. |
f. | Represents the Company's tobacco business's settlement of a long-standing dispute related to the Master Settlement Agreement. |
g. | Represents EBITDA of Douglas Elliman Realty, LLC for all periods before December 13, 2013. On December 13, 2013, the Company increased its ownership of Douglas Elliman Realty, LLC from 50% to 70.59%. Consequently, after December 13, 2013, the Company consolidates the operations and financial position of Douglas Elliman Realty, LLC in its financial statements. The C |
ompany had previously accounted for its interest in Douglas Elliman Realty, LLC under the equity method, and operating income as well as depreciation and amortization expense from Douglas Elliman Realty, LLC, were not included in the Company's Adjusted EBITDA.
h. | Includes $7,386, $13,169, $18,395, $13,465, and $681 of Pro-forma Adjusted EBITDA for Douglas Elliman Realty, LLC for the three months ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. Amounts reported in this footnote reflect 100% of Douglas Elliman Realty, LLC's entire Pro-forma Adjusted EBITDA. |
i. | Includes $5,214, $9,109, $12,996, $9,479, and $410 of Pro-forma Adjusted EBITDA for Douglas Elliman Realty, LLC less non-controlling interest for the three months ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. Amounts reported in this footnote have adjusted Douglas Elliman Realty, LLC's Pro-forma Adjusted EBITDA for minority interest. |
TABLE 2
VECTOR GROUP LTD. AND SUBSIDIARIES
RECONCILIATION OF PRO-FORMA ADJUSTED EBITDA ATTRIBUTED TO VECTOR GROUP LTD. TO NET INCOME ATTRIBUTED TO VECTOR GROUP LTD.
(Unaudited)
(Dollars in Thousands)
Continued
Year Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | 2010 | ||||||||||||
Net income attributed to Vector Group Ltd. | $ | 38,944 | $ | 30,622 | $ | 75,020 | $ | 54,084 | |||||||
Interest expense | 132,147 | 110,102 | 100,706 | 84,096 | |||||||||||
Income tax expense | 24,795 | 23,095 | 48,137 | 31,486 | |||||||||||
Depreciation and amortization | 12,631 | 10,608 | 10,607 | 10,790 | |||||||||||
EBITDA | $ | 208,517 | $ | 174,427 | $ | 234,470 | $ | 180,456 | |||||||
Change in fair value of derivatives embedded within convertible debt (a) | (18,935 | ) | 7,476 | (7,984 | ) | (11,524 | ) | ||||||||
Gain on liquidation of long-term investments | — | — | (25,832 | ) | — | ||||||||||
Equity (gain) loss on long-term investments (b) | (2,066 | ) | 1,261 | 859 | (1,489 | ) | |||||||||
Gain on sale of investment securities available for sale | (5,152 | ) | (1,640 | ) | (23,257 | ) | (19,869 | ) | |||||||
Equity income from non-consolidated real estate businesses (c) | (22,925 | ) | (29,764 | ) | (19,966 | ) | (23,963 | ) | |||||||
Gain on sale of townhomes | — | — | (3,843 | ) | — | ||||||||||
Loss on extinguishment of debt | 21,458 | — | 1,217 | — | |||||||||||
Acceleration of interest expense related to debt conversion | 12,414 | 14,960 | — | — | |||||||||||
Stock-based compensation expense (d) | 2,519 | 5,563 | 3,183 | 2,704 | |||||||||||
Litigation settlement and judgment expense (e) | 88,106 | — | — | 19,161 | |||||||||||
Impact of MSA Settlement (f) | (11,823 | ) | — | — | — | ||||||||||
Gain on acquisition of Douglas Elliman | (60,842 | ) | — | — | — | ||||||||||
Reclassification of EBITDA as a result of the consolidation of Douglas Elliman (g) | 46,640 | 31,558 | 30,991 | 44,778 | |||||||||||
Other, net | (7,550 | ) | (1,179 | ) | (1,736 | ) | (1,508 | ) | |||||||
Pro-forma Adjusted EBITDA | $ | 250,361 | $ | 202,662 | $ | 188,102 | $ | 188,746 | |||||||
Pro-forma Adjusted EBITDA attributed to non-controlling interest | (13,717 | ) | (9,281 | ) | (9,114 | ) | (13,169 | ) | |||||||
Pro-forma Adjusted EBITDA attributed to Vector Group Ltd. | $ | 236,644 | $ | 193,381 | $ | 178,988 | $ | 175,577 | |||||||
Pro-forma Adjusted EBITDA by Segment | |||||||||||||||
Tobacco | $ | 198,866 | $ | 185,798 | $ | 173,721 | $ | 157,528 | |||||||
Real Estate (h) | 65,118 | 29,959 | 29,388 | 44,445 | |||||||||||
Corporate and Other | (13,623 | ) | (13,095 | ) | (15,007 | ) | (13,227 | ) | |||||||
Total | $ | 250,361 | $ | 202,662 | $ | 188,102 | $ | 188,746 | |||||||
Pro-forma Adjusted EBITDA Attributed to Vector Group by Segment | |||||||||||||||
Tobacco | $ | 198,866 | $ | 185,798 | $ | 173,721 | $ | 157,528 | |||||||
Real Estate (i) | 51,401 | 20,678 | 20,274 | 31,276 | |||||||||||
Corporate and Other | (13,623 | ) | (13,095 | ) | (15,007 | ) | (13,227 | ) | |||||||
Total | $ | 236,644 | $ | 193,381 | $ | 178,988 | $ | 175,577 | |||||||
a. | Represents income or losses recognized from changes in the fair value of the derivatives embedded in the Company's convertible debt. |
b. | Represents income or losses recognized on long-term investments that the Company accounts for under the equity method. |
c. | Represents equity income 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 accrual for a settlement of an Engle progeny judgment. |
f. | Represents the Company's tobacco business's settlement of a long-standing dispute related to the Master Settlement Agreement. |
g. | Represents EBITDA of Douglas Elliman Realty, LLC for all periods prior to December 13, 2013. On December 13, 2013, the Company increased its ownership of Douglas Elliman Realty, LLC from 50% to 70.59%. Consequently, after December 13, 2013, |
the Company consolidates the operations and financial position of Douglas Elliman Realty, LLC in its financial statements. The Company had previously accounted for its interest in Douglas Elliman Realty, LLC under the equity method, and operating income as well as depreciation and amortization expense from Douglas Elliman Realty, LLC, were not included in the Company's Adjusted EBITDA.
h. | Includes $45,710, $30,910, $30,991 and $44,778 of Pro-forma Adjusted EBITDA for Douglas Elliman Realty, LLC for the years ended December 31 2013, 2012, 2011, and 2010, respectively. Amounts reported in this footnote reflect 100% of Douglas Elliman Realty, LLC's entire Pro-forma Adjusted EBITDA. |
i. | Includes $31,993, $21,629, $21,877 and $31,609 of Pro-forma Adjusted EBITDA for Douglas Elliman Realty, LLC less non-controlling interest for the years ended December 31 2013, 2012, 2011, and 2010, respectively. Amounts reported in this footnote have adjusted Douglas Elliman Realty, LLC's Pro-forma Adjusted EBITDA for minority interest. |
TABLE 3
VECTOR GROUP LTD. AND SUBSIDIARIES
RECONCILIATION OF PRO-FORMA ADJUSTED NET INCOME ATTRIBUTED TO VECTOR GROUP LTD. TO NET INCOME (LOSS) ATTRIBUTED TO VECTOR GROUP LTD.
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
Three Months Ended | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||
Net income (loss) attributed to Vector Group Ltd. | $ | 2,580 | $ | 64,005 | $ | (36,891 | ) | $ | 13,511 | $ | (1,681 | ) | |||||||
Acceleration of interest expense related to debt conversion | 3,679 | 12,414 | — | — | — | ||||||||||||||
Change in fair value of derivatives embedded within convertible debt | 1,650 | (10,636 | ) | (2,800 | ) | (2,450 | ) | (3,049 | ) | ||||||||||
Non-cash amortization of debt discount on convertible debt | 12,456 | 10,946 | 9,620 | 8,464 | 7,348 | ||||||||||||||
Loss on extinguishment of 11% Senior Secured Notes due 2015 | — | — | — | — | 21,458 | ||||||||||||||
Litigation settlement and judgment expense (a) | 1,500 | 193 | 87,913 | — | — | ||||||||||||||
Impact of MSA Settlement (b) | — | (860 | ) | (4,016 | ) | (1,345 | ) | (5,602 | ) | ||||||||||
Interest income from MSA Settlement (b) | — | — | (1,971 | ) | — | — | |||||||||||||
Gain on acquisition of Douglas Elliman Realty, LLC (c) | — | (60,842 | ) | — | — | — | |||||||||||||
Adjustment to reflect additional 20.59% of net income from Douglas Elliman Realty, LLC (c) | — | 2,467 | 3,500 | 2,571 | 19 | ||||||||||||||
Out-of-period adjustment related to Douglas Elliman acquisition in 2013 (d) | (1,231 | ) | — | — | — | — | |||||||||||||
Douglas Elliman Realty, LLC purchase accounting adjustments (e) | 2,356 | 1,165 | — | — | — | ||||||||||||||
Total adjustments | 20,410 | (45,153 | ) | 92,246 | 7,240 | 20,174 | |||||||||||||
Tax (expense) benefit related to adjustments | (8,440 | ) | 18,332 | (37,445 | ) | (2,947 | ) | (7,407 | ) | ||||||||||
Pro-forma Adjusted Net Income attributed to Vector Group Ltd. | $ | 14,550 | $ | 37,184 | $ | 17,910 | $ | 17,804 | $ | 11,086 | |||||||||
Per diluted common share: | |||||||||||||||||||
Pro-forma Adjusted Net Income applicable to common shares attributed to Vector Group Ltd. | $ | 0.15 | $ | 0.36 | $ | 0.19 | $ | 0.19 | $ | 0.12 | |||||||||
a. Represents accrual for a settlement of an Engle progeny judgment.
b. | Represents the Company's tobacco segment's settlement of a long-standing dispute related to the Master Settlement Agreement. |
c. | Represents 20.59% of Douglas Elliman Realty LLC's net income from October 1, 2013 to December 13, 2013. On December 13, 2013, the Company increased its ownership of Douglas Elliman Realty, LLC from 50% to 70.59%. Consequently, after December 13, 2013, the Company includes an additional 20.59% of Adjusted Net Income from Douglas Elliman Realty, LLC in the Company's Adjusted Net Income. |
d. | Represents an out-of-period adjustment related to a non-accrual of a receivable from Douglas Elliman in the fourth quarter of 2013 which would have increased the Company’s gain on acquisition of Douglas Elliman in 2013. |
e. | Amounts represent 70.59% of one-time purchase accounting adjustments to fair value for assets acquired in connection with the increase of the Company's ownership of Douglas Elliman Realty, LLC on December 13, 2013. |
TABLE 3
VECTOR GROUP LTD. AND SUBSIDIARIES
RECONCILIATION OF PRO-FORMA ADJUSTED NET INCOME ATTRIBUTED TO VECTOR GROUP LTD. TO NET INCOME ATTRIBUTED TO VECTOR GROUP LTD.
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
Year Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | 2010 | ||||||||||||
Net income attributed to Vector Group Ltd. | $ | 38,944 | $ | 30,622 | $ | 75,020 | $ | 54,084 | |||||||
Acceleration of interest expense related to debt conversion | 12,414 | 14,960 | 1,217 | — | |||||||||||
Change in fair value of derivatives embedded within convertible debt | (18,935 | ) | 7,476 | (7,984 | ) | (11,524 | ) | ||||||||
Non-cash amortization of debt discount on convertible debt | 36,378 | 18,016 | 10,441 | 6,967 | |||||||||||
Loss on extinguishment of 11% Senior Secured Notes due 2015 | 21,458 | — | — | — | |||||||||||
Litigation settlement and judgment expense (a) | 88,106 | — | — | 19,161 | |||||||||||
Impact of MSA Settlement (b) | (11,823 | ) | — | — | — | ||||||||||
Interest income from MSA Settlement (c) | (1,971 | ) | — | — | — | ||||||||||
Gain on acquisition of Douglas Elliman Realty, LLC (d) | (60,842 | ) | — | — | — | ||||||||||
Adjustment to reflect additional 20.59% of net income from Douglas Elliman Realty, LLC (e) | 8,557 | 5,947 | 5,811 | 8,509 | |||||||||||
Douglas Elliman Realty, LLC purchase accounting adjustments (f) | 1,165 | — | — | — | |||||||||||
Gain on liquidation of long-term investments | — | — | (25,832 | ) | — | ||||||||||
Gain on townhomes | — | — | (3,843 | ) | — | ||||||||||
Total adjustments | 74,507 | 46,399 | (20,190 | ) | 23,113 | ||||||||||
Tax (expense) benefit related to adjustments | (29,467 | ) | (19,332 | ) | 8,197 | (9,384 | ) | ||||||||
Pro-forma Adjusted Net Income attributed to Vector Group Ltd. | $ | 83,984 | $ | 57,689 | $ | 63,027 | $ | 67,813 | |||||||
Per diluted common share: | |||||||||||||||
Pro-forma Adjusted Net Income applicable to common shares attributed to Vector Group Ltd. | $ | 0.89 | $ | 0.64 | $ | 0.71 | $ | 0.77 | |||||||
a. Represents accrual for a settlement of an Engle progeny judgment.
b. | Represents the Company's tobacco segment's settlement of a long-standing dispute related to the Master Settlement Agreement. |
c. | Represents interest income from the Company's tobacco segment's settlement of a long-standing dispute related to the Master Settlement Agreement. |
d. | Represents gain associated with the increase of ownership of Douglas Elliman Realty, LLC. |
e. | Represents 20.59% of Douglas Elliman Realty LLC's net income from January 1, 2013 to December 13, 2013 and the years ended December 31, 2012, 2011, and 2010. On December 13, 2013, the Company increased its ownership of Douglas Elliman Realty, LLC from 50% to 70.59%. Consequently, after December 13, 2013, the Company includes an additional 20.59% of Adjusted Net Income from Douglas Elliman Realty, LLC in the Company's Adjusted Net Income. |
f. | Amounts represents 70.59% of one-time purchase accounting adjustments to fair value for assets acquired in connection with the increase of the Company's ownership of Douglas Elliman Realty, LLC on December 13, 2013. |
TABLE 4
VECTOR GROUP LTD. AND SUBSIDIARIES
RECONCILIATION OF PRO-FORMA ADJUSTED OPERATING INCOME TO OPERATING INCOME (LOSS)
(Unaudited)
(Dollars in Thousands)
Three Months Ended | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||
Operating income (loss) | $ | 42,722 | $ | 61,985 | $ | (37,285 | ) | $ | 44,240 | $ | 43,096 | ||||||||
Litigation settlement and judgment expense (a) | 1,500 | 193 | 87,913 | — | — | ||||||||||||||
Impact of MSA Settlement (b) | — | (860 | ) | (4,016 | ) | (1,345 | ) | (5,602 | ) | ||||||||||
Reclassification of operating income as a result of the consolidation of Douglas Elliman Realty, LLC (c) | — | 12,873 | 17,317 | 12,514 | (106 | ) | |||||||||||||
Douglas Elliman purchase accounting adjustments (d) | 3,337 | 1,650 | — | — | — | ||||||||||||||
Total adjustments | 4,837 | 13,856 | 101,214 | 11,169 | (5,708 | ) | |||||||||||||
Pro-forma Adjusted Operating Income (e) | $ | 47,559 | $ | 75,841 | $ | 63,929 | $ | 55,409 | $ | 37,388 | |||||||||
a. | Represents accrual for a settlement of an Engle progeny judgment. |
b. | Represents the Company's tobacco segment's settlement of a long-standing dispute related to the Master Settlement Agreement. |
c. | Represents Adjusted Operating Income of Douglas Elliman Realty, LLC for all periods prior to December 13, 2013. On December 13, 2013, the Company increased its ownership of Douglas Elliman Realty, LLC from 50% to 70.59%. Consequently, after December 13, 2013, the Company consolidates the operations and financial position of Douglas Elliman Realty in its financial statements. The Company had previously accounted for its interest in Douglas Elliman under the equity method and operating income from Douglas Elliman Realty, LLC was not included in the Company's operating income. |
d. | Amounts represent one-time purchase accounting adjustments to fair value for assets acquired in connection with the increase of the Company's ownership of Douglas Elliman Realty, LLC on December 13, 2013. |
e. | Does not include a reduction for 29.41% non-controlling interest in Douglas Elliman Realty, LLC. |
TABLE 4
VECTOR GROUP LTD. AND SUBSIDIARIES
RECONCILIATION OF PRO-FORMA ADJUSTED OPERATING INCOME TO OPERATING INCOME
(Unaudited)
(Dollars in Thousands)
Year Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | 2010 | ||||||||||||
Operating income | $ | 112,036 | $ | 154,933 | $ | 143,321 | $ | 111,313 | |||||||
Litigation settlement and judgment expense (a) | 88,106 | — | — | 19,161 | |||||||||||
Impact of MSA Settlement (b) | (11,823 | ) | — | — | — | ||||||||||
Reclassification of operating income as a result of the consolidation of Douglas Elliman Realty, LLC (c) | 42,598 | 27,894 | 27,299 | 40,767 | |||||||||||
Douglas Elliman purchase accounting adjustments (d) | 1,650 | — | — | — | |||||||||||
Total adjustments | 120,531 | 27,894 | 27,299 | 59,928 | |||||||||||
Pro-forma Adjusted Operating Income (e) | $ | 232,567 | $ | 182,827 | $ | 170,620 | $ | 171,241 | |||||||
a. | Represents accrual for a settlement of an Engle progeny judgment. |
b. | Represents the Company's tobacco segment's settlement of a long-standing dispute related to the Master Settlement Agreement. |
c. | Represents Adjusted Operating Income of Douglas Elliman Realty, LLC for all periods prior to December 13, 2013. On December 13, 2013, the Company increased its ownership of Douglas Elliman Realty, LLC from 50% to 70.59%. Consequently, after December 13, 2013, the Company consolidates the operations and financial position of Douglas Elliman Realty in its financial statements. The Company had previously accounted for its interest in Douglas Elliman under the equity method and operating income from Douglas Elliman Realty, LLC was not included in the Company's operating income. |
d. | Amounts represent one-time purchase accounting adjustments to fair value for assets acquired in connection with the increase of the Company's ownership of Douglas Elliman Realty, LLC on December 13, 2013. |
e. | Does not include a reduction for 29.41% non-controlling interest in Douglas Elliman Realty, LLC. |