Executing strategic plan focused on growing and
diversifying the business to deliver value
Created strategic M&A and business
development unit to explore complementary acquisitions in ancillary
businesses and bolster core brokerage business
Building a future-focused company based on a
culture of integrity, connectivity and entrepreneurialism
Douglas Elliman Inc. (“Douglas Elliman” or the “Company”)
(NYSE:DOUG) today announced financial results for the three and
nine months ended September 30, 2024.
“I am excited to be leading Douglas Elliman into a new era,”
said Michael S. Liebowitz, Chairman and Chief Executive Officer of
Douglas Elliman. “We’re expanding our company culture of
connectivity and entrepreneurialism and executing a clear plan to
grow and diversify the business to deliver long-term value to all
stakeholders. As part of this, we’ve created a strategic M&A
and business development unit to explore complementary acquisitions
in ancillary businesses – such as title, escrow, staging, insurance
brokerage and property management – while remaining opportunistic
in our core brokerage business. In fact, we’re already in
discussions to expand our property management business into
Florida. We’re also analyzing all investments to ensure they hit
our ROI targets. By doing this, we will build Douglas Elliman into
a profitable growth engine for the benefit of our stockholders,
agents, staff and clients.”
Bryant Kirkland, Chief Financial Officer of Douglas Elliman,
added, “Douglas Elliman delivered strong revenue growth this
quarter and year-to-date as compared to the same periods in 2023,
along with a meaningful improvement in Adjusted EBITDA. We continue
to lead the industry in reported average sales price per
transaction, reflecting the strength of our luxury markets, our
best-in-class agents, and the gradual stabilization of home
purchasing activity. With fresh perspectives, a strong balance
sheet and an entrepreneurial spirit, we are positioning Douglas
Elliman for long-term success as the real estate market
recovers.”
GAAP Financial Results
Three months ended September 30, 2024. Third quarter 2024
revenues were $266.3 million, compared to revenues of $251.5
million in the third quarter of 2023. The Company recorded an
operating loss of $7.4 million in the third quarter of 2024,
compared to $8.8 million in the third quarter of 2023. Net loss
attributed to Douglas Elliman for the third quarter of 2024 was
$27.2 million, or $0.33 per diluted common share, compared to $4.9
million, or $0.06 per diluted common share, in the third quarter of
2023. Net loss attributed to Douglas Elliman for the third quarter
of 2024 includes a charge of $20.2 million for changes in fair
value of derivatives embedded within convertible debt.
Nine months ended September 30, 2024. For the nine months ended
September 30, 2024, revenues were $752.3 million, compared to
revenues of $741.4 million for the nine months ended September 30,
2023. The Company recorded an operating loss of $52.6 million for
the nine months ended September 30, 2024, compared to $40.9 million
for the nine months ended September 30, 2023. Net loss attributed
to Douglas Elliman for the nine months ended September 30, 2024 was
$70.3 million, or $0.84 per diluted common share, compared to $27.7
million, or $0.34 per diluted common share, for the nine months
ended September 30, 2023. The results for the nine months ended
September 30, 2024 include a charge of $20.2 million for changes in
fair value of derivatives embedded within convertible debt, $17.75
million litigation settlement charge, of which $7.75 million was
paid on June 12, 2024 and up to two additional $5 million
contingent payments through December 31, 2027.
Non-GAAP Financial Measures
Non-GAAP financial measures include adjustments for stock-based
compensation, equity in losses from equity method investments,
restructuring, change in fair value of derivatives embedded within
convertible debt, non-cash amortization of debt discount on
convertible debt (for purposes of Adjusted Net Loss) and other, net
(for purposes of Adjusted EBITDA). Reconciliations of non-GAAP
financial measures to the comparable GAAP financial results for the
three and nine months ended September 30, 2024 and 2023 and LTM
ended September 30, 2024 are included in Tables 2 and 3.
Three months ended September 30, 2024 compared to the three
months ended September 30, 2023
Adjusted EBITDA attributed to Douglas Elliman (as described in
Table 2 attached hereto) were a loss of $1.4 million for the third
quarter of 2024, compared to a loss of $3.0 million for the third
quarter of 2023.
Adjusted EBITDA attributed to Douglas Elliman’s real estate
brokerage segment (as described in Table 2 attached hereto) were
$3.8 million for the third quarter of 2024, compared to $1.5
million for the third quarter of 2023.
Adjusted Net Loss attributed to Douglas Elliman (as described in
Table 3 attached hereto) was $6.5 million, or $0.08 per diluted
share, for the third quarter of 2024, compared to $4.7 million, or
$0.06 per diluted share, for the third quarter of 2023.
Nine months ended September 30, 2024 compared to the nine months
ended September 30, 2023
Adjusted EBITDA attributed to Douglas Elliman (as described in
Table 2 attached hereto) were a loss of $17.3 million for the nine
months ended September 30, 2024, compared to a loss of $23.2
million for the nine months ended September 30, 2023.
Adjusted EBITDA attributed to Douglas Elliman’s real estate
brokerage segment (as described in Table 2 attached hereto) were a
loss of $3.8 million for the nine months ended September 30, 2024,
compared to a loss of $9.0 million for the nine months ended
September 30, 2023.
Adjusted Net Loss attributed to Douglas Elliman (as described in
Table 3 attached hereto) was $31.3 million, or $0.38 per diluted
share, for the nine months ended September 30, 2024, compared to
$26.4 million, or $0.32 per diluted share, for the nine months
ended September 30, 2023.
Gross Transaction Value
For the three months ended September 30, 2024, Douglas Elliman’s
subsidiary, Douglas Elliman Realty, LLC, achieved gross transaction
value of approximately $9.8 billion, compared to approximately $9.3
billion for the three months ended September 30, 2023. For the
three months ended September 30, 2024, Douglas Elliman’s real
estate brokerage segment reported an average price per transaction
of $1.61 million.
For the nine months ended September 30, 2024, Douglas Elliman
Realty, LLC achieved gross transaction value of approximately $27.6
billion, compared to approximately $26.5 billion for the nine
months ended September 30, 2023. For the nine months ended
September 30, 2024, Douglas Elliman’s real estate brokerage segment
reported an average price per transaction of $1.68 million. Further
detail on Gross Transaction Value is included in Table 4.
Consolidated Balance Sheet
Douglas Elliman maintained a strong balance sheet with cash and
cash equivalents of $151.4 million at September 30, 2024.
Conference Call to Discuss Third Quarter 2024 Results
As previously announced, the Company will host a conference call
and webcast to discuss its third quarter 2024 results on Thursday,
November 7, 2024 at 8:00 a.m. (ET).
Investors may access the call via live webcast at
https://join.eventcastplus.com/eventcastplus/Douglas-Elliman-Inc-Third-Quarter-2024-Conference-Call.
Please join the webcast at least 10 minutes prior to the start
time.
A replay of the webcast will be available shortly after the call
ends on November 7, 2024 through November 21 at
https://join.eventcastplus.com/eventcastplus/Douglas-Elliman-Inc-Third-Quarter-2024-Conference-Call.
Non-GAAP Financial Measures
Adjusted EBITDA attributed to Douglas Elliman, Adjusted Net Loss
attributed to Douglas Elliman, and financial measures for the last
twelve months (“LTM”) ended September 30, 2024 (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 discussion and analysis of
its results of operations and enhance 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 does 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 and 3 is information relating to the Company’s Non-GAAP
Financial Measures for the three and nine months ended September
30, 2024 and 2023 and the LTM ended September 30, 2024.
About Douglas Elliman Inc.
Douglas Elliman Inc. (NYSE: DOUG, “Douglas Elliman”) owns
Douglas Elliman Realty, LLC, which is one of the largest
residential brokerage companies in the United States with
operations in New York City, Long Island, Westchester, Connecticut,
New Jersey, the Hamptons, Massachusetts, Florida, California,
Texas, Colorado, Nevada, Maryland, Virginia, and Washington, D.C.
In addition, Douglas Elliman sources, uses and invests in
early-stage, disruptive property technology (“PropTech”) solutions
and companies and provides other real estate services, including
development marketing, property management and settlement and
escrow services in select markets. Additional information
concerning Douglas Elliman is available on its website,
investors.elliman.com.
Investors and others should note that we may post information
about Douglas Elliman on our website at investors.elliman.com or,
if applicable, on our accounts on Facebook, Instagram, LinkedIn,
TikTok, X, 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 investors.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 Annual Report on Form 10-K for the year ended December 31, 2023
and, when filed, our Quarterly Reports on Form 10-Q filed
thereafter. 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 CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) (Dollars
in Thousands, Except Per Share Amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Revenues:
Commissions and other brokerage income
$
254,074
$
239,255
$
714,652
$
703,780
Property management
8,960
8,697
27,701
26,849
Other ancillary services
3,282
3,596
9,953
10,813
Total revenues
266,316
251,548
752,306
741,442
Expenses:
Real estate agent commissions
199,133
185,845
564,606
546,749
Sales and marketing
19,240
20,770
62,691
64,170
Operations and support
18,774
17,121
55,572
53,338
General and administrative
28,659
28,817
80,530
92,371
Technology
6,025
5,602
17,301
17,777
Depreciation and amortization
1,898
1,999
5,808
6,031
Litigation settlement
—
—
17,750
—
Restructuring
18
215
616
1,932
Operating loss
(7,431
)
(8,821
)
(52,568
)
(40,926
)
Other income (expenses):
Interest expense
(1,461
)
(4
)
(1,475
)
(22
)
Interest income
1,551
1,789
3,989
4,282
Equity in earnings (losses) from
equity-method investments
62
10
49
(143
)
Change in fair value of derivative
embedded within convertible debt
(20,166
)
—
(20,166
)
—
Investment (loss) and other gains
(4
)
27
625
109
Loss before provision for income taxes
(27,449
)
(6,999
)
(69,546
)
(36,700
)
Income tax (benefit) expense
—
(1,869
)
1,368
(8,552
)
Net loss
(27,449
)
(5,130
)
(70,914
)
(28,148
)
Net loss attributed to non-controlling
interest
269
264
595
439
Net loss attributed to Douglas Elliman
Inc.
$
(27,180
)
$
(4,866
)
$
(70,319
)
$
(27,709
)
Per basic common share:
Net loss applicable to common shares
attributed to Douglas Elliman Inc.
$
(0.33
)
$
(0.06
)
$
(0.84
)
$
(0.34
)
Per diluted common share:
Net loss applicable to common shares
attributed to Douglas Elliman Inc.
$
(0.33
)
$
(0.06
)
$
(0.84
)
$
(0.34
)
TABLE 2 DOUGLAS ELLIMAN
INC. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED EBITDA
(Unaudited) (Dollars in
Thousands)
LTM
Year Ended
Three Months Ended
Nine Months Ended
September 30,
December 31,
September 30,
September 30,
2024
2023
2024
2023
2024
2023
Net loss attributed to Douglas Elliman
Inc.
$
(85,162
)
$
(42,552
)
$
(27,180
)
$
(4,866
)
$
(70,319
)
$
(27,709
)
Interest expense
1,481
28
1,461
4
1,475
22
Interest income
(5,548
)
(5,841
)
(1,551
)
(1,789
)
(3,989
)
(4,282
)
Income tax (benefit) expense
(5,133
)
(15,053
)
—
(1,869
)
1,368
(8,552
)
Net loss attributed to non-controlling
interest
(770
)
(614
)
(269
)
(264
)
(595
)
(439
)
Depreciation and amortization
7,803
8,026
1,898
1,999
5,808
6,031
EBITDA
$
(87,329
)
$
(56,006
)
$
(25,641
)
$
(6,785
)
$
(66,252
)
$
(34,929
)
Equity in (earnings) losses from
equity-method investments
(24
)
168
(62
)
(10
)
(49
)
143
Change in fair value of derivatives
embedded within convertible debt
20,166
—
20,166
—
20,166
—
Stock-based compensation expense
14,126
13,075
3,887
3,442
10,717
9,666
Litigation settlement
17,750
—
—
—
17,750
—
Restructuring
1,061
2,377
18
215
616
1,932
Other, net
(1,149
)
(633
)
4
(27
)
(625
)
(109
)
Adjusted EBITDA
(35,399
)
(41,019
)
(1,628
)
(3,165
)
(17,677
)
(23,297
)
Adjusted EBITDA attributed to
non-controlling interest
607
326
182
138
344
63
Adjusted EBITDA attributed to Douglas
Elliman Inc.
$
(34,792
)
$
(40,693
)
$
(1,446
)
$
(3,027
)
$
(17,333
)
$
(23,234
)
Operating loss by Segment:
Real estate brokerage
$
(48,305
)
$
(36,769
)
$
454
$
(1,992
)
$
(31,885
)
$
(20,349
)
Corporate and other
(27,834
)
(27,728
)
(7,885
)
(6,829
)
(20,683
)
(20,577
)
Total
$
(76,139
)
$
(64,497
)
$
(7,431
)
$
(8,821
)
$
(52,568
)
$
(40,926
)
Real estate
brokerage segment
Operating loss (income)
$
(48,305
)
$
(36,769
)
$
454
$
(1,992
)
$
(31,885
)
$
(20,349
)
Depreciation and amortization
7,803
8,026
1,898
1,999
5,808
6,031
Stock-based compensation
4,795
4,539
1,258
1,175
3,611
3,355
Litigation settlement
17,750
—
—
—
17,750
—
Restructuring
1,061
2,377
18
215
616
1,932
Adjusted EBITDA
(16,896
)
(21,827
)
3,628
1,397
(4,100
)
(9,031
)
Adjusted EBITDA attributed to
non-controlling interest
607
326
182
138
344
63
Adjusted EBITDA attributed to Douglas
Elliman Inc.
$
(16,289
)
$
(21,501
)
$
3,810
$
1,535
$
(3,756
)
$
(8,968
)
Corporate and other
segment
Operating loss
$
(27,834
)
$
(27,728
)
$
(7,885
)
$
(6,829
)
$
(20,683
)
$
(20,577
)
Stock-based compensation
9,331
8,536
2,629
2,267
7,106
6,311
Adjusted EBITDA attributed to Douglas
Elliman Inc.
$
(18,503
)
$
(19,192
)
$
(5,256
)
$
(4,562
)
$
(13,577
)
$
(14,266
)
TABLE 3 DOUGLAS ELLIMAN
INC. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED NET
LOSS (Unaudited) (Dollars in
Thousands, Except Per Share Amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Net loss attributed to Douglas Elliman
Inc.
$
(27,180
)
$
(4,866
)
$
(70,319
)
$
(27,709
)
Restructuring
18
215
616
1,932
Change in fair value of derivatives
embedded within convertible debt
20,166
—
20,166
—
Non-cash amortization of debt discount on
convertible debt
487
—
487
—
Litigation settlement
—
—
17,750
—
Total adjustments
20,671
215
39,019
1,932
Tax expense related to adjustments
—
(66
)
—
(589
)
Adjusted net loss attributed to Douglas
Elliman Inc.
$
(6,509
)
$
(4,717
)
$
(31,300
)
$
(26,366
)
Per diluted common share:
Adjusted net loss applicable to common
shares attributed to Douglas Elliman Inc.
$
(0.08
)
$
(0.06
)
$
(0.38
)
$
(0.32
)
TABLE 4 DOUGLAS ELLIMAN
INC. AND SUBSIDIARIES REVENUES AND GROSS TRANSACTION
VALUE (Unaudited) (Dollars in
Thousands, Except for Gross Transaction Value)
LTM
Year Ended
Three Months Ended
Nine Months Ended
September 30,
December 31,
September 30,
September 30,
2024
2023
2024
2023
2024
2023
Revenues:
Commissions and other brokerage income
$
916,941
$
906,069
$
254,074
$
239,255
$
714,652
$
703,780
Property management
36,394
35,542
8,960
8,697
27,701
26,849
Other ancillary services
13,107
13,967
3,282
3,596
9,953
10,813
Total revenues
$
966,442
$
955,578
$
266,316
$
251,548
$
752,306
$
741,442
Statistical Measures (Non-GAAP):
Gross transaction value (in billions)
$
35.5
$
34.4
$
9.8
$
9.3
$
27.6
$
26.5
Total transactions
21,466
21,606
6,081
5,913
16,444
16,584
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106235277/en/
Stephen Larkin, Douglas Elliman Inc. 917-902-2503 Columbia
Clancy/Catherine Livingston, FGS Global, 212-687-8080 J. Bryant
Kirkland III, Douglas Elliman Inc. 305-579-8000
Douglas Elliman (NYSE:DOUG)
過去 株価チャート
から 10 2024 まで 11 2024
Douglas Elliman (NYSE:DOUG)
過去 株価チャート
から 11 2023 まで 11 2024
