Douglas Elliman Inc. Reports First Quarter 2024 Financial Results
First Quarter 2024 Highlights:
-
Consolidated revenues of
$200.2 million compared to$214.0 million in the prior year quarter-
Douglas Elliman ’s real estate brokerage segment reported gross transaction value of approximately$7.1 billion , compared to approximately$7.3 billion in the prior year quarter. -
Douglas Elliman’s real estate brokerage segment reported an average price per transaction of
$1.595 million .
-
-
Consolidated operating loss of
$41.5 million and real estate brokerage segment operating loss of$35.3 million compared to$23.8 million and$17.3 million , respectively, in the prior year quarter -
Consolidated operating loss and real estate brokerage segment operating loss include a
$17.75 million litigation settlement charge, of which$7.75 million will be paid byJune 12, 2024 and up to two additional$5 million contingent payments throughDecember 31, 2027 -
Net loss attributed to Douglas Elliman of
$41.5 million , or$0.50 per diluted common share, which includes a$17.75 million litigation settlement charge, compared to$17.6 million , or$0.22 per diluted common share, in the prior year quarter -
Adjusted EBITDA attributed to Douglas Elliman of a loss of
$18.2 million compared to$17.6 million in the prior year quarter -
Adjusted EBITDA attributed to real estate brokerage segment of a loss of
$14.2 million compared to$13.0 million in the prior year quarter
“In addition to seeing encouraging signals of market improvement, Douglas Elliman continued to navigate the current environment by successfully reducing costs without compromising the agent experience and enhancing our competitive edge,” stated
GAAP Financial Results
Three months ended
First quarter 2024 revenues were
Non-GAAP Financial Measures
Non-GAAP financial measures include adjustments for stock-based compensation, equity in losses from equity method investments and other, net (for purposes of Adjusted EBITDA). Reconciliations of non-GAAP financial measures to the comparable GAAP financial results for the three months ended
Three months ended
Adjusted EBITDA attributed to Douglas Elliman (as described in Table 2 attached hereto) were a loss of
Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment (as described in Table 2 attached hereto) were a loss of
Adjusted Net Loss attributed to Douglas Elliman (as described in Table 3 attached hereto) was
Gross Transaction Value
For the first quarter of 2024, Douglas Elliman’s brokerage segment reported gross transaction value of approximately
Consolidated Balance Sheet
Douglas Elliman maintained a strong balance sheet with cash and cash equivalents of
Conference Call to Discuss First quarter 2024 Results
As previously announced, the Company will host a conference call and webcast to discuss its first quarter 2024 results on
A replay of the call will be available shortly after the call ends on
Non-GAAP Financial Measures
Adjusted EBITDA attributed to Douglas Elliman and Adjusted Net Income attributed to Douglas Elliman (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, 3 and 4 is information relating to the Company’s Non-GAAP Financial Measures for the three months ended
About
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 2023 Annual Report on Form 10-K and, when filed, in our Quarterly Report on Form 10-Q for the quarter ended
[Financial Tables Follow]
TABLE 1
C
ONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(
Dollars in Thousands, Except Per Share Amounts)
|
Three Months Ended |
||||||
|
|
||||||
|
2024 |
|
2023 |
||||
Revenues: |
|
|
|
||||
Commissions and other brokerage income |
$ |
188,265 |
|
|
$ |
202,036 |
|
Property management |
|
9,047 |
|
|
|
8,777 |
|
Other ancillary services |
|
2,927 |
|
|
|
3,169 |
|
Total revenues |
|
200,239 |
|
|
|
213,982 |
|
|
|
|
|
||||
Expenses: |
|
|
|
||||
Real estate agent commissions |
|
149,016 |
|
|
|
156,102 |
|
Sales and marketing |
|
21,298 |
|
|
|
21,239 |
|
Operations and support |
|
18,799 |
|
|
|
18,893 |
|
General and administrative |
|
27,016 |
|
|
|
32,295 |
|
Technology |
|
5,843 |
|
|
|
6,012 |
|
Depreciation and amortization |
|
1,981 |
|
|
|
2,039 |
|
Litigation settlement |
|
17,750 |
|
|
|
— |
|
Restructuring |
|
— |
|
|
|
1,210 |
|
Operating loss |
|
(41,464 |
) |
|
|
(23,808 |
) |
|
|
|
|
||||
Other income (expenses): |
|
|
|
||||
Interest income, net |
|
1,376 |
|
|
|
1,105 |
|
Equity in losses from equity-method investments |
|
(11 |
) |
|
|
(73 |
) |
Investment and other losses |
|
(391 |
) |
|
|
(454 |
) |
Loss before provision for income taxes |
|
(40,490 |
) |
|
|
(23,230 |
) |
Income tax expense (benefit) |
|
1,195 |
|
|
|
(5,390 |
) |
|
|
|
|
||||
Net loss |
|
(41,685 |
) |
|
|
(17,840 |
) |
|
|
|
|
||||
Net loss attributed to non-controlling interest |
|
210 |
|
|
|
216 |
|
|
|
|
|
||||
Net loss attributed to |
$ |
(41,475 |
) |
|
$ |
(17,624 |
) |
|
|
|
|
||||
Per basic common share: |
|
|
|
||||
|
|
|
|
||||
Net loss applicable to common shares attributed to |
$ |
(0.50 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
||||
Per diluted common share: |
|
|
|
||||
|
|
|
|
||||
Net loss applicable to common shares attributed to |
$ |
(0.50 |
) |
|
$ |
(0.22 |
) |
TABLE 2
RECONCILIATION OF ADJUSTED EBITDA
(Unaudited)
(Dollars in Thousands)
|
LTM |
|
Year Ended |
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
||||||||||
Net loss attributed to |
$ |
(66,403 |
) |
|
$ |
(42,552 |
) |
|
$ |
(41,475 |
) |
|
$ |
(17,624 |
) |
Interest income, net |
|
(6,084 |
) |
|
|
(5,813 |
) |
|
|
(1,376 |
) |
|
|
(1,105 |
) |
Income tax (benefit) expense |
|
(8,468 |
) |
|
|
(15,053 |
) |
|
|
1,195 |
|
|
|
(5,390 |
) |
Net loss attributed to non-controlling interest |
|
(608 |
) |
|
|
(614 |
) |
|
|
(210 |
) |
|
|
(216 |
) |
Depreciation and amortization |
|
7,968 |
|
|
|
8,026 |
|
|
|
1,981 |
|
|
|
2,039 |
|
EBITDA |
$ |
(73,595 |
) |
|
$ |
(56,006 |
) |
|
$ |
(39,885 |
) |
|
$ |
(22,296 |
) |
|
|
|
|
|
|
|
|
||||||||
Equity in losses from equity-method investments (a) |
|
106 |
|
|
|
168 |
|
|
|
11 |
|
|
|
73 |
|
Stock-based compensation expense (b) |
|
13,607 |
|
|
|
13,075 |
|
|
|
3,355 |
|
|
|
2,823 |
|
Litigation settlement |
|
17,750 |
|
|
|
— |
|
|
|
17,750 |
|
|
|
— |
|
Restructuring |
|
1,167 |
|
|
|
2,377 |
|
|
|
— |
|
|
|
1,210 |
|
Other, net |
|
(696 |
) |
|
|
(633 |
) |
|
|
391 |
|
|
|
454 |
|
Adjusted EBITDA |
|
(41,661 |
) |
|
|
(41,019 |
) |
|
|
(18,378 |
) |
|
|
(17,736 |
) |
Adjusted EBITDA attributed to non-controlling interest |
|
367 |
|
|
|
326 |
|
|
|
132 |
|
|
|
91 |
|
Adjusted EBITDA attributed to |
$ |
(41,294 |
) |
|
$ |
(40,693 |
) |
|
$ |
(18,246 |
) |
|
$ |
(17,645 |
) |
|
|
|
|
|
|
|
|
||||||||
Operating loss by Segment: |
|
|
|
|
|
|
|
||||||||
Real estate brokerage |
$ |
(54,712 |
) |
|
$ |
(36,769 |
) |
|
$ |
(35,286 |
) |
|
$ |
(17,343 |
) |
Corporate and other |
|
(27,441 |
) |
|
|
(27,728 |
) |
|
|
(6,178 |
) |
|
|
(6,465 |
) |
Total |
$ |
(82,153 |
) |
|
$ |
(64,497 |
) |
|
$ |
(41,464 |
) |
|
$ |
(23,808 |
) |
|
|
|
|
|
|
|
|
||||||||
Real estate brokerage segment |
|
|
|
|
|
|
|
||||||||
Operating loss |
$ |
(54,712 |
) |
|
$ |
(36,769 |
) |
|
$ |
(35,286 |
) |
|
$ |
(17,343 |
) |
Depreciation and amortization |
|
7,968 |
|
|
|
8,026 |
|
|
|
1,981 |
|
|
|
2,039 |
|
Stock-based compensation |
|
4,745 |
|
|
|
4,539 |
|
|
|
1,225 |
|
|
|
1,019 |
|
Litigation settlement |
|
17,750 |
|
|
|
— |
|
|
|
17,750 |
|
|
|
— |
|
Restructuring |
|
1,167 |
|
|
|
2,377 |
|
|
|
— |
|
|
|
1,210 |
|
Adjusted EBITDA |
|
(23,082 |
) |
|
|
(21,827 |
) |
|
|
(14,330 |
) |
|
|
(13,075 |
) |
Adjusted EBITDA attributed to non-controlling interest |
|
367 |
|
|
|
326 |
|
|
|
132 |
|
|
|
91 |
|
Adjusted EBITDA attributed to |
$ |
(22,715 |
) |
|
$ |
(21,501 |
) |
|
$ |
(14,198 |
) |
|
$ |
(12,984 |
) |
|
|
|
|
|
|
|
|
||||||||
Corporate and other segment |
|
|
|
|
|
|
|
||||||||
Operating loss |
$ |
(27,441 |
) |
|
$ |
(27,728 |
) |
|
$ |
(6,178 |
) |
|
$ |
(6,465 |
) |
Stock-based compensation |
|
8,862 |
|
|
|
8,536 |
|
|
|
2,130 |
|
|
|
1,804 |
|
Adjusted EBITDA attributed to |
$ |
(18,579 |
) |
|
$ |
(19,192 |
) |
|
$ |
(4,048 |
) |
|
$ |
(4,661 |
) |
_________ | ||
a. |
Represents equity in losses recognized from the Company’s investments in equity method investments 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. |
TABLE 3
RECONCILIATION OF ADJUSTED NET LOSS
(
Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
|
Three Months Ended |
||||||
|
|
||||||
|
2024 |
|
2023 |
||||
|
|
||||||
Net loss attributed to |
$ |
(41,475 |
) |
|
$ |
(17,624 |
) |
|
|
|
|
||||
Restructuring |
|
— |
|
|
|
1,210 |
|
Litigation settlement |
|
17,750 |
|
|
|
— |
|
Total adjustments |
|
17,750 |
|
|
|
1,210 |
|
|
|
|
|
||||
Tax expense related to adjustments |
|
— |
|
|
|
(369 |
) |
Adjusted net loss attributed to |
$ |
(23,725 |
) |
|
$ |
(16,783 |
) |
|
|
|
|
||||
Per diluted common share: |
|
|
|
||||
|
|
|
|
||||
Adjusted net loss applicable to common shares attributed to |
$ |
(0.28 |
) |
|
$ |
(0.21 |
) |
TABLE 4
RECONCILIATION OF REVENUES
(Unaudited)
(Dollars in Thousands, Except for Gross Transaction Value)
|
LTM |
|
Year Ended |
|
Three Months Ended |
||||||
|
|
|
|
|
|
||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Revenues: |
|
|
|
|
|
|
|
||||
Commissions and other brokerage income |
$ |
892,298 |
|
$ |
906,069 |
|
$ |
188,265 |
|
$ |
202,036 |
Property management |
|
35,812 |
|
|
35,542 |
|
|
9,047 |
|
|
8,777 |
Other ancillary services |
|
13,725 |
|
|
13,967 |
|
|
2,927 |
|
|
3,169 |
Total revenues |
$ |
941,835 |
|
$ |
955,578 |
|
$ |
200,239 |
|
$ |
213,982 |
|
|
|
|
|
|
|
|
||||
Gross transaction value (in billions) |
$ |
34.2 |
|
$ |
34.4 |
|
$ |
7.1 |
|
$ |
7.3 |
Total transactions |
|
21,456 |
|
|
21,606 |
|
|
4,477 |
|
|
4,627 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509658928/en/
917-902-2503
212-687-8080 (
44(0)2031788914 (
J. Bryant Kirkland III,
305-579-8000
Source: