EX-99.1 2 a2023q1pressrelease.htm EX-99.1

FOR IMMEDIATE RELEASE

Contact:						Stephen Larkin, Douglas Elliman Inc. 917-902-2503
						Benjamin Spicehandler/Columbia Clancy, FGS Global,
						212-687-8080 (U.S.)
						44(0)2031788914 (Europe)
						J. Bryant Kirkland III, Douglas Elliman Inc.
						305-579-8000

DOUGLAS ELLIMAN INC. REPORTS FIRST QUARTER 2023 FINANCIAL RESULTS

First Quarter 2023 Highlights:

•Consolidated revenues of $214.0 million compared to $308.9 million in the prior year quarter

◦Douglas Elliman’s real estate brokerage segment achieved gross transaction value of approximately $7.3 billion compared to approximately $11.7 billion in the prior year quarter.

◦Douglas Elliman’s real estate brokerage segment reported an average price per transaction of $1.580 million.

•Consolidated operating loss of $20.6 million and real estate brokerage segment operating loss of $14.1 million compared to operating income of $7.9 million and $14.5 million, respectively, in the prior year quarter

•Net loss attributed to Douglas Elliman of $15.1 million, or $0.20 per diluted common share, compared to net income of $6.5 million, or $0.08 per diluted common share, in the prior year quarter

•Adjusted EBITDA attributed to Douglas Elliman of a loss of $14.4 million compared to income of $12.7 million in the prior year quarter

•Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment of a loss of $9.7 million compared to income of $17.7 million in the prior year quarter

MIAMI, FL, May 9, 2023 - Douglas Elliman Inc. (NYSE:DOUG) today announced financial results for the three months ended March 31, 2023.

“Douglas Elliman’s team of agents continued to endure a challenging residential real estate market in the first quarter, marked by limited listing inventory and financial market volatility,” said Howard M. Lorber, Chairman and Chief Executive Officer of Douglas Elliman. “We have begun to see some signs of improvement in the market. We believe this indicates market conditions have solidified and we are optimistic Douglas Elliman's key strengths will position us to take advantage of opportunities as real estate markets stabilize. We remain confident that our differentiated platform and approach will enable us to deliver continued growth over the long term.”

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GAAP Financial Results

First quarter 2023 revenues were $214.0 million, compared to revenues of $308.9 million for the first quarter of 2022. The Company recorded an operating loss of $20.6 million for the first quarter of 2023, compared to operating income of $7.9 million for the first quarter of 2022. Net loss attributed to Douglas Elliman for the first quarter of 2023 was $15.1 million, or $0.20 per diluted common share, compared to net income of $6.5 million, or $0.08 per diluted common share, for the first quarter of 2022.

Non-GAAP Financial Measures

Non-GAAP financial measures include adjustments for stock-based compensation, equity in (losses) earnings 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 March 31, 2023 and 2022 and the last twelve months ended March 31, 2023 are included in Tables 2, 3 and 4.

Three months ended March 31, 2023 compared to the three months ended March 31, 2022

Adjusted EBITDA attributed to Douglas Elliman (as described in Table 2 attached hereto) were a loss of $14.4 million for the first quarter of 2023, compared to income of $12.7 million for the first quarter of 2022.

Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment (as described in Table 2 attached hereto) were a loss of $9.7 million for the first quarter of 2023, compared to income of $17.7 million for the first quarter of 2022.

Adjusted Net Loss attributed to Douglas Elliman (as described in Table 3 attached hereto) was $14.3 million, or $0.19 per diluted share, for the first quarter of 2023, compared to Adjusted Net Income attributed to Douglas Elliman of $6.5 million, or $0.08 per diluted share, for the first quarter of 2022.

Gross Transaction Value

For the first quarter of 2023, Douglas Elliman’s brokerage segment achieved gross transaction value of approximately $7.3 billion, compared to approximately $11.7 billion for the first quarter of 2022. For the last twelve months ended March 31, 2023 and the year ended December 31, 2022, Douglas Elliman’s brokerage segment achieved gross transaction value of approximately $38.6 billion and $42.9 billion, respectively. For the last twelve months ended March 31, 2023, Douglas Elliman’s brokerage segment reported an average price per transaction of $1.608 million.

Consolidated Balance Sheet

Douglas Elliman maintained a strong balance sheet with cash and cash equivalents of $123.7 million at March 31, 2023. This significant liquidity places the Company in a position of strength in the market.

Conference Call to Discuss First quarter 2023 Results

As previously announced, the Company will host a conference call and webcast to discuss its first quarter 2023 results on Wednesday, May 10, 2023 at 8:30 AM (ET). Participants should pre-register for the call using the following link: https://conferencingportals.com/event/XyPNvEjm. Registered participants will receive an email with a calendar reminder, dial-in number and conference ID that allows immediate access to the call on Wednesday, May 10, 2023.

Participants who do not wish to pre-register may access the live webcast at https://events.q4inc.com/attendee/320287461. Please join the webcast at least 10 minutes prior to start time.

A replay of the call will be available shortly after the call ends on May 10, 2023 through May 24, 2023 at https://events.q4inc.com/attendee/320287461.

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

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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, 2023 and 2022 and the last twelve months ended March 31, 2023.

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, Connecticut, 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, 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 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 2022 Annual Report on Form 10-K and, when filed, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023. We undertake no responsibility to publicly update or revise any forward-looking statement except as required by applicable law.

[Financial Tables Follow]

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TABLE 1

DOUGLAS ELLIMAN INC. AND SUBSIDIARIES

CONDENSED COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Thousands, Except Per Share Amounts)

									Three Months Ended
									March 31,
															2023						2022
									(Unaudited)
Revenues:
Commissions and other brokerage income															$	202,036					$	295,109
Property management															8,777						9,199
Other ancillary services															3,169						4,592
Total revenues															213,982						308,900
Expenses:
Real estate agent commissions															152,862						223,422
Sales and marketing															21,239						19,306
Operations and support															18,893						18,091
General and administrative															32,295						32,830
Technology															6,012						5,293
Depreciation and amortization															2,039						2,079
Restructuring															1,210						—
Operating (loss) income															(20,568)						7,879
Other income (expenses):
Interest income															1,105						39
Equity in (losses) earnings from equity-method investments															(73)						532
Investment and other (loss) income															(454)						752
(Loss) income before provision for income taxes															(19,990)						9,202
Income tax (benefit) expense															(4,638)						2,917
Net (loss) income															(15,352)						6,285
Net loss attributed to non-controlling interest															216						225
Net (loss) income attributed to Douglas Elliman Inc.															$	(15,136)					$	6,510
Per basic common share:
Net (loss) income applicable to common shares attributed to Douglas Elliman Inc.															$	(0.20)					$	0.08
Per diluted common share:
Net (loss) income applicable to common shares attributed to Douglas Elliman Inc.															$	(0.20)					$	0.08

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TABLE 2

DOUGLAS ELLIMAN INC. AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED EBITDA

(Unaudited)

(Dollars in Thousands)

			LTM						Year Ended												Three Months Ended
			March 31,						December 31,												March 31,
			2023						2022																		2023						2022
Net (loss) income attributed to Douglas Elliman Inc.			$	(27,268)					$	(5,622)																	$	(15,136)					$	6,510
Interest income, net			(2,845)						(1,779)																		(1,105)						(39)
Income tax (benefit) expense			(1,052)						6,503																		(4,638)						2,917
Net loss attributed to non-controlling interest			(768)						(777)																		(216)						(225)
Depreciation and amortization			7,972						8,012																		2,039						2,079
EBITDA			$	(23,961)					$	6,337																	$	(19,056)					$	11,242
Equity in losses (earnings) from equity-method investments (a)			1,168						563																		73						(532)
Stock-based compensation expense (b)			11,309						11,138																		2,823						2,652
Restructuring charges			1,210						—																		1,210						—
Other, net			(2,223)						(3,429)																		454						(752)
Adjusted EBITDA			(12,497)						14,609																		(14,496)						12,610
Adjusted EBITDA attributed to non-controlling interest			316						342																		91						117
Adjusted EBITDA attributed to Douglas Elliman Inc.			$	(12,181)					$	14,951																	$	(14,405)					$	12,727
Operating (loss) income by Segment:
Real estate brokerage			$	(6,651)					$	21,993																	$	(14,103)					$	14,541
Corporate and other			(26,337)						(26,534)																		(6,465)						(6,662)
Total			$	(32,988)					$	(4,541)																	$	(20,568)					$	7,879
Real estate brokerage segment
Operating (loss) income			$	(6,651)					$	21,993																	$	(14,103)					$	14,541
Depreciation and amortization			7,972						8,012																		2,039						2,079
Stock-based compensation			4,289						4,195																		1,019						925
Restructuring charges			1,210						—																		1,210						—
Adjusted EBITDA			6,820						34,200																		(9,835)						17,545
Adjusted EBITDA attributed to non-controlling interest			316						342																		91						117
Adjusted EBITDA attributed to Douglas Elliman Inc.			$	7,136					$	34,542																	$	(9,744)					$	17,662
Corporate and other segment
Operating loss			$	(26,337)					$	(26,534)																	$	(6,465)					$	(6,662)
Stock-based compensation			7,020						6,943																		1,804						1,727
Adjusted EBITDA attributed to Douglas Elliman Inc.			$	(19,317)					$	(19,591)																	$	(4,661)					$	(4,935)

                                      

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. $4,289, $1,019, $925, and $4,195 are attributable to the Real estate brokerage segment for the last twelve months ended March 31, 2023, the three months ended March 31, 2023, and 2022, and the year ended December 31, 2022, respectively. $7,020, $1,804, $1,727, and $6,943 are attributable to the Corporate and other segment for the last twelve months ended March 31, 2023, the three months ended March 31, 2023 and 2022, and the year ended December 31, 2022, respectively.

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TABLE 3

DOUGLAS ELLIMAN INC. AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED NET (LOSS) INCOME

(Unaudited)

(Dollars in Thousands, Except Per Share Amounts)

									Three Months Ended
									March 31,
															2023						2022
Net (loss) income attributed to Douglas Elliman Inc.															$	(15,136)					$	6,510
Restructuring charges															1,210						—
Total adjustments															1,210						—
Tax expense related to adjustments															(369)						—
Adjusted net (loss) income attributed to Douglas Elliman Inc.															$	(14,295)					$	6,510
Per diluted common share:
Adjusted net (loss) income applicable to common shares attributed to Douglas Elliman Inc.															$	(0.19)					$	0.08

    

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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,
			2023						2022																		2023						2022
Revenues:
Commissions and other brokerage income			$	1,006,812					$	1,099,885																	$	202,036					$	295,109
Property management			35,600						36,022																		8,777						9,199
Other ancillary services			15,847						17,270																		3,169						4,592
Total revenues			$	1,058,259					$	1,153,177																	$	213,982					$	308,900
Gross transaction value (in billions)			$	38.6					$	42.9																	$	7.3					$	11.7
Total transactions			23,988						26,573																		4,627						7,212