Attached files
| file | filename |
|---|---|
| EX-99.3 - EXHIBIT 99.3 - VECTOR GROUP LTD | vectorgroupfactsheetnov2.htm |
| EX-99.4 - EXHIBIT 99.4 - VECTOR GROUP LTD | newvalleyfactsheetnov201.htm |
| EX-99.1 - EXHIBIT 99.1 - VECTOR GROUP LTD | vgr-2017q3xex991.htm |
| 8-K - 8-K - VECTOR GROUP LTD | vgr-2017q3x8kstockdiv.htm |
EXHIBIT 99.2
TABLE 1
VECTOR GROUP LTD. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED NET INCOME
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||
2017 | 2017 | 2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||||||||
Net income (loss) attributed to Vector Group Ltd. | $ | 19,264 | $ | 26,811 | $ | (4,227 | ) | $ | 4,599 | $ | 23,175 | $ | 24,015 | $ | 19,338 | ||||||||||||
Change in fair value of derivatives embedded within convertible debt | (9,437 | ) | (8,134 | ) | (8,571 | ) | (8,488 | ) | (6,112 | ) | (7,416 | ) | (9,694 | ) | |||||||||||||
Non-cash amortization of debt discount on convertible debt | 14,978 | 13,426 | 12,053 | 10,905 | 10,167 | 9,170 | 8,286 | ||||||||||||||||||||
Loss on extinguishment of debt | — | — | 34,110 | — | — | — | — | ||||||||||||||||||||
Litigation settlement and judgment expense (a) | 4,104 | 102 | 1,585 | 17,650 | — | — | 2,350 | ||||||||||||||||||||
Impact of MSA Settlement (b) | (1,826 | ) | — | (895 | ) | 617 | (370 | ) | — | — | |||||||||||||||||
Impact of interest expense capitalized to real estate ventures, net | (1,108 | ) | 4,212 | (445 | ) | (3,322 | ) | (3,276 | ) | (1,315 | ) | (3,520 | ) | ||||||||||||||
Restructuring expense | — | — | — | — | — | — | 41 | ||||||||||||||||||||
Douglas Elliman Realty, LLC purchase accounting adjustments (c) | (1,508 | ) | 251 | 321 | 2,489 | 1,511 | 581 | 476 | |||||||||||||||||||
Total adjustments | 5,203 | 9,857 | 38,158 | 19,851 | 1,920 | 1,020 | (2,061 | ) | |||||||||||||||||||
Tax expense related to adjustments | (2,357 | ) | (3,944 | ) | (15,492 | ) | (8,060 | ) | (780 | ) | (424 | ) | 858 | ||||||||||||||
Adjusted Net Income attributed to Vector Group Ltd. | $ | 22,110 | $ | 32,724 | $ | 18,439 | $ | 16,390 | $ | 24,315 | $ | 24,611 | $ | 18,135 | |||||||||||||
Per diluted common share: | |||||||||||||||||||||||||||
Adjusted Net Income applicable to common shares attributed to Vector Group Ltd. | $ | 0.16 | $ | 0.24 | $ | 0.13 | $ | 0.12 | $ | 0.18 | $ | 0.18 | $ | 0.13 | |||||||||||||
a. Represents accruals for settlements of judgment expenses in the Engle progeny tobacco litigation.
b. | Represents the Company's tobacco segment's settlement of a long-standing dispute related to the Master Settlement Agreement. |
c. | Represents 70.59% of purchase accounting adjustments in the periods presented for assets acquired in connection with the increase of the Company's ownership of Douglas Elliman Realty, LLC, which occurred in 2013. |
TABLE 2
VECTOR GROUP LTD. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED NET INCOME
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
Year Ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Net income attributed to Vector Group Ltd. | $ | 71,127 | $ | 59,198 | $ | 36,856 | $ | 37,300 | $ | 30,675 | |||||||||
Acceleration of interest expense related to debt conversion | — | — | 5,205 | 12,414 | 14,960 | ||||||||||||||
Change in fair value of derivatives embedded within convertible debt | (31,710 | ) | (24,455 | ) | (19,409 | ) | (18,935 | ) | 7,476 | ||||||||||
Non-cash amortization of debt discount on convertible debt | 38,528 | 27,211 | 51,472 | 36,378 | 18,016 | ||||||||||||||
Loss on extinguishment of 11% Senior Secured Notes due 2015 | — | — | — | 21,458 | — | ||||||||||||||
Litigation settlement and judgment expense (a) | 20,000 | 20,072 | 2,475 | 88,106 | — | ||||||||||||||
Impact of interest expense capitalized to real estate ventures, net | (11,433 | ) | (9,928 | ) | — | — | — | ||||||||||||
Impact of MSA Settlement (b) | 247 | (4,364 | ) | (1,419 | ) | (11,823 | ) | — | |||||||||||
Interest income from MSA Settlement (c) | — | — | — | (1,971 | ) | — | |||||||||||||
Pension settlement charge | — | 1,607 | — | — | — | ||||||||||||||
Gain on acquisition of Douglas Elliman Realty, LLC (d) | — | — | — | (60,842 | ) | — | |||||||||||||
Restructuring expense | 41 | 7,257 | — | — | — | ||||||||||||||
Adjustment to reflect additional 20.59% of net income from Douglas Elliman Realty, LLC (e) | — | — | — | 8,557 | 5,947 | ||||||||||||||
Out-of-period adjustment related to Douglas Elliman acquisition in 2013 (f) | — | — | (1,231 | ) | — | — | |||||||||||||
Douglas Elliman Realty, LLC purchase accounting adjustments (g) | 5,057 | 5,303 | 6,019 | 1,165 | — | ||||||||||||||
Gain on liquidation of long-term investments | — | — | — | — | — | ||||||||||||||
Gain on townhomes | — | — | — | — | — | ||||||||||||||
Total adjustments | 20,730 | 22,703 | 43,112 | 74,507 | 46,399 | ||||||||||||||
Tax (expense) benefit related to adjustments | (8,416 | ) | (9,447 | ) | (17,827 | ) | (29,467 | ) | (19,332 | ) | |||||||||
One-time adjustment to income tax expense due to purchase accounting (h) | — | — | 1,670 | — | — | ||||||||||||||
Adjusted Net Income attributed to Vector Group Ltd. | $ | 83,441 | $ | 72,454 | $ | 63,811 | $ | 82,340 | $ | 57,742 | |||||||||
Per diluted common share: | |||||||||||||||||||
Adjusted Net Income applicable to common shares attributed to Vector Group Ltd. | $ | 0.62 | $ | 0.54 | $ | 0.52 | $ | 0.72 | $ | 0.52 | |||||||||
a. Represents accruals for settlements of judgment expenses in the Engle progeny tobacco litigation.
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 and 2011. 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. | Represents an out-of-period adjustment related to a non-accrual of a receivable from Douglas Elliman in the fourth quarter of 2013 and would have increased the Company’s gain on acquisition of Douglas Elliman in 2013. |
g. | Represents 70.59% of purchase accounting adjustments in the periods presented for assets acquired in connection with the increase of the Company's ownership of Douglas Elliman Realty, LLC, which occurred in 2013. |
h. | Represents adjustments to income tax expense due to a change in the Company's marginal income tax rate from 40.6% to 41.35% as a result of its acquisition of 20.59% of Douglas Elliman Realty, LLC on December 13, 2013. |