DOUG Douglas Elliman Inc

Fourth Quarter 2023 Highlights:

• Revenues of $214.1 million, compared to $207.3 million in the prior year quarter

• Douglas Elliman’s real estate brokerage segment’s gross transaction value was approximately $7.9 billion, compared to approximately $7.5 billion in the prior year quarter

• Douglas Elliman’s real estate brokerage segment reported an average price per transaction of $1.58 million

• Operating loss of $23.6 million and real estate brokerage segment operating loss of $16.4 million, compared to an operating loss of $21.9 million and $15.6 million, respectively, in the prior year quarter

• Net loss attributed to Douglas Elliman of $14.8 million, or $0.18 per diluted common share, compared to net loss of $18.4 million, or $0.23 per diluted common share, in the prior year quarter

• Adjusted EBITDA attributed to Douglas Elliman of a loss of $17.5 million, compared to a loss of $17.1 million in the prior year quarter

• Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment of a loss of $12.5 million, compared to a loss of $12.6 million in the prior year quarter

Full Year 2023 Highlights:

• Revenues of $955.6 million, compared to $1.15 billion in the prior year

• Douglas Elliman’s real estate brokerage segment’s gross transaction value was approximately $34.4 billion, compared to approximately $42.9 billion in the prior year

• Douglas Elliman’s real estate brokerage segment reported an average price per transaction of $1.59 million

• Operating loss of $64.5 million and real estate brokerage segment operating loss of $36.8 million, compared to an operating loss of $4.5 million and real estate brokerage segment operating income of $22.0 million, respectively, in the prior year

• Net loss attributed to Douglas Elliman of $42.6 million, or $0.52 per diluted common share, compared to $5.6 million, or $0.08 per diluted common share, in the prior year

• Adjusted EBITDA attributed to Douglas Elliman of a loss of $40.7 million, compared to income of $15.0 million in the prior year

• Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment of a loss of $21.5 million, compared to income of $34.5 million in the prior year

 

Douglas Elliman Inc. (NYSE:DOUG) today announced financial results for the three months and year ended December 31, 2023.

“In the fourth quarter of 2023, Douglas Elliman delivered its first year-over-year increase in quarterly revenues since the first quarter of 2022, which reflects the strength of the luxury markets we operate in and the gradual stabilization of home purchasing activity,” said Howard M. Lorber, Chairman and Chief Executive Officer of Douglas Elliman. “As the interest rate environment continues to improve, Douglas Elliman is well-positioned to drive long-term growth and value for stockholders due to the distinct competitive advantages provided by our dedicated team of world-class agents and leading development marketing business.”

GAAP Financial Results

Three months ended December 31, 2023. Fourth quarter 2023 revenues were $214.1 million, compared to revenues of $207.3 million in the fourth quarter of 2022. The Company recorded an operating loss of $23.6 million in the fourth quarter of 2023, compared to a loss of $21.9 million in the fourth quarter of 2022. Net loss attributed to Douglas Elliman for the fourth quarter of 2023 was $14.8 million, or $0.18 per diluted common share, compared to a loss of $18.4 million, or $0.23 per diluted common share, in the fourth quarter of 2022.

Year ended December 31, 2023. For the year ended December 31, 2023, revenues were $955.6 million, compared to revenues of $1.15 billion for the year ended December 31, 2022. The Company recorded an operating loss of $64.5 million for the year ended December 31, 2023, compared to an operating loss of $4.5 million for the year ended December 31, 2022. Net loss attributed to Douglas Elliman for the year ended December 31, 2023 was $42.6 million, or $0.52 per diluted common share, compared to a loss of $5.6 million, or $0.08 per diluted common share, for the year ended December 31, 2022.

Non-GAAP Financial Measures

Non-GAAP financial measures include adjustments for stock-based compensation, equity in losses from equity method investments, restructuring, and other, net (for purposes of Adjusted EBITDA). Reconciliations of non-GAAP financial measures to the comparable GAAP financial results for the three months and full years ended December 31, 2023 and 2022 are included in Tables 2, 3 and 4.

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

Adjusted EBITDA attributed to Douglas Elliman (as described in Table 2 attached hereto) were a loss of $17.5 million for the fourth quarter of 2023, compared to a loss of $17.1 million for the fourth 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 $12.5 million for the fourth quarter of 2023, compared to a loss of $12.6 million for the fourth quarter of 2022.

Adjusted Net Loss attributed to Douglas Elliman (as described in Table 3 attached hereto) was $14.5 million, or $0.18 per diluted share, for the fourth quarter of 2023, compared to a loss of $18.4 million, or $0.23 per diluted share, for the fourth quarter of 2022.

Year ended December 31, 2023 compared to the year ended December 31, 2022

Adjusted EBITDA attributed to Douglas Elliman (as described in Table 2 attached hereto) were a loss of $40.7 million for the year ended December 31, 2023, compared to income of $15.0 million for the year ended December 31, 2022.

Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment (as described in Table 2 attached hereto) were a loss of $21.5 million for the year ended December 31, 2023, compared to income of $34.5 million for the year ended December 31, 2022.

Adjusted Net Loss attributed to Douglas Elliman (as described in Table 3 attached hereto) was $40.9 million, or $0.50 per diluted share, for the year ended December 31, 2023, compared to a loss of $6.2 million, or $0.08 per diluted share, for the year ended December 31, 2022.

Gross Transaction Value

For the three months ended December 31, 2023, Douglas Elliman’s subsidiary, Douglas Elliman Realty, LLC, achieved gross transaction value of approximately $7.9 billion, compared to approximately $7.5 billion for the three months ended December 31, 2022. For the three months ended December 31, 2023, Douglas Elliman’s real estate brokerage segment reported an average price per transaction of $1.58 million.

For the year ended December 31, 2023, Douglas Elliman Realty, LLC achieved gross transaction value of approximately $34.4 billion, compared to approximately $42.9 billion for the year ended December 31, 2022. For the year ended December 31, 2023, Douglas Elliman’s real estate brokerage segment reported an average price per transaction of $1.59 million.

Consolidated Balance Sheet

Douglas Elliman maintained a strong balance sheet with cash and cash equivalents of $119.8 million at December 31, 2023.

Conference Call to Discuss Fourth Quarter and Full Year 2023 Results

As previously announced, the Company will host a conference call and webcast to discuss its fourth quarter and full year 2023 results on Friday, March 1, 2024 at 8:00 a.m. (ET).

Investors may access the call via live webcast at https://join.eventcastplus.com/eventcastplus/Douglas-Elliman-Inc-Fourth-Quarter-and-Full-Year-2023-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 March 1, 2024 through June 1, 2024 at https://investors.elliman.com/events-and-presentations/default.aspx.

Non-GAAP Financial Measures

Adjusted EBITDA attributed to Douglas Elliman and Adjusted Net (Loss) 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 and full years ended December 31, 2023 and 2022.

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, Florida, California, Texas, Colorado, Nevada, Massachusetts, 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 Annual Report on Form 10-K for the year ended December 31, 2022 and, when filed, our Annual Report on Form 10-K for the year ended December 31, 2023. 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

 

Year Ended

 

December 31,

 

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenues:

 

 

 

 

 

 

 

Commissions and other brokerage income

$

202,289

 

 

$

195,968

 

 

$

906,069

 

 

$

1,099,885

 

Property management

 

8,693

 

 

 

8,236

 

 

 

35,542

 

 

 

36,022

 

Other ancillary services

 

3,154

 

 

 

3,126

 

 

 

13,967

 

 

 

17,270

 

Total revenues

 

214,136

 

 

 

207,330

 

 

 

955,578

 

 

 

1,153,177

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

Real estate agent commissions

 

159,413

 

 

 

150,363

 

 

 

706,162

 

 

 

836,803

 

Sales and marketing

 

19,500

 

 

 

21,618

 

 

 

83,670

 

 

 

85,763

 

Operations and support

 

17,267

 

 

 

17,074

 

 

 

70,605

 

 

 

72,946

 

General and administrative

 

33,076

 

 

 

32,194

 

 

 

125,447

 

 

 

131,421

 

Technology

 

6,011

 

 

 

5,964

 

 

 

23,788

 

 

 

22,773

 

Depreciation and amortization

 

1,995

 

 

 

1,979

 

 

 

8,026

 

 

 

8,012

 

Restructuring

 

445

 

 

 

—

 

 

 

2,377

 

 

 

—

 

Operating loss

 

(23,571

)

 

 

(21,862

)

 

 

(64,497

)

 

 

(4,541

)

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

Interest income, net

 

1,553

 

 

 

1,215

 

 

 

5,813

 

 

 

1,779

 

Equity in losses from equity-method investments

 

(25

)

 

 

(86

)

 

 

(168

)

 

 

(563

)

Investment and other income

 

524

 

 

 

403

 

 

 

633

 

 

 

3,429

 

(Loss) income before provision for income taxes

 

(21,519

)

 

 

(20,330

)

 

 

(58,219

)

 

 

104

 

Income tax (benefit) expense

 

(6,501

)

 

 

(1,670

)

 

 

(15,053

)

 

 

6,503

 

 

 

 

 

 

 

 

 

Net loss

 

(15,018

)

 

 

(18,660

)

 

 

(43,166

)

 

 

(6,399

)

 

 

 

 

 

 

 

 

Net loss attributed to non-controlling interest

 

175

 

 

 

245

 

 

 

614

 

 

 

777

 

 

 

 

 

 

 

 

 

Net loss attributed to Douglas Elliman Inc.

$

(14,843

)

 

$

(18,415

)

 

$

(42,552

)

 

$

(5,622

)

 

 

 

 

 

 

 

 

Per basic common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss applicable to common shares attributed to Douglas Elliman Inc.

$

(0.18

)

 

$

(0.23

)

 

$

(0.52

)

 

$

(0.08

)

 

 

 

 

 

 

 

 

Per diluted common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss applicable to common shares attributed to Douglas Elliman Inc.

$

(0.18

)

 

$

(0.23

)

 

$

(0.52

)

 

$

(0.08

)

TABLE 2 DOUGLAS ELLIMAN INC. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED EBITDA (Unaudited) (Dollars in Thousands)

 

Three Months Ended

 

Year Ended

 

December 31,

 

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

Net loss attributed to Douglas Elliman Inc.

$

(14,843

)

 

$

(18,415

)

 

$

(42,552

)

 

$

(5,622

)

Interest income, net

 

(1,553

)

 

 

(1,215

)

 

 

(5,813

)

 

 

(1,779

)

Income tax (benefit) expense

 

(6,501

)

 

 

(1,670

)

 

 

(15,053

)

 

 

6,503

 

Net loss attributed to non-controlling interest

 

(175

)

 

 

(245

)

 

 

(614

)

 

 

(777

)

Depreciation and amortization

 

1,995

 

 

 

1,979

 

 

 

8,026

 

 

 

8,012

 

EBITDA

$

(21,077

)

 

$

(19,566

)

 

$

(56,006

)

 

$

6,337

 

 

 

 

 

 

 

 

 

Equity in losses from equity-method investments (a)

 

25

 

 

 

86

 

 

 

168

 

 

 

563

 

Stock-based compensation expense (b)

 

3,409

 

 

 

2,662

 

 

 

13,075

 

 

 

11,138

 

Restructuring

 

445

 

 

 

—

 

 

 

2,377

 

 

 

—

 

Other, net

 

(524

)

 

 

(403

)

 

 

(633

)

 

 

(3,429

)

Adjusted EBITDA

 

(17,722

)

 

 

(17,221

)

 

 

(41,019

)

 

 

14,609

 

Adjusted EBITDA attributed to non-controlling interest

 

263

 

 

 

119

 

 

 

326

 

 

 

342

 

Adjusted EBITDA attributed to Douglas Elliman Inc.

$

(17,459

)

 

$

(17,102

)

 

$

(40,693

)

 

$

14,951

 

 

 

 

 

 

 

 

 

Operating (loss) income by Segment:

 

 

 

 

 

 

 

Real estate brokerage

$

(16,420

)

 

$

(15,626

)

 

$

(36,769

)

 

$

21,993

 

Corporate and other

 

(7,151

)

 

 

(6,236

)

 

 

(27,728

)

 

 

(26,534

)

Total

$

(23,571

)

 

$

(21,862

)

 

$

(64,497

)

 

$

(4,541

)

 

 

 

 

 

 

 

 

Real estate brokerage segment

 

 

 

 

 

 

 

Operating (loss) income

$

(16,420

)

 

$

(15,626

)

 

$

(36,769

)

 

$

21,993

 

Depreciation and amortization

 

1,995

 

 

 

1,979

 

 

 

8,026

 

 

 

8,012

 

Stock-based compensation

 

1,184

 

 

 

917

 

 

 

4,539

 

 

 

4,195

 

Restructuring

 

445

 

 

 

—

 

 

 

2,377

 

 

 

—

 

Adjusted EBITDA

 

(12,796

)

 

 

(12,730

)

 

 

(21,827

)

 

 

34,200

 

Adjusted EBITDA attributed to non-controlling interest

 

263

 

 

 

119

 

 

 

326

 

 

 

342

 

Adjusted EBITDA attributed to Douglas Elliman Inc.

$

(12,533

)

 

$

(12,611

)

 

$

(21,501

)

 

$

34,542

 

 

 

 

 

 

 

 

 

Corporate and other segment

 

 

 

 

 

 

 

Operating loss

$

(7,151

)

 

$

(6,236

)

 

$

(27,728

)

 

$

(26,534

)

Stock-based compensation

 

2,225

 

 

 

1,745

 

 

 

8,536

 

 

 

6,943

 

Adjusted EBITDA attributed to Douglas Elliman Inc.

$

(4,926

)

 

$

(4,491

)

 

$

(19,192

)

 

$

(19,591

)

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. $1,184, $917, $4,539, and $4,195 are attributable to the Real estate brokerage segment for the three months and full years ended December 31, 2023, and 2022, respectively. $2,225, $1,745, $8,536, and $6,943 are attributable to the Corporate and other segment for the three months and full years ended December 31, 2023 and 2022, respectively.

TABLE 3 DOUGLAS ELLIMAN INC. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED NET LOSS (Unaudited) (Dollars in Thousands, Except Per Share Amounts)

 

Three Months Ended

 

Year Ended

 

December 31,

 

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

Net loss attributed to Douglas Elliman Inc.

$

(14,843

)

 

$

(18,415

)

 

$

(42,552

)

 

$

(5,622

)

 

 

 

 

 

 

 

 

Restructuring

 

445

 

 

 

—

 

 

 

2,377

 

 

 

—

 

Income related to Tax Disaffiliation indemnification

 

—

 

 

 

(8

)

 

 

—

 

 

 

(589

)

Total adjustments

 

445

 

 

 

(8

)

 

 

2,377

 

 

 

(589

)

 

 

 

 

 

 

 

 

Tax expense related to adjustments

 

(89

)

 

 

—

 

 

 

(678

)

 

 

—

 

Adjusted net loss attributed to Douglas Elliman Inc.

$

(14,487

)

 

$

(18,423

)

 

$

(40,853

)

 

$

(6,211

)

 

 

 

 

 

 

 

 

Per diluted common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net loss applicable to common shares attributed to Douglas Elliman Inc.

$

(0.18

)

 

$

(0.23

)

 

$

(0.50

)

 

$

(0.08

)

TABLE 4 DOUGLAS ELLIMAN INC. AND SUBSIDIARIES RECONCILIATION OF REVENUES (Unaudited) (Dollars in Thousands, Except for Gross Transaction Value)

 

Three Months Ended

 

Year Ended

 

December 31,

 

December 31,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

Revenues:

 

 

 

 

 

 

 

Commissions and other brokerage income

$

202,289

 

$

195,968

 

$

906,069

 

$

1,099,885

Property management

 

8,693

 

 

8,236

 

 

35,542

 

 

36,022

Other ancillary services

 

3,154

 

 

3,126

 

 

13,967

 

 

17,270

Total revenues

$

214,136

 

$

207,330

 

$

955,578

 

$

1,153,177

 

 

 

 

 

 

 

 

Gross transaction value (in billions)

$

7.9

 

$

7.5

 

$

34.4

 

$

42.9

Total transactions

 

5,022

 

 

4,776

 

 

21,606

 

 

26,573

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240229555923/en/

Stephen Larkin, Douglas Elliman Inc. 917-902-2503 Emily Claffey/Catherine Livingston, FGS Global, 212-687-8080 J. Bryant Kirkland III, Douglas Elliman Inc. 305-579-8000