Douglas Elliman, Inc. (NYSE:DOUG) Q2 2023 Earnings Conference Call August 8, 2023 8:30 AM ET Company Participants Howard Lorber - Chairman, President and Chief Executive Officer Richard Lampen - Chief Operating Officer Bryant Kirkland - Chief Financial Officer Scott Durkin - President and Chief Executive Officer of Douglas Elliman Realty Conference Call Participants Dan Fannon - Jefferies Operator Welcome to Douglas Elliman's Second Quarter 2023 Earnings Conference Call. This call is being recorded and simu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DOUGLAS ELLIMAN INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation Commission File Number (I.R.S. Employer Identification No.) incorporation or organ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DOUGLAS ELLIMAN INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation Commission File Number (I.R.S. Employer Identification No.) incorporation or orga ...

Douglas Elliman, Inc. (NYSE:DOUG) Q1 2023 Earnings Conference Call May 10, 2023 8:30 AM ET Company Participants Howard Lorber - Chairman, President & CEO Conference Call Participants Operator Welcome to Douglas Elliman's First Quarter 2023 Earnings Conference Call. The call is being recorded and simultaneously webcast. An archived version of the webcast will be available on the Investor Relations section of the company's website located at investors.elliman.com for 1 year. During this call, the terms adjust ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ Form 10-K _____________________________________________ ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Fiscal Year Ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 _____________________________________________ DOUGLAS ELLIMAN INC. (Exact name of registrant as specified in its ...

Financial Data and Key Metrics Changes - Adjusted EBITDA attributed to the real estate brokerage segment was a loss of $12.6 million in Q4 2022 compared to income of $21.3 million in Q4 2021 [1] - Adjusted net loss attributed to Douglas Elliman was $18.4 million or $0.24 per share in Q4 2022 compared to adjusted net income of $18.6 million or $0.24 per share in Q4 2021 [1] - For the full year 2022, Douglas Elliman reported $1.15 billion in revenues compared to $1.35 billion in 2021 [20] Business Line Data and Key Metrics Changes - Douglas Elliman reported $207.3 million in revenues for Q4 2022 compared to $334 million in Q4 2021 [19] - Adjusted EBITDA attributed to Douglas Elliman was a loss of $17.1 million in Q4 2022 compared to income of $21.3 million in Q4 2021 [35] - The real estate brokerage segment reported an operating loss of $15.6 million in 2022 compared to operating income of $19.2 million in 2021 [35] Market Data and Key Metrics Changes - The residential real estate industry faced significant headwinds in 2022, with transaction volume and the value of existing home sales each declining by more than 30% [30] - Douglas Elliman outperformed the industry with transaction volume and gross transaction volume declining by approximately 18% and 16%, respectively [30] - Limited inventory in luxury markets has kept prices stable despite market challenges [15] Company Strategy and Development Direction - The company is focused on strategic market expansion, continued recruitment of talent, and further adoption of innovative solutions to empower agents [36] - Douglas Elliman has entered new markets such as Las Vegas, Dallas, and D.C., which represent approximately $50 billion of total available annual gross transaction value [32] - The company plans to consolidate office space and reduce expenses, which is expected to begin to reduce rent expenses during 2023 and more significantly in the second half of 2024 [18] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is challenging but believes that tight supply will gradually ease as consumers adjust to higher interest rates [31] - The luxury markets are expected to be the last to enter a down cycle and the first to emerge, presenting significant growth opportunities when market uncertainty subsides [31] - Management emphasized the importance of maintaining revenue while managing operating expenses to create long-term stockholder value [36] Other Important Information - The company paid a dividend of $0.05 per share during the fourth quarter and expects dividends to be a key component of capital allocation going forward [2] - As of December 31, 2022, the company had $164 million in cash and cash equivalents with no long-term debt, providing a competitive advantage for growth [17] Q&A Session Summary Question: Can you elaborate on the current environment and any changes across regions? - Management acknowledged that the first quarter would likely reflect similar trends to the fourth quarter, with some regions performing better or worse based on inventory and activity levels [8] Question: What are the expected impacts of the initiatives around expenses? - Management indicated that they have eliminated certain marketing expenses and expect to see reductions in expenses from consolidating office space and freezing hiring [9][18] Question: Is there a potential for stock buybacks given the cash position? - Management noted that their ability to buy back stock is limited until two years post-spin-off from Vector Group, but they view the stock as a good value [40]

Douglas Elliman Inc. (NYSE:DOUG) Q3 2022 Earnings Conference Call November 4, 2022 8:00 AM ET Company Participants Howard M. Lorber – Chairman, President and Chief Executive Officer Conference Call Participants Daniel Fannon – Jefferies Operator Welcome to Douglas Elliman, Inc.’s Third Quarter 2022 Earnings Conference Call. This call is being recorded and simultaneously webcast. An archived version of the webcast will be available on the Investor Relations section of the company’s website located at investo ...

Financial Performance - Total transactions for the year ended September 30, 2022, were 30,520, a significant increase from 22,213 in 2021, representing a growth of approximately 37.5%[86] - Gross transaction value reached $48.9 billion for the year ended September 30, 2022, compared to $36.3 billion in 2021, marking an increase of about 34.5%[86] - Net income attributed to Douglas Elliman Inc. for the last twelve months ended September 30, 2022, was $32,981 thousand, up from $12,793 thousand in the previous year, reflecting a growth of approximately 157.5%[86] - Adjusted EBITDA attributed to Douglas Elliman was $53,360 thousand for the last twelve months ended September 30, 2022, compared to $32,052 thousand in 2021, indicating an increase of around 66.6%[86] Revenue and Operating Income - Revenue for the real estate brokerage segment for the three months ended September 30, 2022, was $272,588 thousand, a decrease from $354,161 thousand in the same period of 2021[94] - Operating income for the real estate brokerage segment for the three months ended September 30, 2022, was $1,503 thousand, down from $25,514 thousand in 2021[94] - Total operating loss for the company for the three months ended September 30, 2022, was $5,186 thousand, compared to an operating income of $25,514 thousand in the same period of 2021[94] - Revenues for the three months ended September 30, 2022, were $272,588, a decline of $81,573 (23.0%) compared to $354,161 for the same period in 2021, primarily due to lower commission revenues from existing home sales[95] - Operating income decreased to $37,619 for the nine months ended September 30, 2022, compared to $82,925 in 2021, primarily due to reduced revenues and increased expenses[110] Expenses - Operating expenses decreased to $277,774 for the three months ended September 30, 2022, down $50,873 from $328,647 in 2021, mainly due to declines in real estate brokerage commissions[95] - Real estate agent commissions expense was $195,836 for the three months ended September 30, 2022, compared to $257,098 in 2021, with the percentage of revenues decreasing to 71.8% from 72.6%[100] - Sales and marketing expenses increased to $22,703 for the three months ended September 30, 2022, from $20,237 in 2021, driven by additional promotional activities[100] - Technology expenses rose to $5,527 for the three months ended September 30, 2022, compared to $4,388 in 2021, reflecting enhancements to the agent technology platform[100] - Technology expenses increased to $16,809 for the nine months ended September 30, 2022, compared to $11,302 in 2021, driven by enhancements to the "MyDouglas" agent portal and other technology initiatives[110] Cash Flow and Investments - Cash provided from operations was $5,208 for the nine months ended September 30, 2022, a significant decline from $93,436 in 2021, attributed to lower operating income and increased expenses[117] - Cash used in investing activities was $9,667 for the nine months ended September 30, 2022, compared to $6,553 in 2021, with capital expenditures of $6,207 and PropTech investments of $3,235[117] - Cash used in financing activities was $22,741 for the nine months ended September 30, 2022, including dividends of $12,120 and debt repayment of $9,396[118] - As of September 30, 2022, cash and cash equivalents were approximately $192,734, which, along with cash from operations, is expected to meet liquidity needs over the next twelve months[118] - New Valley Ventures had investments in PropTech companies valued at approximately $13,771, representing about 2% of Douglas Elliman's total assets of approximately $580 million[112] Risks and Uncertainties - The company faces significant risks and uncertainties that could materially affect actual results compared to forward-looking statements, including economic conditions and regulatory changes[126] - The impact of the Inflation Reduction Act of 2022 and the Tax Cuts and Jobs Act of 2017 on market conditions is a key concern for the company[126] - The company has to manage expenses effectively, including corporate expenses as a standalone public entity[126] - There is a lack of operating history as a public company, which presents additional challenges and costs[126] - The company must satisfy obligations under the Transition Services Agreement with Vector Group to avoid operational disruptions[126] - The company acknowledges that expectations in forward-looking statements may not be attained, indicating potential material deviations[127] - Market risk disclosures are referenced in the Management's Discussion and Analysis of Financial Condition and Results of Operations[129]

Douglas Elliman Inc. (NYSE:DOUG) Q2 2022 Earnings Conference Call August 5, 2022 7:30 AM ET Company Participants Howard Lorber - Chairman, President and Chief Executive Officer Bryant Kirkland - Senior Vice President, Treasurer and Chief Financial Officer Conference Call Participants Dan Fannon - Jefferies John Massocca - Ladenburg Thalmann Operator Welcome to Douglas Elliman Inc.’s Second Quarter 2022 Conference Call. During this call, the terms adjusted net income and adjusted EBITDA will be used. These t ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's discussion and analysis of financial condition, market risk disclosures, and internal controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the period ended June 30, 2022, show decreased net income and operating cash flow, stable total assets, and slightly reduced total liabilities Condensed Consolidated Balance Sheet Data (Unaudited) | Balance Sheet Items | June 30, 2022 (thousands of USD) | December 31, 2021 (thousands of USD) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | 202,134 | 211,623 | | Total current assets | 272,023 | 280,805 | | Total assets | 594,738 | 595,169 | | **Liabilities & Equity** | | | | Total current liabilities | 109,859 | 132,467 | | Total liabilities | 298,801 | 313,296 | | Total stockholders' equity | 295,937 | 281,873 | Condensed Consolidated Statements of Operations (Unaudited) | Metric (thousands of USD) | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | 364,359 | 391,975 | 673,259 | 664,751 | | Operating income | 14,628 | 43,183 | 22,507 | 57,411 | | Net income | 10,219 | 39,472 | 16,504 | 53,437 | | Diluted EPS | $0.13 | $0.51 | $0.21 | $0.69 | Condensed Consolidated Statements of Cash Flows (Unaudited, Six Months Ended June 30) | Cash Flow Activity (thousands of USD) | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | 2,837 | 72,107 | | Net cash used in investing activities | (6,543) | (6,915) | | Net cash used in financing activities | (14,109) | (1,399) | | Net (decrease) increase in cash | (17,815) | 63,793 | - The company's business is segmented into Real Estate Brokerage and Corporate and Other. For Q2 2022, the Real Estate Brokerage segment generated operating income of **$21.6 million**, while the Corporate and Other segment had an operating loss of **$6.9 million**[74](index=74&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the decline in Q2 2022 revenue and operating income due to market conditions and increased standalone public company expenses, while highlighting strategic investments and dividend initiation - The company operates through two business segments: Real Estate Brokerage (via Douglas Elliman Realty) and Corporate and other (holding company operations and PropTech investments via New Valley Ventures)[80](index=80&type=chunk) Key Business Metrics (Six Months Ended June 30) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Total transactions | 15,001 | 15,558 | | Gross transaction value (billions of USD) | $25.3 | $25.3 | | Adjusted EBITDA attributed to Douglas Elliman (millions of USD) | $31.9 | $61.6 | - As of June 30, 2022, New Valley Ventures had investments with a carrying value of approximately **$11.7 million** in PropTech companies. New investments in H1 2022 include Envoy, Audience, and Tongo[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - The company initiated a quarterly cash dividend of **$0.05 per share** in March 2022, expected to result in annual dividend payments of approximately **$16.3 million**[115](index=115&type=chunk) [Results of Operations - Q2 2022 vs Q2 2021](index=27&type=section&id=Results%20of%20Operations%20-%20Q2%202022%20vs%20Q2%202021) Q2 2022 total revenues decreased by 7.0% to $364.4 million, with operating income falling sharply to $14.6 million due to lower home sales and increased operating costs Q2 Performance Comparison (thousands of USD) | Metric | Q2 2022 | Q2 2021 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $364,359 | $391,975 | (7.0%) | | Operating Income | $14,628 | $43,183 | (66.1%) | - The decline in Real Estate Brokerage revenue was primarily due to a **$30.1 million** decrease in existing home sales in Florida and a **$3.7 million** decrease in the Northeast, partially offset by an **$11.1 million** increase in the West region (including Texas)[96](index=96&type=chunk) - The Corporate and Other segment reported an operating loss of **$6.9 million** in Q2 2022, reflecting expenses associated with operating as a standalone public company post-Distribution[99](index=99&type=chunk) [Results of Operations - Six Months 2022 vs 2021](index=30&type=section&id=Results%20of%20Operations%20-%20Six%20Months%202022%20vs%202021) For the six months ended June 30, 2022, revenues increased by 1.3% to $673.3 million, but operating income significantly decreased by 60.8% due to higher operating expenses Six-Month Performance Comparison (thousands of USD) | Metric | Six Months 2022 | Six Months 2021 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $673,259 | $664,751 | 1.3% | | Operating Income | $22,507 | $57,411 | (60.8%) | - The increase in commission and brokerage income was driven by strong performance in New York City (**+$24.1 million**) and the West region (**+$21.9 million**, including Texas), offsetting declines in Florida (**-$24.8 million**) and the Northeast (**-$9.9 million**) markets[106](index=106&type=chunk) - Technology expenses increased from **$6.9 million** to **$11.3 million** year-over-year due to enhancements to the 'MyDouglas' agent portal, increased use of StudioPro CRM, and the introduction of the Elliman Showroom platform[108](index=108&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is interest rate fluctuations, which it manages through its operating, financing, and long-term investment strategies - The company's principal market risk exposure stems from fluctuations in interest rates[116](index=116&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting during Q2 2022 - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2022[127](index=127&type=chunk) - There were no changes in internal control over financial reporting during Q2 2022 that materially affected, or are reasonably likely to materially affect, internal controls[128](index=128&type=chunk) [PART II. OTHER INFORMATION](index=36&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, and information regarding unregistered sales of equity securities [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation, but management anticipates no material adverse effect on its financial condition, as most claims are insurance-covered - The company is involved in litigation through the normal course of business, but does not expect the outcomes to have a material adverse effect on its financial condition[63](index=63&type=chunk)[131](index=131&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) Key risks include reduced homebuyer financing due to rising interest rates and increased regulatory scrutiny on industry commission practices, potentially disrupting business operations - A significant risk is the lack of financing for homebuyers at favorable rates, as Federal Reserve policy has led to significantly increased mortgage interest rates, which could lower transaction volume or home prices[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - The company faces risks from potential industry structure changes and increased regulatory scrutiny, with the Department of Justice's withdrawal from a settlement with the National Association of Realtors (NAR) indicating a focus on anticompetitive behavior related to commissions, which could disrupt the business[136](index=136&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not issue or sell any unregistered equity securities during the three months ended June 30, 2022 - No unregistered equity securities were issued or sold by the company during the three months ended June 30, 2022[142](index=142&type=chunk)