Douglas Elliman Inc. · NYSE:DOUG
Douglas Elliman — Q3 2022 Earnings Presentation
23 slides from Douglas Elliman's earnings presentation, Nov 4, 2022
Slide 1: Investor Presentation November 2022
June 2021 / Confidential Investor Presentation November 2022
Slide 2: Disclaimer
2 Disclaimer This document and any related oral presentation does not constitute an offer or invitation to subscribe for, purchase or otherwise acquire any securities or other instruments of Douglas Elliman Inc. (“Douglas Elliman Inc.”, “DOUG” or “the Company”) or its subsidiaries and nothing contai
Slide 3: Investment Highlights
3 Investment Highlights Unique Investment Opportunity in Tech-Enabled Residential Real Estate Brokerage with Comprehensive Suite of Real Estate Solutions, Industry-leading Brand Name and Talented Team of Employees and Agents Cutting-edge property technology supportive of agent recruitment, retention
Slide 4: Company overview: founded in 1911
4 ⚫ Founded in 1911 as a pioneer in the real estate industry that has continued to challenge the status quo through innovation and high- quality service provided by best-in-class real estate agents ⚫ Leading brand associated with service, luxury and forward thinking operating in markets that are pri
Slide 5: Douglas Elliman's Geographical Footprint
5 Douglas Elliman’s Geographical Footprint ~6,900 affiliated agents across approximately 110 U.S. offices Alliance with Knight Frank provides an international network of an additional 384 offices across, 51 countries and approximately 16,000 agents #6 Nationally One of the Largest in New York Califo
Slide 6: Comprehensive Solution Provides for Multiple Revenue Streams
6 Comprehensive Solution Provides for Multiple Revenue Streams • DEDM offers expertise in sales, leasing and marketing for new developments throughout key markets in the United States and internationally New Sales and Development Marketing Platform • Advising sellers: Assist in pricing a property an
Slide 7: Industry-leading Brand Name with a Strong Presence in U.S. Luxury Markets
7 LTM 9/30/22 Average(8): $1,604 Industry-leading Brand Name with a Strong Presence in U.S. Luxury Markets $1,580.0 $1,128.4 $657.3 $555.1 $351.3 Douglas Elliman Compass Anywhere Redfin eXp Realty Highest Transaction Values in the Industry Average Selling Price (2021)(7) ($ thousands) Leading Presen
Slide 8: Cutting-edge Technology Supportive of Agent Recruitment, Retention and Productivity
8 Cutting-edge Technology Supportive of Agent Recruitment, Retention and Productivity Powered by industry leading technology capabilities developed by innovative PropTech leaders and start-ups • Premier, customizable, mobile-friendly and cloud-based agent portal that integrates all agent resources i
Slide 9: MyDouglas Complete Set of Capabilities
9 * New Valley Ventures PropTech Investee Company MyDouglas | Complete Set of Capabilities Capabilities Solutions Artificial Intelligence (“AI”) and Predictive Analytics Team Management Agent Social Media • Learning Management System • MyDouglas Team Views • Team Deal Management Agent Brand Manageme
Slide 10: Open Architecture Technology Infrastructure
10 Open Architecture Technology Infrastructure Open Architecture Technology Infrastructure, Kept State-of-the-art Through Strategic Investments in Early Stage PropTech Companies with Technology Purpose-built for the Real Estate Industry Key Benefits of Our Technology Strategy Recent PropTech Investm
Slide 11: Strong Platform for Continued Growth
11 • Further grow leadership position in New York while entering and expanding into adjoining markets where the Douglas Elliman brand has strong awareness and brand equity, including Florida, California, Colorado and Texas • Recent entry into the Las Vegas, Austin, Dallas and St. Petersburg markets,
Slide 12: Strong Platform for Continued Growth (Cont.): California, Texas, Florida
12 California Texas Florida Overview • Purchased Teles Properties in 2017 • Purchased interest in Texas brokerage in 2021 • High profile recruitment of teams in Naples, Vero Beach, Fort Lauderdale and Ponte Vedra Beach in 2021 and 2022 Benefits to Douglas Elliman • Ability to expand in southern Cali
Slide 13: Strong Platform for Continued Growth (Cont.)
13 $201.5 $188.0 $15.2 $20.8 $35.4 $42.5 $16.8 2019 LTM 9/30/22 Other OpEx Technology Activity Driven Operating Expenses Acquisitions Strong Platform for Continued Growth (Cont.) Invest in Compelling PropTech Opportunities that Facilitate Growth and Differentiation Relentlessly Pursue Operational Ef
Slide 14: Douglas Elliman Financial Overview
DOUGLAS ELLIMAN FINANCIAL OVERVIEW
Slide 15: Attractive Financial Profile
15 Attractive Financial Profile 1) As of September 30, 2022. Please see page 21, "Balance Sheet" of Douglas Elliman Inc. The Balance Sheet reports $192.7 million of cash and $3.1 million of current portion of notes payable and other obligations. Disciplined expense management drives significant oper
Slide 16: Financial Summary
16 Financial Summary 1) Adjusted EBITDA attributed to Douglas Elliman Inc. is a non-GAAP measure. Net income (loss) was $8.5 million, ($46.4) million, $98.8 million and $33.0 million for the years ended December 31, 2019, 2020 and 2021 and for the last twelve months ended September 30, 2022. Please
Slide 17: Business Mix
17 Business Mix $18.2 $22.4 $24.6 $25.4 $28.1 $28.8 $29.1 $51.2 $48.9 2014 2015 2016 2017 2018 2019 2020 2021 LTM 9/30/22 LTM 9/30/22 Revenue Gross Transaction Value ($ billions) $1,143.8M $78.5M $36.8M $20.9M $1.280B Commissions and Other Brokerage Income – Existing Home Sales Commissions and Other
Slide 18: Investment Highlights
18 Investment Highlights Unique Investment Opportunity in Tech-Enabled Residential Real Estate Brokerage with Comprehensive Suite of Real Estate Solutions, Industry-leading Brand Name and Talented Team of Employees and Agents Cutting-edge property technology supportive of agent recruitment, retentio
Slide 19: Appendix
APPENDIX
Slide 20: Combined Consolidated Statement of Operations
20 Combined Consolidated Statement of Operations Year Ended Nine Months Ended LTM 12/31/2019 12/31/2020 12/31/2021 9/30/2021 9/30/2022 9/30/2022 Revenues: Commissions and other brokerage income $742,414 $733,751 $1,292,416 $974,048 $903,917 $1,222,285 Property management 35,461 35,115 37,345 28,289
Slide 21: Consolidated Balance Sheet
21 Consolidated Balance Sheet December 31, September 30, 2021 2022 ASSETS: Current assets: Cash and cash equivalents $211,623 $192,734 Receivables 32,488 26,684 Agent receivables, net 9,192 14,481 Income taxes receivable, net - 1,241 Restricted cash and cash equivalents 15,336 5,717 Other current as
Slide 22: Adjusted EBITDA Reconciliation
22 1) Represents equity in (earnings) losses recognized from Douglas Elliman’s investment in equity method investments that are accounted for under the equity method and are not consolidated in Douglas Elliman’s financial results. 2) Represents restructuring related to Douglas Elliman Realty, LLC’s
Slide 23: Adjusted Operating Expenses Reconciliation
23 Adjusted Operating Expenses Reconciliation Year Ended Year Ended Nine Months Ended LTM 12/31/2019 12/31/2021 9/30/2021 9/30/2022 9/30/2022 Total Operating Expenses(1) $787,588 $1,251,040 $935,987 $928,526 $1,243,579 Items excluded from total expenses to determine Real Estate Brokerage Segment Adj