Douglas Elliman Inc. · NYSE:DOUG
Douglas Elliman — Investor Presentation (November 2023)
22 slides from Douglas Elliman's investor presentation, November 2023
Slide 1: Investor Presentation November 2023
Investor Presentation June 2021 / Confidential November 2023
Slide 2: Disclaimer
Disclaimer This document and any related oral presentation do 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 contained
Slide 3: Investment Highlights
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 Comprehensive solution provides for multiple revenue streams and monetization
Slide 4: Douglas Elliman at a Glance
Douglas Elliman at a Glance ⚫ 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 operatin
Slide 5: Douglas Elliman's Geographical Footprint
Douglas Elliman’s Geographical Footprint One ~6,900 affiliated agents across approximately 120 U.S. offices #5 Nationally of the Largest in New York Alliance with Knight Frank provides an international network of an additional 367 offices across, 52 countries and approximately 17,000 agents Massachu
Slide 6: Comprehensive Solution Provides for Multiple Revenue Streams
Comprehensive Solution Provides for Multiple Revenue Streams • Advising sellers: Assist in pricing a property and preparing it for sale, advertising, showing to Residential prospective buyers and negotiating terms of sale and closing transaction Real Estate • Advising buyers: Locating / showing prop
Slide 7: Industry-leading Brand Name with a Strong Presence in U.S. Luxury Markets
Industry-leading Brand Name with a Strong Presence in U.S. Luxury Markets Leading Presence in Large Luxury Markets ✓ Markets are primarily international finance and technology hubs that are densely populated and offer inventory at premium prices ✓ Large national presence augmented by our alliance wi
Slide 8: Cutting-edge Technology Supportive of Agent Recruitment, Retention and Productivity
Cutting-edge Technology Supportive of Agent Recruitment, Retention and Productivity • Premier, customizable, mobile-friendly and cloud-based agent portal that integrates all agent resources in one user-friendly suite • Fully mobile-friendly, allowing agents to manage their business anytime, anywhere
Slide 9: MyDouglas | Complete Set of Capabilities
MyDouglas | Complete Set of Capabilities Capabilities Solutions Team Management Agent Social Media • Learning Management System • MyDouglas Team Views • Team Deal Management Agent Brand Management VideoBolt – One-Click Video Creation/Virtual Tours • Elliman.com • Custom Property Websites Listing Man
Slide 10: Open Architecture Technology Infrastructure
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 Benefits to Agents Benefit
Slide 11: Strong Platform for the Long Term
Strong Platform for the Long Term Market Expansion Opportunity • 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, Texas, Salt Lake City Colorado and M
Slide 12: Strong Platform for the Long Term (Cont.)
Strong Platform for the Long Term (Cont.) • We consistently achieve a high retention of agents Retention(1) 90% 94% 90% Continue to 87% Recruit Best-in- Class Agents 2020 2021 2022 LTM 9/30/2023 High retention Long-tenured agents High profile recruitment California Texas Florida • Purchased Teles Pr
Slide 13: Strong Platform for the Long Term (Cont.)
Strong Platform for the Long Term (Cont.) • Grow New Valley Ventures and create a portfolio of PropTech companies that, through our investment and commercial relationships, have access to our operating businesses/distribution, as well as our know-how and Invest in experience, to grow their own busin
Slide 14: Douglas Elliman Financial Overview
DOUGLAS ELLIMAN FINANCIAL OVERVIEW
Slide 15: Attractive Financial Profile
Attractive Financial Profile Legacy brand and agent Disciplined expense network offering unrivaled management drives expertise in luxury significant operating markets leverage Operating leverage and limited capital Strong balance sheet with expenditure requirements approximately $126 drive cash flow
Slide 16: Financial Summary
Financial Summary ($ millions) Revenue $1,353.1 $1,153.2 $948.8 $774.0 2020 2021 2022 LTM 9/30/2023 Adjusted EBITDA for Real Estate Brokerage Segment (1) Capital Expenditures Adj. EBITDA Adj. EBITDA Margin 8.2% 2.9% 3.0% $8.5 $7.7 $6.1 (2.2%) $4.1 $22.1 $110.7 $34.5 ($21.6) 2020 2021 2022 LTM 9/30/2
Slide 17: Business Mix
Business Mix LTM 9/30/2023 Revenue Gross Transaction Value ($ billions) $13.9M $51.2 $35.1M $54.9M $42.9 $34.0 $28.1 $28.8 $29.1 $949M $24.6 $25.4 $22.4 $18.2 $844.8M Commissions and Other Brokerage Income – Existing Home Sales Commissions and Other Brokerage Income – Development Marketing Property
Slide 18: Appendix
APPENDIX
Slide 19: Combined Consolidated Statement of Operations
Combined Consolidated Statement of Operations ($ thousands, except per share amounts) Year Ended Nine Months Ended 12/31/2020 12/31/2021 12/31/2022 9/30/2023 9/30/2022 LTM 9/30/2023 Revenues: Commissions and other brokerage income $733,751 $1,292,416 $1,099,885 $703,780 $903,917 $899,748 Property ma
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet September 30, December 31, ($ thousands) 2023 2022 ASSETS: Current assets: Cash and cash equivalents $126,340 $163,859 Receivables 26,824 22,162 Agent receivables, net 13,978 12,826 Income taxes receivable, net 6,154 7,547 Restricted cash and cash equivalents 5,011 4,985 O
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ thousands) Year Ended Nine Months Ended 12/31/2020 12/31/2021 12/31/2022 9/30/2023 9/30/2022 LTM 9/30/2023 Net income (loss) $(46,372) $98,838 $(5,622) $(27,709) $12,793 $(46,124) Interest income, net (190) (83) (1,779) (4,260) (564) (5,475) Income tax expense (bene
Slide 22: Adjusted Operating Expenses Reconciliation
Adjusted Operating Expenses Reconciliation ($ thousands) Nine Months Nine Months Year Ended Year Ended LTM ended Ended 12/31/2019 12/31/2022 9/30/2023 9/30/2022 9/30/2023 Total Operating Expenses(1) $787,588 $1,157,718 $782,368 $928,526 $1,011,560 Items excluded from total expenses to determine Real
Douglas Elliman — Investor Presentation (November 2023) on 6ix