Elliman only made $100K in profits in Q1 Competitor Realogy Corp. reported uptick in sales $2.5M and up
Howard Lorber (Credit: Getty Images)
UPDATED, May 6, 8:55 p.m.: No, that s not a typo: Douglas Elliman s profits dipped to just $100,000 during the first quarter of 2017, down from $7.1 million during the same period last year, parent company Vector Group reported Friday. The paltry sum was attributed to fewer closings at new development projects, Vector executives said.
Elliman closed sales worth $5.6 billion during the first quarter, compared to last year s $5.7 billion, the company said. That resulted in $155.5 million in first-quarter revenue, down slightly from $157.6 million last year.
There were less new development closings. That s a higher-margin business so that hurt us, said Douglas Elliman CEO Howard Lorber, during an earnings call Friday.
While the firm s net income for the quarter was $100,000, its adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $1.8 million, compared to $9.1 million in 2016 s first quarter.
Overall, Vector s first-quarter revenue was $415.2 million, up from $380.8 million in 2016 s first quarter. Vector reported a net loss of $4.2 million compared with net income of $19.3 million during the first quarter of last year.