05/06/2021 | Press release | Distributed by Public on 05/06/2021 06:01
Newmark Group, Inc. - Quarterly Financial Data Supplement - as recast on February 18, 2021 (1) | 1Q21 |
Table of Contents | |
Page | |
Consolidated Results | |
Condensed Consolidated Balance Sheets | 2 |
Condensed Consolidated Statements of Operations | 3 |
Condensed Consolidated Statements of Cash Flows | 4 |
Revenue Detail | 5 |
GAAP and Adjusted Earnings Expense and Other Income Detail(1) | 6 |
Reconciliation of GAAP Income (Loss) to Adjusted Earnings and GAAP Fully Diluted EPS to Post-tax Adjusted EPS(1) | 7 |
Historical Reconciliation of GAAP Income (Loss) to Adjusted Earnings and GAAP Fully Diluted EPS to Post-tax Adjusted EPS(1) | 8 |
Reconciliation of GAAP Income (Loss) to Adjusted EBITDA(1) | 9 |
Historical Reconciliation of GAAP Income (Loss) to Adjusted EBITDA(1) | 10 |
Fully Diluted Weighted-Average Share Count for GAAP and Adjusted Earnings | 11 |
Equity-based Compensation and Allocations of Net Income to Limited Partnership Units and FPUs(2) | 12 |
Debt and Capital Markets Volumes | 13 |
(1) Beginning in the fourth quarter of 2020, the OMSR revenue adjustment is no longer be included in non-compensation expenses for Adjusted Earnings but instead as a separate line item in the Company's non-GAAP reconciliations. There is no impact to Adjusted Earnings or Adjusted EBITDA. Also beginning this quarter, the Company excludes compensation charges related to non-cash GAAP gains attributable to originated mortgage servicing rights (which Newmark refers to as "OMSRs") because these gains are also excluded from Adjusted Earnings and Adjusted EBITDA. Newmark has recast its historical results to be consistent with this new presentation in the comparative periods presented in this supplement. | |
(2) On November 11, 2019, Newmark revised the Equity-based Compensation tab of the Financial Supplement to include additional historical data. 2Q 2019 was revised due to a reclassification of the individual | |
components of equity-based compensation. "Exchangeability expense" has been renamed "Issuance of common stock and exchangeability expenses." | |
Note: certain tables throughout this document may not reconcile due to rounding. |
NEWMARK GROUP, INC. | ||
CONSOLIDATED BALANCE SHEETS | ||
(in thousands, except per share data) | ||
(unaudited) | ||
March 31, 2021 | December 31, 2020 | |
Assets | ||
Current Assets: | ||
Cash and cash equivalents | $ 142,854 | $ 191,448 |
Restricted cash | 68,295 | 66,951 |
Marketable securities | 4,001 | 33,283 |
Loans held for sale, at fair value | 821,194 | 1,086,805 |
Receivables, net | 394,064 | 376,795 |
Receivables from related parties | - 0 | - 0 |
Other current assets | 73,451 | 63,790 |
Total current assets | 1,503,859 | 1,819,072 |
Goodwill | 593,294 | 560,332 |
Mortgage servicing rights, net | 527,244 | 494,729 |
Loans, forgivable loans and other receivables from employees and partners | 444,674 | 454,270 |
Right-of-use assets | 422,711 | 190,469 |
Fixed assets, net | 115,452 | 96,367 |
Other intangible assets, net | 61,508 | 44,289 |
Other assets | 331,991 | 322,922 |
Total assets | $ 4,000,733 | $ 3,982,450 |
Liabilities, Redeemable Partnership Interest, and Equity: | ||
Current Liabilities: | ||
Warehouse facilities collateralized by U.S. Government Sponsored Enterprises | $ 817,033 | $ 1,061,202 |
Accrued compensation | 272,015 | 279,872 |
Current portion of accounts payable, accrued expenses and other liabilities | 373,441 | 326,548 |
Securities loaned | - 0 | 33,278 |
Current portion of payables to related parties | 6,045 | 4,392 |
Total current liabilities | 1,468,534 | 1,705,292 |
Long-term debt | 681,270 | 680,385 |
Right-of-use liabilities | 426,318 | 218,629 |
Other long-term liabilities | 433,747 | 436,952 |
Total liabilities | 3,009,869 | 3,041,258 |
Equity: | ||
Total equity (1) | 990,864 | 941,192 |
Total liabilities, redeemable partnership interest, and equity | $ 4,000,733 | $ 3,982,450 |
(1) Includes "redeemable partnership interests," "noncontrolling interests" and "total stockholders' equity." | ||
- 0 | (0) |
NEWMARK GROUP, INC. | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in thousands, except per share data) | |||||||
(unaudited) | |||||||
Three Months Ended March 31, | Year Ended December 31, | Nine Months Ended September 30, | |||||
Revenues: | 2021 | 2020 | 2020 | 2019 | 2020 | 2019 | |
Leasing and other commissions | $ 147,433 | $ 140,439 | $ 513,842 | $ 854,780 | $ 375,465 | $ 603,094 | |
Capital Markets | 121,403 | 127,923 | 454,106 | 541,255 | 263,838 | 376,213 | |
Commissions | 268,836 | 268,362 | 967,948 | 1,396,035 | 639,303 | 979,307 | |
Gains from mortgage banking activities/origination, net | 47,393 | 50,422 | 310,914 | 198,085 | 210,686 | 148,769 | |
Management services, servicing fees and other | 187,751 | 165,146 | 626,136 | 624,012 | 453,583 | 457,692 | |
Total revenues | 503,980 | 483,930 | 1,904,998 | 2,218,132 | 1,303,572 | 1,585,768 | |
Expenses: | |||||||
Compensation and employee benefits | 289,074 | 300,257 | 1,147,360 | 1,275,988 | 784,684 | 921,126 | |
Equity-based compensation and allocations of net income to limited partnership units and FPUs | 14,248 | 12,914 | 130,759 | 258,836 | 74,544 | 109,871 | |
Total compensation and employee benefits | 303,322 | 313,171 | 1,278,119 | 1,534,824 | 859,228 | 1,030,997 | |
Operating, administrative and other | 107,175 | 92,281 | 294,405 | 361,857 | 215,083 | 275,939 | |
Fees to related parties | 6,250 | 5,812 | 22,573 | 25,025 | 17,126 | 21,035 | |
Depreciation and amortization | 21,053 | 46,039 | 141,193 | 131,144 | 104,613 | 98,510 | |
Total non-compensation expenses | 134,478 | 144,132 | 458,171 | 518,026 | 336,822 | 395,484 | |
Total operating expenses | 437,800 | 457,303 | 1,736,290 | 2,052,850 | 1,196,050 | 1,426,481 | |
Other income, net: | |||||||
Other income (loss), net | (2,210) | 1,438 | 15,290 | 80,954 | 73,657 | 95,267 | |
Total other income (loss), net | (2,210) | 1,438 | 15,290 | 80,954 | 73,657 | 95,267 | |
Income from operations | 63,970 | 28,065 | 183,998 | 246,236 | 181,179 | 254,554 | |
Interest expense, net | (8,813) | (9,030) | (37,728) | (32,088) | (28,617) | (23,947) | |
Income (loss) before income taxes and noncontrolling interests | 55,157 | 19,035 | 146,270 | 214,148 | 152,562 | 230,607 | |
Provision (benefit) for income taxes | 10,579 | 4,797 | 36,993 | 52,436 | 38,158 | 52,568 | |
Consolidated net (loss) income | 44,578 | 14,238 | 109,277 | 161,712 | 114,404 | 178,039 | |
Less: Net income (loss) attributable to noncontrolling interests | 11,473 | 6,056 | 29,217 | 44,407 | 30,563 | 49,769 | |
Net income (loss) available to common stockholders | $ 33,105 | $ 8,182 | $ 80,060 | $ 117,305 | $ 83,841 | $ 128,270 | |
Per share data: | |||||||
Basic earnings per share | |||||||
Net income (loss) available to common stockholders (1) | $ 31,464 | $ 5,737 | $ 70,281 | $ 104,406 | $ 75,703 | $ 118,599 | |
Basic earnings (loss) per share | $ 0.17 | $ 0.03 | $ 0.39 | $ 0.59 | $ 0.42 | $ 0.67 | |
Basic weighted-average shares of common stock outstanding | 183,254 | 177,545 | 179,106 | 177,774 | 178,527 | 178,122 | |
Fully diluted earnings per share | |||||||
Net income (loss) for fully diluted shares (1) | $ 43,925 | $ 8,933 | $ 70,281 | $ 108,160 | $ 110,422 | $ 122,379 | |
Fully diluted earnings(loss) per share | $ 0.16 | $ 0.03 | $ 0.39 | $ 0.58 | $ 0.42 | $ 0.66 | |
Fully diluted weighted-average shares of common stock outstanding | 271,194 | 263,646 | 179,690 | 185,016 | 265,104 | 185,413 | |
Dividends declared per share of common stock | $ 0.01 | $ 0.10 | $ 0.13 | $ 0.40 | $ 0.12 | $ 0.30 | |
Dividends paid per share of common stock | $ 0.01 | $ 0.10 | $ 0.13 | $ 0.39 | $ 0.12 | $ 0.29 | |
(1) Includes a reduction for dividends on preferred stock or exchangeable preferred partnership units of $1.6 million and $2.4 million for the three months ended March 31, 2021 and 2020, respectively. (see Note 1 - "Organization and Basis of Presentation" in the Company's most recently filed Form 10-Q or Form 10-K.) |
NEWMARK GROUP INC. | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
(In thousands) | |||||
Year Ended | Three Months Ended March 31, | ||||
2020 | 2019 | 2018 | 2021 | 2020 | |
Net cash (used in) provided by operating activities | $ (777,694) | $ 986,760 | $ (332,367) | $ 290,960 | $ (652,401) |
Net cash (used in) provided by investing activities | (3,602) | (56,788) | 7,742 | (9,783) | 18,800 |
Net cash provided by (used in) financing activities | 817,823 | (895,506) | 338,657 | (328,427) | 763,318 |
Net increase in cash and cash equivalents and restricted cash | 36,527 | 34,466 | 14,032 | (47,250) | 129,717 |
Cash and cash equivalents and restricted cash at beginning of period | 221,872 | 187,406 | 173,374 | 258,399 | 221,872 |
Cash and cash equivalents and restricted cash at end of period | $ 258,399 | $ 221,872 | $ 187,406 | $ 211,149 | $ 351,589 |
Net cash provided by operating activities excluding loan originations and sales (1) | $ 93,821 | $ 211,186 | $ 295,862 | $ 25,349 | $ (128,309) |
(1) Includes payments for new hires and producers in the amount of $3.6 million and $60.0 million for the three months ended March 31, 2021, and 2020 respectively. | |||||
The Condensed Consolidated Statements of Cash Flows are presented in summarized form. For complete Condensed Consolidated Statements of Cash Flows, please refer to Newmark's Quarterly Report on Form 10-Q for the three months ended March 31, 2021, to be filed with the Securities and Exchange Commission in the near future. |
NEWMARK GROUP, INC. | ||||||||||||||||
REVENUE DETAIL | ||||||||||||||||
(in thousands) | ||||||||||||||||
(unaudited) | ||||||||||||||||
2021 | 2020 | 2019 | 2018 | |||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
Detail of revenues as presented in the Statement of Operations: | ||||||||||||||||
Leasing and other commissions | 147,433 | 140,439 | 120,079 | 114,947 | 138,377 | 513,842 | 172,471 | 217,381 | 213,242 | 251,686 | 854,780 | 159,371 | 178,142 | 203,904 | 276,017 | 817,434 |
Capital markets | 121,403 | 127,923 | 52,959 | 82,956 | 190,268 | 454,106 | 102,797 | 128,750 | 144,666 | 165,042 | 541,255 | 101,364 | 101,691 | 115,436 | 150,414 | 468,905 |
Commissions | $ 268,836 | $ 268,362 | $ 173,038 | $ 197,903 | $ 328,645 | $ 967,948 | $ 275,268 | $ 346,131 | $ 357,908 | $ 416,728 | $ 1,396,035 | $ 260,735 | $ 279,833 | $ 319,340 | $ 426,431 | $ 1,286,339 |
OMSR revenue (1) (2) | 28,716 | 29,347 | 42,128 | 60,947 | 62,392 | 194,814 | 16,378 | 24,855 | 37,423 | 30,592 | 109,248 | 21,097 | 24,695 | 28,685 | 28,725 | 103,202 |
Loan originations related fees and sales premiums, net | 18,677 | 21,075 | 26,943 | 30,246 | 37,836 | 116,100 | 14,968 | 20,236 | 34,909 | 18,724 | 88,837 | 17,817 | 17,182 | 23,287 | 20,776 | 79,062 |
Gains from mortgage banking activities/origination, net | 47,393 | 50,422 | 69,071 | 91,193 | 100,228 | 310,914 | 31,346 | 45,091 | 72,332 | 49,316 | 198,085 | 38,914 | 41,877 | 51,972 | 49,501 | 182,264 |
Management services fee revenue (3) | 58,927 | 59,052 | 48,417 | 47,345 | 54,429 | 209,243 | 46,345 | 51,683 | 52,701 | 65,051 | 215,780 | 37,493 | 46,554 | 50,073 | 54,235 | 188,355 |
Non-fee management services revenue (2) (4) | 87,640 | 66,519 | 56,680 | 60,152 | 74,917 | 258,268 | 51,744 | 65,790 | 51,483 | 61,568 | 230,585 | 59,439 | 60,674 | 51,895 | 54,084 | 226,092 |
Servicing fees and other revenues (5) | 41,183 | 39,575 | 36,512 | 39,331 | 43,207 | 158,625 | 42,953 | 42,783 | 52,210 | 39,701 | 177,647 | 33,879 | 37,681 | 45,529 | 47,441 | 164,530 |
Management services, servicing fees and other | 187,750 | 165,146 | 141,609 | 146,828 | 172,553 | 626,136 | 141,042 | 160,256 | 156,394 | 166,320 | 624,012 | 130,811 | 144,909 | 147,497 | 155,760 | 578,977 |
Total revenues | $ 503,979 | $ 483,930 | $ 383,718 | $ 435,924 | $ 601,426 | 1,904,998 | $ 447,656 | $ 551,478 | $ 586,634 | $ 632,364 | $ 2,218,132 | $ 430,460 | $ 466,619 | $ 518,809 | $ 631,692 | $ 2,047,580 |
Detail of revenues as presented in the investor presentations: | ||||||||||||||||
Commission-based revenues (6) | 320,132 | 317,553 | 219,915 | 253,326 | 400,370 | 1,191,164 | $306,660 | $388,023 | $418,477 | $463,876 | $1,577,036 | $289,481 | $313,780 | $362,132 | $468,928 | $1,434,321 |
Management fees & other revenue (7) | 67,412 | 70,511 | 64,995 | 61,499 | 63,747 | 260,752 | 72,874 | 72,810 | 79,251 | 76,328 | 301,263 | 60,443 | 67,470 | 76,097 | 79,954 | 283,964 |
Non-fee revenue (2) (4) | 116,356 | 95,866 | 98,808 | 121,099 | 137,309 | 453,082 | 68,122 | 90,645 | 88,906 | 92,160 | 339,833 | 80,536 | 85,369 | 80,580 | 82,809 | 329,294 |
Total Revenue | 503,900 | 483,930 | 383,718 | 435,924 | 601,426 | 1,904,998 | $447,656 | $551,478 | $586,634 | $632,364 | $2,218,132 | $430,460 | $466,619 | $518,809 | $631,691 | $2,047,579 |
Non-fee revenue detail (2) (4): | ||||||||||||||||
OMSR revenue | 28,716 | 29,347 | 42,128 | 60,947 | 62,392 | 194,814 | 16,378 | 24,855 | 37,423 | 30,592 | 109,248 | 21,097 | 24,695 | 28,685 | 28,725 | 103,202 |
Non-fee management services revenue | 87,640 | 66,519 | 56,680 | 60,152 | 74,917 | 258,268 | 51,744 | 65,790 | 51,483 | 61,568 | 230,585 | 59,439 | 60,674 | 51,895 | 54,084 | 226,092 |
Total non-fee revenue | $116,356 | $95,866 | $98,808 | $121,099 | $137,309 | $453,082 | $68,122 | $90,645 | $88,906 | $92,160 | $339,833 | $80,536 | $85,369 | $80,580 | $82,809 | $329,294 |
(1) Non-cash gains attributable to originated mortgage servicing rights, which represent the fair value of expected net future cash flows from servicing recognized at commitment, net. | ||||||||||||||||
(2) Non-fee (or "pass-through") management services revenues have no impact on the Company's GAAP or non-GAAP earnings measures, while non-cash OMSR revenues and non-cash MSR amortization are excluded from the calculations of Adjusted EBITDA and Adjusted Earnings. See the tabs with reconciliations of GAAP net income to Adjusted Earnings and to Adjusted EBITDA for historical non-cash OMSR revenues and non-cash MSR amortization. | ||||||||||||||||
(3) Management services fee revenue includes Facilities Management, Property Management, Project Management, Consulting, Valuation & Advisory, and Underwriting. | ||||||||||||||||
(4) Non-fee management services revenue represent fully reimbursable compensation and non-compensation expenses recorded as part of Newmark's management services business. | ||||||||||||||||
(5) Servicing fees include mortgage servicing fees, escrow interest and placement fees, and ancillary fees. "Other revenues" include interest income on loans held-for-sale. | ||||||||||||||||
(6) Commission-based revenues include Leasing and other commissions, Capital markets, Loan originations related fees and sales premiums, net, and Valuation and Advisory. | ||||||||||||||||
(7) Includes fees from management services, mortgage servicing, and interest income on loans held for sale. |
NEWMARK GROUP, INC. | ||||||||||||||||
GAAP AND ADJUSTED EARNINGS EXPENSE AND OTHER INCOME DETAIL | ||||||||||||||||
(in thousands) | ||||||||||||||||
(unaudited) | ||||||||||||||||
2021 | 2020 | 2019 | 2018 | |||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
GAAP expense summary: | ||||||||||||||||
Total compensation and employee benefits | $ 303,322 | $ 313,172 | $ 241,378 | $ 304,678 | $ 418,891 | $ 1,278,119 | $ 277,274 | $ 356,090 | $ 397,683 | $ 503,827 | $ 1,534,874 | $ 278,502 | $ 334,006 | $ 332,158 | $ 441,960 | $ 1,386,626 |
Total non compensation expense | 134,478 | 144,133 | 95,163 | 97,526 | 121,349 | 458,171 | 122,895 | 142,396 | 130,166 | 122,542 | 517,999 | 104,832 | 106,550 | 117,431 | 126,819 | 455,632 |
Total expenses for GAAP | $ 437,800 | $ 457,305 | $ 336,541 | $ 402,204 | $ 540,240 | $ 1,736,290 | $ 400,169 | $ 498,486 | $ 527,849 | $ 626,369 | $ 2,052,873 | $ 383,334 | $ 440,556 | $ 449,589 | $ 568,779 | $ 1,842,258 |
GAAP other income/(loss) and other expenses: | ||||||||||||||||
Other income/(loss) | $ (2,210) | $ 1,438 | $ (36,389) | $ 108,608 | $ (58,367) | $ 15,290 | $ (9,718) | $ (3,726) | $ 108,711 | $ (14,313) | $ 80,954 | $ 5,707 | $ (365) | $ 93,717 | $ 28,234 | $ 127,293 |
Tax provision/(benefit) | $ 10,579 | $ 4,797 | $ 88 | $ 33,273 | $ (1,165) | $ 36,993 | $ 6,687 | $ 9,121 | $ 36,760 | $ (132) | $ 52,436 | $ 6,933 | $ 10,822 | $ 35,870 | $ 36,862 | $ 90,487 |
Net income (loss) attributable to noncontrolling interests | $ 11,473 | $ 6,056 | $ 330 | $ 24,177 | $ (1,346) | $ 29,217 | $ 6,502 | $ 9,396 | $ 33,871 | $ (5,362) | $ 44,407 | $ 12,490 | $ 3,555 | $ 47,321 | $ 21,800 | $ 85,166 |
Adjusted earnings expense summary: | ||||||||||||||||
Total compensation and employee benefits | $ 288,158 | $ 299,693 | $ 228,675 | $ 248,762 | $355,944 | $ 1,133,074 | $ 263,891 | $ 317,040 | $ 341,656 | $350,389 | $ 1,272,976 | $ 261,796 | $ 267,151 | $ 292,055 | $343,770 | $ 1,164,772 |
Total non compensation expense (1) | 116,611 | 115,493 | 68,110 | 71,593 | 81,013 | 336,209 | 99,517 | 113,071 | 97,787 | 90,281 | 400,656 | 85,282 | 89,213 | 94,850 | 101,385 | 370,730 |
Total expenses for adjusted earnings | $ 404,769 | $ 415,186 | $ 296,785 | $ 320,355 | $436,957 | $ 1,469,283 | $ 363,408 | $ 430,111 | $ 439,443 | $ 440,670 | $ 1,673,632 | $ 347,078 | $ 356,364 | $ 386,905 | $ 445,155 | $ 1,535,502 |
Detail of expenses as presented in the investor presentations: | ||||||||||||||||
Commission-based compensation | $162,376 | $157,166 | $110,993 | $126,240 | $204,231 | $598,630 | $148,930 | $194,470 | $210,804 | $236,138 | $790,342 | $146,844 | $159,248 | $181,938 | $235,305 | $723,335 |
Support and operational expenses - comp | 93,023 | 96,687 | 77,898 | 77,948 | 97,997 | 350,530 | 83,326 | 88,242 | 94,354 | 74,468 | 340,390 | 76,080 | 72,738 | 79,533 | 77,226 | 305,577 |
Pass-through fees related to management services revenues - comp | 32,759 | 45,840 | 39,784 | 44,574 | 53,716 | 183,914 | 31,635 | 34,328 | 36,498 | 39,783 | 142,244 | 38,872 | 35,165 | 30,584 | 31,239 | 135,860 |
Total compensation and employee benefits | $288,158 | $299,693 | $228,675 | $248,762 | $355,944 | $1,133,074 | 263,891 | 317,040 | 341,656 | 350,389 | 1,272,976 | 261,796 | 267,151 | 292,055 | 343,770 | 1,164,772 |
Support and operational expenses - non-comp (2) | 61,730 | 94,814 | 51,210 | 56,014 | 59,817 | 261,855 | 79,409 | 81,609 | 82,802 | 68,495 | 312,315 | 64,715 | 63,704 | 73,539 | 78,545 | 280,503 |
Pass-through fees related to management services revenues - non-comp | 54,881 | 20,679 | 16,900 | 15,579 | 21,196 | 74,354 | 20,108 | 31,462 | 14,985 | 21,786 | 88,341 | 20,567 | 25,509 | 21,311 | 22,840 | 90,227 |
Total non compensation expense (2) | 116,611 | 115,493 | 68,110 | 71,593 | 81,013 | 336,209 | 99,517 | 113,071 | 97,787 | 90,281 | 400,656 | 85,282 | 89,213 | 94,850 | 101,385 | 370,730 |
Total expenses for adjusted earnings (2) | $404,769 | $415,186 | $296,785 | $320,355 | $436,957 | $1,469,283 | $363,408 | $430,111 | $439,443 | $440,670 | $1,673,632 | $347,078 | $356,364 | $386,905 | $445,155 | $1,535,502 |
Adjusted earnings other income/(loss) and other expenses: | ||||||||||||||||
Other income/(loss) | $ 3,392 | $ (2,075) | $ (3,878) | $ 94,462 | $ (5,118) | $ 83,391 | $ 4,142 | $ 7,919 | $ 86,692 | $ 8,272 | $ 107,025 | $ 5,608 | $ 2,432 | $ 84,924 | $ (2,340) | $ 90,624 |
Tax provision/(benefit) | $ 10,673 | $ 4,158 | $ 4,571 | $ 20,932 | $ 19,096 | $ 48,757 | $ 9,266 | $ 15,608 | $ 28,242 | $ 22,394 | $ 75,510 | $ 7,254 | $ 10,234 | $ 23,418 | $ 26,787 | $ 67,693 |
Net income (loss) attributable to noncontrolling interests | $ 659 | $ 455 | $ 213 | $ (9) | $ 544 | $ 1,203 | $ (137) | $ 342 | $ 584 | $ 378 | $ 1,167 | $ 803 | $ 245 | $ 415 | $ 259 | $ 1,722 |
(1) Beginning in the first quarter of 2021, the OMSR revenue adjustment will no longer be included in non-compensation expenses for Adjusted Earnings but instead as a separate line item in the Company's non-GAAP reconciliations. Historical expense amounts have been recast to reflect this change. There is no impact to Adjusted Earnings or Adjusted EBITDA. | ||||||||||||||||
(2) Non-fee (or "pass-through") management services revenues have no impact on the Company's GAAP or non-GAAP earnings measures, while non-cash OMSR revenues and non-cash MSR amortization are excluded from the calculations of Adjusted EBITDA and Adjusted Earnings. See the tabs with reconciliations of GAAP net income to Adjusted Earnings and to Adjusted EBITDA for historical non-cash OMSR revenues and non-cash MSR amortization. |
NEWMARK GROUP, INC. | ||||
RECONCILIATION OF GAAP NET INCOME (LOSS) TO COMMON STOCKHOLDERS TO ADJUSTED EARNINGS BEFORE NONCONTROLLING INTERESTS AND TAXES AND | ||||
GAAP FULLY DILUTED EPS TO POST-TAX ADJUSTED EPS | ||||
(in thousands, except per share data) | ||||
(unaudited) | ||||
Three Months Ended March 31, | Year Ended December 31, | |||
2021 | 2020 | 2020 | 2019 | |
GAAP net income available to common stockholders | $ 33,105 | $ 8,182 | $ 80,060 | $ 117,305 |
Provision for income taxes (1) | 10,579 | 4,797 | 36,993 | 52,436 |
Net income attributable to noncontrolling interests(2) | 11,473 | 6,056 | 29,217 | 44,407 |
GAAP income (loss) before income taxes and noncontrolling interests | $ 55,157 | $ 19,035 | $ 146,270 | $ 214,148 |
Pre-tax adjustments: | ||||
Compensation adjustments: | ||||
Equity-based compensation and allocations of net income to limited partnership units and FPUs (3) | 14,248 | 12,914 | 130,759 | 258,836 |
Other compensation adjustments(4) | 917 | 564 | 14,282 | 3,010 |
Total Compensation adjustments | 15,165 | 13,478 | 145,041 | 261,846 |
Non-Compensation expense adjustments: | ||||
Amortization of intangibles (5) | 1,666 | 1,643 | 7,012 | 6,920 |
MSR amortization(6) | 15,067 | 39,471 | 111,252 | 101,530 |
Other non-compensation adjustments (7) | 1,132 | (12,480) | 3,701 | 8,601 |
Total Non-Compensation expense adjustments | 17,865 | 28,634 | 121,965 | 117,051 |
Non-cash adjustment for OMSR revenue(8) | (28,716) | (29,347) | (194,814) | (109,248) |
Other (income) loss: | ||||
Other non-cash, non-dilutive, and /or non-economic items (9) | 5,602 | (3,514) | 78,337 | 26,367 |
Total Other (income) loss | 5,602 | (3,514) | 78,337 | 26,367 |
Total pre-tax adjustments | 9,916 | 9,251 | 150,529 | 296,016 |
Adjusted Earnings before noncontrolling interests and taxes | $ 65,073 | $ 28,286 | $ 296,799 | $ 510,164 |
GAAP Net income available to common stockholders: | $ 33,105 | $ 8,182 | $ 80,060 | $ 117,305 |
Allocation of net income to noncontrolling interests (10) | 10,814 | 5,601 | 28,014 | 43,240 |
Total pre-tax adjustments (from above) | 9,916 | 9,251 | 150,529 | 296,016 |
Income tax adjustment to reflect adjusted earnings taxes (1) | (93) | 638 | (11,759) | (23,072) |
Post-tax Adjusted Earnings to fully diluted shareholders | $ 53,742 | $ 23,672 | $ 246,844 | $ 433,489 |
Per Share Data: | ||||
GAAP fully diluted earnings per share(11) | $ 0.16 | $ 0.03 | $ 0.39 | $ 0.58 |
Allocation of net income (loss) to noncontrolling interests | - 0 | - 0 | - 0 | - 0 |
Exchangeable preferred limited partnership units non-cash preferred dividends | 0.01 | 0.01 | 0.05 | 0.05 |
Total pre-tax adjustments (from above) | 0.04 | 0.04 | 0.57 | 1.12 |
Income tax adjustment to reflect adjusted earnings taxes | - 0 | - 0 | (0.04) | (0.09) |
Other | (0.01) | 0.01 | (0.04) | (0.05) |
Post-tax adjusted earnings per share | $ 0.20 | $ 0.09 | $ 0.93 | $ 1.61 |
Pre-tax adjusted earnings per share | $ 0.24 | $ 0.11 | $ 1.12 | $ 1.90 |
Fully diluted weighted-average shares of common stock outstanding | 271,194 | 263,646 | 264,851 | 268,860 |
(1) | Newmark's GAAP provision (benefit) for income taxes is calculated based on an annualized methodology. Newmark includes additional tax-deductible items when calculating the provision (benefit) for taxes with respect to Adjusted Earnings using an annualized methodology. These include tax-deductions related to equity-based compensation, and certain net-operating loss carryforwards. The adjustment in the tax provision to reflect Adjusted Earnings is shown below (in millions): | |||
Three Months Ended March 31, | Year Ended December 31, | |||
2021 | 2020 | 2020 | 2019 | |
GAAP provision for income taxes | $ 10.6 | $ 4.8 | $ 37.0 | $ 52.4 |
Income tax adjustment to reflect Adjusted Earnings | 0.1 | (0.6) | 11.8 | 23.1 |
Provision for income taxes for Adjusted Earnings | $ 10.7 | $ 4.2 | $ 48.8 | $ 75.5 |
(2) | Primarily represents Cantor and/or BGC's pro-rata portion of Newmark's net income and the noncontrolling portion of Newmark's net income in subsidiaries which are not wholly owned. | |||
(3) | The components of equity-based compensation and allocations of net income to limited partnership units and FPUs are as follows (in millions): | |||
Three Months Ended March 31, | Year Ended December 31, | |||
2021 | 2020 | 2020 | 2019 | |
Issuance of common stock and exchangeability expenses | $ 1.2 | $ 8.1 | $ 69.0 | $ 181.7 |
Allocations of net income | 10.6 | 0.5 | 30.5 | 50.4 |
Limited partnership units amortization | (0.6) | 2.0 | 18.7 | 21.5 |
RSU Amortization Expense | 2.9 | 2.3 | 12.6 | 5.2 |
Equity-based compensation and allocations of net income to limited partnership units and FPUs | $ 14.1 | $ 12.9 | $ 130.8 | $ 258.8 |
(4) | Includes compensation expenses related to severance charges as a result of the cost savings initiatives of $0,7 million and $0.4 million for the three months ended March 31, 2021 and 2020, respectively. Also includes commission charges related to non-cash GAAP gains attributable to OMSR revenues of $0.2 million for the three months ended March 31, 2021 and 2020. | |||
(5) | Includes Non-cash GAAP charges related to the amortization of intangibles with respect to acquisitions. | |||
(6) | Adjusted Earnings calculations exclude non-cash GAAP amortization of mortgage servicing rights (which Newmark refers to as "MSRs"). Subsequent to the initial recognition at fair value, MSRs are carried at the lower of amortized cost or fair value and amortized in proportion to the net servicing revenue expected to be earned. However, it is expected that any cash received with respect to these servicing rights, net of associated expenses, will increase Adjusted Earnings in future periods. | |||
(7) | Includes $(0,2) million and $0.3 million of an impairment of fixed assets as a result of the cost-savings initiatives for the three months ended March 31, 2021 and 2020, respectively. For the three months ended March 31, 2021 includes $1.3 million of charges the company does not consider a part of its on going operations. Includes $12.8 million of acquisition earnout reversals for the three months ended March 31, 2020. | |||
(8) | Adjusted Earnings calculations exclude non-cash GAAP gains attributable to originated mortgage servicing rights (which Newmark refers to as "OMSRs"). Under GAAP, Newmark recognizes OMSRs equal to the fair value of servicing rights retained on mortgage loans originated and sold. | |||
(9) | The components of non-cash, non-dilutive, non-economic items are as follows (in millions): | |||
Three Months Ended March 31, | Year Ended December 31, | |||
2021 | 2020 | 2020 | 2019 | |
Unrealized mark-to-market (gains)/losses for the Nasdaq forward and other Nasdaq adjustments, net | $ 5.6 | $ (21.1) | $ (6.2) | $ 36.3 |
Mark-to-market (gains)/losses on non-marketable investments, net | - | 16.8 | 84.2 | (12.1) |
Contingent consideration and other expenses | - | 0.8 | 0.3 | 2.1 |
$ 5.6 | $ (3.5) | $ 78.3 | $ 26.3 | |
(10) | Excludes the noncontrolling portion of Newmark's net income in subsidiaries which are not wholly owned. | |||
(11) | Includes a reduction for dividends on preferred stock or exchangeable preferred partnership units of $1.6 million and $2.4 million for the three months March 31, 2021 and 2020, respectively.. (see Note 1 - and Basis of Presentation" in the Company's most recently filed Form 10-Q or Form 10-K.) |
NEWMARK GROUP, INC. | |||||||||||||||||
RECONCILIATION OF GAAP INCOME (LOSS) TO ADJUSTED EARNINGS AND | |||||||||||||||||
GAAP FULLY DILUTED EPS TO POST-TAX ADJUSTED EPS | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
(unaudited) | |||||||||||||||||
2021 | 2020 | 2019 | 2018 | ||||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | ||
Net income (loss) available to common stockholders | $ 33,105 | $ 8,179 | $ 314 | $ 75,348 | $ (3,781) | $ 80,060 | $ 16,904 | $ 22,668 | $ 88,698 | $ (10,965) | $ 117,305 | $ 19,997 | $ 739 | $ 68,237 | $ 17,759 | $ 106,732 | |
Provision (benefit) for income taxes | 10,579 | 4,797 | 88 | 33,273 | (1,165) | 36,993 | 6,687 | 9,121 | 36,760 | (132) | 52,436 | 6,933 | 10,822 | 35,870 | 36,862 | 90,487 | |
Net income (loss) attributable to noncontrolling interest in subsidiaries | 11,473 | 6,056 | 330 | 24,177 | (1,346) | 29,217 | 6,502 | 9,396 | 33,871 | (5,362) | 44,407 | 12,490 | 3,555 | 47,321 | 21,800 | 85,166 | |
GAAP income (loss) before income taxes and noncontrolling interests | $ 55,157 | $ 19,032 | $ 732 | $ 132,798 | $ (6,292) | $ 146,270 | $ 30,093 | $ 41,185 | $ 159,329 | $ (16,459) | $ 214,148 | $ 39,420 | $ 15,116 | $ 151,428 | $ 76,421 | $ 282,385 | |
Pre-tax adjustments: | |||||||||||||||||
Compensation adjustments: | |||||||||||||||||
Equity-based compensation and allocations of net income to limited partnership units and FPUs | 14,248 | 12,914 | 10,860 | 50,770 | 56,215 | 130,759 | 13,871 | 39,353 | 56,647 | 148,965 | 258,836 | 17,416 | 67,367 | 40,777 | 99,083 | 224,643 | |
Reserves on employee loans | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |
Other compensation adjustments | 917 | 564 | 1,843 | 5,147 | 6,727 | 14,281 | 14,282 | (537) | (303) | (621) | 4,471 | 3,010 | (709) | (512) | (673) | (893) | (2,787) |
Total Compensation adjustments | 15,165 | 13,478 | 12,703 | 55,917 | 62,942 | 145,040 | 13,334 | 39,050 | 56,026 | 153,436 | 261,846 | 16,707 | 66,855 | 40,104 | 98,190 | 221,856 | |
Non-Compensation expense adjustments: | |||||||||||||||||
Amortization of intangibles | 1,666 | 1,643 | 1,667 | 1,744 | 1,958 | 7,012 | 1,276 | 1,299 | 2,819 | 1,526 | 6,920 | 1,513 | 1,257 | 1,238 | 1,621 | 5,629 | |
MSR amortization | 15,067 | 39,471 | 23,864 | 22,602 | 25,315 | 111,252 | 22,126 | 27,730 | 29,546 | 22,128 | 101,530 | 17,824 | 15,726 | 21,011 | 23,862 | 78,423 | |
Other non-compensation adjustments | 1,132 | (12,480) | 1,536 | 1,585 | 13,060 | 3,701 | - 0 | - 0 | - 0 | 8,601 | 8,601 | - 0 | - 0 | - 0 | - 0 | - 0 | |
Total Non-Compensation expense adjustments | 17,865 | 28,634 | 27,067 | 25,931 | 40,333 | 121,965 | 23,402 | 29,029 | 32,365 | 32,255 | 117,051 | 19,337 | 16,983 | 22,249 | 25,483 | 84,052 | |
Non-cash adjustment for OMSR Revenue | (28,716) | (29,347) | (42,128) | (60,947) | (62,392) | (194,814) | (16,378) | (24,855) | (37,423) | (30,592) | (109,248) | (21,097) | (24,695) | (28,685) | (28,725) | (103,202) | |
Other (income) losses | |||||||||||||||||
Other non-cash, non-dilutive, non-economic items | 5,602 | (3,514) | 32,511 | (14,146) | 63,486 | 78,337 | 13,861 | 11,940 | (22,019) | 22,585 | 26,367 | 168 | 3,085 | (8,479) | (23,618) | (28,844) | |
Total Other (income) losses: | 5,602 | (3,514) | 32,511 | (14,146) | 63,486 | 78,337 | 13,861 | 11,940 | (22,019) | 22,585 | 26,367 | 168 | 3,085 | (8,479) | (23,618) | (28,844) | |
Total pre-tax adjustments | 9,916 | 9,251 | 30,153 | 6,755 | 104,369 | 150,528 | 34,219 | 55,164 | 28,949 | 177,684 | 296,016 | 15,115 | 62,228 | 25,189 | 71,330 | 173,862 | |
Adjusted Earnings before noncontrolling interests and taxes | $ 65,073 | $ 28,283 | $ 30,885 | $ 139,553 | $ 98,077 | $ 296,798 | $ 64,312 | $ 96,349 | $ 188,278 | $ 161,225 | $ 510,164 | $ 54,535 | $ 77,344 | $ 176,617 | $ 147,751 | $ 456,247 | |
GAAP net income (loss) available to common stockholders | $ 33,105 | $ 8,179 | $ 314 | $ 75,348 | $ (3,781) | $ 80,060 | $ 16,904 | $ 22,668 | $ 88,698 | $ (10,965) | $ 117,305 | $ 19,997 | $ 739 | $ 68,237 | $ 17,759 | $ 106,732 | |
Allocation of net income (loss) to noncontrolling interest in subsidiaries | 10,814 | 5,601 | 118 | 24,185 | (1,890) | 28,014 | 6,639 | 9,054 | 33,287 | (5,740) | 43,240 | 11,687 | 3,311 | 46,906 | 21,542 | 83,446 | |
Total pre-tax adjustments (from above) | 9,916 | 9,251 | 30,153 | 6,755 | 104,369 | 150,528 | 34,219 | 55,164 | 28,949 | 177,684 | 296,016 | 15,115 | 62,228 | 25,189 | 71,330 | 173,862 | |
Income tax adjustment to reflect adjusted earnings taxes | (93) | 638 | (4,478) | 12,341 | (20,260) | (11,759) | (2,578) | (6,486) | 8,518 | (22,526) | (23,072) | (321) | 588 | 12,452 | 10,082 | 22,801 | |
Post-tax Adjusted Earnings | $ 53,742 | $ 23,669 | $ 26,107 | $ 118,629 | $ 78,438 | $ 246,843 | $ 55,184 | $ 80,400 | $ 159,452 | $ 138,453 | $ 433,489 | $ 46,478 | $ 66,866 | $ 152,784 | $ 120,713 | $ 386,841 | |
Per Share Data: | |||||||||||||||||
GAAP fully diluted earnings per share | 0.16 | 0.03 | (0.01) | 0.39 | (0.03) | 0.39 | $ 0.08 | $ 0.11 | $ 0.48 | $ (0.08) | $ 0.58 | $ 0.12 | 0.00 | $ 0.43 | $ 0.09 | $ 0.65 | |
Less: Allocations of net income to limited partnership units and FPUs, net of tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | (0.01) | 0.00 | 0.01 | 0.01 | |
Exchangeable preferred limited partnership units non-cash preferred dividends | 0.01 | 0.01 | 0.01 | 0.00 | 0.01 | 0.05 | 0.01 | 0.01 | 0.01 | 0.01 | 0.05 | 0.00 | 0.00 | 0.01 | 0.01 | 0.02 | |
Total pre-tax adjustments (from above) | 0.04 | 0.03 | 0.11 | 0.01 | 0.39 | 0.57 | 0.13 | 0.20 | 0.11 | 0.67 | 1.12 | 0.07 | 0.24 | 0.10 | 0.27 | 0.68 | |
Income tax adjustment to reflect adjusted earnings taxes | 0.00 | 0.00 | (0.02) | 0.05 | (0.08) | (0.04) | (0.01) | (0.02) | 0.03 | (0.09) | (0.09) | (0.01) | 0.00 | 0.05 | 0.04 | 0.08 | |
Other | (0.01) | 0.02 | 0.01 | (0.01) | 0.01 | (0.04) | 0.00 | 0.00 | (0.04) | 0.01 | (0.05) | 0.00 | 0.03 | (0.01) | 0.03 | 0.07 | |
Post-tax adjusted earnings per share as restated (1) | $ 0.20 | $ 0.09 | $ 0.10 | $ 0.44 | $ 0.30 | $ 0.93 | $ 0.21 | $ 0.30 | $ 0.59 | $ 0.52 | $ 1.61 | $ 0.19 | $ 0.26 | $ 0.58 | $ 0.45 | $ 1.51 | |
Fully diluted weighted-average shares of common stock outstanding | 271,194 | 263,646 | 265,640 | 266,793 | 264,868 | 264,851 | 269,057 | 270,966 | 268,350 | 264,548 | 268,860 | 246,834 | 258,703 | 262,532 | 267,626 | 258,997 | |
Dividends declared per share of common stock | $ 0.01 | $ 0.10 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.13 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.40 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.36 | |
Dividends paid per share of common stock | $ 0.01 | $ 0.10 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.13 | $ 0.09 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.39 | $ 0.00 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.27 | |
(1) Historical quarterly Adjusted EPS for 2017-2018 have been revised to due an immaterial rounding error. Three quarters were impacted by the correction of this immaterial error: Q1 2017 was amended from $0.16 to $0.15; Q3 2017 was amended from $0.53 to $0.54, and Q3 2018 was amended from $0.59 to $0.58. Full year amounts are unchanged. |
NEWMARK GROUP, INC. | ||||
Reconciliation of GAAP Income (Loss) to Adjusted EBITDA(1) | ||||
(in thousands) | ||||
(unaudited) | ||||
Three Months Ended March 31, | Year Ended December 31, | |||
2021 | 2020 | 2020 | 2019 | |
GAAP net income (loss) available to common stockholders | $ 33,105 | $ 8,182 | $ 80,060 | $ 117,305 |
Adjustments: | ||||
Net income attributable to noncontrolling interests(1) | 11,473 | 6,056 | 29,217 | 44,407 |
Provision for income taxes | 10,579 | 4,797 | 36,993 | 52,436 |
OMSR revenue(2) | (28,716) | (29,347) | (194,814) | (109,248) |
MSR amortization(3) | 15,067 | 39,471 | 111,252 | 101,530 |
Other depreciation and amortization(4) | 5,986 | 6,568 | 29,941 | 29,614 |
Equity-based compensation and allocations of net income to limited partnership units and FPUs (5) | 14,248 | 12,914 | 130,759 | 258,836 |
Other adjustments (6) | 1,591 | (12,229) | 11,017 | 3,010.00 |
Other non-cash, non-dilutive, non-economic items(7) | 5,602 | (3,514) | 78,706 | 26,367 |
Interest expense | 10,344 | 10,904 | 44,600 | 39,902 |
Adjusted EBITDA | $ 79,279 | $ 43,802 | $ 357,731 | $ 564,159 |
(1) | Primarily represents Cantor and/or BGC's pro-rata portion of Newmark's net income and the noncontrolling portion of Newmark's net income in subsidiaries which are not wholly owned. | |||
(2) | Non-cash gains attributable to originated mortgage servicing rights. | |||
(3) | Non-cash amortization of mortgage servicing rights in proportion to the net servicing revenue expected to be earned. | |||
(4) | Includes fixed asset depreciation of $4.3 million and $4.6 million for the three months ended March 31, 2021 and 2020, respectively. Also includes intangible asset amortization and impairments related to acquisitions of $1.7 million and $1.6 million for the three months ended March 31, 2021 and 2020, respectively. Included in fixed asset depreciation is an asset impairment as a result of the cost savings initiatives of $(0.2) million and $0.3 million for the three months ended March 31, 2021 and 2020, respectively. | |||
(5) | Please refer to Footnote 3 under Reconciliation of GAAP Net Income (Loss) Available to Common Stockholders to Adjusted Earnings Before Noncontrolling Interests and GAAP Fully Diluted EPS to Post-tax Adjusted EPS for additional information about the components of "Equity-based compensation and allocations of net income to limited partnership units and FPUs". | |||
(6) | Includes $0.7 million and $0.4 million of severance as a result of the cost-savings initiative for the three months ended March 31, 2021 and 2020. Also includes commission charges related to non-cash GAAP gains attributable to OMSR revenues of $0.2 million for the three months ended March 31, 2021 and 2020y. For the three months ended March 31, 2021, includes $0.7 million of charges the Company does not consider a part of its on going operatations. For the three months ended March 31, 2020, includes $12.8 million of acquisition earnout reversals. | |||
(7) | Please refer to Footnote 9 under Reconciliation of GAAP Net Income Available to Common Stockholders to Adjusted Earnings Before Noncontrolling Interests and GAAP Fully Diluted EPS to Post-tax Adjusted EPS for additional information about the components of Other non-cash, non-dilutive, non-economic items". |
NEWMARK GROUP, INC. | ||||||||||||||||
Reconciliation of GAAP Income (Loss) to Adjusted EBITDA | ||||||||||||||||
(in thousands) | ||||||||||||||||
(unaudited) | ||||||||||||||||
2021 | 2020 | 2019 | 2018 | |||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | FY | |
2020 | 2020 | 2020 | 2020 | 2020 | 2019 | 2019 | 2019 | 2019 | 2019 | 2018 | 2018 | 2018 | 2018 | 2018 | ||
GAAP net income (loss) available to common stockholders | $ 33,105 | $ 8,182 | $ 310 | $ 75,349 | $ (3,781) | $ 80,060 | $ 16,904 | $ 22,668 | $ 88,698 | $ (10,965) | $ 117,305 | $ 19,997 | $ 739 | $ 68,237 | $ 17,759 | $ 106,732 |
Adjustments: | ||||||||||||||||
Net income (loss) attributable to noncontrolling interest in subsidiaries | 11,473 | 6,056 | 331 | 24,176 | (1,346) | 29,217 | 6,502 | 9,396 | 33,871 | (5,362) | 44,407 | 12,490 | 3,555 | 47,321 | 21,800 | 85,166 |
Provision (benefit) for income taxes | 10,579 | 4,797 | 89 | 33,272 | (1,165) | 36,993 | 6,687 | 9,121 | 36,760 | (132) | 52,436 | 6,933 | 10,822 | 35,870 | 36,862 | 90,487 |
OMSR Revenue | (28,716) | (29,347) | (42,129) | (60,947) | (62,392) | (194,815) | (16,378) | (24,855) | (37,423) | (30,592) | (109,248) | (21,097) | (24,695) | (28,685) | (28,725) | (103,202) |
MSR Amortization | 15,067 | 39,471 | 23,865 | 22,601 | 25,315 | 111,252 | 22,126 | 27,730 | 29,546 | 22,128 | 101,530 | 17,824 | 15,726 | 21,011 | 23,862 | 78,423 |
Other Depreciation and Amortization | 5,986 | 6,568 | 5,082 | 7,026 | 11,265 | 29,941 | 6,178 | 5,695 | 7,235 | 10,507 | 29,615 | 4,688 | 4,475 | 4,862 | 5,286 | 19,311 |
Equity-based compensation and allocations of net income to limited partnership units | 14,248 | 12,914 | 10,861 | 50,769 | 56,215 | 130,759 | 13,871 | 39,353 | 56,647 | 148,965 | 258,836 | 17,416 | 67,367 | 40,777 | 99,083 | 224,643 |
Other adjustments | 1,591 | (12,229) | 3,394 | 5,642 | 14,209 | 11,016 | (537) | (303) | (621) | 4,471 | 3,010 | (709) | (512) | (673) | (893) | (2,787) |
Other non-cash, non-dilutive, non-economic items | 5,602 | (3,514) | 32,512 | (14,146) | 63,855 | 78,707 | 13,861 | 11,940 | (22,019) | 22,585 | 26,367 | (1) | 3,083 | (8,479) | (30,572) | (35,969) |
Interest expense | 10,344 | 10,904 | 11,756 | 11,244 | 10,696 | 44,600 | 9,567 | 10,088 | 10,177 | 10,070 | 39,902 | 14,820 | 12,915 | 14,264 | 16,808 | 58,807 |
Adjusted EBITDA | $ 79,279 | $ 43,802 | $ 46,071 | $ 154,986 | $ 112,871 | $ 357,730 | $ 78,781 | $ 110,833 | $ 202,871 | $ 171,675 | $ 564,160 | $ 72,361 | $ 93,475 | $ 194,505 | $ 161,270 | $ 521,611 |
NEWMARK GROUP, INC. | ||||||
FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT | ||||||
FOR GAAP AND ADJUSTED EARNINGS | ||||||
(in thousands) | ||||||
(unaudited) | ||||||
Three Months Ended December 31, | Year Ended December 31, | Nine Months Ended September 30, | ||||
2021 | 2020 | 2020 | 2019 | 2020 | 2019 | |
Common stock outstanding | 183,254 | 177,545 | 179,106 | 177,774 | 178,527 | 178,122 |
Limited partnership units | 55,819 | 56,277 | - 0 | - 0 | 57,972 | - 0 |
Cantor units | 23,730 | 22,841 | - 0 | - 0 | 22,807 | - 0 |
Founding partner units | 4,007 | 5,373 | - 0 | 5,583 | 5,314 | 5,661 |
RSUs | 3,165 | 1,370 | 355 | 1,290 | 254 | 1,231 |
Newmark exchange shares | 1,219 | 240 | 229 | 369 | 231 | 399 |
Fully diluted weighted-average share count for GAAP | 271,194 | 263,646 | 179,690 | 185,016 | 265,104 | 185,413 |
Adjusted Earnings Adjustments: | ||||||
Common stock outstanding | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Limited partnership units | - 0 | - 0 | 57,112 | 60,772 | - 0 | 61,750 |
Cantor units | - 0 | - 0 | 22,789 | 23,072 | - 0 | 23,182 |
Founding partner units | - 0 | - 0 | 5,260 | - 0 | - 0 | - 0 |
RSUs | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Other | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Fully diluted weighted-average share count for Adjusted Earnings | 271,194 | 263,646 | 264,850 | 268,860 | 265,104 | 270,345 |
NEWMARK GROUP, INC. | ||||||||||||||||
Equity-based compensation and allocations of net income to limited partnership units and FPUs | ||||||||||||||||
(in thousands) | ||||||||||||||||
(unaudited) | ||||||||||||||||
2021 | 2020 | 2019 | 2018 | |||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | |
2021 | 2020 | 2020 | 2020 | 2020 | 2020 | 2019 | 2019 | 2019 | 2019 | 2019 | 2018 | 2018 | 2018 | 2018 | 2018 | |
Issuance of common stock and exchangeability expenses | $ 1,218 | $ 8,119 | $ 306 | $ 13,243 | $ 47,373 | $ 69,041 | $ 661 | $ 21,511 | $ 17,499 | $ 142,043 | $ 181,714 | $ 21,749 | $ 60,334 | $ 12,238 | $ 85,012 | $ 179,333 |
Allocation of net income | 10,681 | 549 | 983 | 29,221 | (293) | 30,460 | 6,313 | 11,601 | 32,496 | - 0 | 50,410 | 4,060 | 4,692 | 28,824 | 13,886 | 51,462 |
Limited partnership units amortization | (600) | 1,895 | 6,011 | 4,902 | 5,885 | 18,693 | 6,335 | 5,044 | 5,239 | 4,891 | 21,509 | (8,727) | 1,805 | (800) | (217) | (7,939) |
RSU amortization | 2,997 | 2,351 | 3,560 | 3,404 | 3,250 | 12,565 | 562 | 1,197 | 1,413 | 2,031 | 5,203 | 334 | 536 | 514 | 404 | 1,788 |
Equity based compensation and allocations of net income to limited partnership units and FPUs | $ 14,296 | $ 12,914 | $ 10,860 | $ 50,770 | $ 56,215 | $ 130,759 | $ 13,871 | $ 39,353 | $ 56,647 | $ 148,965 | $ 258,836 | $ 17,416 | $ 67,367 | $ 40,776 | $ 99,085 | $ 224,644 |
Note 1: On November 11, 2019, Newmark revised the Equity-based Compensation tab of the Financial Supplement to include additional historical data. 2Q 2019 was revised due to a reclassification of the individual components of equity-based compensation. "Exchangeability expense" has been renamed "Issuance of common stock and exchangeability expenses." | ||||||||||||||||
Note 2: In March 2020, Newmark revised the "Equity-based compensation" caption of the Financial Supplement to stratify "Limited partnership units amortization" and "RSU amortization." |
Newmark Group, Inc. Quarterly and TTM Volumes | |||||||||||||||||||||||||||
(in $ millions) | |||||||||||||||||||||||||||
2014 | 2015 | 2016 | Q1 17 | Q2 17 | Q3 17 | Q4 17 | 2017 | Q1 18 | Q2 18 | Q3 18 | Q4 18 | 2018 | Q1 19 | Q2 19 | Q3 19 | Q4 19 | 2019 | Q1 20 | Q2 20 | Q3 20 | Q4 20 | 2020 | Q1 21 | Q1 21 vs Q1 20 | Change % | ||
Investment Sales (1) | 8,340 | 19,215 | 28,306 | 6,899 | 8,303 | 8,329 | 11,497 | - 0 | 35,028 | 8,472 | 8,633 | 9,965 | 15,200 | 42,269 | 9,710 | 11,259 | 13,015 | 16,691 | 50,675 | 13,108 | 4,744 | 7,456 | 22,849 | 48,157 | 11,678 | (1,430) | -11% |
Mortgage Brokerage (2) | 907 | 4,147 | 6,190 | 1,222 | 3,358 | 2,238 | 1,969 | - 0 | 8,787 | 2,521 | 3,060 | 3,177 | 5,268 | 14,025 | 3,617 | 4,879 | 4,997 | 7,206 | 20,699 | 4,315 | 1,296 | 2,045 | 4,640 | 12,296 | 4,376 | 61 | 1% |
Total Capital Markets | 9,248 | 23,363 | 34,496 | 8,121 | 11,660 | 10,567 | 13,466 | - 0 | 43,815 | 10,993 | 11,693 | 13,141 | 20,467 | 56,294 | 13,327 | 16,138 | 18,012 | 23,897 | 71,374 | 17,423 | 6,040 | 9,501 | 27,489 | 60,453 | 16,054 | (1,369) | -8% |
Fannie Mae | 2,138 | 2,700 | 4,443 | 1,272 | 982 | 784 | 830 | - 0 | 3,869 | 629 | 1,254 | 1,435 | 1,250 | 4,567 | 493 | 887 | 942 | 880 | 3,202 | 953 | 955 | 1,621 | 1,892 | 5,421 | 711 | (242) | -25% |
Freddie Mac | 1,969 | 2,004 | 2,941 | 560 | 2,933 | 600 | 632 | - 0 | 4,726 | 899 | 574 | 1,274 | 1,235 | 3,982 | 1,426 | 1,080 | 2,917 | 1,300 | 6,723 | 690 | 1,463 | 1,515 | 2,024 | 5,692 | 1,388 | 698 | 101% |
FHA | 123 | 108 | 179 | 21 | 129 | 94 | 19 | - 0 | 264 | 77 | 20 | - 0 | 68 | 165 | - 0 | 12 | 2 | - 0 | 14 | - 0 | 6 | 79 | 107 | 192 | 14 | 14 | 0% |
Total Origination Volume | 4,230 | 4,812 | 7,564 | 1,854 | 4,045 | 1,479 | 1,481 | - 0 | 8,858 | 1,605 | 1,849 | 2,709 | 2,553 | 8,715 | 1,919 | 1,979 | 3,861 | 2,180 | 9,939 | 1,643 | 2,424 | 3,215 | 4,023 | 11,305 | 2,113 | 470 | 29% |
Total Debt and Capital Markets Volume | 13,477 | 28,175 | 42,060 | 9,975 | 15,705 | 12,046 | 14,947 | - 0 | 52,673 | 12,598 | 13,542 | 15,850 | 23,020 | 65,010 | 15,247 | 18,117 | 21,873 | 26,077 | 81,314 | 19,066 | 8,464 | 12,716 | 31,512 | 71,758 | 18,167 | (899) | -5% |
(1) Includes all equity advisory transactions | |||||||||||||||||||||||||||
(2) Includes all non-originated debt placement transactions |