Strategic Growth & Financial Overview
Reconciliation of GAAP Income to Adjusted EBITDA
(in Thousands) (Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2022
2021
2022
2021
GAAP net income available to common stockholders
Adjustments:
Net income attributable to noncontrolling interests (1)
Provision for income taxes
OMSR revenue (2)
MSR amortization (3)
Other depreciation and amortization (4)
Equity-based compensation and allocations of net income to limited partnership units and FPUs (5)
$
48,519 $
439,744
$
48,881
$
472,849
13,273
145,447
13,627
156,920
18,426
142,182
22,430
152,761
(31,499)
(25,815)
(60,971)
(54,531)
25,580
22,684
51,795
37,751
13,345
8,184
22,604
14,170
41,988
267,532
58,886
281,780
Other adjustments
(6)
4,048
10,420
7,411
12,011
Other non-cash, non-dilutive, non-economic items and Nasdaq
(7)
15,161
Interest expense
10,626
(900,030)
10,271
101,184
(896,787)
20,117
20,615
Adjusted EBITDA ("AEBITDA")
$
159,467 $
120,619
$
285,964
$
197,539
(1) Primarily represents portion of Newmark's net income pro-rated for Cantor and BGC employees ownership percentage and the noncontrolling portion of Newmark's net income in subsidiaries.
(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 $8.5 million and $5.8 million for the three months ended June 30, 2022 and 2021, respectively, and $15.2 million and $10.1 million for the six months ended June 30, 2022
and 2021, respectively. Also includes intangible asset amortization and impairments related to acquisitions of $4.8 million and $2.4 million for the three months ended June 30, 2022 and 2021, respectively, and
$7.4 and $4.1 for the six months ended June 30, 2022 and 2021, 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) The components of other adjustments are as follows (in millions):
Three Months Ended June 30,
2022
2021
Six Months Ended June 30,
2021
2020
Severance charges
1.2
1.9
Assets impairment not considered a part of ongoing operations
3.3
8.5
Commission charges related to non-GAAP gains Attributable to OMSR revenues
Acquisition earnout reversal
0.7
0.7
5.4
2.0
9.1
1.0
$
4.0
$
10.4
$
7.4
$
12.0
(7) Please refer to Footnote 9 under Reconciliation of GAAP Net Income (Loss) Available to Common Stockholders to Adjusted Earnings Before Noncontrolling Interests and Taxes 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".
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