Strategic Growth & Financial Overview
Reconciliation of GAAP Net Income Available to Common Stockholders to Adjusted Earnings Before
Noncontrolling Interests And Taxes And GAAP Fully Diluted EPS to Post-Tax Adjusted EPS (continued)
(in Thousands, Except per Share Data) (Unaudited) (Continued)
(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):
Issuance of common stock and exchangeability expenses
Allocations of net income
Limited partnership units amortization
RSU Amortization Expense
Equity-based compensation and allocations of net income to limited partnership units and FPUS
Three Months Ended June 30,
2022
2021
Six Months Ended June 30,
2022
2021
$
26.9 $
7.8
1.8
282.6
14.3
(33.8)
$
35.9 $
283.8
7.9
24.9
5.0
(34.4)
5.5
4.4
10.1
7.5
$
42.0
$
267.5 $
58.9
$
281.8
(4) Includes compensation expenses related the impact of the 2021 Equity Event of $187.8 million for the three and six months ended June 30, 2021. Also includes
compensation expenses related to severance charges as a result of the cost savings initiatives of $0.0 million and $1.2 million for the three months ended June 30,
2022 and 2021, respectively, and $0.0 million and $1.9 million for the six months ended June 30, 2022 and 2021, respectively. Also includes commission charges
related to non-cash GAAP gains attributable to OMSR revenues of $0.7 million and $2.0 million for the three and six months ended June 30, 2022, respectively,
and $0.7 million and $1.0 million for the three and six months ended June 30, 2021.
(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
(7) Primarily includes asset impairments the Company does not consider a part of its ongoing operations of $2.2 million and $4.0 million for the three months ended
June 30, 2022 and 2021, respectively, and $4.0 million and $8.4 million for the six months ended June 30, 2022 and 2021, respectively. Includes legal settlements
for $0.0 million and $0.5 million for the three months ended June 30, 2022 and 2021, respectively, and $0.0 million and $0.6 million for the six months ended June
30, 2022 and 2021.
(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):
Nasdaq Income
Realized gain on investment
Mark-to-market (gains)/losses on non-marketable investments, net
Asset impairment
Contingent consideration and other expenses
Three Months Ended June 30,
2022
2021
Six Months Ended June 30,
2022
2021
15.5
(1,094.5)
(2.5)
6.8
87.6
(1,094.5)
13.9
(2.5)
12.4
0.1
$
15.4
$
(1,090.2)
$
101.5
$
(1,084.5)
(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 $4.6 million and $6.2 million for the three and six months
ended June 30, 2021. (see Note 1 - and Basis of Presentation" in the Company's most recently filed Form 10-Q or Form 10-K.)
NEWMARK 42View entire presentation