Company achieves record Adjusted EBITDA for FY 2014 of $317.8
million, a 100% annual increase
Kennedy Wilson increases dividend by 33% to $0.12 per common share
for first quarter 2015
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Feb. 25, 2015--
Kennedy-Wilson
Holdings, Inc. (NYSE: KW) ("Kennedy Wilson") today
reported results for the fourth quarter and full year of 2014:
For the three months ended December 31, 2014:
-
Adjusted EBITDA was $56.7 million, a 15% increase from $49.5 million
for the same period in 2013.
-
Adjusted Net Income was $4.7 million or $0.05 per basic share, which
includes $25.8 million or $0.29 per basic share of loss on early
extinguishment of corporate debt, compared to $19.1 million or $0.24
per basic share, for the same period in 2013. The loss on early
extinguishment of corporate debt was a result of refinancing $350.0
million of 8.75% senior notes due 2019 with $350.0 million of 5.875%
senior notes due 2024, lowering annual interest expense by $10.1
million.
-
GAAP net loss to common shareholders was $30.8 million, or $0.35 loss
per basic and diluted share, which includes $25.8 million or $0.29 per
basic and diluted share of loss on early extinguishment of corporate
debt, compared to $4.3 million, or $0.05 loss per basic and diluted
share, for the same period in 2013.
For the year ended December 31, 2014:
-
Adjusted EBITDA was $317.8 million, a 100% increase from $159.1
million for 2013.
-
Adjusted Net Income was $133.7 million, or $1.50 per basic share,
which includes $27.3 million or $0.31 per basic share of loss on early
extinguishment of corporate debt, compared to $61.1 million or $0.86
per basic share, for the same period in 2013.
-
GAAP net income to common shareholders was $13.8 million, or $0.14 per
basic and $0.14 per diluted share, which includes $27.3 million or
$0.31 per basic and $0.30 per diluted share of loss on early
extinguishment of corporate debt, compared to a loss of $14.5 million,
or $0.21 per basic and diluted share, for the same period in 2013.
"We had a remarkable 2014; we achieved our highest annual Adjusted
EBITDA to date, had our largest year of investment activity and raised
$2.2 billion on the London Stock Exchange for KWE,” said William
McMorrow, chairman and CEO of Kennedy Wilson. “With the refinancing of a
portion of our corporate and investment debt in the fourth quarter, we
have been able to significantly lower our average borrowing rate heading
into 2015."
Kennedy Wilson also announced that it will pay a quarterly dividend of
$0.12 per share, a 33% increase from the previous quarter, to common
shareholders of record as of March 31, 2015 with a payment date of April
8, 2015. The quarterly payment equates to an annual dividend of $0.48
per common share.
4Q Highlights
-
During the three months ended December 31, 2014, the Company and its
equity partners completed approximately $688.9 million of investment
transactions. The Company invested $110.1 million in $587.7 million of
acquisitions and received $18.3 million from $101.2 million of
dispositions.
-
Kennedy Wilson refinanced its $350.0 million 8.75% senior notes due
2019 primarily with proceeds from its $350.0 million of 5.875% senior
notes due 2024. As a result of the prepayment of the 8.75% senior
notes, the Company recorded a loss on early extinguishment of
corporate debt of approximately $25.8 million. The refinancing will
lower interest expense by $10.1 million per year.
FY 2014 Highlights
-
During the year ended December 31, 2014, the Company and its equity
partners completed approximately $4.3 billion of investment
transactions. The Company invested $600.7 million in $3.2 billion of
acquisitions and received $184.9 million from $1.1 billion of
dispositions.
-
Kennedy Wilson launched the $1.7 billion IPO and $565 million
follow-on offering of Kennedy Wilson Europe Real Estate Plc (LSE:KWE).
KWE is the second largest real estate IPO in the LSE’s history. As of
December 31, 2014, Kennedy Wilson owns approximately 14.9% of the
share capital in KWE and serves as KWE's external manager.
-
The Company raised a record $5.4 billion of equity and debt capital
during 2014 for itself and its investment platforms.
-
The Company and its equity partners completed new investment-level
financings of $1.4 billion (including $100.2 million of assumed debt),
with a weighted-average interest rate of 2.93% and a weighted-average
maturity of 5.8 years. The Company and its equity partners also
refinanced $300 million in investment-level debt, with a resulting
weighted-average interest rate of 3.27% and a weighted-average
maturity of 5.9 years. The loan terms prior to the refinancings were
$271.2 million of debt with a weighted-average interest rate of 4.57%,
and a weighted-average maturity of 4.2 years.
-
The Company increased the capacity under its unsecured line of credit
from $140 million to $300 million. Additionally, KWE obtained an
inaugural £225 million (approximately $350 million) unsecured line of
credit.
Investments business
For the three months ended December 31, 2014, the Company's Investments
segment reported the following results:
-
Adjusted EBITDA was $48.3 million, a 4% increase from $46.4 million
for the same period in 2013.
-
For same property multifamily units, total revenues increased 9%, net
operating income increased 10% and occupancy remained flat at 95% from
the same period in 2013.
-
For same property commercial assets, total revenues increased 3%, net
operating income increased 2% and occupancy increased 3% to 88% from
the same period in 2013.
-
In December 2014, the Company increased its ownership from
approximately 42% to approximately 87% in a previously unconsolidated
750-unit apartment building in the Western U.S. As a result of gaining
control of the asset, the Company was required to consolidate the
assets and liabilities at fair value and recognized an
acquisition-related gain of $19.5 million of which $3.7 million was
allocated to our noncontrolling equity partners. During the fourth
quarter of 2013, the Company recognized an acquisition-related gain of
$45.5 million of which $22.6 million was allocated to our
noncontrolling equity partners.
For the year ended December 31, 2014, the Company's Investments segment
reported the following results:
-
Adjusted EBITDA was $278.5 million, a 97% increase from $141.5 million
for the same period in 2013.
-
For same property multifamily units, total revenues increased 7%, net
operating income increased 10% and occupancy remained flat at 95% from
the same period in 2013.
-
For same property commercial assets, total revenues increased 1%, net
operating income increased 1% and occupancy increased 1% to 86% from
the same period in 2013.
-
The Company and its equity partners acquired approximately $3.2
billion of real estate related investments (including $2.4 billion
acquired by KWE) in which the Company invested $600.7 million of
equity representing an approximate 23% weighted average ownership
stake. The Company's investments for the year were directed 69% to the
United Kingdom and Ireland and 31% to the Western U.S.
-
The Company and its equity partners sold 19 commercial properties,
three multifamily properties, 10 condo units, and four residential
investments which resulted in gross sales proceeds of $1.1 billion.
The Company’s share of the net proceeds (after repayment of debt) was
$184.9 million including promoted interests (compared to $105.2
million of net book value).
-
As of December 31, 2014, the Company had an ownership interest in
approximately 32.6 million square feet, which includes over 20,000
multifamily units, 14 million commercial rentable square feet, 177
residential units, 619 residential lots, and 975 hotel rooms.
Services business
For the three months ended December 31, 2014, the Company's Services
segment reported the following results:
-
Adjusted fees were $31.1 million, a 99% increase from $15.6 million
for the same period in 2013.
-
Adjusted EBITDA was $11.5 million, a 80% increase from $6.4 million
for the same period in 2013.
For the year ended December 31, 2014, the Company's Services segment
reported the following results:
-
Adjusted fees were $121.0 million, a 67% increase from $72.4 million
for the same period in 2013.
-
Adjusted EBITDA was $59.3 million, a 87% increase from $31.7 million
for the same period in 2013.
Kennedy Wilson Europe Real Estate PLC (LSE: KWE)
-
During the fourth quarter, Kennedy Wilson Europe completed a follow-on
offering of approximately $565 million of ordinary shares. Kennedy
Wilson acquired approximately $75 million of KWE's ordinary shares in
the offering. As of December 31, 2014, Kennedy Wilson owns
approximately 20.2 million shares of KWE with a cost basis of $333.8
million which represents approximately 14.9% of KWE's total share
capital.
-
Since its launch in February 2014 through December 31, 2014, KWE has
acquired 82 direct real estate assets with approximately 6.6 million
square feet and five loan portfolios totaling $2.4 billion in purchase
price, which KWE currently expects to produce approximately $141
million of annualized net operating income (net rental income for
property portfolios, EBITDA for hotels and interest income for loan
portfolios).
-
In its capacity as external manager of KWE, KWH will receive
management fees (50% of which are paid in KWE shares) equal to 1% of
KWE’s adjusted net asset value (reported by KWE to be $2.1 billion at
December 31, 2014) and certain performance fees. During 2014, KWH
earned $14.0 million in management fees and no performance fees.
Subsequent events
-
Since December 31, 2014, the Company and its equity partners have
completed total acquisitions of $806.5 million (including $764.3
million by KWE). In addition, the Company and its equity partners have
$631.7 million of investments under contract (including $89.0 million
by KWE). These investments total approximately nine million square
feet, including 5,629 multifamily units.
-
In January 2015, Kennedy Wilson entered into a purchase agreement with
a wholly-owned subsidiary of Winthrop Realty Trust to acquire a 61.5%
interest in Vintage Housing Holdings, LLC (“VHH”) for approximately
$86 million. VHH owns certain interests in 30 multi-family properties
totaling 5,485 units, which have been capitalized using tax credit
financing. Upon the closing of the transaction, the property developer
and current manager of VHH will own the remaining 38.5% of the equity
interests and maintain its role as manager. Including the assumption
of approximately $328 million of property debt, along with third party
equity interests and unrestricted cash, the Company’s purchase values
the 30 property portfolio at approximately $486 million. The closing
of the acquisition is expected to be consummated in the first half of
2015, subject to customary closing conditions.
-
In February 2015, KWE closed the acquisition of 163 of 180 mixed-use
properties located throughout the United Kingdom for a purchase price
of approximately $669 million. The closing of the balance of the
portfolio under contract (17 properties for a total of approximately
$89 million) is scheduled to take place on a staggered basis during
the next 12 months as various conditions under the purchase agreement
are satisfied.
Conference Call and Webcast Details
Kennedy Wilson will hold a live conference call and webcast to discuss
results at 7:00 a.m. PT/ 10:00 a.m. ET on Thursday, February 26.
The direct dial-in number for the conference call is (800) 447-0521 for
U.S. callers and (847) 413-3238 for international callers. The
confirmation number for the live call is 38886598#.
A replay of the call will be available for one week beginning two hours
after the live call and can be accessed by (888) 843-7419 for U.S.
callers and (630) 652-3042 for international callers. The passcode for
the replay is 38886598#.
The webcast will be available at: http://edge.media-server.com/m/p/i9ssjbjf.
A replay of the webcast will be available two hours after the original
webcast on the Company’s investor relations web site for one year.
About Kennedy Wilson
Founded in 1977, Kennedy Wilson is a vertically integrated global real
estate investment and services company headquartered in Beverly Hills,
CA, with 25 offices in the U.S., U.K., Ireland, Spain, Jersey and Japan.
The company, on its own or with partners, invests opportunistically in a
variety of real estate related investments, including multi-family,
commercial, loan purchases and originations, residential, and hotels.
Kennedy Wilson offers a comprehensive array of real estate services
including investment management, property services, auction,
conventional sales, brokerage and research. For further information on
Kennedy Wilson, please visit www.kennedywilson.com.
Forward-Looking Statements
Statements made by us in this report and in other reports and statements
released by us that are not historical facts constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. These forward-looking statements are necessarily
estimates reflecting the judgment of our senior management based on our
current estimates, expectations, forecasts and projections and include
comments that express our current opinions about trends and factors that
may impact future operating results. Disclosures that use words such as
"believe," "anticipate," "estimate," "intend," "could," "plan,"
"expect," "project" or the negative of these, as well as similar
expressions, are intended to identify forward-looking statements. These
statements are not guarantees of future performance, rely on a number of
assumptions concerning future events, many of which are outside of our
control, and involve known and unknown risks and uncertainties that
could cause our actual results, performance or achievement, or industry
results, to differ materially from any future results, performance or
achievements expressed or implied by such forward-looking statements.
These risks and uncertainties may include the factors and the risks and
uncertainties described elsewhere in this report and other filings with
the Securities and Exchange Commission (the "SEC"), including the
Item 1A. "Risk Factors" section of our Annual Report on Form 10-K for
the year end December 31, 2013, as amended by our subsequent filings
with the SEC. Any such forward-looking statements, whether made in this
report or elsewhere, should be considered in the context of the various
disclosures made by us about our businesses including, without
limitation, the risk factors discussed in our filings with the SEC.
Except as required under the federal securities laws and the rules and
regulations of the SEC, we do not have any intention or obligation to
update publicly any forward-looking statements, whether as a result of
new information, future events, changes in assumptions, or otherwise.
Common Definitions
-
“KWH,” “Kennedy Wilson,” the "Company," "we," "our," or "us" refers to
Kennedy-Wilson Holdings, Inc. and its wholly-owned subsidiaries. The
consolidated financial statements of the Company include the results
of the Company's consolidated subsidiaries (including KWE).
-
“KWE” refers to Kennedy Wilson Europe Real Estate plc, a London Stock
Exchange listed company that we externally manage through a
wholly-owned subsidiary. In our capacity as external manager of KWE,
we receive certain (i) management fees equal to 1% of KWE’s adjusted
net asset value (EPRA NAV), half of which is paid in cash and the
remainder of which is paid in KWE shares; and (ii) performance fees,
all of which is paid in KWE shares. In accordance with U.S. GAAP, the
results of KWE are consolidated in our financial statements. We own an
approximately 14.9% equity interest in KWE and throughout this release
and supplemental financial information, we refer to our pro-rata
ownership stake (based on our 14.9% equity interest) in investments
made and held directly by KWE and its subsidiaries.
-
"Adjusted EBITDA" represents Consolidated EBITDA as defined below,
adjusted to exclude share based compensation expense and EBITDA
attributable to noncontrolling interests.
-
“Adjusted fees’’ refers to Kennedy Wilson’s investment management,
property services and research fees adjusted to include fees
eliminated in consolidation and Kennedy Wilson’s share of fees in
unconsolidated service businesses.
-
“Adjusted Net Asset Value’’ is calculated by KWE as net asset value
adjusted to include properties and other investment interests at fair
value and to exclude certain items not expected to crystallize in a
long-term investment property business model such as the fair value of
financial derivatives and deferred taxes on property valuation
surpluses.
-
"Adjusted Net Income” represents Consolidated Adjusted Net Income as
defined below, adjusted to exclude net income attributable to
noncontrolling interests, before depreciation and amortization.
-
"Consolidated Adjusted Net Income” represents net income before
depreciation and amortization, our share of depreciation and
amortization included in income from unconsolidated investments and
share based compensation expense.
-
"Consolidated EBITDA" represents net income before interest expense,
our share of interest expense included in income from investments in
unconsolidated investments, depreciation and amortization, our share
of depreciation and amortization included in income from
unconsolidated investments, loss on early extinguishment of corporate
debt and income taxes.
-
“Consolidated investment account” refers to the sum of Kennedy
Wilson’s equity in: cash held by consolidated investments,
consolidated real estate and acquired in-place leases, unconsolidated
investments and consolidated loans gross of accumulated depreciation
and amortization.
-
“Equity partners” refers to subsidiaries that we consolidate in our
financial statements under U.S. GAAP (other than wholly-owned
subsidiaries), including KWE, and third-party equity providers.
-
“Investment account” refers to the consolidated investment account
presented after noncontrolling interest on invested assets gross of
accumulated depreciation.
-
“Same property" refers to properties in which Kennedy Wilson has an
ownership interest during the entire span of both periods being
compared.
Note about Non-GAAP financial information included
in this presentation
In addition to the results reported in accordance with U.S. generally
accepted accounting principles ("GAAP") included within this
presentation, Kennedy Wilson has provided certain information, which
includes non-GAAP financial measures (including, Consolidated EBITDA,
Adjusted EBITDA, Consolidated Adjusted Net Income, Adjusted Net Income,
Adjusted Net Income Per Basic Share and Adjusted Fees, as defined
above). Such information is reconciled to its closest GAAP measure in
accordance with the rules of the Securities and Exchange Commission, and
such reconciliations are included within this presentation. These
measures may contain cash and non-cash acquisition-related gains and
expenses and gains and losses from the sale of real-estate related
investments. Consolidated non-GAAP measures discussed throughout this
report contain income or losses attributable to non-controlling
interests. Management believes that these non-GAAP financial measures
are useful to both management and Kennedy Wilson's shareholders in their
analysis of the business and operating performance of the Company.
Management also uses this information for operational planning and
decision-making purposes. Non-GAAP financial measures are not and should
not be considered a substitute for any GAAP measures. Additionally,
non-GAAP financial measures as presented by Kennedy Wilson may not be
comparable to similarly titled measures reported by other companies.
|
|
|
Kennedy-Wilson Holdings, Inc.
|
Consolidated Balance Sheets
|
(Unaudited)
|
(Dollars in millions)
|
|
|
|
|
|
December 31,
|
|
|
2014
|
|
|
2013
|
Assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
174.6
|
|
|
|
$
|
170.2
|
|
Cash held by consolidated investments
|
|
763.1
|
|
|
|
8.0
|
|
Accounts receivable
|
|
55.6
|
|
|
|
16.6
|
|
Real estate and acquired in place lease values, net of accumulated
depreciation and amortization
|
|
4,228.1
|
|
|
|
688.1
|
|
Loans
|
|
313.4
|
|
|
|
56.8
|
|
Unconsolidated investments
|
|
492.2
|
|
|
|
786.1
|
|
Other assets
|
|
277.5
|
|
|
|
73.0
|
|
Total assets
|
|
$
|
6,304.5
|
|
|
|
$
|
1,798.8
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Accounts payable, accrued expenses and other liabilities
|
|
$
|
237.3
|
|
|
|
$
|
129.1
|
|
Investment debt
|
|
2,195.9
|
|
|
|
401.8
|
|
Senior notes payable
|
|
702.4
|
|
|
|
409.0
|
|
Line of Credit
|
|
125.0
|
|
|
|
—
|
|
Junior subordinated
|
|
—
|
|
|
|
40.0
|
|
Total liabilities
|
|
3,260.6
|
|
|
|
979.9
|
|
Equity
|
|
|
|
|
|
|
|
Cumulative preferred stock
|
|
—
|
|
|
|
—
|
|
Common Stock
|
|
—
|
|
|
|
—
|
|
Additional paid-in capital
|
|
$
|
991.3
|
|
|
|
$
|
801.3
|
|
Retained earnings (accumulated deficit)
|
|
(62.0
|
)
|
|
|
(42.2
|
)
|
Accumulated other comprehensive (loss) income
|
|
(28.2
|
)
|
|
|
9.2
|
|
Total Kennedy-Wilson Holdings, Inc. shareholders’ equity
|
|
901.1
|
|
|
|
768.3
|
|
Noncontrolling interests
|
|
2,142.8
|
|
|
|
50.6
|
|
Total equity
|
|
3,043.9
|
|
|
|
818.9
|
|
Total liabilities and equity
|
|
$
|
6,304.5
|
|
|
|
$
|
1,798.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kennedy-Wilson Holdings, Inc.
|
Consolidated Statements of Operations
|
(Unaudited)
|
(Dollars in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management, property services, and research fees
|
|
|
$
|
17.6
|
|
|
$
|
14.0
|
|
|
$
|
82.6
|
|
|
$
|
68.1
|
|
Rental and hotel
|
|
|
108.9
|
|
|
15.6
|
|
|
270.2
|
|
|
43.0
|
|
Sale of real estate
|
|
|
9.4
|
|
|
—
|
|
|
28.4
|
|
|
10.1
|
|
Loans and other income
|
|
|
5.7
|
|
|
0.5
|
|
|
17.4
|
|
|
1.9
|
|
Total revenue
|
|
|
141.6
|
|
|
30.1
|
|
|
398.6
|
|
|
123.1
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commission and marketing expenses
|
|
|
1.8
|
|
|
0.8
|
|
|
5.6
|
|
|
3.6
|
|
Rental and hotel operating expense
|
|
|
46.5
|
|
|
7.0
|
|
|
116.4
|
|
|
18.9
|
|
Cost of real estate sold
|
|
|
6.1
|
|
|
—
|
|
|
20.7
|
|
|
7.9
|
|
Compensation and related expenses
|
|
|
34.2
|
|
|
23.9
|
|
|
113.8
|
|
|
76.7
|
|
General and administrative
|
|
|
13.8
|
|
|
6.9
|
|
|
42.1
|
|
|
24.6
|
|
Depreciation and amortization
|
|
|
37.2
|
|
|
5.4
|
|
|
104.5
|
|
|
17.4
|
|
Total operating expenses
|
|
|
139.6
|
|
|
44.0
|
|
|
403.1
|
|
|
149.1
|
|
Income from unconsolidated investments
|
|
|
8.3
|
|
|
11.3
|
|
|
54.2
|
|
|
41.4
|
|
Operating income (loss)
|
|
|
10.3
|
|
|
(2.6
|
)
|
|
49.7
|
|
|
15.4
|
|
Non-operating income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related gains
|
|
|
18.9
|
|
|
45.5
|
|
|
218.1
|
|
|
56.6
|
|
Acquisition-related expenses
|
|
|
(2.8
|
)
|
|
(1.1
|
)
|
|
(19.7
|
)
|
|
(1.6
|
)
|
Interest expense - investment
|
|
|
(16.1
|
)
|
|
(4.4
|
)
|
|
(46.3
|
)
|
|
(11.8
|
)
|
Interest expense - corporate debt
|
|
|
(17.5
|
)
|
|
(10.2
|
)
|
|
(57.1
|
)
|
|
(39.9
|
)
|
Early extinguishment of corporate debt
|
|
|
(25.8
|
)
|
|
—
|
|
|
(27.3
|
)
|
|
—
|
|
Other income (expense)
|
|
|
4.1
|
|
|
(2.3
|
)
|
|
5.1
|
|
|
(1.9
|
)
|
(Loss) income before benefit from (provision for) income taxes
|
|
|
(28.9
|
)
|
|
24.9
|
|
|
122.5
|
|
|
16.8
|
|
Benefit from (provision for) income taxes
|
|
|
8.4
|
|
|
(4.3
|
)
|
|
(32.4
|
)
|
|
(2.9
|
)
|
Net (loss) income
|
|
|
(20.5
|
)
|
|
20.6
|
|
|
90.1
|
|
|
13.9
|
|
Net (income) attributable to the noncontrolling interests
|
|
|
(8.3
|
)
|
|
(22.9
|
)
|
|
(68.2
|
)
|
|
(20.3
|
)
|
Preferred stock dividends and accretion of issuance costs
|
|
|
(2.0
|
)
|
|
(2.0
|
)
|
|
(8.1
|
)
|
|
(8.1
|
)
|
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc.
common shareholders
|
|
|
$
|
(30.8
|
)
|
|
$
|
(4.3
|
)
|
|
$
|
13.8
|
|
|
$
|
(14.5
|
)
|
Basic earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income per basic
|
|
|
$
|
(0.35
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
0.14
|
|
|
$
|
(0.21
|
)
|
Weighted average shares outstanding for basic
|
|
|
90,232,896
|
|
|
79,173,585
|
|
|
89,200,855
|
|
|
71,159,919
|
|
Diluted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income per diluted
|
|
|
$
|
(0.35
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
0.14
|
|
|
$
|
(0.21
|
)
|
Weighted average shares outstanding for diluted
|
|
|
90,232,896
|
|
|
79,173,585
|
|
|
91,555,214
|
|
|
71,159,919
|
|
Dividends declared per common share
|
|
|
$
|
0.09
|
|
|
$
|
0.07
|
|
|
$
|
0.36
|
|
|
$
|
0.28
|
|
(a) EPS amounts may not add due to rounding.
|
|
|
|
|
Kennedy-Wilson Holdings, Inc.
|
Consolidated Adjusted Net Income and Adjusted Net Income
|
(Unaudited)
|
(Dollars in millions, except per share data)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2014 (1)
|
|
2013
|
|
|
2014 (1)
|
|
2013
|
|
Net (loss) income
|
|
$
|
(20.5
|
)
|
|
$
|
20.6
|
|
|
$
|
90.1
|
|
|
$
|
13.9
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
37.2
|
|
|
5.4
|
|
|
104.5
|
|
|
17.4
|
|
Kennedy Wilson's share of depreciation and amortization included in
unconsolidated investments
|
|
10.0
|
|
|
15.4
|
|
|
47.1
|
|
|
46.7
|
|
Share-based compensation
|
|
7.1
|
|
|
2.0
|
|
|
15.8
|
|
|
7.5
|
|
Consolidated Adjusted Net Income
|
|
33.8
|
|
|
43.4
|
|
|
257.5
|
|
|
85.5
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to the noncontrolling interests, before
depreciation and amortization (2)
|
|
(29.1
|
)
|
|
(24.3
|
)
|
|
(123.8
|
)
|
|
(24.4
|
)
|
Adjusted Net Income
|
|
$
|
4.7
|
|
|
$
|
19.1
|
|
|
$
|
133.7
|
|
|
$
|
61.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of common shares outstanding
|
|
90,232,896
|
|
|
79,173,585
|
|
|
89,200,855
|
|
|
71,159,919
|
|
Basic Adjusted Net Income Per Share
|
|
$
|
0.05
|
|
|
$
|
0.24
|
|
|
$
|
1.50
|
|
|
$
|
0.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net (loss) income for the three months ended and year
ended December 31, 2014 includes a loss on early extinguishment of
corporate debt of $25.8 million and $27.3 million,
respectively.
(2) $20.8 million and $1.4 million of depreciation and
amortization for the three months ended December 31, 2014 and 2013,
respectively, and $55.6 million and $4.1 million for the years ended
December 31, 2014 and 2013, respectively.
|
|
|
|
|
Kennedy-Wilson Holdings, Inc.
|
Consolidated EBITDA and Adjusted EBITDA
|
(Unaudited)
|
(Dollars in millions)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net (loss) income
|
|
$
|
(20.5
|
)
|
|
$
|
20.6
|
|
|
$
|
90.1
|
|
|
$
|
13.9
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense - investment
|
|
16.1
|
|
|
4.4
|
|
|
46.3
|
|
|
11.8
|
|
Interest expense - corporate
|
|
17.5
|
|
|
10.2
|
|
|
57.1
|
|
|
39.9
|
|
Early extinguishment of corporate debt
|
|
25.8
|
|
|
—
|
|
|
27.3
|
|
|
—
|
|
Kennedy Wilson's share of interest expense included in investment
in unconsolidated investments
|
|
7.0
|
|
|
11.6
|
|
|
35.5
|
|
|
45.0
|
|
Depreciation and amortization
|
|
37.2
|
|
|
5.4
|
|
|
104.5
|
|
|
17.4
|
|
Kennedy Wilson's share of depreciation and amortization included
in unconsolidated investments
|
|
10.0
|
|
|
15.4
|
|
|
47.1
|
|
|
46.7
|
|
(Benefit from) provision for income taxes
|
|
(8.4
|
)
|
|
4.3
|
|
|
32.4
|
|
|
2.9
|
|
Consolidated EBITDA (1)
|
|
84.7
|
|
|
71.9
|
|
|
440.3
|
|
|
177.6
|
|
Share-based compensation
|
|
7.1
|
|
|
2.0
|
|
|
15.8
|
|
|
7.5
|
|
EBITDA attributable to noncontrolling interests (2)
|
|
(35.1
|
)
|
|
(24.4
|
)
|
|
(138.3
|
)
|
|
(26.0
|
)
|
Adjusted EBITDA (1)
|
|
$
|
56.7
|
|
|
$
|
49.5
|
|
|
$
|
317.8
|
|
|
$
|
159.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Prior to 2014, the Company reported an Adjusted EBITDA
metric that was comparable to the Company’s current Consolidated EBITDA
metric, as it was calculated as Consolidated EBITDA, adjusted to solely
exclude merger related expenses and share based compensation expense.
Beginning in 2014, as noncontrolling interests became more significant
on the Company’s consolidated balance sheet, primarily due to the
consolidation of KWE’s results in the Company’s financial statements,
the Company determined that it was appropriate to supplement
Consolidated EBITDA with a revised metric. Adjusted EBITDA shown above
is calculated as Consolidated EBITDA, adjusted to exclude share based
compensation expense and EBITDA attributable to noncontrolling
interests. As set forth in the reconciliation table above, EBITDA
attributable to noncontrolling interests for the three months ended
December 31, 2014 and 2013 were $35.1 million and $24.4 million,
respectively, and for the years ended December 31, 2014 and 2013 were
$138.3 million and $26.0 million, respectively.
(2) $26.8 million and $1.5 million of depreciation,
amortization, and interest for the three months ended December 31, 2014
and 2013, respectively, and $70.1 million and $5.7 million for the years
ended December 31, 2014 and 2013, respectively.
Source: Kennedy-Wilson Holdings, Inc.
Kennedy Wilson
Christina Cha
Vice President of Corporate
Communication
(310) 887-6294
[email protected]
www.kennedywilson.com