Mini-conglomerate Vector Group (NYSE:VGR) reported results for the first quarter of 2014 this morning. Vector recently raised its ownership of real estate operator Douglas Elliman Realty from 50% to 70.6%, moving that business from an equity investment to a part of regular operations. This reclassification boosted the Miami-based company's total revenues by 45% in the first quarter, and merits a non-GAAP analysis for oranges-to-oranges comparisons from one year to another.
Treating Douglas Elliman as an integrated business for both 2013 and 2014 yields adjusted revenue growth of 9%, landing at $349 million.
Sixty-seven percent of total sales came from Vector's low-budget tobacco brands. Real estate operations accounted for 31.5% of revenue, and the 1.5% remainder stemmed from sales of Zoom e-cigarettes. On its own, the real estate group saw sales grow 37% from the year-ago period.
Unit sales of tobacco products fell 6% year-over-year. The decline was offset by higher sale prices, and the segment reported a 3% revenue drop.
Non-GAAP earnings rose from $0.12 to $0.15 per diluted share.
Following the report, Vector Group shares opened 2.8% lower. At current prices, the stock has climbed 28% higher over the last 6 months.