Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,512.38 -3.89 -0.03%
TOPIX 1,171.40 -1.97 -0.17%
HANG SENG 22,760.24 64.23 0.28%

Kennedy Wilson Reports Third Quarter 2012 Earnings



  Kennedy Wilson Reports Third Quarter 2012 Earnings

         Adjusted EBITDA increases by 94% from same period last year

Business Wire

BEVERLY HILLS, Calif. -- November 06, 2012

Kennedy-Wilson Holdings, Inc. (NYSE: KW) (“Kennedy Wilson”, "we," "us," "our,"
or the “Company”), an international real estate investment and services
company, today reported a third quarter 2012 net loss attributable to common
shareholders of $6.2 million (or $0.11 per basic and diluted share) compared
to a net loss attributable to common shareholders of $6.9 million (or $0.16
per basic and diluted share) for the same period in 2011. Net loss
attributable to common shareholders, adjusted for stock-based compensation
expense, was $3.3 million (or $0.06 per basic share) compared to a net loss of
$5.6 million for the same period in 2011 (or $0.13 per basic share).

The Company's earnings before interest, taxes, depreciation and stock-based
compensation expense (“Adjusted EBITDA”) for the third quarter of 2012 was
$17.5 million, a 94% increase from $9.0 million for the same period in 2011.

“The company had a very active and successful third quarter with more than
$650 million of acquisitions in the U.S. and Ireland," said William McMorrow,
chairman and CEO of Kennedy Wilson. "Our key operating metrics improve each
quarter, and we continue to see significant investment opportunities in our
core markets."

Kennedy Wilson Recent Highlights

Operating metrics

  * During the three months ended September 30, 2012, the Company achieved an
    adjusted EBITDA of $17.5 million, a 94% increase from $9.0 million for the
    same period in 2011.
  * During the nine months ended September 30, 2012, the Company achieved an
    adjusted EBITDA of $55.5 million, a 33% increase from $41.6 million for
    the same period in 2011.

Investments business

Investment Account

  * As of September 30, 2012, our investment account (Kennedy Wilson's equity
    in real estate, joint ventures, loan investments, and marketable
    securities) increased by 13% to $658.1 million from $582.8 million at
    December 31, 2011. This change was comprised of approximately $239.3
    million (including $79.4 million during the third quarter) of cash
    contributed to and income earned on investments and approximately $164.0
    million (including $47.4 million during the third quarter) of cash
    distributed from investments.
  * As of September 30, 2012, the Company and its equity partners owned 14.6
    million rentable square feet of real estate including 13,950 apartment
    units and 24 commercial properties. Additionally, as of September 30,
    2012, the Company and its equity partners owned $2.0 billion in loans
    secured by real estate.

Operating metrics

  * During the three months ended September 30, 2012, our investments business
    achieved an EBITDA of $12.6 million (inclusive of $0.4 million of
    acquisition related costs), a 108% increase from $6.0 million for the same
    period in 2011. There were no material acquisition related costs in the
    corresponding period in 2011.
  * During the nine months ended September 30, 2012, our investments business
    achieved an EBITDA of $47.2 million (inclusive of $1.2 million of
    acquisition related costs), a 29% increase from $36.6 million (inclusive
    of $0.3 million of acquisition related costs) for the same period in 2011.

Acquisition/disposition program

  * From January 1, 2010 through September 30, 2012, the Company and its
    equity partners, acquired approximately $6.7 billion of real estate
    related investments.
  * During the nine months ended September 30, 2012, the Company and its
    equity partners, acquired approximately $1.5 billion of real estate
    related investments, including $659.4 million during the third quarter. We
    invested $175.6 million (including $68.6 million during the third quarter)
    of our equity in the vehicles that acquired these investments.
  * The composition of the $1.5 billion of real estate related investments
    acquired by the Company and its equity partners during the nine months
    ended September 30, 2012 is as follows:

       * During the nine months ended September 30, 2012, we, along with our
         equity partners, acquired approximately $969.1 million of real estate
         investments, including $180.8 million during the third quarter. The
         underlying assets are located primarily in the Western U.S. (68% in
         terms of our equity invested) and Ireland (32% in terms of our equity
         invested) and include seven multifamily properties with 1,961 units
         and 11 commercial properties totaling 2.0 million square feet. We
         invested $80.4 million of our equity in vehicles that acquired these
         real estate assets, including $27.6 million during the third quarter.
       * During the nine months ended September 30, 2012, we, along with our
         equity partners, acquired approximately $563.6 million of loans
         (including $478.6 million during the third quarter) at an average
         discount of 20% to their principal balance (weighted based on our
         equity invested). In addition, we and our equity partners originated
         a loan of $8.6 million at a 10.8% interest rate. These loans are
         secured by 108 underlying properties located in the Western U.S. and
         Ireland. We invested approximately $95.2 million of our equity in
         loans, including $41.0 million during the third quarter.

  * During the nine months ended September 30, 2012, the Company and its
    equity partners sold four multifamily properties located in the Western
    U.S. for a total of $243.0 million, which resulted in a total gain of
    $32.6 million, of which our share was $7.9 million ($17.5 million of our
    equity invested). We also sold our interest in a 324-unit apartment
    building in San Jose, California generating a gain of $2.2 million to the
    Company ($3.2 million of our equity invested).

Property level debt financing

  * During the nine months ended September 30, 2012, the Company and its
    equity partners completed approximately $475.8 million of property
    financings and re-financings at an average interest rate of 3.3% and a
    weighted average maturity of 6.6 years. During the nine months ended
    September 30, 2011, the Company and its equity partners completed
    approximately $829.7 million of property financings and re-financings at
    an average interest rate of 3.6% and a weighted average maturity of 4.1
    years.

United Kingdom and Ireland

  * In December 2011, we and our equity partners acquired a loan pool secured
    by real estate located in the United Kingdom with an unpaid principal
    balance of $2.1 billion. As of September 30, 2012, the unpaid principal
    balance was $1.3 billion due to loan resolutions of approximately $756.9
    million, representing 36% of the pool. The total debt incurred at the
    venture level at the time of purchase of these loans was $323.4 million
    with a maturity date of October 2014. As a result of the loan resolutions,
    the venture level debt has been paid down by $176.6 million to $146.8
    million as of September 30, 2012.
  * On March 13, 2012, we announced a €250 million (approximately $325
    million) capital commitment from Fairfax Financial Holdings ("Fairfax") to
    acquire real estate and loans secured by real estate in the United Kingdom
    and Ireland. Investments under this program require Fairfax's agreement to
    participate on an investment-by-investment basis. As of September 30,
    2012, we have purchased two investments within this platform, the historic
    210-unit Alliance Building in Dublin, Ireland, located adjacent to
    Google's European headquarters, for $50.0 million and Brooklawn House, a
    Dublin office property, for $18.5 million. We invested $25.7 million of
    our equity in the investment vehicles that acquired these assets.
  * On May 2, 2012, we entered into a term sheet with a major European
    financial institution to create a framework to target the acquisition of
    €2 billion (approximately $2.5 billion) of performing, sub-performing and
    non-performing loans secured by commercial and residential real estate in
    Europe, with a focus on the United Kingdom and Ireland. In August 2012, we
    made our first investment within this platform. We, along with our equity
    partner acquired a loan pool secured by real estate located in Ireland
    with an unpaid principal balance of $449.0 million. We invested $7.4
    million of our equity in the vehicle that acquired these assets.

Japan

  * Maintained 97% occupancy in 50 apartment buildings with over 2,400 units.
  * Since Fairfax became our partner in the Japanese apartment portfolio in
    September 2010, we have distributed a total of $51.5 million, of which our
    share was $24.0 million.

Services business

  * Management and leasing fees and commissions increased by 12% to $12.5
    million for the three months ended September 30, 2012 from $11.1 million
    for the same period in 2011.
  * During the three months ended September 30, 2012, our services business
    achieved an EBITDA of $4.8 million, a 50% increase from $3.2 million for
    the same period in 2011.
  * Management and leasing fees and commissions increased by 35% to $35.5
    million for the nine months ended September 30, 2012 from $26.2 million
    for the same period in 2011.
  * During the nine months ended September 30, 2012, our services business
    achieved an EBITDA of $11.2 million, a 72% increase from $6.5 million for
    the same period in 2011.

Corporate financing

  * In July 2012, the Company issued 8.6 million shares of common stock
    primarily to institutional investors, resulting in gross proceeds of
    $112.1 million of which $40.0 million was used to pay off the outstanding
    balance on our line of credit.

Subsequent events

  * Subsequent to September 30, 2012, we have acquired or have entered into
    contracts to acquire approximately $391.8 million of real estate related
    investments which include 1.8 million rentable square feet of real estate
    comprised of 926 apartment units and 6 commercial properties. We expect
    the acquisitions to be a combination of wholly owned and joint venture
    investments.
  * Subsequent to September 30, 2012, we have resolved an additional $190.5
    million of the loan pool secured by real estate located in the United
    Kingdom which lowered the unpaid principal balance to $1.1 billion. Our
    venture level debt balance will be reduced by an additional $35.5 million
    to $111.3 million.

Conference Call and Webcast Details

The company will hold a live conference call and webcast to discuss results at
7:00 a.m. PT/ 10:00 a.m. ET on Tuesday, November 6.

The direct dial-in number for the conference call is (888) 895-5479 for U.S.
callers and (847) 619-6250 for international callers. The confirmation number
for the live call is 33644846.

A replay of the call will be available for one week beginning two hours after
the live call and can be accessed by dialing (888) 843-7419 for U.S. callers
and (630) 652-3042 for international callers. The passcode for the replay is
33644846#.

The webcast will be available at:
http://edge.media-server.com/m/p/ust52w84/lan/en. 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 an international real estate investment and
services company headquartered in Beverly Hills, CA with 24 offices in the
U.S., U.K., Ireland, Spain and Japan. The company offers a comprehensive array
of real estate services including auction, conventional sales, property
services, research and investment management. Through its fund management and
separate account businesses, Kennedy Wilson is a strategic investor of real
estate investments in the U.S., U.K., Ireland and Japan. 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 (the “Securities Act”) and Section 21 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”). 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 these
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 ended December 31, 2011. 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.

Non-GAAP Financial Information

In addition to the results reported in accordance with U.S. generally accepted
accounting principles (GAAP) included within this press release, Kennedy
Wilson has provided certain information, which includes non-GAAP financial
measures (Pro Forma Statements of Operations, Adjusted Net Loss Attributable
to Kennedy Wilson Common Shareholders, Basic Adjusted Net Loss Attributable to
Kennedy Wilson Common Shareholders Per Share, EBITDA and Adjusted EBITDA).
Additionally, there are certain revenue and expense line items in our pro
forma consolidated statements of operations or income that would otherwise be
classified as discontinued operations on a GAAP statement. Such information is
reconciled to its closest GAAP measure in accordance with the SEC rules and is
included in the attached supplemental tables. Management believes that these
non-GAAP financial measures are useful to both management and the Company'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. and Subsidiaries

Consolidated Balance Sheets
                                                                
                                                                
                                             September 30,     December 31,
                                             2012              2011
                                                                
Assets
Cash and cash equivalents                    $ 126,804,000     $ 115,926,000
Accounts receivable                          3,378,000         3,114,000
Accounts receivable — related parties        19,504,000        15,612,000
Notes receivable                             43,391,000        7,938,000
Notes receivable — related parties           40,101,000        33,269,000
Real estate, net                             111,517,000       115,880,000
Investments in joint ventures                380,563,000       343,367,000
Investment in loan pool participations       102,854,000       89,951,000
Marketable securities                        10,265,000        23,005,000
Other assets                                 19,955,000        20,749,000
Goodwill                                     23,965,000        23,965,000     
Total assets                                 $ 882,297,000     $ 792,776,000  
                                                                
Liabilities
Accounts payable                             $ 1,306,000       $ 1,798,000
Accrued expenses and other liabilities       29,129,000        24,262,000
Accrued salaries and benefits                5,600,000         14,578,000
Deferred tax liability                       19,610,000        18,437,000
Senior notes payable                         249,425,000       249,385,000
Mortgage loans payable                       30,748,000        30,748,000
Junior subordinated debentures               40,000,000        40,000,000     
Total liabilities                            375,818,000       379,208,000
Equity
Common stock                                 6,000             5,000
Additional paid-in capital                   514,586,000       407,335,000
(Accumulated deficit) retained earnings      (11,583,000   )   9,708,000
Accumulated other comprehensive income       11,786,000        5,035,000
Shares held in treasury at cost              (9,856,000    )   (11,848,000   )
Total Kennedy-Wilson Holdings, Inc.          504,939,000       410,235,000
shareholders' equity
Noncontrolling interests                     1,540,000         3,333,000      
Total equity                                 506,479,000       413,568,000    
Total liabilities and equity                 $ 882,297,000     $ 792,776,000  
                                                                              
                                                                              

                                                    
                                                      
Kennedy-Wilson Holdings, Inc. and Subsidiaries

Consolidated Statements of Operations
                                                      
                                                      
                   Three months ended September      Nine months ended September 30,
                   30,
                   2012             2011             2012              2011
Revenue
Management and     $ 10,335,000     $ 7,851,000      $ 29,308,000      $ 17,808,000
leasing fees
Commissions        2,145,000        3,259,000        6,165,000         8,429,000
Sale of real       1,275,000        —                1,275,000         417,000
estate
Rental and         1,485,000        1,666,000        4,432,000         3,359,000      
other income
Total revenue      15,240,000       12,776,000       41,180,000        30,013,000
Operating
expenses
Commission and
marketing          1,371,000        1,641,000        3,676,000         3,015,000
expenses
Compensation
and related        11,364,000       8,473,000        30,658,000        24,562,000
expenses
Cost of real       1,275,000        —                1,275,000         397,000
estate sold
General and        5,014,000        3,329,000        13,571,000        9,183,000
administrative
Depreciation
and                989,000          931,000          2,903,000         1,828,000
amortization
Rental
operating          847,000          1,195,000        2,638,000         2,248,000      
expenses
Total
operating          20,860,000       15,569,000       54,721,000        41,233,000
expenses
Equity in
joint venture      1,848,000        (646,000     )   12,472,000        7,229,000
income (loss)
Interest
income from
loan pool          3,712,000        1,048,000        7,126,000         5,835,000      
participations
and notes
receivable
Operating          (60,000      )   (2,391,000   )   6,057,000         1,844,000
(loss) income
Non-operating
income
(expense)
Interest           179,000          635,000          2,503,000         1,234,000
income
Remeasurement      —                —                —                 6,348,000
gain
Gain on sale
of marketable      —                —                2,931,000         —
securities
Realized
foreign            (6,000       )   —                (80,000       )   —
currency
exchange loss
Interest           (6,755,000   )   (6,117,000   )   (19,979,000   )   (13,874,000   )
expense
Loss from
continuing
operations         (6,642,000   )   (7,873,000   )   (8,568,000    )   (4,448,000    )
before benefit
from income
taxes
Benefit from       2,500,000        2,997,000        5,121,000         2,162,000      
income taxes
Loss from
continuing         (4,142,000   )   (4,876,000   )   (3,447,000    )   (2,286,000    )
operations
Discontinued
Operations
Income from
discontinued
operations,        —                —                2,000             —
net of income
taxes
Loss from sale
of real            —                —                (212,000      )   —              
estate, net of
income taxes
Net loss           (4,142,000   )   (4,876,000   )   (3,657,000    )   (2,286,000    )
Net (loss)
income
attributable       (64,000      )   42,000           (2,990,000    )   (1,295,000    )
to the
noncontrolling
interests
Net loss
attributable
to                 (4,206,000   )   (4,834,000   )   (6,647,000    )   (3,581,000    )
Kennedy-Wilson
Holdings, Inc.
Preferred
dividends and
accretion of       (2,036,000   )   (2,036,000   )   (6,108,000    )   (6,708,000    )
preferred
stock issuance
costs
Net loss
attributable
to
Kennedy-Wilson     $ (6,242,000 )   $ (6,870,000 )   $ (12,755,000 )   $ (10,289,000 )
Holdings, Inc.
common
shareholders
Basic and
diluted loss
per share
attributable
to
Kennedy-Wilson
Holdings, Inc.
common
shareholders
Continuing         $ (0.11      )   $ (0.16      )   $ (0.23       )   $ (0.25       )
operations
Discontinued
operations,        —                —                —                 —              
net of income
taxes
Earning per
share - basic      $ (0.11      )   $ (0.16      )   $ (0.24       )   $ (0.25       )
and diluted
(a)
Weighted
average number
of common          58,043,357       44,016,880       53,551,708        40,712,496     
shares
outstanding
Dividends
declared per       $ 0.05           $ 0.04           $ 0.15            $ 0.08         
common share
                                                                                      
_________

^(a) EPS amounts may not add due to rounding.
                                                                                      
                                                                                      

                  
                    
Kennedy-Wilson Holdings, Inc. and Subsidiaries

Pro Forma Consolidated Statements of Operations (Non-GAAP)
                    
                    
                   Three Months Ended September 30,
                   2012                                                2011
                                    Pro Rata                                            Pro Rata        
                                    Unconsolidated   Pro Forma                          Unconsolidated   Pro Forma
                   Consolidated     Investments      Total             Consolidated     Investments      Total
Revenue
Management and     $ 10,335,000     $ —              $ 10,335,000      $ 7,851,000      $ —              $ 7,851,000
leasing fees
Commissions          2,145,000        —                2,145,000         3,259,000        —                3,259,000
Sale of real         1,275,000        —                1,275,000         —                3,029,000        3,029,000
estate
Rental and           1,485,000        20,572,000       22,057,000        1,666,000        12,655,000       14,321,000
other income
Interest             —                4,549,000        4,549,000         —                2,459,000        2,459,000    
income
Total revenue        15,240,000       25,121,000       40,361,000        12,776,000       18,143,000       30,919,000
Operating
expenses
Commission and
marketing            1,371,000        —                1,371,000         1,641,000        —                1,641,000
expenses
Compensation
and related          11,364,000       198,000          11,562,000        8,473,000        —                8,473,000
expenses
Cost of real         1,275,000        —                1,275,000         —                2,522,000        2,522,000
estate sold
General and          5,014,000        229,000          5,243,000         3,329,000        —                3,329,000
administrative
Depreciation
and                  989,000          5,085,000        6,074,000         931,000          3,849,000        4,780,000
amortization
Rental
operating            847,000          7,055,000        7,902,000         1,195,000        6,063,000        7,258,000    
expenses
Total
operating            20,860,000       12,567,000       33,427,000        15,569,000       12,434,000       28,003,000
expenses
Equity in
joint venture        1,848,000        (1,848,000 )     —                 (646,000   )     646,000          —
income (loss)
Interest
income from
loan pool            3,712,000        (3,712,000 )     —                 1,048,000        (1,048,000 )     —            
participations
and notes
receivable
Operating            (60,000    )     6,994,000        6,934,000         (2,391,000 )     5,307,000        2,916,000
(loss) income
Non-operating
income
(expense)
Interest             179,000          (179,000   )     —                 635,000          (635,000   )     —
income
Gain on sale
of interest in       —                2,352,000        2,352,000         —                —                —
joint venture
investments
Realized
foreign              (6,000     )     —                (6,000      )     —                —                —
currency
exchange loss
Interest             (6,755,000 )     (8,364,000 )     (15,119,000 )     (6,117,000 )     (4,672,000 )     (10,789,000 )
expense
Other
non-operating        —                (803,000   )     (803,000    )     —                —                —            
expenses
Loss from
continuing
operations           (6,642,000 )     —                (6,642,000  )     (7,873,000 )     —                (7,873,000  )
before benefit
from income
taxes
Benefit from         2,500,000        —                2,500,000         2,997,000        —                2,997,000    
income taxes
Loss from
continuing         $ (4,142,000 )   $ —              $ (4,142,000  )   $ (4,876,000 )   $ —              $ (4,876,000  )
operations
                                                                                                          
                                                                                                          

                  
                    
Kennedy-Wilson Holdings, Inc. and Subsidiaries

Pro Forma Consolidated Statements of Operations (Non-GAAP)
                    
                    
                   Nine Months Ended September 30,
                   2012                                                  2011
                                     Pro Rata                                              Pro Rata         
                                     Unconsolidated    Pro Forma                           Unconsolidated    Pro Forma
                   Consolidated      Investments       Total             Consolidated      Investments       Total
Revenue
Management and     $ 29,308,000      $ —               $ 29,308,000      $ 17,808,000      $ —               $ 17,808,000
leasing fees
Commissions          6,165,000         —                 6,165,000         8,429,000         —                 8,429,000
Sale of real         1,275,000         58,800,000        60,075,000        417,000           34,164,000        34,581,000
estate
Rental and           4,432,000         54,496,000        58,928,000        3,359,000         46,077,000        49,436,000
other income
Interest             —                 12,687,000        12,687,000        —                 8,838,000         8,838,000    
income
Total revenue        41,180,000        125,983,000       167,163,000       30,013,000        89,079,000        119,092,000
Operating
expenses
Commission and
marketing            3,676,000         —                 3,676,000         3,015,000         —                 3,015,000
expenses
Compensation
and related          30,658,000        698,000           31,356,000        24,562,000        —                 24,562,000
expenses
Cost of real         1,275,000         50,100,000        51,375,000        397,000           29,674,000        30,071,000
estate sold
General and          13,571,000        529,000           14,100,000        9,183,000         —                 9,183,000
administrative
Depreciation
and                  2,903,000         12,985,000        15,888,000        1,828,000         11,558,000        13,386,000
amortization
Rental
operating            2,638,000         18,855,000        21,493,000        2,248,000         18,568,000        20,816,000   
expenses
Total
operating            54,721,000        83,167,000        137,888,000       41,233,000        59,800,000        101,033,000
expenses
Equity in
joint venture        12,472,000        (12,472,000 )     —                 7,229,000         (7,229,000  )     —
income
Interest
income from
loan pool            7,126,000         (7,126,000  )     —                 5,835,000         (5,835,000  )     —            
participations
and notes
receivable
Operating            6,057,000         23,218,000        29,275,000        1,844,000         16,215,000        18,059,000
income
Non-operating
income
(expense)
Interest             2,503,000         (2,503,000  )     —                 1,234,000         (1,234,000  )     —
income
Carried
interest on          —                 2,400,000         2,400,000         —                 —                 —
realized
investment
Gain on sale
of interest in       —                 2,352,000         2,352,000         —                 —                 —
joint venture
investments
Remeasurement        —                 —                 —                 6,348,000         —                 6,348,000
gain
Gain on sale
of marketable        2,931,000         —                 2,931,000         —                 —                 —
securities
Realized
foreign              (80,000     )     —                 (80,000     )     —                 —                 —
currency
exchange loss
Interest             (19,979,000 )     (23,364,000 )     (43,343,000 )     (13,874,000 )     (14,981,000 )     (28,855,000 )
expense
Other
non-operating        —                 (2,103,000  )     (2,103,000  )     —                 —                 —            
expenses
Loss from
continuing
operations           (8,568,000  )     —                 (8,568,000  )     (4,448,000  )     —                 (4,448,000  )
before benefit
from income
taxes
Benefit from         5,121,000         —                 5,121,000         2,162,000         —                 2,162,000    
income taxes
Loss from
continuing         $ (3,447,000  )   $ —               $ (3,447,000  )   $ (2,286,000  )   $ —               $ (2,286,000  )
operations
                                                                                                              
                                                                                                              

                                                    
                                                      
Kennedy-Wilson Holdings, Inc. and Subsidiaries

Adjusted Net Loss Attributable to Kennedy Wilson Common Shareholders
                                                      
                                                      
                   Three months ended                Nine months ended
                   September 30,                     September 30,
                   2012             2011             2012              2011
Net loss
attributable
to
Kennedy-Wilson     $ (6,242,000 )   $ (6,870,000 )   $ (12,755,000 )   $ (10,289,000 )
Holdings, Inc.
common

shareholders
Non-GAAP
adjustments:
Add back:
Stock based        2,922,000        1,296,000        5,000,000         3,761,000      
compensation
Adjusted Net
Loss
Attributable
to
                   $ (3,320,000 )   $ (5,574,000 )   $ (7,755,000  )   $ (6,528,000  )
Kennedy Wilson
Holdings, Inc.
Common
Shareholders
Basic weighted
average number
of                 58,043,357       44,016,880       53,551,708        40,712,496     

common shares
outstanding
Basic Adjusted
Net Loss
Attributable
to
                   $ (0.06      )   $ (0.13      )   $ (0.14       )   $ (0.16       )
Kennedy Wilson
Holdings, Inc.
Common
Shareholders
Per Share
                                                                                      
                                                                                      

                                                    
                                                      
Kennedy-Wilson Holdings, Inc. and Subsidiaries

EBITDA and Adjusted EBITDA
                                                      
                                                      
                   Three months ended                Nine months ended
                   September 30,                     September 30,
                   2012             2011             2012             2011
Net loss           $ (4,142,000 )   $ (4,876,000 )   $ (3,657,000 )   $ (2,286,000 )
Non-GAAP
adjustments:
Add back:
Interest           6,755,000        6,117,000        19,979,000       13,874,000
expense
Kennedy
Wilson's share
of interest
expense
included in
investment         8,364,000        4,672,000        23,364,000       14,981,000

in joint
ventures and
loan pool
participations
Depreciation
and                989,000          931,000          2,903,000        1,828,000
amortization
Kennedy
Wilson's share
of
depreciation
and
amortization       5,085,000        3,849,000        12,985,000       11,558,000
included

in investment
in joint
ventures
Benefit from       (2,500,000   )   (2,997,000   )   (5,121,000   )   (2,162,000   )
income taxes
EBITDA             14,551,000       7,696,000        50,453,000       37,793,000
Stock-based        2,922,000        1,296,000        5,000,000        3,761,000     
compensation
Adjusted           $ 17,473,000     $ 8,992,000      $ 55,453,000     $ 41,554,000  
EBITDA
                                                                                    

Contact:

Kennedy Wilson
Christina Cha
Director of Corporate Communication
(310) 887-6294
ccha@kennedywilson.com
www.kennedywilson.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement