Sotheby’s (NYSE: BID) today reported its financial results for the
first quarter ended March 31, 2019.
For the three months ended March 31, 2019, Sotheby’s reported a
net loss of ($7.1) million, or ($0.15) per share as compared to
($6.5) million, or ($0.12) per share in the prior period.
Excluding certain items, Adjusted Net Loss* was ($6.9) million, or
($0.15) per share in the first quarter of 2019 as compared to
Adjusted Net Income* of $5.0 million, or $0.09 per diluted share in
the first quarter of 2018.
“We were very pleased that strong demand and sell-through rates
overcame a slightly lower supply picture in the first quarter,”
said Tad Smith, CEO of Sotheby’s, adding, “we feel very good about
the second quarter results based on great works of art and strong
demand from Asia and the Americas.”
Highlights
- Important New York auctions begin May 14th with a number of
highlights, including one of the finest examples of Monet’s
“Haystacks” paintings (pre-sale estimate in excess of $55 million)
and the unveiling of Sotheby’s new world-class exhibition
space. Public exhibition opens tomorrow, May 3rd, in our New
York headquarters.
- First quarter results would have compared more favorably to
2018 were it not for smaller London sales and the movement of
certain Spring Hong Kong sales into the second quarter of 2019
after occurring in the first quarter of the prior year. The
schedule change moved $74 million in Net Auction Sales from the
first quarter to the second quarter of 2019.
- The Hong Kong sale series brought an aggregate total of $482
million across the first and second quarters, the second highest
total in company history, and a 4% increase over the same sales
series held in 2018.
- Auction commission margin improved 90 basis points from 17.3%
in the first quarter of 2018 to 18.2% in the first quarter of 2019
reflecting a higher mix of lower priced works.
- As a reminder, it is traditional for Sotheby’s to report a net
loss in the first and third quarters due to our seasonal sales
calendar that is heavily weighted towards spring and fall sales
events. Sotheby’s has reported first quarter net income only
a handful of times in the 30 years since becoming a public
company.
Sotheby’s Financial
HighlightsThree Months Ended March 31, 2019 v.
2018 (in thousands of dollars, except per share
data)
| |
|
|
|
|
|
Variance |
| |
|
1Q19 |
|
1Q18 |
|
$ |
|
% |
| Operating
(loss) income |
$(3,571 |
) |
|
$6,911 |
|
|
$(10,482 |
) |
|
N/A |
| Adjusted
Operating (Loss) Income (a) |
$(2,880 |
) |
|
$11,286 |
|
|
$(14,166 |
) |
|
N/A |
| Net loss attributable to
Sotheby's |
$(7,071 |
) |
|
$(6,522 |
) |
|
$(549 |
) |
|
(8 |
%) |
| Adjusted
Net (Loss) Income (a) |
$(6,902 |
) |
|
$4,955 |
|
|
$(11,857 |
) |
|
N/A |
| Basic and
diluted loss per share |
$(0.15 |
) |
|
$(0.12 |
) |
|
$(0.03 |
) |
|
(25 |
%) |
| Adjusted
Diluted (Loss) Earnings Per Share (a) |
$(0.15 |
) |
|
$0.09 |
|
|
$(0.24 |
) |
|
N/A |
|
Consolidated Sales (b) |
$923,330 |
|
|
$1,090,559 |
|
|
$(167,229 |
) |
|
(15 |
%) |
| Aggregate
Auction Sales (c) |
$713,684 |
|
|
$827,735 |
|
|
$(114,051 |
) |
|
(14 |
%) |
| Net Auction
Sales (d) |
$590,252 |
|
|
$691,369 |
|
|
$(101,117 |
) |
|
(15 |
%) |
| Private
Sales (e) |
$200,880 |
|
|
$246,588 |
|
|
$(45,708 |
) |
|
(19 |
%) |
(a) See Appendix B for a description of these non-GAAP financial
measures and reconciliations to the most comparable GAAP
amounts.(b) Represents the sum of Aggregate Auction Sales, Private
Sales, and inventory sales.(c) Represents the total hammer (sale)
price of property sold at auction plus buyer’s premium, excluding
amounts related to the sale of our inventory at auction, which are
reported within inventory sales.(d) Represents the total hammer
(sale) price of property sold at auction, excluding amounts related
to the sale of our inventory at auction, which are reported within
inventory sales.(e) Represents the total purchase price of property
sold in private sales that we have brokered, including our
commissions.
Non-GAAP Financial Measures
*Adjusted Operating (Loss) Income, Adjusted Net (Loss) Income
and Adjusted Diluted (Loss) Earnings Per Share are non-GAAP
financial measures. See Appendix B for a description of these
non-GAAP financial measures and reconciliations to the most
comparable GAAP amounts.
Forward-Looking Statements
This release contains certain “forward-looking statements” (as
such term is defined in Section 21E of the Securities and Exchange
Act of 1934, as amended) relating to future events and the
financial performance of Sotheby’s. Such statements are only
predictions and involve risks and uncertainties, resulting in the
possibility that the actual events or performances will differ
materially from such predictions. Major factors, which
Sotheby’s believes could cause the actual results to differ
materially from the predicted results in the “forward-looking
statements” include, but are not limited to, the overall strength
of the global economy and financial markets, political conditions
in various countries, competition with other auction houses and art
dealers, the amount and quality of property available for
consignment and the marketability at auction of such
property. Please refer to our most recently filed Form 10-K
for a complete list of Risk Factors.
Investor Relations
Information
All Sotheby’s Press Releases and SEC filings are available on
our web site at www.sothebys.com. An outline of the
conference call can be found here:
https://sothebys.gcs-web.com/events-and-presentations.
Sotheby’s will host a conference call at 9:00 AM EDT on May 2,
2019, to discuss its first quarter 2019 financial results.
Please dial 888-371-8897 and for callers outside the United States,
Puerto Rico and Canada, please dial 1-970-315-0479, approximately
15 minutes before the scheduled start of the call. The call
reservation number is 3464657. The conference call will also be
accessible via webcast on the Investor Relations section of the
Sotheby’s web site at
https://sothebys.gcs-web.com/events-and-presentations.
About Sotheby’s
Sotheby’s has been uniting collectors with world-class works of
art since 1744. Sotheby’s became the first international auction
house when it expanded from London to New York (1955), the first to
conduct sales in Hong Kong (1973), India (1992) and France (2001),
and the first international fine art auction house in China (2012).
Today, Sotheby’s presents auctions in 10 different salesrooms,
including New York, London, Hong Kong and Paris, and Sotheby’s
BidNow program allows visitors to view all auctions live online and
place bids from anywhere in the world. Sotheby’s offers collectors
the resources of Sotheby’s Financial Services, the world’s only
full-service art financing company, as well as the collection,
artist, estate & foundation advisory services of its
subsidiary, Art Agency, Partners. Sotheby’s presents private sale
opportunities in more than 70 categories, including S|2, the
gallery arm of Sotheby's Global Fine Art Division, and three retail
businesses: Sotheby’s Wine, Sotheby’s Diamonds, and Sotheby’s Home,
the online marketplace for interior design. Sotheby’s has a global
network of 80 offices in 40 countries and is the oldest company
listed on the New York Stock Exchange (BID).
Instagram | Facebook |
Twitter | YouTube | Pinterest |
Snapchat | Weibo | WeChat |
Youku | Medium
Browse sale catalogues, view original content,
stream live auctions and more at sothebys.com, and through
Sotheby’s apps for iPhone, iPad, Android, Apple TV and Amazon
Fire
APPENDIX A
SOTHEBY’SCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)(Thousands
of dollars, except per share data)
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
| |
|
|
|
|
| Revenues: |
|
|
|
|
| Agency
commissions and fees |
|
$ |
147,667 |
|
|
$ |
165,526 |
|
| Inventory
sales |
|
8,766 |
|
|
16,236 |
|
|
Finance |
|
13,266 |
|
|
9,881 |
|
|
Other |
|
3,766 |
|
|
4,153 |
|
| Total
revenues |
|
173,465 |
|
|
195,796 |
|
| Expenses: |
|
|
|
|
| Agency
direct costs |
|
31,803 |
|
|
35,273 |
|
| Cost of
inventory sales |
|
7,166 |
|
|
15,995 |
|
| Cost of
finance revenues |
|
— |
|
|
2,263 |
|
|
Marketing |
|
5,908 |
|
|
5,722 |
|
| Salaries
and related |
|
76,645 |
|
|
78,719 |
|
| General
and administrative |
|
47,842 |
|
|
43,813 |
|
|
Depreciation and amortization |
|
7,691 |
|
|
7,100 |
|
|
Restructuring charges, net |
|
(19 |
) |
|
— |
|
| Total
expenses |
|
177,036 |
|
|
188,885 |
|
| Operating
(loss) income |
|
(3,571 |
) |
|
6,911 |
|
| Interest income |
|
285 |
|
|
365 |
|
| Interest expense |
|
(13,151 |
) |
|
(9,313 |
) |
| Extinguishment of
debt |
|
— |
|
|
(10,855 |
) |
| Non-operating
income |
|
1,848 |
|
|
1,424 |
|
| Loss
before taxes |
|
(14,589 |
) |
|
(11,468 |
) |
| Income tax benefit |
|
(5,986 |
) |
|
(4,136 |
) |
| Equity in earnings of
investees |
|
1,528 |
|
|
806 |
|
| Net loss |
|
(7,075 |
) |
|
(6,526 |
) |
| Less: Net
loss attributable to noncontrolling interest |
|
(4 |
) |
|
(4 |
) |
| Net loss attributable
to Sotheby's |
|
$ |
(7,071 |
) |
|
$ |
(6,522 |
) |
| Basic and diluted loss
per share - Sotheby’s common shareholders |
|
$ |
(0.15 |
) |
|
$ |
(0.12 |
) |
| NON-GAAP FINANCIAL
MEASURES |
APPENDIX B |
GAAP refers to generally accepted accounting principles in the
United States of America. Included in this earnings release are
financial measures presented in accordance with GAAP and also on a
non-GAAP basis. Non-GAAP financial measures are important
supplemental measures used in our financial and operational
decision making processes, for internal reporting, and as part of
our forecasting and budgeting processes, as they provide helpful
measures of our core operations. These measures allow us to view
operating trends, perform analytical comparisons, and benchmark
performance between periods. We also believe that these measures
may be used by securities analysts, investors, financial
institutions, and other interested parties in their evaluation of
our performance. The non-GAAP financial measures presented in this
earnings release are:
| (i) |
Adjusted Operating (Loss) Income |
| (ii) |
Adjusted Net (Loss) Income |
| (iii) |
Adjusted Diluted (Loss) Earnings Per Share |
To the extent applicable, these non-GAAP financial measures
exclude the effect of the following items, as detailed in the
accompanying reconciliation tables below:
| (i) |
Charges related to contractual severance
agreements entered into with certain former employees; |
| (ii) |
Accelerated depreciation charges related to
certain fixed assets that have been removed from service in
connection with enhancements being made to the York Property; |
| (iii) |
Credits associated with the restructuring plan
implemented in 2018; |
| (iv) |
The loss incurred in connection with the
extinguishment of our 2022 Senior Notes; and |
| (v) |
Adjustments made to our estimate of the net cost
related to the effective settlement of an income tax audit. |
We caution readers of this earnings release that amounts
presented in accordance with these non-GAAP financial measures may
not be comparable to similar measures disclosed by other companies
because not all companies and analysts calculate such measures in
the same manner.
The following is a reconciliation of operating (loss) income to
Adjusted Operating (Loss) Income for the three months ended March
31, 2019 and 2018 (in thousands):
|
Three Months Ended March 31, |
|
2019 |
|
|
|
|
2018 |
|
| Operating (loss)
income |
|
$ |
(3,571 |
) |
|
$ |
6,911 |
|
| Add: Contractual
severance agreement charges |
|
— |
|
|
2,822 |
|
| Add: Accelerated
depreciation charges |
|
710 |
|
|
1,553 |
|
| Add: Restructuring plan
credits |
|
(19 |
) |
|
— |
|
| Adjusted
Operating (Loss) Income |
|
$ |
(2,880 |
) |
|
$ |
11,286 |
|
The following is a reconciliation of net loss attributable to
Sotheby's to Adjusted Net (Loss) Income for the three months ended
March 31, 2019 and 2018 (in thousands):
|
Three Months Ended March 31, |
|
2019 |
|
|
|
|
2018 |
|
| Net loss attributable
to Sotheby's |
|
$ |
(7,071 |
) |
|
$ |
(6,522 |
) |
| Add: Contractual
severance agreement charges, net of tax of $0 and ($676) |
|
— |
|
|
2,146 |
|
| Add: Accelerated
depreciation charges, net of tax of ($176) and ($385) |
|
534 |
|
|
1,168 |
|
| Add: Restructuring plan
credits, net of tax of ($9) and $0 |
|
(28 |
) |
|
— |
|
| Add: Extinguishment of
debt, net of tax of $0 and ($2,692) |
|
— |
|
|
8,163 |
|
| Add: Net credit
associated with the effective settlement of an income tax
audit |
|
(337 |
) |
|
— |
|
| Adjusted
Net (Loss) Income |
|
$ |
(6,902 |
) |
|
$ |
4,955 |
|
The income tax effect of each line item in the reconciliation of
net loss attributable to Sotheby's to Adjusted Net (Loss) Income is
computed using the relevant jurisdictional tax rate for that
item.
The following is a reconciliation of diluted loss per share to
Adjusted Diluted (Loss) Earnings Per Share for the three months
ended March 31, 2019 and 2018:
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
| Diluted loss per
share |
|
$ |
(0.15 |
) |
|
$ |
(0.12 |
) |
| Add: Contractual
severance agreement charges, per share |
|
— |
|
|
0.04 |
|
| Add: Accelerated
depreciation charges, per share |
|
0.01 |
|
|
0.02 |
|
| Add: Restructuring plan
credits, per share |
|
— |
|
|
— |
|
| Add: Extinguishment of
debt, per share |
|
— |
|
|
0.15 |
|
| Add: Net credit
associated with the effective settlement of an income tax audit,
per share |
|
(0.01 |
) |
|
— |
|
| Adjusted
Diluted (Loss) Earnings Per Share |
|
$ |
(0.15 |
) |
|
$ |
0.09 |
|
Lauren Gioia | Jennifer Park | Dan Abernethy | Lauren.Gioia@Sothebys.com | Jennifer.Park@Sothebys.com | Dan.Abernethy@Sothebys.com +1 212 606 7176
Sothebys (NYSE:BID)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
Sothebys (NYSE:BID)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025
