MIAMI -- (Business Wire)
Vector Group Ltd. (NYSE: VGR) today announced financial results for the
three months ended March 31, 2012.
First quarter 2012 revenues were $257.6 million, compared to $260.4
million in the first quarter of 2011. The decline in revenues in 2012
was primarily due to decreased unit sales of approximately 4.5% in the
2012 period compared to the 2011 period, which were partially offset by
price increases. The Company recorded operating income of $33.4 million
in the 2012 first quarter, compared to operating income of $31.5 million
in the first quarter of 2011. Net loss for the 2012 first quarter was
$7.7 million, or $(0.10) per diluted common share, compared to net
income of $19.4 million, or $0.24 per diluted common share, in the 2011
first quarter.
The results for the three months ended March 31, 2012 included pre-tax
losses from changes in the fair value of derivatives embedded within
convertible debt of $21.1 million. Adjusting for the pre-tax losses,
first quarter 2012 net income was $5.4 million or $0.07 per diluted
share.
The results for the three months ended March 31, 2011 included pre-tax
gains of $4.1 million from the liquidation of long-term investments and
$3.1 million from the sale of a townhome that were offset by pre-tax
losses from changes in the fair value of derivatives embedded within
convertible debt of $575,000. Adjusting for these items, first quarter
2011 net income was $15.3 million or $0.20 per diluted share.
For the three months ended March 31, 2012, the Company's tobacco
business had revenues of $257.6 million compared to $260.4 million for
the three months ended March 31, 2011. Operating income was $37.5
million for the first quarter of 2012, compared to $36.4 million for the
first quarter of 2011.
Conference Call to Discuss First Quarter 2012 Results
As previously announced, the Company will host a conference call and
webcast on Friday, May 4, 2012 at 11:30 A.M. (ET) to discuss first
quarter 2012 results. Investors can access the call by dialing 800-859-8150
and entering 50225765 as the conference ID number. The call will
also be available via live webcast at www.investorcalendar.com.
Webcast participants should allot extra time before the webcast begins
to register.
A replay of the call will be available shortly after the call ends on
May 4, 2012 through May 18, 2012. To access the replay, dial
877-656-8905 and enter 50225765 as the conference ID number. The
archived webcast will also be available at www.investorcalendar.com
for 30 days.
Vector Group is a holding company that indirectly owns Liggett Group LLC
and Vector Tobacco Inc. and directly owns New Valley LLC. Additional
information concerning the company is available on the company's
website, www.VectorGroupLtd.com.
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VECTOR GROUP LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share
Amounts) Unaudited | |
|
|
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|
| | |
| | | | |
Three Months Ended
| |
| | | | |
March 31,
| |
| | | | |
2012
|
|
|
2011
| |
| | | | | | | | |
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Revenues*
| | | | |
$
|
257,606
| | | |
$
|
260,378
| | |
| | | | | | | | |
|
|
Expenses:
| | | | | | | | | |
|
Cost of goods sold*
| | | | | |
200,181
| | | | |
205,177
| | |
|
Operating, selling, administrative and general expenses
| | | | |
|
23,979
|
| | |
|
23,725
|
| |
|
Operating income
| | | | | |
33,446
| | | | |
31,476
| | |
|
Other income (expenses):
| | | | | | | | | |
|
Interest expense
| | | | | |
(26,252
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)
| | | |
(24,928
|
)
| |
|
Change in fair value of derivatives embedded within convertible debt
| | | | | |
(21,057
|
)
| | | |
(575
|
)
| |
|
Loss on extinguishment of debt
| | | | | |
2
| | | | |
—
| | |
|
Equity income from non-consolidated real estate businesses
| | | | | |
2,863
| | | | |
4,904
| | |
|
Equity (loss) income on long-term investments
| | | | | |
(114
|
)
| | | |
763
| | |
|
Gain on sale of investment securities available for sale
| | | | | |
—
| | | | |
13,035
| | |
|
Gain on liquidation of long-term investments
| | | | | |
—
| | | | |
4,136
| | |
|
Gain on sale of townhome
| | | | | |
—
| | | | |
3,135
| | |
|
Other, net
| | | | |
|
(70
|
)
| | |
|
76
|
| |
| | | | | | | | |
|
|
(Loss) income before provision for income taxes
| | | | | |
(11,182
|
)
| | | |
32,022
| | |
|
Income tax (benefit) expense
| | | | |
|
(3,492
|
)
| | |
|
12,649
|
| |
| | | | | | | | |
|
|
Net (loss) income
| | | | |
$
|
(7,690
|
)
| | |
$
|
19,373
|
| |
| | | | | | | | |
|
|
Per basic common share:
| | | | | | | | | |
| | | | | | | | |
|
|
Net (loss) income applicable to common shares
| | | | |
$
|
(0.10
|
)
| | |
$
|
0.24
|
| |
| | | | | | | | |
|
|
Per diluted common share:
| | | | | | | | | |
| | | | | | | | |
|
|
Net (loss) income applicable to common shares
| | | | |
$
|
(0.10
|
)
| | |
$
|
0.24
|
| |
| | | | | | | | |
|
|
Cash distributions and dividends declared per share
| | | | |
$
|
0.40
|
| | |
$
|
0.38
|
| |
________________________________
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* Revenues and Cost of goods sold include excise taxes of $121,925
and $127,634, respectively.
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Contacts:
Sard Verbinnen & Co
Paul Caminiti/Jonathan Doorley, 212-687-8080
Source: Vector Group Ltd.
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