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CORRECTINGandREPLACINGVector Group Reports Second Quarter 2011 Financial Results

^{Published on 2011-08-04 21:21:21 - Market Wire}
 

MIAMI--([ BUSINESS WIRE ])--Headline of release should read:Vector Group Reports Second Quarter 2011 Financial Results (sted Vector Group Reports First Quarter 2011 Financial Results).

The corrected release reads:

VECTOR GROUP REPORTS SECOND QUARTER 2011 FINANCIAL RESULTS

Vector Group Ltd. (NYSE: VGR) today announced financial results for the three and six months ended June 30, 2011.

Second quarter 2011 revenues were $291.2 million, compared to revenues of $268.5 million in the second quarter of 2010. The increase in revenues in 2011 was primarily due to increased unit sales of approximately 5.7% in the 2011 period compared to the 2010 period. The Company recorded operating income of $38.0 million in the 2011 second quarter, compared to operating income of $21.1 million in the second quarter of 2010. Net income for the 2011 second quarter was $30.3 million, or $0.36 per diluted common share, compared to $19.2 million, or $0.19 per diluted common share, in the 2010 second quarter. The results for the three months ended June 30, 2011 included pre-tax gains from the liquidation of long-term investments of $19.5 million, changes in the fair value of derivatives embedded within convertible debt of $9.4 million, and the sale of a townhome of $577,000 offset by a loss on extinguishment of debt of $1.2 million. Adjusting for the pre-tax gains and loss on extinguishment of debt, second quarter 2011 operating income was $38.0 million and second quarter 2011 net income was $13.2 million or $0.17 per diluted share. The results for the year-ago period, the three months ended June 30, 2010, included a pre-tax charge of $14.4 million related to the resolution of a litigation judgment and $13.8 million of pre-tax gains from changes in fair value of derivatives embedded within convertible debt. Adjusting for the pre-tax charge related to the resolution of a litigation judgment and the non-cash gains from the Company's convertible debt previously noted, second quarter 2010 operating income was $35.4 million and second quarter 2010 net income was $19.6 million or $0.26 per diluted share.

For the six months ended June 30, 2011, revenues were $551.6 million, compared to $490.5 million for the first six months of 2010. The increase in revenues in 2011 was primarily due to increased unit sales of approximately 9.8% in the 2011 six-month period compared to the 2010 period. The Company recorded operating income of $69.4 million for the 2011 six-month period, compared to operating income of $52.1 million for the 2010 period. Net income for the 2010 six-month period was $49.7 million, or $0.64 per diluted common share, compared to $31.2 million, or $0.39 per diluted common share, for the 2010 period. The results for the six months ended June 30, 2011 included pre-tax gains from the liquidation of long-term investments of $23.6 million, changes in the fair value of derivatives embedded within convertible debt of $8.9 million and the sales of townhomes of $3.7 million offset by a loss on extinguishment of debt of $1.2 million. Adjusting for the pre-tax gains and loss on extinguishment of debt, operating income for the six months ended June 30, 2011 was $69.4 million and net income for the six months ended June 30, 2011 was $28.5 million or $0.37 per diluted share. Adjusting for the pre-tax charge related to the resolution of a litigation judgment previously discussed and $11.1 million of non-cash gains from the Company's convertible debt, operating income for the six months ended June 30, 2010 was $66.5 million and net income for the six months ended June 30, 2010 was $33.2 million or $0.44 per diluted share.

For the three and six months ended June 30, 2011, the Company's tobacco business had revenues of $291.2 million and $551.6 million, respectively, compared to $$268.5 million and $490.5 million for the three and six months ended June 30, 2010, respectively. Operating income was $42.2 million for the second quarter of 2011 and $78.6 million for the first six months of 2011, compared to $26.0 million and $61.0 million for the three and six months ended June 30, 2010, respectively. Adjusting for a litigation judgment charge, operating income for the three and six months ended June 30, 2010 was $40.4 million and $75.3 million, respectively.

Conference Call to Discuss Second Quarter 2011 Results

As previously announced, the Company will host a conference call and webcast on Friday, August 5, 2011 at 11:00 A.M. (ET) to discuss second quarter 2011 results. Investors can access the call by dialing 800-859-8150 and entering 90121568 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 August 5, 2011 through August 19, 2011. To access the replay, dial 877-656-8905 and enter 90121568 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 ].

* Revenues and Cost of goods sold include excise taxes of $142,934, $135,217, $270,568 and $246,410, respectively.