House & Home
Tue, May 15, 2012
MIAMI--([ BUSINESS WIRE ])--Vector Group Ltd. (NYSE: VGR) today announced financial results for the three months ended March31, 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 March31, 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 March31, 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 March31, 2012, the Company's tobacco business had revenues of $257.6 million compared to $260.4 million for the three months ended March31, 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, May4, 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 May4, 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 ].
VECTOR GROUP LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share Amounts) Unaudited | |||||||||||||
| Three Months Ended | |||||||||||||
| March 31, | |||||||||||||
| 2012 | 2011 | ||||||||||||
| 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 | ) | (24,928 | ) | |||||||||
| Change in fair value of derivatives embedded within convertible debt | (21,057 | ) | (575 | ) | |||||||||
| Loss on extinguishment of debt | 2 | a" | |||||||||||
| 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 | a" | 13,035 | |||||||||||
| Gain on liquidation of long-term investments | a" | 4,136 | |||||||||||
| Gain on sale of townhome | a" | 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. | |||||||||||||
