This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Vector Group Reports First Quarter 2012 Financial Results

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.

 
 

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
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  

________________________________

 

* Revenues and Cost of goods sold include excise taxes of $121,925 and $127,634, respectively.

 




1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,047.17 +68.04 0.40%
S&P 500 1,990.78 +4.27 0.21%
NASDAQ 4,524.5080 -1.9740 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs