Let me now turn to the key financials for the 3 months and 6 months ended June 30, 2012, for Vector Group. For the second quarter ended June 30, 2012, Vector Group revenues were $276.6 million compared to $291.2 million in the 2011 second quarter. The decline in revenues was primarily due to an approximate 8.4% reduction in cigarette volumes, which was partially offset by higher pricing. The company recorded operating income of $40.9 million in the 2012 second quarter compared to operating income of $38 million in the corresponding period in 2011, an increase of 7.6%, principally due to improved margins.Second quarter 2012 net income was $3.9 million or $0.05 per diluted share compared to net income of $30.3 million or $0.34 per diluted share in the 2011 period. The second quarter 2012 results include a pretax loss of $7.9 million related to the conversion of the company's convertible debt and a pretax charge of $6 million from changes in fair value of derivatives embedded within our convertible debt. Adjusting for these items, second quarter 2012 net income was $12.2 million or $0.15 per diluted share.
Vector Group Management Discusses Q2 2012 Results - Earnings Call Transcript
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