This Day On The Street
Continue to site
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

Altria Announces Cash Tender Offer For A Portion Of Its Long-Term Debt

Altria reaffirms its 2012 full-year guidance for adjusted diluted EPS, which excludes special items shown in Table 1 below, to be in the range of $2.19 to $2.23, representing a growth rate of 7% to 9% from an adjusted diluted EPS base of $2.05 per share in 2011. Altria anticipates adjusted diluted EPS growth to moderate in the second half of 2012 compared to the first half of 2012. Altria expects the debt tender transaction to impact 2012 third-quarter adjusted diluted EPS negatively, primarily due to an increase in Altria’s 2012 full-year effective tax rate on operations. Altria believes that adjusted diluted EPS performance will be stronger in the fourth quarter compared to the third quarter of 2012.

The factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to this forecast. Reconciliations of full-year adjusted to reported diluted EPS are shown in Table 1 below.
Table 1 - Altria’s Full-Year Earnings Per Share Guidance Excluding Special Items
  Full Year
2012 Guidance   2011     Change
Reported diluted EPS $1.96 to $2.00     $   1.64     20% to 22%
Loss on early extinguishment of debt 0.33 -

Asset impairment, exit, integration and    implementation costs
0.02 0.07
SABMiller special items (0.09 ) 0.03
PMCC leveraged lease (benefit) charge (0.03 ) 0.30
Tax items* - (0.04 )
Tobacco and health judgments -  

Adjusted diluted EPS     $2.19 to $2.23     $   2.05       7% to 9%

* Excludes the tax impact of the PMCC leveraged lease (benefit) charge.

2012 Full-Year Tax Rate Guidance

Altria anticipates that its 2012 full-year effective tax rate on operations will increase by one percentage point to approximately 37% due to a reduction in certain consolidated tax benefits resulting from the debt tender transaction. The factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to this forecast. Reconciliations of 2012 full-year effective tax rate on operations to reported effective tax rate are shown in Table 2 below.
Table 2 - Altria’s Tax Rate      
Full Year
2012 Guidance
Reported Effective Tax Rate 35.9%

Interest benefit on tax underpayments associated with    PMCC leveraged lease transactions
Other tax items

Effective Tax Rate on Operations     36.9%

Dividend and Share Repurchase Program

Altria does not expect the tender for the Notes or the issuance of New Notes to impact Altria’s dividend payout ratio target of approximately 80% of its adjusted diluted EPS or its current $1.0 billion share repurchase program. Future dividend payments and the share repurchase program remain subject to the discretion of Altria’s Board of Directors.

5 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%
YHOO $36.00 -0.03%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs