Vector Group Reports Third Quarter 2022 Financial Results
Tobacco Segment Revenues Set Quarterly Record Fueled by Continued Strong Volume
Third Quarter 2022 Highlights:
-
Consolidated revenues of
$378.0 million , increased by 26.6% or$79.5 million compared to the prior year period-
Tobacco segment revenues of
$378.0 million are a quarterly record and increased by 26.9% compared to the prior year period. - Tobacco segment unit volume increase of 30.1% compared to the prior year period.
- Liggett’s wholesale and retail market share increased to 5.7% and 5.7% from 3.9% and 4.2%, respectively, in the prior year period.
-
Tobacco segment revenues of
-
Reported net income attributed to
Vector Group Ltd. of$38.9 million or$0.25 per diluted common share, compared to$48.9 million or$0.31 per diluted common share in the prior year period -
Reported net income attributed to
Vector Group Ltd. from Continuing Operations of$38.9 million or$0.25 per diluted common share, compared to$29.9 million or$0.19 per diluted common share in the prior year period -
Adjusted Net Income from Continuing Operations of
$37.6 million or$0.24 per diluted common share, compared to$33.9 million or$0.22 per diluted common share in the prior year period -
Reported operating income of
$83.9 million , increased by$1.9 million compared to the prior year period-
Tobacco segment operating income of
$88.1 million , declined by 4.0% or$3.7 million compared to the prior year period, primarily attributable to the investment in Montego’s significant volume and market share growth.
-
Tobacco segment operating income of
-
Adjusted EBITDA from Continuing Operations of
$87.3 million , declined by 1.6% or$1.4 million compared to the prior year period-
Tobacco Adjusted EBITDA of
$89.6 million , declined by 4.0% or$3.7 million compared to the prior year period, primarily attributable to the investment in Montego’s significant volume and market share growth.
-
Tobacco Adjusted EBITDA of
Year-to-date 2022 Highlights:
-
Consolidated revenues of
$1.1 billion , increased by 18.8% or$170.2 million compared to the prior year period-
Tobacco segment revenues of
$1.1 billion , increased by 18.5% compared to the prior year period. - Tobacco segment unit volume increase of 21.5% compared to the prior year period.
- Liggett’s wholesale and retail market share increased to 5.4% and 5.4% from 4.0% and 4.2%, respectively, in the prior year period.
-
Tobacco segment revenues of
-
Reported net income attributed to
Vector Group Ltd. of$110.6 million or$0.70 per diluted common share, compared to$174.2 million or$1.11 per diluted common share in the prior year period -
Reported net income attributed to
Vector Group Ltd. from Continuing Operations of$110.6 million or$0.70 per diluted common share, compared to$116.4 million or$0.74 per diluted common share in the prior year period -
Adjusted Net Income from Continuing Operations of
$104.4 million or$0.66 per diluted common share, compared to$133.4 million or$0.85 per diluted common share in the prior year period -
Reported operating income of
$249.7 million , declined by$2.1 million compared to the prior year period-
Tobacco segment operating income of
$254.1 million , declined by 8.1% or$22.5 million compared to the prior year period, primarily attributable to the investment in Montego’s significant volume and market share growth.
-
Tobacco segment operating income of
-
Adjusted EBITDA from Continuing Operations of
$259.5 million , declined by 2.3% or$6.1 million compared to the prior year period-
Tobacco Adjusted EBITDA of
$256.6 million , declined by 8.0% or$22.3 million compared to the prior year period, primarily attributable to the investment in Montego’s significant volume and market share growth.
-
Tobacco Adjusted EBITDA of
-
Strong liquidity with cash and cash equivalents of
$385.0 million and investment securities and long-term investments of$160.2 million atSeptember 30, 2022 -
Cash dividends of
$95 million returned to stockholders at a rate of$0.60 per common share
Last Twelve Months ended
-
Consolidated revenues of
$1.4 billion -
Tobacco segment revenues of
$1.4 billion .
-
Tobacco segment revenues of
-
Net income of
$155.9 million -
Operating income of
$318.3 million -
Tobacco segment operating income of
$337.8 million .
-
Tobacco segment operating income of
-
Adjusted EBITDA from Continuing Operations of
$343.8 million -
Tobacco Adjusted EBITDA of
$342.1 million .
-
Tobacco Adjusted EBITDA of
“Vector Group delivered record tobacco quarterly revenues in the third quarter as we continued to capitalize on favorable market opportunities to substantially increase value and market share,” said
GAAP Financial Results
Three months ended
Nine months ended
Non-GAAP Financial Measures
Non-GAAP financial results include adjustments for litigation settlements and judgment expense, impact of Master Settlement Agreement settlements, transaction expenses, acceleration of stock compensation expense (for purposes of Adjusted Net Income from Continuing Operations and Adjusted Operating Income only), net gains on sales of assets (for purposes of Adjusted EBITDA from Continuing Operations and Adjusted Operating Income only), and loss on extinguishment of debt (for purposes of Adjusted EBITDA from Continuing Operations and Adjusted Net Income from Continuing Operations). For purposes of Adjusted EBITDA from Continuing Operations only, adjustments include equity in earnings from investments, equity in (earnings) losses from real estate ventures, stock-based compensation expense, litigation settlements and judgment expense, impact of Master Settlement Agreement settlements, transaction expenses, and other, net. For purposes of Adjusted Net Income from Continuing Operations only, adjustments include net interest expense capitalized to real estate ventures and adjustments for a derivative associated with a guarantee. Reconciliations of non-GAAP financial measures to the comparable GAAP financial results for the last twelve months ended
Three months ended
Adjusted EBITDA from Continuing Operations (as described in Table 2 attached hereto) were
Adjusted Net Income from Continuing Operations (as described in Table 3 attached hereto) was
Adjusted Operating Income (as described in Table 4 attached hereto) was
Nine months ended
Adjusted EBITDA from Continuing Operations (as described in Table 2 attached hereto) were
Adjusted Net Income from Continuing Operations (as described in Table 3 attached hereto) was
Adjusted Operating Income (as described in Table 4 attached hereto) was
Last twelve months ended
For the last twelve months ended
For the last twelve months ended
Consolidated Balance Sheet
Vector maintained significant liquidity at
Vector continued its longstanding history of paying a quarterly cash dividend in the third quarter of 2022. For the nine months ended
Tobacco Segment Financial Results
For the third quarter of 2022, the Tobacco segment had revenues of
Operating Income from the Tobacco segment was
Non-GAAP Financial Measures
Tobacco Adjusted Operating Income (as described in Table 5 attached hereto) for the third quarter of 2022 and 2021 was
For the third quarter of 2022, the Tobacco segment had conventional cigarette (wholesale) shipments of approximately 2.75 billion units, compared to 2.11 billion units for the third quarter of 2021. For the nine months ended
Operational Metrics
According to data from
According to data from
Non-GAAP Financial Measures
Adjusted EBITDA from Continuing Operations, Adjusted Net Income from Continuing Operations, Adjusted Operating Income, Tobacco Adjusted Operating Income, Tobacco Adjusted EBITDA, and financial measures for the last twelve months (“LTM”) ended
Management uses the Non-GAAP Financial Measures as measures to review and assess operating performance of the Company’s business, and management does and investors should review both the overall performance (GAAP net income) and the operating performance (the Non-GAAP Financial Measures) of the Company’s business. While management considers the Non-GAAP Financial Measures to be important, they should be considered in addition to, but not as substitutes for or superior to, other measures of financial performance prepared in accordance with GAAP, such as operating income, net income and cash flows from operations. In addition, the Non-GAAP Financial Measures are susceptible to varying calculations and the Company’s measurement of the Non-GAAP Financial Measures may not be comparable to those of other companies. Attached hereto as Tables 2 through 6 is information relating to the Company’s Non-GAAP Financial Measures for the last twelve months ended
Conference Call to Discuss Third Quarter 2022 Results
As previously announced, the Company will host a conference call and webcast on
A replay of the call will be available for one year shortly after the call ends at https://www.webcaster4.com/Webcast/Page/2271/46710.
About
Investors and others should note that we may post information about the Company or its subsidiaries on our website at www.VectorGroupLtd.com and/or at the websites of those subsidiaries or, if applicable, on their accounts on LinkedIn,
Forward-Looking and Cautionary Statements
This press release includes forward-looking statements within the meaning of the federal securities law. All statements other than statements of historical or current facts made in this document are forward-looking. We identify forward-looking statements in this document by using words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may be,” “continue’” “could,” “potential,” “objective,” “plan,” “seek,” “predict,” “project” and “will be” and similar words or phrases or their negatives. Forward-looking statements reflect our current expectations and are inherently uncertain. Actual results could differ materially for a variety of reasons.
Risks and uncertainties that could cause our actual results to differ significantly from our current expectations are described in our 2021 Annual Report on Form 10-K, and when filed, in our Quarterly Report on Form 10-Q for the quarter ended
[Financial Tables Follow]
TABLE 1
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Amounts)
On
|
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
|
|
(Unaudited) |
|
(Unaudited) |
|||||||||||||
|
Revenues: |
|
|
|
|
|
|
|
|||||||||
|
Tobacco* |
$ |
377,995 |
|
|
$ |
297,942 |
|
|
$ |
1,061,355 |
|
|
$ |
895,901 |
|
|
|
Real estate |
|
— |
|
|
|
543 |
|
|
|
15,884 |
|
|
|
11,126 |
|
|
|
Total revenues |
|
377,995 |
|
|
|
298,485 |
|
|
|
1,077,239 |
|
|
|
907,027 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Expenses: |
|
|
|
|
|
|
|
|||||||||
|
Cost of sales: |
|
|
|
|
|
|
|
|||||||||
|
Tobacco* |
|
267,023 |
|
|
|
186,398 |
|
|
|
743,749 |
|
|
|
556,574 |
|
|
|
Real estate |
|
— |
|
|
|
1,046 |
|
|
|
7,327 |
|
|
|
9,668 |
|
|
|
Total cost of sales |
|
267,023 |
|
|
|
187,444 |
|
|
|
751,076 |
|
|
|
566,242 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Operating, selling, administrative and general expenses |
|
27,040 |
|
|
|
29,924 |
|
|
|
76,265 |
|
|
|
89,795 |
|
|
|
Litigation settlement and judgment expense |
|
31 |
|
|
|
12 |
|
|
|
160 |
|
|
|
17 |
|
|
|
Net gains on sales of assets |
|
— |
|
|
|
(910 |
) |
|
|
— |
|
|
|
(910 |
) |
|
|
Operating income |
|
83,901 |
|
|
|
82,015 |
|
|
|
249,738 |
|
|
|
251,883 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Other income (expenses): |
|
|
|
|
|
|
|
|||||||||
|
Interest expense |
|
(27,598 |
) |
|
|
(28,226 |
) |
|
|
(83,420 |
) |
|
|
(85,019 |
) |
|
|
Gain (loss) on extinguishment of debt |
|
412 |
|
|
|
— |
|
|
|
412 |
|
|
|
(21,362 |
) |
|
|
Equity in (losses) earnings from investments |
|
(619 |
) |
|
|
44 |
|
|
|
(5,172 |
) |
|
|
1,562 |
|
|
|
Equity in (losses) earnings from real estate ventures |
|
(1,903 |
) |
|
|
(5,694 |
) |
|
|
(4,240 |
) |
|
|
12,505 |
|
|
|
Other, net |
|
(804 |
) |
|
|
(1,451 |
) |
|
|
(5,043 |
) |
|
|
9,868 |
|
|
|
Income before provision for income taxes |
|
53,389 |
|
|
|
46,688 |
|
|
|
152,275 |
|
|
|
169,437 |
|
|
|
Income tax expense |
|
14,533 |
|
|
|
16,776 |
|
|
|
41,724 |
|
|
|
52,994 |
|
|
|
Income from continuing operations |
|
38,856 |
|
|
|
29,912 |
|
|
|
110,551 |
|
|
|
116,443 |
|
|
|
Income from discontinued operations, net of income taxes |
|
— |
|
|
|
18,857 |
|
|
|
— |
|
|
|
57,588 |
|
|
|
Net income |
$ |
38,856 |
|
|
$ |
48,769 |
|
|
$ |
110,551 |
|
|
$ |
174,031 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net loss from discontinued operations attributed to non-controlling interest |
|
— |
|
|
|
120 |
|
|
|
— |
|
|
|
120 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income attributed to |
|
38,856 |
|
|
|
29,912 |
|
|
|
110,551 |
|
|
|
116,443 |
|
|
|
Net income attributed to |
|
— |
|
|
|
18,977 |
|
|
|
— |
|
|
|
57,708 |
|
|
|
Net income attributed to |
$ |
38,856 |
|
|
$ |
48,889 |
|
|
$ |
110,551 |
|
|
$ |
174,151 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Per basic common share: |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income from continuing operations applicable to common shares |
$ |
0.25 |
|
|
$ |
0.19 |
|
|
$ |
0.70 |
|
|
$ |
0.74 |
|
|
|
Net income from discontinued operations applicable to common shares |
|
— |
|
|
|
0.12 |
|
|
|
— |
|
|
|
0.37 |
|
|
|
Net income applicable to common shares |
$ |
0.25 |
|
|
$ |
0.31 |
|
|
$ |
0.70 |
|
|
$ |
1.11 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Per diluted common share: |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income from continuing operations applicable to common shares |
$ |
0.25 |
|
|
$ |
0.19 |
|
|
$ |
0.70 |
|
|
$ |
0.74 |
|
|
|
Net income from discontinued operations applicable to common shares |
|
— |
|
|
|
0.12 |
|
|
|
— |
|
|
|
0.37 |
|
|
|
Net income applicable to common shares |
$ |
0.25 |
|
|
$ |
0.31 |
|
|
$ |
0.70 |
|
|
$ |
1.11 |
|
|
|
* Revenues and cost of sales include federal excise taxes of |
TABLE 2
RECONCILIATION OF ADJUSTED EBITDA FROM CONTINUING OPERATIONS
(Unaudited)
(Dollars in Thousands)
Table 2 reflects a reconciliation of GAAP to non-GAAP financial information on a continuing operations basis. Because Douglas Elliman Inc.’s results are reflected within discontinued operations, they are excluded from the financial information provided below.
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Net income |
$ |
155,863 |
|
|
$ |
219,463 |
|
|
$ |
38,856 |
|
|
$ |
48,889 |
|
|
$ |
110,551 |
|
|
$ |
174,151 |
|
|
|
Net income from discontinued operations |
|
(14,601 |
) |
|
|
(72,309 |
) |
|
|
— |
|
|
|
(18,977 |
) |
|
|
— |
|
|
|
(57,708 |
) |
|
|
Interest expense |
|
111,129 |
|
|
|
112,728 |
|
|
|
27,598 |
|
|
|
28,226 |
|
|
|
83,420 |
|
|
|
85,019 |
|
|
|
Income tax expense |
|
51,537 |
|
|
|
62,807 |
|
|
|
14,533 |
|
|
|
16,776 |
|
|
|
41,724 |
|
|
|
52,994 |
|
|
|
Net loss attributed to non-controlling interest |
|
(70 |
) |
|
|
(190 |
) |
|
|
— |
|
|
|
(120 |
) |
|
|
— |
|
|
|
(120 |
) |
|
|
Depreciation and amortization |
|
7,325 |
|
|
|
7,816 |
|
|
|
1,787 |
|
|
|
1,873 |
|
|
|
5,430 |
|
|
|
5,921 |
|
|
|
EBITDA |
$ |
311,183 |
|
|
$ |
330,315 |
|
|
$ |
82,774 |
|
|
$ |
76,667 |
|
|
$ |
241,125 |
|
|
$ |
260,257 |
|
|
|
Equity in losses (earnings) from investments (a) |
|
4,059 |
|
|
|
(2,675 |
) |
|
|
619 |
|
|
|
(44 |
) |
|
|
5,172 |
|
|
|
(1,562 |
) |
|
|
Equity in losses (earnings) from real estate ventures (b) |
|
6,495 |
|
|
|
(10,250 |
) |
|
|
1,903 |
|
|
|
5,694 |
|
|
|
4,240 |
|
|
|
(12,505 |
) |
|
|
(Gain) loss on extinguishment of debt |
|
(412 |
) |
|
|
21,362 |
|
|
|
(412 |
) |
|
|
— |
|
|
|
(412 |
) |
|
|
21,362 |
|
|
|
Stock-based compensation expense (c) |
|
12,959 |
|
|
|
14,799 |
|
|
|
1,558 |
|
|
|
2,375 |
|
|
|
6,275 |
|
|
|
8,115 |
|
|
|
Litigation settlement and judgment expense (d) |
|
354 |
|
|
|
211 |
|
|
|
31 |
|
|
|
12 |
|
|
|
160 |
|
|
|
17 |
|
|
|
Impact of MSA settlement (e) |
|
(2,123 |
) |
|
|
(2,722 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,123 |
) |
|
|
(2,722 |
) |
|
|
Transaction expenses (f) |
|
7,042 |
|
|
|
10,468 |
|
|
|
— |
|
|
|
3,426 |
|
|
|
— |
|
|
|
3,426 |
|
|
|
Net gains on sales of assets |
|
— |
|
|
|
(910 |
) |
|
|
— |
|
|
|
(910 |
) |
|
|
— |
|
|
|
(910 |
) |
|
|
Other, net |
|
4,224 |
|
|
|
(10,687 |
) |
|
|
804 |
|
|
|
1,451 |
|
|
|
5,043 |
|
|
|
(9,868 |
) |
|
|
Adjusted EBITDA from Continuing Operations |
$ |
343,781 |
|
|
$ |
349,911 |
|
|
$ |
87,277 |
|
|
$ |
88,671 |
|
|
$ |
259,480 |
|
|
$ |
265,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Adjusted EBITDA from Continuing Operations by Segment |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Tobacco |
$ |
342,110 |
|
|
$ |
364,399 |
|
|
$ |
89,632 |
|
|
$ |
93,350 |
|
|
$ |
256,591 |
|
|
$ |
278,880 |
|
|
|
Real Estate |
|
12,566 |
|
|
|
4,125 |
|
|
|
(3 |
) |
|
|
(873 |
) |
|
|
7,905 |
|
|
|
(536 |
) |
|
|
Corporate and Other |
|
(10,895 |
) |
|
|
(18,613 |
) |
|
|
(2,352 |
) |
|
|
(3,806 |
) |
|
|
(5,016 |
) |
|
|
(12,734 |
) |
|
|
Total |
$ |
343,781 |
|
|
$ |
349,911 |
|
|
$ |
87,277 |
|
|
$ |
88,671 |
|
|
$ |
259,480 |
|
|
$ |
265,610 |
|
|
| _________________________ | ||
|
a. |
Represents equity in earnings recognized from investments that the Company accounts for under the equity method. |
|
|
b. |
Represents equity in earnings recognized from the Company’s investment in certain real estate ventures that are accounted for under the equity method and are not consolidated in the Company’s financial results. |
|
|
c. |
Represents amortization of stock-based compensation. Included in the year ended |
|
|
d. |
Represents accruals for product liability litigation in the Tobacco segment. |
|
|
e. |
Represents the Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement. |
|
|
f. |
Represents expenses incurred in connection with the Company’s spin-off of |
|
TABLE 3
RECONCILIATION OF ADJUSTED NET INCOME FROM CONTINUING OPERATIONS
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
Table 3 reflects a reconciliation of GAAP to non-GAAP financial information on a continuing operations basis. Because Douglas Elliman Inc.’s results are reflected within discontinued operations, they are excluded from the financial information provided below.
|
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
|
|
|
|
|
|||||||||||||
|
Net income |
$ |
38,856 |
|
|
$ |
48,889 |
|
|
$ |
110,551 |
|
|
$ |
174,151 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income from discontinued operations |
|
— |
|
|
|
(18,977 |
) |
|
|
— |
|
|
|
(57,708 |
) |
|
|
(Gain) loss on extinguishment of debt |
|
(412 |
) |
|
|
— |
|
|
|
(412 |
) |
|
|
21,362 |
|
|
|
Litigation settlement and judgment expense (a) |
|
31 |
|
|
|
12 |
|
|
|
160 |
|
|
|
17 |
|
|
|
Impact of MSA settlement (b) |
|
— |
|
|
|
— |
|
|
|
(2,123 |
) |
|
|
(2,722 |
) |
|
|
Impact of net interest expense capitalized to real estate ventures |
|
(1,081 |
) |
|
|
702 |
|
|
|
(3,092 |
) |
|
|
(167 |
) |
|
|
Expense related to Tax Disaffiliation indemnification (c) |
|
28 |
|
|
|
— |
|
|
|
581 |
|
|
|
— |
|
|
|
Transaction expenses (d) |
|
— |
|
|
|
3,426 |
|
|
|
— |
|
|
|
3,426 |
|
|
|
Adjustment for derivative associated with guarantee |
|
(182 |
) |
|
|
— |
|
|
|
(2,646 |
) |
|
|
— |
|
|
|
Total adjustments |
|
(1,616 |
) |
|
|
(14,837 |
) |
|
|
(7,532 |
) |
|
|
(35,792 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Tax benefit (expense) related to adjustments |
|
377 |
|
|
|
(192 |
) |
|
|
1,411 |
|
|
|
(4,990 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Adjusted Net Income from Continuing Operations |
$ |
37,617 |
|
|
$ |
33,860 |
|
|
$ |
104,430 |
|
|
$ |
133,369 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Per diluted common share: |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Adjusted Net Income from Continuing Operations applicable to common shares |
$ |
0.24 |
|
|
$ |
0.22 |
|
|
$ |
0.66 |
|
|
$ |
0.85 |
|
|
| _________________________ | ||
|
a. |
Represents accruals for product liability litigation in the Tobacco segment. |
|
|
b. |
Represents the Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement. |
|
|
c. |
Represents amounts accrued under the Company’s Tax Disaffiliation Agreement related to certain tax liabilities of |
|
|
d. |
Represents expense related to the acceleration of stock compensation in connection with the Company’s spin-off of |
|
TABLE 4
RECONCILIATION OF ADJUSTED OPERATING INCOME
(Unaudited)
(Dollars in Thousands)
Table 4 reflects a reconciliation of GAAP to non-GAAP financial information on a continuing operations basis. Because Douglas Elliman Inc.’s results are reflected within discontinued operations, they are excluded from the financial information provided below.
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Operating income |
$ |
318,294 |
|
|
$ |
320,439 |
|
|
$ |
83,901 |
|
$ |
82,015 |
|
|
$ |
249,738 |
|
|
$ |
251,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Litigation settlement and judgment expense (a) |
|
354 |
|
|
|
211 |
|
|
|
31 |
|
|
12 |
|
|
|
160 |
|
|
|
17 |
|
|
|
Transaction expenses (b) |
|
7,042 |
|
|
|
10,468 |
|
|
|
— |
|
|
3,426 |
|
|
|
— |
|
|
|
3,426 |
|
|
|
Acceleration of stock compensation expense (c) |
|
4,317 |
|
|
|
4,317 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Impact of MSA settlement (d) |
|
(2,123 |
) |
|
|
(2,722 |
) |
|
|
— |
|
|
— |
|
|
|
(2,123 |
) |
|
|
(2,722 |
) |
|
|
Net gains on sales of assets |
|
— |
|
|
|
(910 |
) |
|
|
— |
|
|
(910 |
) |
|
|
— |
|
|
|
(910 |
) |
|
|
Total adjustments |
|
9,590 |
|
|
|
11,364 |
|
|
|
31 |
|
|
2,528 |
|
|
|
(1,963 |
) |
|
|
(189 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Adjusted Operating Income |
$ |
327,884 |
|
|
$ |
331,803 |
|
|
$ |
83,932 |
|
$ |
84,543 |
|
|
$ |
247,775 |
|
|
$ |
251,694 |
||
| _________________________ | ||
|
a. |
Represents accruals for product liability litigation in the Tobacco segment. |
|
|
b. |
Represents expenses incurred in connection with the Company’s spin-off of |
|
|
c. |
Represents expense related to the acceleration of stock compensation in connection with the Company’s spin-off of |
|
|
d. |
Represents the Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement. |
|
|
TABLE 5 |
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
RECONCILIATION OF TOBACCO ADJUSTED OPERATING INCOME |
|||||||||||||||||||||
|
AND TOBACCO ADJUSTED EBITDA |
|||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||
|
(Dollars in Thousands) |
|||||||||||||||||||||
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Tobacco Adjusted Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating income from Tobacco segment |
$ |
337,838 |
|
|
$ |
360,317 |
|
|
$ |
88,107 |
|
$ |
91,779 |
|
$ |
254,078 |
|
|
$ |
276,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Litigation settlement and judgment expense (a) |
|
354 |
|
|
|
211 |
|
|
|
31 |
|
|
12 |
|
|
160 |
|
|
|
17 |
|
|
Impact of MSA settlement (b) |
|
(2,123 |
) |
|
|
(2,722 |
) |
|
|
— |
|
|
— |
|
|
(2,123 |
) |
|
|
(2,722 |
) |
|
Total adjustments |
|
(1,769 |
) |
|
|
(2,511 |
) |
|
|
31 |
|
|
12 |
|
|
(1,963 |
) |
|
|
(2,705 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Tobacco Adjusted Operating Income |
$ |
336,069 |
|
|
$ |
357,806 |
|
|
$ |
88,138 |
|
$ |
91,791 |
|
$ |
252,115 |
|
|
$ |
273,852 |
|
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Tobacco Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating income from Tobacco segment |
$ |
337,838 |
|
|
$ |
360,317 |
|
|
$ |
88,107 |
|
$ |
91,779 |
|
$ |
254,078 |
|
|
$ |
276,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Litigation settlement and judgment expense (a) |
|
354 |
|
|
|
211 |
|
|
|
31 |
|
|
12 |
|
|
160 |
|
|
|
17 |
|
|
Impact of MSA settlement (b) |
|
(2,123 |
) |
|
|
(2,722 |
) |
|
|
— |
|
|
— |
|
|
(2,123 |
) |
|
|
(2,722 |
) |
|
Total adjustments |
|
(1,769 |
) |
|
|
(2,511 |
) |
|
|
31 |
|
|
12 |
|
|
(1,963 |
) |
|
|
(2,705 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Tobacco Adjusted Operating Income |
|
336,069 |
|
|
|
357,806 |
|
|
|
88,138 |
|
|
91,791 |
|
|
252,115 |
|
|
|
273,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Depreciation and amortization |
|
5,944 |
|
|
|
6,525 |
|
|
|
1,474 |
|
|
1,550 |
|
|
4,426 |
|
|
|
5,007 |
|
|
Stock-based compensation expense |
|
97 |
|
|
|
68 |
|
|
|
20 |
|
|
9 |
|
|
50 |
|
|
|
21 |
|
|
Total adjustments |
|
6,041 |
|
|
|
6,593 |
|
|
|
1,494 |
|
|
1,559 |
|
|
4,476 |
|
|
|
5,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Tobacco Adjusted EBITDA |
$ |
342,110 |
|
|
$ |
364,399 |
|
|
$ |
89,632 |
|
$ |
93,350 |
|
$ |
256,591 |
|
|
$ |
278,880 |
|
| _________________________ | ||
|
a. |
Represents accruals for product liability litigation in the Tobacco segment. |
|
|
b. |
Represents the Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement. |
|
|
TABLE 6 |
||||||||||||
|
|
||||||||||||
|
RECONCILIATION OF REVENUES |
||||||||||||
|
(Unaudited) |
||||||||||||
|
(Dollars in Thousands) |
||||||||||||
|
|
|
LTM |
|
Year Ended |
|
Nine Months Ended |
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
Revenues: |
|
|
|
|
|
|
|
|
||||
|
Tobacco (a) |
|
$ |
1,367,951 |
|
$ |
1,202,497 |
|
$ |
1,061,355 |
|
$ |
895,901 |
|
Real estate |
|
|
22,961 |
|
|
18,203 |
|
|
15,884 |
|
|
11,126 |
|
Total revenues |
|
$ |
1,390,912 |
|
$ |
1,220,700 |
|
$ |
1,077,239 |
|
$ |
907,027 |
| _________________________ | ||
|
a. |
Tobacco segment revenues include federal excise taxes of |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20221101006234/en/
FGS Global
212-687-8080
FGS Global -
+44 (0)20 3178 8914
J. Bryant Kirkland III,
305-579-8000
Source: