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.
- 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.
- 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.
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.
- 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.
- 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.
- Strong liquidity with cash and cash equivalents of $385.0
million and investment securities and long-term investments of
$160.2 million at September 30, 2022
- Cash dividends of $95 million returned to stockholders at a
rate of $0.60 per common share
Last Twelve Months ended September 30, 2022
Highlights:
- Consolidated revenues of $1.4 billion
- Tobacco segment revenues of $1.4 billion.
- Net income of $155.9 million
- Operating income of $318.3 million
- Tobacco segment operating income of $337.8 million.
- Adjusted EBITDA from Continuing Operations of $343.8
million
- Tobacco Adjusted EBITDA of $342.1 million.
Vector Group Ltd. (NYSE:VGR) today announced
financial results for the three and nine months ended September 30,
2022.
“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 Howard M. Lorber, President and Chief Executive Officer of
Vector Group Ltd. “Driven by the significant growth of our
price-fighting Montego brand, Liggett’s wholesale market share in
the third quarter was 5.7%, which is its highest market share since
1984. We have begun to gradually shift our growth strategy of
Montego, which is now the second-largest discount brand in the
United States, from volume-based to profit-based. As we move
forward, we will continue to focus on optimizing long-term profit
through the effective management of volume, pricing, and market
share growth.”
GAAP Financial Results
Three months ended September 30, 2022 and 2021. Third quarter
2022 revenues were $378.0 million, compared to revenues of $298.5
million in the third quarter of 2021. The Company recorded
operating income of $83.9 million in the third quarter of 2022,
compared to operating income of $82.0 million in the third quarter
of 2021. Net income for the third quarter of 2022 was $38.9
million, or $0.25 per diluted common share, compared to net income
of $48.9 million, or $0.31 per diluted common share, in the third
quarter of 2021.
Nine months ended September 30, 2022 and 2021. For the nine
months ended September 30, 2022, revenues were $1.1 billion,
compared to revenues of $907.0 million for the nine months ended
September 30, 2021. The Company recorded operating income of $249.7
million for the nine months ended September 30, 2022, compared to
operating income of $251.9 million for the nine months ended
September 30, 2021. Net income attributed to Vector Group Ltd. for
the nine months ended September 30, 2022 was $110.6 million, or
$0.70 per diluted common share, compared to net income of $174.2
million, or $1.11 per diluted common share, for the nine months
ended September 30, 2021.
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 September
30, 2022 and the three and nine months ended September 30, 2022 and
2021 are included in Tables 2 through 6.
Three months ended September 30, 2022 compared to the three
months ended September 30, 2021
Adjusted EBITDA from Continuing Operations (as described in
Table 2 attached hereto) were $87.3 million for the third quarter
of 2022, compared to $88.7 million for the third quarter of
2021.
Adjusted Net Income from Continuing Operations (as described in
Table 3 attached hereto) was $37.6 million, or $0.24 per diluted
share, for the third quarter of 2022, and $33.9 million or $0.22
per diluted share, for the third quarter of 2021.
Adjusted Operating Income (as described in Table 4 attached
hereto) was $83.9 million for the third quarter of 2022, compared
to $84.5 million for the third quarter of 2021.
Nine months ended September 30, 2022 compared to the nine months
ended September 30, 2021
Adjusted EBITDA from Continuing Operations (as described in
Table 2 attached hereto) were $259.5 million for the nine months
ended September 30, 2022, compared to $265.6 million for the nine
months ended September 30, 2021.
Adjusted Net Income from Continuing Operations (as described in
Table 3 attached hereto) was $104.4 million, or $0.66 per diluted
share, for the nine months ended September 30, 2022, compared to
$133.4 million, or $0.85 per diluted share, for the nine months
ended September 30, 2021.
Adjusted Operating Income (as described in Table 4 attached
hereto) was $247.8 million for the nine months ended September 30,
2022, compared to $251.7 million for the nine months ended
September 30, 2021.
Last twelve months ended September 30, 2022
For the last twelve months ended September 30, 2022, revenues
were $1.4 billion. The Company recorded operating income of $318.3
million for the last twelve months ended September 30, 2022. Net
income for the last twelve months ended September 30, 2022 was
$155.9 million.
For the last twelve months ended September 30, 2022, Adjusted
EBITDA (as described in Table 2 attached hereto) were $343.8
million. Adjusted Operating Income (as described in Table 4
attached hereto) was $327.9 million for the last twelve months
ended September 30, 2022.
Consolidated Balance Sheet
Vector maintained significant liquidity at September 30, 2022
with cash and cash equivalents of $385.0 million, including $174.4
million of cash at Liggett, and investment securities of $115.8
million and long-term investments of $44.4 million.
Vector continued its longstanding history of paying a quarterly
cash dividend in the third quarter of 2022. For the nine months
ended September 30, 2022, Vector returned a total of $95 million to
stockholders at a quarterly rate of $0.20 per common share.
Tobacco Segment Financial Results
For the third quarter of 2022, the Tobacco segment had revenues
of $378.0 million, compared to $297.9 million for the third quarter
of 2021. For the nine months ended September 30, 2022, the Tobacco
segment had revenues of $1.1 billion, compared to $895.9 million
for the nine months ended September 30, 2021. For the last twelve
months ended September 30, 2022, the Tobacco segment had revenues
of $1.4 billion.
Operating Income from the Tobacco segment was $88.1 million and
$254.1 million for the three and nine months ended September 30,
2022, respectively, compared to $91.8 million and $276.6 million
for the three and nine months ended September 30, 2021,
respectively. Operating Income from the Tobacco segment was $337.8
million for the last twelve months ended September 30, 2022.
Non-GAAP Financial Measures
Tobacco Adjusted Operating Income (as described in Table 5
attached hereto) for the third quarter of 2022 and 2021 was $88.1
million and $91.8 million, respectively. Tobacco Adjusted Operating
Income for the nine months ended September 30, 2022 was $252.1
million, compared to $273.9 million for the nine months ended
September 30, 2021.
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 September 30, 2022, the Tobacco
segment had conventional cigarette (wholesale) shipments of
approximately 7.79 billion units, compared to 6.41 billion units
for the nine months ended September 30, 2021.
Operational Metrics
According to data from Management Science Associates, for the
third quarter of 2022, wholesale market share increased to 5.7%
compared to 3.9% for the third quarter of 2021. For the nine months
ended September 30, 2022, Liggett’s wholesale market share
increased to 5.4%, compared to 4.0% for the nine months ended
September 30, 2021. Compared to the third quarter of 2021,
Liggett’s wholesale shipments in the third quarter of 2022
increased by 30.1% while the overall industry’s wholesale shipments
declined by 10.7%. Compared to the nine months ended September 30,
2021, Liggett’s wholesale shipments for nine months ended September
30, 2022 increased by 21.5% while the overall industry’s wholesale
shipments declined by 10.1%.
According to data from Management Science Associates, for the
third quarter of 2022, Liggett’s retail market share increased to
5.7% compared to 4.2% for the third quarter of 2021. For the nine
months ended September 30, 2022, Liggett’s retail market share
increased to 5.4%, compared to 4.2% for the nine months ended
September 30, 2021. Compared to the third quarter of 2021,
Liggett’s retail shipments in the third quarter of 2022 increased
by 22.8% while the overall industry’s retail shipments declined by
8.5%. Compared to the nine months ended September 30, 2021,
Liggett’s retail shipments for nine months ended September 30, 2022
increased by 19.8% while the overall industry’s retail shipments
declined by 8.5%.
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 September 30,
2022 (“the Non-GAAP Financial Measures”) are financial measures not
prepared in accordance with generally accepted accounting
principles (“GAAP”). The Company believes that the Non-GAAP
Financial Measures are important measures that supplement
discussions and analysis of its results of operations and enhances
an understanding of its operating performance. The Company believes
the Non-GAAP Financial Measures provide investors and analysts with
a useful measure of operating results unaffected by differences in
capital structures and ages of related assets among otherwise
comparable companies.
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
September 30, 2022 and the three and nine months ended September
30, 2022 and 2021.
Conference Call to Discuss Third Quarter 2022 Results
As previously announced, the Company will host a conference call
and webcast on Wednesday, November 2, 2022 at 8:00 AM (ET) to
discuss its third quarter 2022 results. Investors may access the
call via live webcast at
https://www.webcaster4.com/Webcast/Page/2271/46710. Please join the
webcast at least 10 minutes prior to start time.
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 Vector Group Ltd.
Vector Group is a holding company for Liggett Group LLC, Vector
Tobacco Inc., and New Valley LLC. Additional information concerning
the Company is available on the Company’s website,
www.VectorGroupLtd.com.
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, TikTok, Twitter
or other social media platforms. It is possible that the postings
or releases could include information deemed to be material
information. Therefore, we encourage investors, the media and
others interested in the Company to review the information we post
on our website at www.VectorGroupLtd.com, on the websites of our
subsidiaries and on their social media accounts.
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 September 30,
2022. We undertake no responsibility to publicly update or revise
any forward-looking statement except as required by applicable
law.
[Financial Tables Follow]
TABLE 1 VECTOR GROUP LTD. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share
Amounts)
On December 29, 2021, Vector Group Ltd. completed the
distribution of its real estate brokerage, services and PropTech
investment business into a new stand-alone public company, Douglas
Elliman Inc. (NYSE:DOUG) through a distribution of Douglas
Elliman’s common stock to Vector Group Ltd. stockholders. The
historical results of the real estate brokerage, services and
PropTech investment business owned by Douglas Elliman Inc. are
excluded from revenues and expenses below and reflected as income
from discontinued operations, net of income taxes, in Vector Group
Ltd.’s Consolidated Statements of Operations below.
Three Months Ended
Nine Months Ended
September 30,
September 30,
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 Vector Group Ltd.
from continuing operations
38,856
29,912
110,551
116,443
Net income attributed to Vector Group Ltd.
from discontinued operations
—
18,977
—
57,708
Net income attributed to Vector Group
Ltd.
$
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 $138,041, $106,408, $392,004 and $322,857
for the three and nine months ended September 30, 2022 and 2021,
respectively.
TABLE 2 VECTOR GROUP LTD. AND
SUBSIDIARIES 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
September 30,
December 31,
September 30,
September 30,
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 December 31, 2021 are
expenses associated with the acceleration of stock compensation in
connection with the Company’s spin-off of Douglas Elliman Inc. into
a standalone public company.
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 Douglas Elliman Inc. into a
standalone public company.
TABLE 3 VECTOR GROUP LTD. AND
SUBSIDIARIES 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
September 30,
September 30,
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 Douglas Elliman Inc. prior to its distribution on
December 29, 2021.
d.
Represents expense related to the
acceleration of stock compensation in connection with the Company’s
spin-off of Douglas Elliman Inc. into a standalone, publicly traded
company.
TABLE 4 VECTOR GROUP LTD. AND
SUBSIDIARIES 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
September 30,
December 31,
September 30,
September 30,
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 Douglas Elliman Inc. into a
standalone public company.
c.
Represents expense related to the
acceleration of stock compensation in connection with the Company’s
spin-off of Douglas Elliman Inc. into a standalone public
company.
d.
Represents the Tobacco segment’s
settlement of long-standing disputes related to the Master
Settlement Agreement.
TABLE 5
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF TOBACCO
ADJUSTED OPERATING INCOME
AND TOBACCO ADJUSTED
EBITDA
(Unaudited)
(Dollars
in Thousands)
LTM
Year Ended
Three Months Ended
Nine Months Ended
September 30,
December 31,
September 30,
September 30,
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
September 30,
December 31,
September 30,
September 30,
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
VECTOR GROUP LTD. AND
SUBSIDIARIES
RECONCILIATION OF
REVENUES
(Unaudited)
(Dollars
in Thousands)
LTM
Year Ended
Nine Months Ended
September 30,
December 31,
September 30,
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 $503,842 for the last twelve months ended September
30, 2022, $434,695 for the year ended December 31, 2021, $392,004
and $322,857 for the nine months ended September 30, 2022 and 2021,
respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221101006234/en/
Emily Claffey/Columbia Clancy FGS Global 212-687-8080
Abi Genis FGS Global - Europe +44 (0)20 3178 8914
J. Bryant Kirkland III, Vector Group Ltd. 305-579-8000
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