Exhibit 99.1
| | | | |
| FOR IMMEDIATE RELEASE | | | | |
| | | Contact: | | Paul Caminiti/Carrie Bloom/Jonathan Doorley |
| | | | | Sard Verbinnen & Co |
| | | | | 212-687-8080 |
VECTOR GROUP REPORTS FIRST QUARTER 2009 FINANCIAL RESULTS
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MIAMI, FL, May 11, 2009— Vector Group Ltd. (NYSE: VGR) today announced financial results for the first quarter ended March 31, 2009.
First quarter 2009 revenues were $121.2 million, compared to $132.2 million for 2008. The Company recorded operating income of $31.2 million for 2009, compared to operating income of $28.0 million for 2008. Net income for 2009 was $3.1 million, or $0.04 per diluted common share, compared to net income of $14.3 million, or $0.21 per diluted common share, for 2008. The results for 2009 included a one-time pre-tax gain of $5.0 million related to an exercise of an option from the 1999 brand transaction with Philip Morris, pre-tax impairment charges of $8.5 million on real estate investments and $1.0 million of restructuring charges. Adjusting for these items, the Company’s net income for 2009 would have been $5.7 million, or $0.08 per diluted common share. The results for 2008 included $12.0 million of pre-tax income from the Company’s investment in the St. Regis hotel, which was sold in March 2008. Adjusting for this item, the Company’s net income for 2008 would have been $7.2 million, or $0.11 per diluted common share.
For the three months ended March 31, 2009, the Company’s conventional cigarette business, which includes Liggett Group cigarettes and USA brand cigarettes, had revenues of $120.9 million, compared to $131.6 million for the three months ended March 31, 2008. Operating income was $38.4 million for the first quarter 2009, compared to $37.3 million for the first quarter of 2008. Adjusting for the one-time gain on the brand transaction, operating income for the first quarter of 2009 would have been $33.4 million.
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Conference Call to Discuss First Quarter 2009 Results
As previously announced, the Company will host a conference call and webcast on Tuesday, May 12, 2009 at 11:00 A.M. (ET) to discuss first quarter 2009 results. Investors can access the call by dialing800-859-8150and entering89451183as the conference ID number. The call will also be available via live webcast at www.vcall.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 12, 2009 through May 26, 2009. To access the replay, dial 877-656-8905 and enter 89451183 as the conference ID number. The archived webcast will also be available at www.vcall.com for 30 days.
Vector Group is a holding company that indirectly owns 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.
[Financial Table Follows]
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VECTOR GROUP LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Amounts)
Unaudited
| | | | | | | | | |
| | | Three Months | | | Three Months | |
| | | Ended | | | Ended | |
| | | March 31, 2009 | | | March 31, 2008 | |
| |
| Revenues* | | $ | 121,216 | | | $ | 132,205 | |
| | | | | | | | | |
| Expenses: | | | | | | | | |
| Cost of goods sold* | | | 72,526 | | | | 80,007 | |
| Operating, selling, administrative and general expenses | | | 21,530 | | | | 24,157 | |
| Gain on brand transaction | | | (5,000 | ) | | | — | |
| Restructuring charges | | | 1,000 | | | | — | |
| | | | | | | |
| Operating income | | | 31,160 | | | | 28,041 | |
| | | | | | | | | |
| Other income (expenses): | | | | | | | | |
| Interest and dividend income | | | 150 | | | | 1,971 | |
| Interest expense | | | (16,074 | ) | | | (15,253 | ) |
| Change in fair value of derivatives embedded within convertible debt | | | (303 | ) | | | (2,444 | ) |
| Impairment charges on investments | | | (8,500 | ) | | | — | |
| Equity (loss) income from non-consolidated real estate businesses | | | (995 | ) | | | 13,320 | |
| Other, net | | | — | | | | (573 | ) |
| | | | | | | |
| | | | | | | | | |
| Income before provision for income taxes | | | 5,438 | | | | 25,062 | |
| Income tax expense | | | 2,338 | | | | 10,755 | |
| | | | | | | |
| | | | | | | | | |
| Net income | | $ | 3,100 | | | $ | 14,307 | |
| | | | | | | |
| | | | | | | | | |
| Per basic common share: | | | | | | | | |
| | | | | | | | | |
| Net income applicable to common shares | | $ | 0.04 | | | $ | 0.22 | |
| | | | | | | |
| | | | | | | | | |
| Per diluted common share: | | | | | | | | |
| | | | | | | | | |
| Net income applicable to common shares | | $ | 0.04 | | | $ | 0.21 | |
| | | | | | | |
| | | | | | | | | |
| Cash distributions and dividends declared per share | | $ | 0.40 | | | $ | 0.38 | |
| | | | | | | |
| | |
| * | | Revenues and Cost of goods sold include excise taxes of $33,712 and $40,522, respectively. |
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