EXHIBIT 99.1
[Citigate Sard Verbinnen Logo]
NEWS
FOR IMMEDIATE RELEASE Contact: Paul Caminiti/Brandy Bergman/Carrie Bloom
Citigate Sard Verbinnen
212/687 - 8080
VECTOR GROUP REPORTS SECOND QUARTER 2003 FINANCIAL RESULTS
MIAMI, FL, AUGUST 14, 2003 -- Vector Group Ltd. (NYSE: VGR) today
announced financial results for the second quarter ended June 30, 2003.
Second quarter 2003 revenues were $131.2 million, compared to revenues
of $140.1 million in the second quarter of 2002. The Company recorded operating
income of $0.8 million in the 2003 second quarter, compared to an operating loss
of $4.8 million in the second quarter of 2002. Net loss for the 2003 second
quarter was $4.9 million, or $0.13 per diluted common share, compared to a net
loss of $3.3 million, or $0.10 per diluted common share, in the 2002 second
quarter.
For the six months ended June 30, 2003, revenues were $264.3 million,
compared to $237.2 million for the first six months of 2002. The Company
recorded operating income of $0.6 million for the 2003 six-month period,
compared to an operating loss of $19.9 million for the 2002 period. Net loss for
the 2003 six-month period was $9.8 million, or $0.27 per diluted common share,
compared to a net loss of $15.2 million, or $0.44 per diluted common share, for
the 2002 period.
For the three and six months ended June 30, 2003, the Company's
conventional cigarette business, which includes Liggett Group cigarettes and USA
brand cigarettes, had revenues of $120.8 million and $245.7 million,
respectively, compared to $138.7 million and $232.8 million for the three and
six months ended June 30, 2002. Operating income was $27.6 million for the
second quarter of 2003 and $57.8 million for the first six months of 2003,
compared to $24.9 million and $43.4 million for the three and six months ended
June 30, 2002, respectively. The results for the six months ended June 30, 2002
included
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a pre-tax restructuring charge of $3.5 million recognized in the first quarter
of 2002.
CONFERENCE CALL TO DISCUSS SECOND QUARTER 2003 RESULTS
As previously announced, the Company will host a conference call and
webcast on Friday, August 15, 2003 at 11:00 A.M. (EDT) to discuss second quarter
2003 results. Investors can access the call by dialing 877-692-2590 or via live
webcast at WWW.VCALL.COM
A replay of the call will also be available shortly after the call ends
on August 15, 2003 through August 22, 2003. To access the replay, dial
877-519-4471 and enter 4086725 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
Inc., Vector Tobacco Inc. and a controlling interest in New Valley Corporation.
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
CONSOLIDATED STATEMENTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Three Months Ended Six Months Ended
----------------------------- ------------------------------
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
------------ ------------ ------------ ------------
Revenues:
Tobacco* ................................................... $ 129,400 $ 139,813 $ 260,743 $ 236,571
Real estate leasing ........................................ 1,777 237 3,576 661
------------ ------------ ------------ ------------
Total revenues ........................................... 131,177 140,050 264,319 237,232
Expenses:
Cost of goods sold* ........................................ 86,010 100,873 169,801 161,875
Operating, selling, administrative and general expenses .... 44,344 44,021 93,895 96,060
Settlement charges ......................................... -- -- -- (807)
------------ ------------ ------------ ------------
Operating income (loss) .................................. 823 (4,844) 623 (19,896)
Other income (expenses):
Interest and dividend income ............................... 1,127 2,581 2,572 5,401
Interest expense ........................................... (8,516) (6,920) (15,665) (12,305)
Gain on investments, net ................................... 332 68 270 1,389
Gain on sale of assets ..................................... -- 9,028 -- 8,684
Equity loss from non-consolidated New Valley real
estate businesses ........................................ (174) -- (891) --
Other, net ................................................. 24 (6) 17 (163)
------------ ------------ ------------ ------------
Loss from operations before (benefit) provision for income taxes
and minority interests ................................... (6,384) (93) (13,074) (16,890)
(Benefit) provision for income taxes ....................... (649) 591 (1,242) (3,671)
Minority interests ......................................... 805 (2,658) 2,053 (1,986)
------------ ------------ ------------ ------------
Net loss ....................................................... $ (4,930) $ (3,342) $ (9,779) $ (15,205)
============ ============ ============ ============
Per basic common share:
Net loss applicable to common shares ....................... $ (0.13) $ (0.10) $ (0.27) $ (0.44)
============ ============ ============ ============
Basic weighted average common shares outstanding ............... 36,963,695 34,920,148 36,784,081 34,912,553
============ ============ ============ ============
Per diluted common share:
Net loss applicable to common shares ....................... $ (0.13) $ (0.10) $ (0.27) $ (0.44)
============ ============ ============ ============
Diluted weighted average common shares outstanding ............. 36,963,695 34,920,148 36,784,081 34,912,553
============ ============ ============ ============
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* Revenues and Cost of goods sold include excise taxes of $48,519, $54,926,
$98,336 and $93,190, respectively.
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