EXHIBIT 99.1
|CITIGATE
|SARD VERBINNEN
NEWS
FOR IMMEDIATE RELEASE Contact: Paul Caminiti/Brandy Bergman/Carrie Bloom
- --------------------- Citigate Sard Verbinnen
212/687 - 8080
VECTOR GROUP REPORTS THIRD QUARTER 2003 FINANCIAL RESULTS
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MIAMI, FL, NOVEMBER 13, 2003 -- Vector Group Ltd. (NYSE: VGR) today
announced financial results for the third quarter ended September 30, 2003.
Third quarter 2003 revenues were $142.9 million, compared to revenues
of $141.7 million in the third quarter of 2002. The Company recorded an
operating loss of $8.3 million in the 2003 third quarter, compared to operating
income of $0.3 million in the third quarter of 2002. The results for the three
months ended September 30, 2003 included pre-tax restructuring and impairment
charges of $20.1 million relating to the closing of Vector Tobacco's Timberlake,
North Carolina facility. Adjusting for the 2003 restructuring and impairment
charges, the Company's operating income for the 2003 third quarter was $11.8
million, an increase from operating income of $0.3 million in the 2002 period.
Net loss for the 2003 third quarter was $9.4 million, or $0.24 per diluted
common share, compared to a net loss of $8.2 million, or $0.22 per diluted
common share, in the 2002 third quarter.
For the nine months ended September 30, 2003, revenues were $407.2
million, compared to $378.9 million for the first nine months of 2002. The
Company recorded an operating loss of $7.7 million for the 2003 nine-month
period, compared to an operating loss of $19.6 million for the 2002 period. The
results for the 2003 period included the pre-tax restructuring and impairment
charges of $20.1 million and the results for the 2002 period included a pre-tax
restructuring charge of $3.5 million. Adjusting for the 2003 and 2002
restructuring and impairment charges, operating income for the first nine months
of 2003 was $12.4 million, compared to an operating loss for the 2002 period of
$16.1 million. Net loss for the 2003 nine-
-more-
month period was $19.2 million, or $0.50 per diluted common share, compared to a
net loss of $23.4 million, or $0.64 per diluted common share, for the 2002
period.
For the three and nine months ended September 30, 2003, the Company's
conventional cigarette business, which includes Liggett Group cigarettes and USA
brand cigarettes, had revenues of $135.7 million and $381.4 million,
respectively, compared to $139.9 million and $372.7 million for the three and
nine months ended September 30, 2002. Operating income was $31.3 million for the
third quarter of 2003 and $89.1 million for the first nine months of 2003,
compared to $27.3 million and $70.7 million for the three and nine months ended
September 30, 2002, respectively. The results for the nine months ended
September 30, 2002 included the pre-tax restructuring charge of $3.5 million
recognized in the first quarter of 2002.
CONFERENCE CALL TO DISCUSS THIRD QUARTER 2003 RESULTS
As previously announced, the Company will host a conference call and
webcast on Friday, November 14, 2003 at 11:00 A.M. (EDT) to discuss third
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 November 14, 2003 through November 21, 2003. To access the replay, dial
877-519-4471 and enter 4282772 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 Nine Months Ended
------------------------------ ------------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2003 2002 2003 2002
------------ ------------ ------------ ------------
Revenues:
Tobacco* $ 141,053 $ 141,714 $ 401,796 $ 378,285
Real estate leasing 1,797 -- 5,373 661
------------ ------------ ------------ ------------
Total revenues 142,850 141,714 407,169 378,946
Expenses:
Cost of goods sold* 92,711 100,442 262,512 262,617
Operating, selling, administrative and general expenses 38,367 40,958 132,262 132,451
Restructuring and impairment charges 20,079 -- 20,079 3,460
------------ ------------ ------------ ------------
Operating (loss) income (8,307) 314 (7,684) (19,582)
Other income (expenses):
Interest and dividend income 844 2,342 3,416 7,743
Interest expense (7,422) (7,112) (23,087) (19,417)
Gain (loss) on investments, net 806 (62) 1,076 1,715
Gain on sale of assets -- 345 -- 9,029
Equity income from non-consolidated New Valley real
estate businesses 1,527 -- 636 --
Provision for uncollectibility of notes receivable -- (13,198) -- (13,198)
Other, net 4 757 21 206
------------ ------------ ------------ ------------
Loss from operations before benefit for income taxes
and minority interests (12,548) (16,614) (25,622) (33,504)
Benefit for income taxes (3,240) (1,972) (4,482) (5,643)
Minority interests (72) 6,476 1,981 4,490
------------ ------------ ------------ ------------
Net loss $ (9,380) $ (8,166) $ (19,159) $ (23,371)
============ ============ ============ ============
Per basic common share:
Net loss applicable to common shares $ (0.24) $ (0.22) $ (0.50) $ (0.64)
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Basic weighted average common shares outstanding 38,845,172 36,666,147 38,698,104 36,660,864
============ ============ ============ ============
Per diluted common share:
Net loss applicable to common shares $ (0.24) $ (0.22) $ (0.50) $ (0.64)
============ ============ ============ ============
Diluted weighted average common shares outstanding 38,845,172 36,666,147 38,698,104 36,660,864
============ ============ ============ ============
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* Revenues and Cost of goods sold include excise taxes of $51,132, $51,668,
$149,468 and $144,858, respectively.
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