Vector Group Reports Fourth Quarter and Full Year 2021 Financial Results
Continued Strong Earnings Momentum in Tobacco Segment, with Full Year Tobacco Segment Operating Income up 13% vs. Prior Year
Douglas Elliman Inc. Business Accounted for as Discontinued Operations for all Periods Presented, Excluded from Adjusted Results
Fourth Quarter 2021 Highlights:
-
Consolidated revenues of
$313.7 million , up 9% or$26.5 million compared to the prior year period -
Reported net income attributed to
Vector Group of$45.3 million or$0.29 per diluted share, up$13.1 million compared to the prior year period; Adjusted Net Income from Continuing Operations of$41.4 million or$0.26 per diluted share, up$19.3 million compared to the prior year period -
Reported operating income of
$68.6 million , down$5.5 million compared to the prior year period-
Tobacco segment operating income of
$83.8 million , up$4.0 million compared to the prior year period
-
Tobacco segment operating income of
-
Adjusted EBITDA from Continuing Operations of
$84.3 million , up 10% or$7.6 million compared to the prior year period-
Tobacco segment Adjusted EBITDA from Continuing Operations of
$85.5 million , up$3.6 million compared to the prior year period
-
Tobacco segment Adjusted EBITDA from Continuing Operations of
Full Year 2021 Highlights:
-
Consolidated revenues of
$1.22 billion , down 1% or$8.0 million compared to the prior year period -
Reported net income attributed to
Vector Group of$219.5 million or$1.40 per diluted share, up$126.5 million compared to the prior year period; Adjusted Net Income from Continuing Operations of$174.8 million or$1.12 per diluted share, up$44.9 million compared to the prior year period -
Reported operating income of
$320.4 million , up$26.0 million compared to the prior year period-
Tobacco segment operating income of
$360.3 million , up 13% or$40.8 million compared to the prior year period
-
Tobacco segment operating income of
-
Adjusted EBITDA from Continuing Operations of
$349.9 million , up 12% or$38.6 million compared to the prior year period-
Tobacco segment Adjusted EBITDA from Continuing Operations of
$364.4 million , up 11% or$36.4 million compared to the prior year period
-
Tobacco segment Adjusted EBITDA from Continuing Operations of
-
Strong liquidity with cash and cash equivalents of
$193.4 million and investment securities and long-term investments of$199.8 million atDecember 31, 2021 -
Cash dividends of
$126 million returned to stockholders at a rate of$0.80 per common share
On
“Vector Group had another outstanding quarter, achieving all-time high annual Tobacco Segment operating income,” said
“We are excited by the continued strong performance of our tobacco business, which validates our market strategy and reflects the competitive advantages we have in the highly attractive deep discount segment. With the spin-off of Douglas Elliman complete, we are laser focused on continuing to capitalize on opportunities in the growing deep discount segment, while leveraging our value-focused brand portfolio and broad national distribution to meet evolving market demands.”
Discontinued Operations
With the spin-off of Douglas Elliman, Inc. completed on
GAAP Financial Results
Three months ended
Year ended
Non-GAAP Financial Results
Non-GAAP financial results include adjustments for change in fair value of derivatives embedded within convertible debt, loss on extinguishment of debt, 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) and net gains on sales of assets (for purposes of Adjusted EBITDA from Continuing Operations and Adjusted Operating Income only). 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, and other, net. For purposes of Adjusted Net Income from Continuing Operations only, adjustments include non-cash amortization of debt discount on convertible debt, and net interest expense capitalized to real estate ventures. Reconciliations of non-GAAP financial measures to the comparable GAAP financial results for the three months and year ended
Three months ended
Adjusted EBITDA from Continuing Operations attributed to Vector (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
Year ended
Adjusted EBITDA from Continuing Operations attributed to Vector (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
Consolidated Balance Sheet
Vector maintained significant liquidity at
Vector continued its longstanding history of paying a quarterly cash dividend in the fourth quarter of 2021. For the year ended
Tobacco Segment Financial Results
For the fourth quarter of 2021, 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 fourth quarter of 2021 and 2020 was
For the fourth quarter of 2021, the Tobacco segment had conventional cigarette (wholesale) shipments of approximately 2.22 billion units, compared to 2.12 billion units for the fourth quarter of 2020. For the year ended
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, (“the Non-GAAP Financial Measures”) are financial measures not prepared in accordance with 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 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 5 is information relating to the Company’s Non-GAAP Financial Measures for the fourth quarter and full year ended
Conference Call to Discuss Fourth Quarter and Full Year 2021 Results
As previously announced, the Company will host a conference call and webcast on
A replay of the call will be available shortly after the call ends on
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 Facebook, Instagram, 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, including statements regarding the current or anticipated impact of the COVID-19 pandemic on our business, 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. In particular, the extent, duration and severity of the spread of the COVID-19 pandemic and economic consequences stemming from the COVID-19 crisis (including a potential significant economic contraction) as well as related risks and the impact of any of the foregoing on our business, results of operations and liquidity could affect our future results and cause actual results to differ materially from those expressed in forward-looking statements.
Risks and uncertainties that could cause our actual results to differ significantly from our current expectations are described in our Annual Report on Form 10-K for the years ended
[Financial Tables Follow]
|
TABLE 1 |
||||||||||||||||
|
|
||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
(Dollars in Thousands, Except Per Share Amounts) |
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
|
|
(Unaudited) |
|
(Unaudited) |
|||||||||||||
|
Revenues: |
|
|
|
|
|
|
|
|||||||||
|
Tobacco* |
$ |
306,596 |
|
|
$ |
286,072 |
|
|
$ |
1,202,497 |
|
|
$ |
1,204,501 |
|
|
|
Real estate |
|
7,077 |
|
|
|
1,057 |
|
|
|
18,203 |
|
|
|
24,181 |
|
|
|
Total revenues |
|
313,673 |
|
|
|
287,129 |
|
|
|
1,220,700 |
|
|
|
1,228,682 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Expenses: |
|
|
|
|
|
|
|
|||||||||
|
Cost of sales: |
|
|
|
|
|
|
|
|||||||||
|
Tobacco* |
|
201,441 |
|
|
|
180,446 |
|
|
|
758,015 |
|
|
|
795,904 |
|
|
|
Real estate |
|
1,859 |
|
|
|
811 |
|
|
|
11,527 |
|
|
|
23,698 |
|
|
|
Total cost of sales |
|
203,300 |
|
|
|
181,257 |
|
|
|
769,542 |
|
|
|
819,602 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Operating, selling, administrative and general expenses |
|
41,623 |
|
|
|
33,860 |
|
|
|
131,418 |
|
|
|
116,598 |
|
|
|
Litigation settlement and judgment expense |
|
194 |
|
|
|
284 |
|
|
|
211 |
|
|
|
337 |
|
|
|
Net gains on sales of assets |
|
— |
|
|
|
(2,283 |
) |
|
|
(910 |
) |
|
|
(2,283 |
) |
|
|
Operating income |
|
68,556 |
|
|
|
74,011 |
|
|
|
320,439 |
|
|
|
294,428 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Other income (expenses): |
|
|
|
|
|
|
|
|||||||||
|
Interest expense |
|
(27,709 |
) |
|
|
(28,365 |
) |
|
|
(112,728 |
) |
|
|
(121,278 |
) |
|
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(21,362 |
) |
|
|
— |
|
|
|
Change in fair value of derivatives embedded within convertible debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,999 |
|
|
|
Equity in earnings from investments |
|
1,113 |
|
|
|
2,069 |
|
|
|
2,675 |
|
|
|
56,268 |
|
|
|
Equity in (losses) earnings from real estate ventures |
|
(2,255 |
) |
|
|
(17,401 |
) |
|
|
10,250 |
|
|
|
(44,728 |
) |
|
|
Other, net |
|
819 |
|
|
|
1,713 |
|
|
|
10,687 |
|
|
|
(8,646 |
) |
|
|
Income before provision for income taxes |
|
40,524 |
|
|
|
32,027 |
|
|
|
209,961 |
|
|
|
181,043 |
|
|
|
Income tax expense |
|
9,813 |
|
|
|
10,188 |
|
|
|
62,807 |
|
|
|
54,121 |
|
|
|
Income from continuing operations |
|
30,711 |
|
|
|
21,839 |
|
|
|
147,154 |
|
|
|
126,922 |
|
|
|
Income (loss) from discontinued operations, net of income taxes |
|
14,531 |
|
|
|
10,417 |
|
|
|
72,119 |
|
|
|
(33,984 |
) |
|
|
Net income |
|
45,242 |
|
|
|
32,256 |
|
|
|
219,273 |
|
|
|
92,938 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net loss from discontinued operations attributed to non-controlling interest |
|
70 |
|
|
|
— |
|
|
|
190 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income attributed to |
|
30,711 |
|
|
|
21,839 |
|
|
|
147,154 |
|
|
|
126,922 |
|
|
|
Net income (loss) attributed to |
|
14,601 |
|
|
|
10,417 |
|
|
|
72,309 |
|
|
|
(33,984 |
) |
|
|
Net income attributed to |
$ |
45,312 |
|
|
$ |
32,256 |
|
|
$ |
219,463 |
|
|
$ |
92,938 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Per basic common share: |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income from continuing operations applicable to common shares attributed to |
$ |
0.20 |
|
|
$ |
0.14 |
|
|
$ |
0.94 |
|
|
$ |
0.83 |
|
|
|
Net income (loss) from discontinued operations applicable to common shares attributed to |
|
0.09 |
|
|
|
0.07 |
|
|
|
0.46 |
|
|
|
(0.23 |
) |
|
|
Net income applicable to common share attributed to |
$ |
0.29 |
|
|
$ |
0.21 |
|
|
$ |
1.40 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Per diluted common share: |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income from continuing operations applicable to common shares attributed to |
$ |
0.20 |
|
|
$ |
0.14 |
|
|
$ |
0.94 |
|
|
$ |
0.83 |
|
|
|
Net income (loss) from discontinued operations applicable to common shares attributed to |
|
0.09 |
|
|
|
0.07 |
|
|
|
0.46 |
|
|
|
(0.23 |
) |
|
|
Net income applicable to common share attributed to |
$ |
0.29 |
|
|
$ |
0.21 |
|
|
$ |
1.40 |
|
|
$ |
0.60 |
|
|
|
* Revenues and cost of sales include federal excise taxes of |
||||||||||||||||
|
TABLE 2 |
||||||||||||||||
|
|
||||||||||||||||
|
RECONCILIATION OF ADJUSTED EBITDA FROM CONTINUING OPERATIONS |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
(Dollars in Thousands) |
||||||||||||||||
|
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
|
|
|
||||||||||||
|
Net income attributed to |
|
$ |
45,312 |
|
|
$ |
32,256 |
|
|
$ |
219,463 |
|
|
$ |
92,938 |
|
|
Net (income) loss attributed to |
|
|
(14,601 |
) |
|
|
(10,417 |
) |
|
|
(72,309 |
) |
|
|
33,984 |
|
|
Interest expense |
|
|
27,709 |
|
|
|
28,365 |
|
|
|
112,728 |
|
|
|
121,278 |
|
|
Income tax expense |
|
|
9,813 |
|
|
|
10,188 |
|
|
|
62,807 |
|
|
|
54,121 |
|
|
Net loss attributed to non-controlling interest |
|
|
(70 |
) |
|
|
— |
|
|
|
(190 |
) |
|
|
— |
|
|
Depreciation and amortization |
|
|
1,895 |
|
|
|
2,164 |
|
|
|
7,816 |
|
|
|
9,092 |
|
|
EBITDA |
|
$ |
70,058 |
|
|
$ |
62,556 |
|
|
$ |
330,315 |
|
|
$ |
311,413 |
|
|
Change in fair value of derivatives embedded within convertible debt (a) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,999 |
) |
|
Equity in earnings from investments (b) |
|
|
(1,113 |
) |
|
|
(2,069 |
) |
|
|
(2,675 |
) |
|
|
(56,268 |
) |
|
Equity in losses (earnings) from real estate ventures (c) |
|
|
2,255 |
|
|
|
17,401 |
|
|
|
(10,250 |
) |
|
|
44,728 |
|
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
21,362 |
|
|
|
— |
|
|
Stock-based compensation expense (d) |
|
|
6,684 |
|
|
|
2,471 |
|
|
|
14,799 |
|
|
|
9,483 |
|
|
Litigation settlement and judgment expense (e) |
|
|
194 |
|
|
|
284 |
|
|
|
211 |
|
|
|
337 |
|
|
Impact of MSA settlement (f) |
|
|
— |
|
|
|
13 |
|
|
|
(2,722 |
) |
|
|
299 |
|
|
Transaction expenses (g) |
|
|
7,042 |
|
|
|
— |
|
|
|
10,468 |
|
|
|
— |
|
|
Net gains on sales of assets |
|
|
— |
|
|
|
(2,283 |
) |
|
|
(910 |
) |
|
|
(2,283 |
) |
|
Other, net |
|
|
(819 |
) |
|
|
(1,713 |
) |
|
|
(10,687 |
) |
|
|
8,646 |
|
|
Adjusted EBITDA from continuing operations attributed to |
|
$ |
84,301 |
|
|
$ |
76,660 |
|
|
$ |
349,911 |
|
|
$ |
311,356 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted EBITDA from Continuing Operations Attributed to |
|
|
|
|
|
|
|
|
||||||||
|
Tobacco |
|
$ |
85,519 |
|
|
$ |
81,889 |
|
|
$ |
364,399 |
|
|
$ |
328,049 |
|
|
Real Estate |
|
|
4,661 |
|
|
|
347 |
|
|
|
4,125 |
|
|
|
(273 |
) |
|
Corporate and Other |
|
|
(5,879 |
) |
|
|
(5,576 |
) |
|
|
(18,613 |
) |
|
|
(16,420 |
) |
|
Total |
|
$ |
84,301 |
|
|
$ |
76,660 |
|
|
$ |
349,911 |
|
|
$ |
311,356 |
|
| ____________________ | ||
|
a. |
Represents income recognized from changes in the fair value of the derivatives embedded in the Company’s convertible debt. |
|
|
b. |
Represents equity in earnings recognized from investments that the Company accounts for under the equity method. Included in the amount are equity in earnings from Ladenburg Thalmann Financial Services of |
|
|
c. |
Represents equity in losses (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. |
|
|
d. |
Represents amortization of stock-based compensation. Included in the three months and year ended |
|
|
e. |
Represents accruals for product liability litigation in the Company’s Tobacco segment. |
|
|
f. |
Represents the Company’s Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement. |
|
|
g. |
Represents expenses incurred in connection with the Company’s spin-off of Douglas Elliman Inc. into a standalone, publicly traded company. |
|
|
TABLE 3 |
||||||||||||||||
|
|
||||||||||||||||
|
RECONCILIATION OF ADJUSTED NET INCOME FROM CONTINUING OPERATIONS |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
(Dollars in Thousands, Except Per Share Amounts) |
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
|
|
|
|
|
|||||||||||||
|
Net income attributed to |
$ |
45,312 |
|
|
$ |
32,256 |
|
|
$ |
219,463 |
|
|
$ |
92,938 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net (income) loss attributed to |
|
(14,601 |
) |
|
|
(10,417 |
) |
|
|
(72,309 |
) |
|
|
33,984 |
|
|
|
Change in fair value of derivatives embedded within convertible debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,999 |
) |
|
|
Non-cash amortization of debt discount on convertible debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,276 |
|
|
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
21,362 |
|
|
|
— |
|
|
|
Litigation settlement and judgment expense (a) |
|
194 |
|
|
|
284 |
|
|
|
211 |
|
|
|
337 |
|
|
|
Impact of MSA settlement (b) |
|
— |
|
|
|
13 |
|
|
|
(2,722 |
) |
|
|
299 |
|
|
|
Impact of net interest expense capitalized to real estate ventures |
|
(1,013 |
) |
|
|
102 |
|
|
|
(1,180 |
) |
|
|
3,117 |
|
|
|
Transaction expenses (c) |
|
7,042 |
|
|
|
— |
|
|
|
10,468 |
|
|
|
— |
|
|
|
Acceleration of stock compensation expense (d) |
|
4,317 |
|
|
|
— |
|
|
|
4,317 |
|
|
|
— |
|
|
|
Total adjustments |
|
(4,061 |
) |
|
|
(10,018 |
) |
|
|
(39,853 |
) |
|
|
38,014 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Tax benefit (expense) related to adjustments |
|
130 |
|
|
|
(108 |
) |
|
|
(4,860 |
) |
|
|
(1,088 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Adjusted Net Income from continuing operations attributed to |
$ |
41,381 |
|
|
$ |
22,130 |
|
|
$ |
174,750 |
|
|
$ |
129,864 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Per diluted common share: |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Adjusted Net Income from continuing operations applicable to common shares attributed to |
$ |
0.26 |
|
|
$ |
0.14 |
|
|
$ |
1.12 |
|
|
$ |
0.85 |
|
|
| ____________________ | ||
|
a. |
Represents accruals for product liability litigation in the Company’s Tobacco segment. |
|
|
b. |
Represents the Company’s Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement. |
|
|
c. |
Represents expenses incurred in connection with the Company’s spin-off of Douglas Elliman Inc. into a standalone, publicly traded company. |
|
|
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 |
|||||||||||||||
|
|
|||||||||||||||
|
RECONCILIATION OF ADJUSTED OPERATING INCOME |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
(Dollars in Thousands) |
|||||||||||||||
|
|
|
Three Months Ended |
|
Year Ended |
|||||||||||
|
|
|
|
|
|
|||||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||
|
|
|
|
|
|
|||||||||||
|
Operating income |
|
$ |
68,556 |
|
$ |
74,011 |
|
|
$ |
320,439 |
|
|
$ |
294,428 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Litigation settlement and judgment expense (a) |
|
|
194 |
|
|
284 |
|
|
|
211 |
|
|
|
337 |
|
|
Transaction expenses (b) |
|
|
7,042 |
|
|
— |
|
|
|
10,468 |
|
|
|
— |
|
|
Acceleration of stock compensation expense (c) |
|
|
4,317 |
|
|
— |
|
|
|
4,317 |
|
|
|
— |
|
|
Impact of MSA settlement (d) |
|
|
— |
|
|
13 |
|
|
|
(2,722 |
) |
|
|
299 |
|
|
Net gains on sales of assets |
|
|
— |
|
|
(2,283 |
) |
|
|
(910 |
) |
|
|
(2,283 |
) |
|
Total adjustments |
|
|
11,553 |
|
|
(1,986 |
) |
|
|
11,364 |
|
|
|
(1,647 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Adjusted Operating Income |
|
$ |
80,109 |
|
$ |
72,025 |
|
|
$ |
331,803 |
|
|
$ |
292,781 |
|
| ____________________ | ||
|
a. |
Represents accruals for product liability litigation in the Company’s Tobacco segment. |
|
|
b. |
Represents expenses include expenses incurred in connection with the Company’s spin-off of Douglas Elliman Inc. into a standalone, publicly traded 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, publicly traded company. |
|
|
d. |
Represents the Company’s 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) |
|||||||||||||
|
|
|
Three Months Ended |
|
Year Ended |
|||||||||
|
|
|
|
|
|
|||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||
|
|
|
|
|
|
|||||||||
|
Tobacco Adjusted Operating Income: |
|
|
|
|
|
|
|
|
|||||
|
Operating income from Tobacco segment |
|
$ |
83,760 |
|
$ |
79,722 |
|
$ |
360,317 |
|
|
$ |
319,536 |
|
|
|
|
|
|
|
|
|
|
|||||
|
Litigation settlement and judgment expense (a) |
|
|
194 |
|
|
284 |
|
|
211 |
|
|
|
337 |
|
Impact of MSA settlement (b) |
|
|
— |
|
|
13 |
|
|
(2,722 |
) |
|
|
299 |
|
Total adjustments |
|
|
194 |
|
|
297 |
|
|
(2,511 |
) |
|
|
636 |
|
|
|
|
|
|
|
|
|
|
|||||
|
Tobacco Adjusted Operating Income |
|
$ |
83,954 |
|
$ |
80,019 |
|
$ |
357,806 |
|
|
$ |
320,172 |
|
|
|
Three Months Ended |
|
Year Ended |
|||||||||
|
|
|
|
|
|
|||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Tobacco Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|||||
|
Operating income from Tobacco segment |
|
$ |
83,760 |
|
$ |
79,722 |
|
$ |
360,317 |
|
|
$ |
319,536 |
|
|
|
|
|
|
|
|
|
|
|||||
|
Litigation settlement and judgment expense (a) |
|
|
194 |
|
|
284 |
|
|
211 |
|
|
|
337 |
|
Impact of MSA settlement (b) |
|
|
— |
|
|
13 |
|
|
(2,722 |
) |
|
|
299 |
|
Total adjustments |
|
|
194 |
|
|
297 |
|
|
(2,511 |
) |
|
|
636 |
|
|
|
|
|
|
|
|
|
|
|||||
|
Tobacco Adjusted Operating Income |
|
|
83,954 |
|
|
80,019 |
|
|
357,806 |
|
|
|
320,172 |
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation and amortization |
|
|
1,518 |
|
|
1,870 |
|
|
6,525 |
|
|
|
7,877 |
|
Stock-based compensation expense |
|
|
47 |
|
|
— |
|
|
68 |
|
|
|
— |
|
Total adjustments |
|
|
1,565 |
|
|
1,870 |
|
|
6,593 |
|
|
|
7,877 |
|
|
|
|
|
|
|
|
|
|
|||||
|
Tobacco Adjusted EBITDA |
|
$ |
85,519 |
|
$ |
81,889 |
|
$ |
364,399 |
|
|
$ |
328,049 |
| ____________________ | ||
| a. |
Represents accruals for product liability litigation in the Company’s Tobacco segment. |
|
| b. |
Represents the Company’s Tobacco segment’s settlement of long-standing disputes related to the Master Settlement Agreement. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220301006099/en/
212-687-8080
+44 (0)20 3178 8914
J. Bryant Kirkland III,
305-579-8000
Source: