Vector Group Reports Second Quarter 2008 Financial Results
Vector Group Reports Second Quarter 2008 Financial Results
August 11, 2008 at 12:00 AM EDT
Second quarter 2008 revenues were $143.0 million, compared to revenues of $140.4 million in the second quarter of 2007. The Company recorded operating income of $34.3 million in the 2008 second quarter, compared to operating income of $29.2 million in the second quarter of 2007. Net income for the 2008 second quarter was $19.1 million, or $0.25 per diluted common share, compared to net income of $21.4 million, or $0.32 per diluted common share, in the 2007 second quarter. The results for the three months ended June 30, 2007 included an $8.1 million pre-tax gain from the exchange of notes receivable from Ladenburg Thalmann Financial Services Inc., which had been previously written-off, for shares of Ladenburg common stock and approximately $1.7 million of accrued interest. Adjusting for this gain, the Company’s income for the 2007 second quarter would have been $16.6 million, or $0.25 per diluted common share.
For the six months ended June 30, 2008, revenues were $275.2 million, compared to $274.2 million for the first six months of 2007. The Company recorded operating income of $62.4 million for the 2008 six-month period, compared to operating income of $54.9 million for the 2007 period. Net income for the 2008 six-month period was $33.4 million, or $0.51 per diluted common share, compared to net income of $44.5 million, or $0.68 per diluted common share, for the 2007 period. 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 the first six months of 2008 would have been $26.3 million, or $0.41 per diluted common share. The results for the six months ended June 30, 2007 included a $19.6 million pre-tax gain associated with the Company’s previously announced NASA litigation settlement and the $8.1 million pre-tax gain related to the exchange of notes receivable from Ladenburg. Adjusting for these gains, the Company’s income for the six months ended June 30, 2007 would have been $28.2 million, or $0.43 per diluted common share.
For the three and six months ended June 30, 2008, the Company’s conventional cigarette business, which includes Liggett Group cigarettes and USA brand cigarettes, had revenues of $142.3 million and $274.0 million, respectively, compared to $139.3 million and $272.1 million for the three and six months ended June 30, 2007, respectively. Operating income was $43.7 million for the second quarter of 2008 and $81.0 million for the first six months of 2008, compared to $37.5 million and $72.9 million for the three and six months ended June 30, 2007, respectively.
Conference Call to Discuss Second Quarter 2008 Results
As previously announced, the Company will conduct a conference call and webcast to discuss its second quarter 2008 results on Tuesday, August 12, 2008 at 11:00 a.m. (ET). Investors can access the call by dialing 800-859-8150 and entering 64447522 as 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 August 12, 2008 through August 26, 2008. To access the replay, dial 877-656-8905 and enter 64447522 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.
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Contact:
Paul Caminiti/Carrie Bloom/Jonathan Doorley
Sard Verbinnen & Co
212/687 - 8080