Vector Group Reports Third Quarter 2004 Financial Results
Vector Group Reports Third Quarter 2004 Financial Results
November 9, 2004 at 12:00 AM EST
Third quarter 2004 revenues were $126.1 million, compared to revenues of $142.9 million in the third quarter of 2003. The Company recorded operating income of $17.7 million in the 2004 third quarter, compared to an operating loss of $8.3 million in the third quarter of 2003. The results for the three months ended September 30, 2004 included pre-tax restructuring charges of $4.5 million relating to the Liggett Vector Brands restructuring, and 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 2004 and 2003 restructuring and impairment charges, the Company’s operating income for the 2004 third quarter was $22.2 million, an increase from operating income of $11.8 million in the 2003 period. Net income for the 2004 third quarter was $8.1 million, or $0.19 per diluted common share, compared to a net loss of $9.4 million, or $0.23 per diluted common share, in the 2003 third quarter.
For the nine months ended September 30, 2004, revenues were $376.3 million, compared to $407.2 million for the first nine months of 2003. The Company recorded operating income of $6.5 million for the 2004 nine-month period, compared to an operating loss of $7.7 million for the 2003 period. The results for the 2004 period include a non-cash pre-tax inventory charge of $37.0 million to adjust the carrying value of excess leaf tobacco inventory for the Quest brand and pre-tax restructuring charges of $7.5 million, and the results for the 2003 period include the pre-tax $20.1 million Timberlake restructuring and impairment charges. Adjusting for the 2004 and 2003 inventory and restructuring and impairment charges, operating income for the first nine months of 2004 was $51.0 million, compared to operating income for the 2003 period of $12.4 million. Net loss for the 2004 nine-month period was $4.2 million, or $0.10 per diluted common share, compared to a net loss of $19.2 million, or $0.47 per diluted common share, for the 2003 period.
For the three and nine months ended September 30, 2004, the Company’s conventional cigarette business, which includes Liggett Group cigarettes and USA brand cigarettes, had revenues of $120.8 million and $358.6 million, respectively, compared to $135.7 million and $381.4 million for the three and nine months ended September 30, 2003, respectively. Operating income was $27.2 million for the third quarter of 2004 and $80.4 million for the first nine months of 2004, compared to $31.3 million and $89.1 million for the three and nine months ended September 30, 2003, respectively. The results for the three and nine months ended September 30, 2004 include pre-tax restructuring charges of $4.0 million and $6.3 million, respectively.
Conference Call To Discuss Third Quarter 2004 Results
As previously announced, the Company will host a conference call and webcast on Wednesday, November 10, 2004 at 11:00 A.M. (EST) to discuss third quarter 2004 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 10, 2004 through November 17, 2004. To access the replay, dial 877-519-4471 and enter 5358861 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.
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