Tag: Vector Group

  • JT Extends Vector Tender

    JT Extends Vector Tender

    Photo: Paul Brady

    Japan Tobacco has withdrawn and refiled its premerger notification and report form under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the HSR Act) in connection with the JT Group’s pending acquisition of Vector Group.

    On Sept. 4, 2024, the JT Group commenced a cash tender offer to purchase all outstanding shares of common stock of Vector Group for $15 per share.

    JT withdrew and refiled its premerger notification and report form to provide the Federal Trade Commission with additional time for review. Following such refiling, the waiting period under the HSR Act will expire Oct. 3, 2024, at 11:59 p.m. Eastern Time.

    The acquisition is expected to be completed by the end of JT Group’s current fiscal year, ending Dec. 31, 2024, subject to receipt of antitrust approvals and satisfaction of customary closing conditions.

  • Revenue and Income up at Vector

    Revenue and Income up at Vector

    Photo: Mind and I

    Vector Group reported consolidated revenues of $371.9 million for the second-quarter of 2024 financial results, up 1.7 percent compared to the prior-year period.

    Tobacco segment wholesale market share increased to 5.7 percent from 5.4 percent in the prior-year period, and retail market share remained at 5.8 percent, unchanged from the prior-year period.

    Montego wholesale and retail market share both increased to 4.1 percent from 3.4 percent and 3.5 percent, respectively, in the prior-year period.

    Operating income was $97.8 million, up 36.5 percent, or $26.1 million, compared to the prior-year period.

    Tobacco segment operating income was $102.9 million, up 37 percent, or $27.8 million, compared to the prior-year period.

    Adjusted EBITDA was $103.3 million, up 9.7 percent, or $9.2 million, compared to the prior-year period.

    Tobacco adjusted EBITDA was $104.4 million, up 10.2 percent, or $9.7 million, compared to the prior-year period.

    “Vector Group delivered strong performance in the second quarter, bolstered by the impressive growth of our Montego brand,” said Vector Group President and CEO Howard M. Lorber in a statement.

    “Montego’s continued expansion as the largest discount brand in the U.S. highlights the effectiveness of our strategic approach, expert market analysis and proven execution. We are confident in our ability to sustain our momentum in the second half of the year and to drive long-term value for our stockholders.”

  • Vector Reports Results

    Vector Reports Results

    Photo: tippapatt I

    Vector Group has reported its first-quarter 2024 results, noting that it has had continued strong earnings growth in the tobacco segment.

    In the first quarter, consolidated revenues were $324.6 million, down 2.9 percent compared to the prior-year period. Tobacco segment revenues were $324.6 million, down 2.9 percent compared to the prior year.

    Tobacco segment wholesale market share declined to 5.6 percent from 5.7 percent in the prior-year period, and retail market share remained at 5.8 percent, unchanged from the prior-year period.

    Montego wholesale market share increased to 3.9 percent from 3.3 percent in the prior-year period, and retail market share increased to 4 percent from 3.4 percent in the prior-year period.

    Reported operating income was $77.8 million, up 4.7 percent, or $3.5 million, compared to the prior-year period.

    Tobacco segment operating income was $83 million, up 5.6 percent, or $4.4 million, compared to the prior-year period, primarily attributable to the continued transition of the Montego brand strategy from volume-based to income-based.

    Adjusted EBITDA was $82.8 million, up 6 percent, or $4.7 million, compared to the prior year. Tobacco adjusted EBITDA was $84.4 million, up 5.5 percent, or $4.4 million, compared to the previous year.

    “Vector Group delivered strong performance in the first quarter, driven by continued growth of our Montego brand,” said Howard M. Lorber, president and CEO of Vector Group, in a statement. “Our proven ability to increase Montego’s market share and profitability underscores the effectiveness of our brand strategy, market analysis, broad-based distribution and excellent retail execution. We remain confident in our ability to continue driving sustainable growth and creating long-term value for our stockholders.”

  • Vector Group Releases Financials

    Vector Group Releases Financials

    Photo: Summit Art Creations

    Vector Group has released its fourth-quarter and full-year financial results for the three months and year ended Dec. 31, 2023.

    In the fourth quarter, consolidated revenues were $360.4 million, down 0.9 percent, or $3.4 million, compared to the prior year period. The tobacco segment wholesale market share increased to 5.7 percent from 5.5 percent in the prior year period, and retail market share remained at 5.8 percent in the current period.

    Montego wholesale market share increased to 3.8 percent from 3 percent in the prior year period, and retail market share increased to 3.8 percent from 3.2 percent in the prior year period.

    Operating income was $91.6 million, up 2.6 percent, or $2.3 million, compared to the prior year period. The tobacco segment operating income was $98.1 million, up 5.6 percent, or $5.2 million, compared to the prior year period.

    Adjusted EBITDA was $96 million, up 3.6 percent, or $3.3 million, compared to the prior year period. Tobacco adjusted EBITDA was $99.6 million, up 5.4 percent, or $5.1 million, compared to the prior year period.

    For full-year 2023, consolidated revenues were $1.42 billion, down 1.2 percent, or $16.7 million, compared to the prior year. Tobacco segment revenues were $1.42 billion, down 0.1 percent, or $0.9 million, compared to the prior year. Tobacco segment wholesale and retail market share increased to 5.5 percent and 5.8 percent from 5.4 percent and 5.5 percent, respectively, in the prior year.

    Montego wholesale market share increased to 3.5 percent from 2.5 percent in the prior year, and retail market share increased to 3.6 percent from 2.6 percent in the prior year.

    Operating income was $328 million, down 3.2 percent, or $11 million, compared to the prior year. Tobacco segment operating income was $346.7 million, down 0.1 percent, or $0.4 million, compared to the prior year.

    Adjusted EBITDA was $363.2 million, up 3.1 percent, or $11 million, compared to the prior year. Tobacco adjusted EBITDA was $370.6 million, up 5.5 percent, or $19.4 million, compared to the prior year.

    “Vector Group delivered a solid performance in 2023 amid a dynamic operating environment as the successful execution of our targeted investment strategy enabled Montego’s continued growth as the largest discount brand in the United States,” said Howard M. Lorber, president and CEO of Vector Group, in a statement. “The company is well positioned in 2024, and we are confident we have the right strategy and team in place to continue optimizing long-term profit and driving value for our stockholders.”

  • Six-Month Revenue Up at Vector

    Six-Month Revenue Up at Vector

    Photo: crizzystudio

    Vector Group reported consolidated revenues of $699.8 million in the first six months of 2023, up 0.1 percent compared to the prior year period. Tobacco segment revenues increased 2.4 percent to $699.8 million. The company’s tobacco segment wholesale and retail market share increased to 5.5 percent and 5.8 percent from 5.3 percent and 5.3 percent, respectively, in the prior year period. Operating income was down 12 percent to $145.9 million.  Vector’s tobacco segment operating income was $153.7 million, down 7.4 percent compared to the prior year period.

     “Vector Group performed well in the first half of 2023 as we continued to benefit from the gradual transition of our Montego brand strategy,” said Vector Group President and CEO Howard M. Lorber, in a statement. “In the second half of 2023, we remain focused on optimizing long-term profit by effectively managing our volume, pricing and market share to generate long-term value for our stockholders.”

  • Vector Group Reports Fourth-Quarter and Full-Year Results

    Vector Group Reports Fourth-Quarter and Full-Year Results

    Image: Tobacco Reporter archive

    Vector Group reported record annual tobacco segment revenues in 2022, fueled by continued strong volume.

    In the fourth quarter, consolidated revenues were $363.8 million, up 16 percent, or $50.1 million, compared to the prior year period. Tobacco segment revenues were $363.8 million, up 18.6 percent, or $57.2 million, compared to the prior year period. Tobacco segment wholesale and retail market share increased to 5.5 percent and 5.8 percent from 4.4 percent and 4.4 percent, respectively, in the prior year period. Reported operating income was $89.3 million, up $20.7 million compared to the prior year period. Tobacco segment operating income was $93 million, up 11 percent, or $9.2 million, compared to the prior year period, primarily attributable to the transition of the Montego brand strategy from volume-based to income-based.

    For the full year, record consolidated revenues were $1.44 billion, up 18 percent, or $220.3 million, compared to the prior year. Tobacco segment revenues were $1.43 billion, up 18.5 percent, or $222.6 million, compared to the prior year. Tobacco segment wholesale and retail market share increased to 5.4 percent and 5.5 percent from 4.1 percent and 4.2 percent, respectively, in the prior year. Reported operating income was $339 million, up $18.6 million compared to the prior year. Tobacco segment operating income was $347 million, down 3.7 percent, or $13.3 million, compared to the prior year, primarily attributable to the investment in Montego’s significant volume and market share growth.

    “Vector Group delivered record revenues in 2022 by capitalizing on opportunities to substantially increase our market share, thus driving value for stockholders,” said Howard M. Lorber, president and CEO of Vector Group. “The 11 percent increase in our tobacco segment’s operating income in the fourth quarter reflects the recent and ongoing transition of our Montego brand strategy from volume-based to income-based. In 2023, we will continue to focus on optimizing long-term profit by effectively managing our volume, pricing and market share.”

  • Vector Posts Record Quarterly Revenues

    Vector Posts Record Quarterly Revenues

    Photo: Phongphan Supphakank

    Vector Group reported consolidated revenues of $378 million for the third quarter of 2022, up 26.6 percent over the prior year period.

    Tobacco segment unit volume increased 30.1 percent compared to the comparable 2021 period. Liggett’s wholesale and retail market share increased to 5.7 percent each, compared with 3.9 percent and 4.2 percent, respectively, in the prior year period.

    Reported net income declined to $38.9 million from $48.9 million.

    Reported net income from continuing operations was $38.9 million, up from $29.9 million in the prior year period. Adjusted net income from continuing operations was $37.6 million compared to $33.9 million in the prior year period.

    Reported operating income increased by $1.9 million to $83.9 million.

    Tobacco segment operating income was down 4 percent to $88.1 million, primarily as a result of the company’s investment in its Montego brand.

    “Vector Group delivered record tobacco quarterly revenues in the third quarter as we continued to capitalize on favorable market opportunities to substantially increase value and market share,” said Vector Group President and CEO Howard M. Lorber in a statement.

    “Driven by the significant growth of our price-fighting Montego brand, Liggett’s wholesale market share in the third quarter was 5.7 percent, which is its highest market share since 1984. We have begun to gradually shift our growth strategy of Montego, which is now the second-largest discount brand in the United States, from volume-based to profit-based. As we move forward, we will continue to focus on optimizing long-term profit through the effective management of volume, pricing and market share growth.”

  • Vector Reports Strong Tobacco Revenue

    Vector Reports Strong Tobacco Revenue

    Photo: tadamichi

    Vector Group reported revenues of $387.2 million for the second quarter of 2022, up 14.7 percent over that for the comparable 2021 quarter. Operating income was $90.71 million and net income was $39.15 million compared with operating income of $93.89 million and net income of $93.3 million in the second quarter of 2021. Tobacco contributed $374.31 million of the 2022 second-quarter revenues, with the balance coming from Vector Group’s real estate business.

    “Vector Group delivered strong tobacco revenue performance in the second quarter as we capitalized on favorable market opportunities to substantially increase value and market share,” said Howard M. Lorber, president and CEO of Vector Group, in a statement. “Our price-fighting Montego brand is now our largest brand and the third-largest discount brand in the United States. This strong performance demonstrates our commitment to optimizing long-term profit through the effective management of volume, pricing and market share growth.”

    According to data from Management Science Associates, the retail market share of Vector Group’s Liggett Group subsidiary increased to 5.5 percent for the second quarter of 2022 from 4.1 percent for the second quarter of 2021. For the six months ended June 30, 2022, Liggett’s retail market share increased to 5.3 percent compared to 4.1 percent for the six months ended June 30, 2021.

  • Vector Announces First-Quarter Results

    Vector Announces First-Quarter Results

    Photo: MIND AND I

    Vector Group released its first-quarter 2022 results for the quarter ended March 31, 2022.

    Consolidated revenues were $312 million, an increase of 15.1 percent compared to the prior year period. Tobacco Segment revenues were $309 million, an increase of 15.1 percent compared to the prior year period.

    Reported net income attributed to Vector Group was $32.5 million compared to $32 million in the previous year. Adjusted net income from continuing operations was $26.6 million compared to $34.9 million in the prior year period. Reported operating income was $75.1 million, a decline of $0.8 million compared to the prior year.

    Tobacco segment operating income was $77.6 million, a decline of 4.9 percent compared to the prior year, attributable to the investment in Montego’s significant volume and market share growth.

    “Vector Group delivered strong tobacco business revenue performance in the first quarter as we capitalized on favorable market opportunities to substantially increase value and market share,” said Howard M. Lorber, president and CEO of Vector Group, in a statement.

    “Our timely investments in expanding our price-fighting Montego brand further demonstrate our proven long-term strategy of optimizing long-term profit through the effective management of volume, pricing and market share growth.”

  • Record Tobacco Income Boosts Vector’s Results

    Record Tobacco Income Boosts Vector’s Results

    Photo: Wirestock

    Vector Group reported consolidated revenues of $1.22 billion in 2021, down 1 percent from the previous year. Reported net income of $219.5 million was up $126.5 million over 2020. Adjusted net income from continuing operations was $174.8 million, up $44.9 million compared to the prior year period. Reported operating income increased $26 million to $320.4 million while tobacco segment operating income was $360.3 million, up 13 percent over 2020.

    For the fourth quarter of 2021, Vector Group reported consolidated revenues of $313.7 million, up 9 percent compared to the prior year period. Reported net income was $45.3 million, up $13.1 million. Adjusted net income from continuing operations totaled $41.4 million, $19.3 million higher than in 2020. Reported operating income of $68.6 million was down $5.5 million compared to the prior year.

    “Vector Group had another outstanding quarter, achieving all-time high annual tobacco segment operating income,” said Howard M. Lorber, president and CEO of Vector Group, in a statement.

    “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.”