VECTOR GROUP LTD

CIK:0000059440|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2024

Jun. 30, 2023

Jun. 30, 2024

Jun. 30, 2023

Revenues:

Total revenues

^[1]

$ 371,914

$ 365,662

$ 696,481

$ 699,807

Cost of sales:

Total cost of sales

^[1]

244,594

248,984

462,495

481,270

Operating, selling, administrative and general expenses

29,461

26,930

58,155

54,222

Litigation settlement and judgment expense

18,105

264

18,375

Operating income

97,786

71,643

175,567

145,940

Other income (expenses):

Interest expense

(26,583)

(27,124)

(54,032)

(54,598)

Loss on extinguishment of debt

(40)

(181)

Equity in (losses) earnings from investments

(641)

959

1,497

800

Equity in (losses) earnings from real estate ventures

(1,213)

2,954

(11,934)

1,061

Other, net

5,585

4,791

11,970

8,411

Income before provision for income taxes

74,934

53,183

123,068

101,433

Income tax expense

20,756

15,094

34,090

28,603

Net income

$ 54,178

$ 38,089

$ 88,978

$ 72,830

Per basic common share:

Net income applicable to common shares (in dollars per share)

$ 0.34

$ 0.24

$ 0.56

$ 0.46

Per diluted common share:

Net income applicable to common shares (in dollars per share)

$ 0.34

$ 0.24

$ 0.56

$ 0.46

Revenue, Product and Service [Extensible Enumeration]

Tobacco [Member]

[1]	Revenues and cost of sales include federal excise taxes of $120,452, $126,750, $226,275 and $244,568 for the three and six months ended June 30, 2024 and 2023, respectively.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income	$ 88,978	$ 72,830
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,262	3,423
Non-cash stock-based expense	7,121	4,751
Loss on extinguishment of debt	0	181
Deferred income taxes	(4,074)	2,227
Equity in earnings from investments	(1,497)	(800)
Net gains on investment securities	(1,018)	(207)
Equity in losses (earnings) from real estate ventures	11,934	(1,061)
Distributions from real estate ventures	329	3,954
Non-cash interest expense	1,096	1,392
Non-cash lease expense	1,633	1,710
Changes in assets and liabilities:
Receivables	(3,195)	6,316
Inventories	(13,173)	(6,268)
Accounts payable and accrued liabilities	8,939	(1,028)
Amounts due under the Master Settlement Agreement	121,849	118,868
Litigation accruals	419	18,643
Other assets and liabilities, net	(7,282)	(6,713)
Net cash provided by operating activities	215,321	218,218
Cash flows from investing activities:
Sale of investment securities	427	9,505
Maturities of investment securities	23,550	39,764
Purchase of investment securities	(53,317)	(48,726)
Proceeds from sale or liquidation of long-term investments	4,750	0
Purchase of long-term investments	(2,000)	(5,088)
Investments in real estate ventures	(5,220)	(5,281)
Distributions from investments in real estate ventures	10,029	4,109
Increase in cash surrender value of life insurance policies	(1,329)	(1,109)
Increase in restricted assets	(15)	(18)
Capital expenditures	(3,387)	(7,790)
Paydowns of investment securities	40	65
Net cash used in investing activities	(26,472)	(14,569)
Cash flows from financing activities:
Repurchase and repayments of debt	(8)	(8,412)
Borrowings under revolving credit facility	299	87,429
Repayments on revolving credit facility	(299)	(109,460)
Dividends on common stock	(63,457)	(63,200)
Withholding of shares as payment of payroll tax liabilities in connection with restricted stock vesting and exercise of stock options	(3,857)	(3,680)
Net cash used in financing activities	(67,322)	(97,323)
Net increase in cash, cash equivalents and restricted cash	121,527	106,326
Cash, cash equivalents and restricted cash, beginning of period	270,106	250,374
Cash, cash equivalents and restricted cash, end of period	$ 391,633	$ 356,700

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 390,758	$ 268,600
Investment securities at fair value	140,983	110,935
Accounts receivable - trade, net	29,637	26,442
Inventories	105,132	91,959
Income taxes receivable, net	583	0
Other current assets	14,094	11,665
Total current assets	681,187	509,601
Property, plant and equipment, net	43,609	43,380
Long-term investments (includes $29,435 and $29,402 at fair value)	46,789	46,760
Investments in real estate ventures	116,849	131,497
Operating lease right-of-use assets	11,377	11,017
Intangible assets	107,511	107,511
Other assets	86,699	84,329
Total assets	1,094,021	934,095
Current liabilities:
Current portion of notes payable and long-term debt	0	8
Current amounts due under the Master Settlement Agreement	131,200	8,812
Income taxes payable, net	0	717
Current operating lease liability	4,186	3,706
Other current liabilities	144,413	131,680
Total current liabilities	279,799	144,923
Notes payable, long-term debt and other obligations, less current portion	1,374,266	1,371,811
Non-current employee benefits	68,763	67,111
Deferred income taxes, net	53,897	57,970
Non-current operating lease liability	7,762	8,177
Amounts due under the Master Settlement Agreement	8,208	8,747
Other liabilities	14,672	17,170
Total liabilities	1,807,367	1,675,909
Commitments and contingencies (Note 6)
Stockholders' deficiency:
Preferred stock, par value $1 per share, 10,000,000 shares authorized	0	0
Common stock, par value $0.1 per share, 250,000,000 shares authorized, 157,377,564 and 155,978,020 shares issued and outstanding	15,738	15,598
Additional paid-in capital	14,508	11,384
Accumulated deficit	(730,793)	(755,883)
Accumulated other comprehensive loss	(12,799)	(12,913)
Total Vector Group Ltd. stockholders' deficiency	(713,346)	(741,814)
Total liabilities and stockholders' deficiency	$ 1,094,021	$ 934,095