Vector Group Ltd. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported revenues of $240,402,000 against $257,606,000 a year ago. Operating income was $43,096,000 against $33,446,000 a year ago. Loss before provision for income taxes was $2,016,000 against $11,182,000 a year ago. Net loss attributed to the company was $1,681,000 or $0.02 per basic and diluted share against $7,690,000 or $0.09 per basic and diluted share a year ago. EBITDA was $33,956,000 against $17,841,000 a year ago. Adjusted EBITDA was $40,659,000 against $37,027,000 a year ago. The decline in revenues in 2013 was primarily due to decreased unit sales of approximately 10.7% in the 2013 period compared to the 2012 period, which was partially offset by higher pricing. The increase in adjusted EBITDA for the three months ended March 31, 2013 as compared to the three months ended March 31, 2012 was primarily attributable to higher margins in the tobacco segment. The first quarter 2013 results include a pretax charge of $21,500,000 related to the early retirement of the company's 11% senior secured notes due 2015. That was offset by a pretax gain of $3,000,000 from changes in fair value of derivatives embedded within convertible debt and $5,600,000 of pretax income resulting from the settlement of a long-standing dispute related to the Master Settlement Agreement. Adjusting for these items, first quarter 2013 net income was $6,600,000 or $0.07 per diluted share. First quarter 2012 net income included pretax charges of $21,100,000 of changes in fair value of derivatives embedded within its convertible debt. Adjusting for these items, first quarter 2012 net income was $5,400,000 or $0.06 per diluted share.

Vector Group Ltd., Q1 2013 Earnings Call, May 01, 2013

Vector Group Ltd. announced that it has commenced an offer to exchange up to $450 million in aggregate principal amount of its 7.750% Senior Secured Notes due 2021, which were privately placed in February 2013 pursuant to exemptions from registration under the Securities Act of 1933, as amended, for an equal amount of newly issued 7.750% Senior Secured Notes due 2021 that have been registered under the Securities Act. The Exchange Notes will have substantially the same terms as the Original Notes, except for the elimination of certain transfer restrictions. The Exchange Notes will be issued only upon cancellation of a like amount of currently outstanding Original Notes. Vector will not receive any proceeds from the exchange offer.