Email
Password
(Forgot Password?)
Tobacco profiteer Bennett LeBow ($10,000), the CEO of the country's fifth largest cigarette maker, gave Snyder $10,000. When the Dana-Farber Cancer Institute named him to its board of trustees in 2005, a media stir forced his immediate resignation. LeBow testified under oath in 1993 that he was unaware of any linkage between cigarettes and cancer; but a few years later, he became the first tobacco mogul to settle with the states suing tobacco companies. His Vector Group sells about ten billion cigarettes a year.
The Daily News noted this week that billionaire Ron Perelman gave Vance $25,000 through his company Mafco Consolidated, which the News said includes a company that makes "a moistening agent used in the making of tobacco products." Not only did the News not mention LeBow's virtually simultaneous $10,000 donation, it missed the fact that Perelman, through his holding company MacAndrews & Forbes, had already given Snyder $25,000. Perelman has weathered many a messy news story, including when his Revlon jet flew then police commissioner Howard Safir to the Oscars in Hollywood, inducing the Conflict of Interests Board to rebuke the commissioner. The Post then revealed that Perelman used bogus NYPD permits to illegally park his limos outside his two spectacular upper eastside townhouses.
Jump to full article »
Vector Group Ltd. (NYSE: VGR) today announced financial results for the three and six months ended June 30, 2009.
Second quarter 2009 revenues were $206.8 million, compared to revenues of $143.0 million in the second quarter of 2008. The Company recorded operating income of $38.8 million in the 2009 second quarter, compared to operating income of $34.3 million in the second quarter of 2008. Net loss for the 2009 second quarter was $7.9 million, or $0.12 per diluted common share, compared to net income of $19.1 million, or $0.24 per diluted common share, in the 2008 second quarter.
Vector Group Ltd. (NYSE: VGR) announced today that it has issued $106.94 million aggregate principal amount of its 6.75% Variable Interest Senior Convertible Exchange Notes due 2014 (the “New Notes”) in exchange for $99.94 million aggregate principal amount of its 5% Variable Interest Senior Convertible Notes due 2011(the “Old Notes”), valued at 107% of principal amount.
The New Notes that were issued will mature on November 15, 2014. The Company will redeem on June 15, 2014 and at the end of each interest accrual period thereafter an additional amount, if any, of the New Notes necessary to prevent the New Notes from being treated as an “Applicable High Yield Discount Obligation” under the Internal Revenue Code.
Vector Group Ltd. (NYSE: VGR) today announced financial results for the first quarter ended March 31, 2009.
First quarter 2009 revenues were $121.2 million, compared to $132.2 million for 2008. The Company recorded operating income of $31.2 million for 2009, compared to operating income of $28.0 million for 2008. Net income for 2009 was $3.1 million, or $0.04 per diluted common share, compared to net income of $14.3 million, or $0.21 per diluted common share, for 2008. The results for 2009 included a one-time pre-tax gain of $5.0 million related to an exercise of an option from the 1999 brand transaction with Philip Morris, pre-tax impairment charges of $8.5 million on real estate investments and $1.0 million of restructuring charges. Adjusting for these items, the Company's net income for 2009 would have been $5.7 million, or $0.08 per diluted common share. 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 2008 would have been $7.2 million, or $0.11 per diluted common share.
Vector Group Ltd. (NYSE: VGR) announced today that it has completed the sale of $50 million aggregate principal amount of its 6.75% Variable Interest Senior Convertible Notes due 2014 (the "Notes") to Frost Nevada Investments Trust in a private placement. The purchase price consisted of $38.225 million in cash and $11.005 million aggregate principal amount of the Company's 5.0% Variable Interest Senior Convertible Notes due 2011, valued at 107% of principal amount. Frost Nevada Investments Trust is affiliated with Dr. Phillip Frost, who, prior to the consummation of the sale, may have been deemed to beneficially own approximately 8.1% of the common stock of the Company. Following consummation of the sale, Dr. Frost may be deemed to beneficially own approximately 11.5% of the common stock of the Company. The Company intends to use the net proceeds of the issuance for general corporate purposes.
Monday, cigarette manufacturer Vector Group Ltd. (VGR: News ) reported a decline in the first-quarter net income from the year-ago period primarily due to higher other expenses that reflect an impairment charge, higher interest expense, lower interest and dividend income, and an equity loss from non-consolidated real estate businesses.
The Miami, Florida-based company reported a first-quarter net income of $3.1 million or $0.04 per share, down from $14.31 million or $0.21 per share in the corresponding quarter last year.
The results for 2009 included a one-time pre-tax gain of $5.0 million related to an exercise of an option from the 1999 brand transaction with Philip Morris, pre-tax impairment charges of $8.5 million on real estate investments and $1.0 million of restructuring charges.
A Vector Group Ltd. unit must pay about $700,000 to the family of a retired trucking-company supervisor who died of lung cancer after smoking for 55 years, a Florida jury ruled.
A state court jury in Fort Lauderdale concluded today that Vector’s Liggett Group LLC is liable for Joseph Ferlanti’s death in 2004. Ferlanti, who smoked Chesterfield cigarettes made by Liggett, died at age 81, according to Todd McPharlin, the family’s lawyer.
Mrs. Ferlanti referred questions to McPharlin, who said, “This is an absolute victory. We’re very happy with the jury’s verdict. This is another example of the long history of the deception by the tobacco industry of the dangers of smoking. The jury recognized this.”
Leonard Feiwus, representing Liggett, would say only “we intend to take an appeal.”
Instead of telling consumers in the 1950s that its cigarettes were dangerous, Liggett officials chose “to put profits over lives,” McPharlin told jurors in closing arguments yesterday.
Vector Group Ltd. (NYSE: VGR) today announced that it has declared a regular quarterly cash dividend on its common stock of $0.40 per share. The dividend is payable on March 31, 2009 to holders of record as of March 20, 2009.
For the full year ended December 31, 2008, revenues were $565.2 million, compared to $555.4 million for 2007. The Company recorded operating income of $135.3 million for 2008, compared to operating income of $125.5 million for 2007. Net income for 2008 was $60.5 million, or $0.80 per diluted common share, compared to net income of $73.8 million, or $1.07 per diluted common share, for 2007. The results for 2008 included $12.6 million of pre-tax income from the Company's investment in the St. Regis hotel, which was sold in March 2008, a $24.3 million pre-tax gain from changes in fair value of derivatives embedded within convertible debt and pre-tax expense of $32.4 million relating to impairment charges from long-term investments, real estate and investment securities available for sale. Adjusting for these items, the Company's net income for 2008 would have been $57.8 million, or $0.85 per diluted common share. The results for 2007 included a $19.6 million pre-tax gain associated with Company's previously announced NASA litigation settlement, an $8.1 million pre-tax gain related to the exchange of notes receivable from Ladenburg Thalmann Financial Services Inc. and a charge of $6.1 million from changes in fair value of derivatives embedded within convertible debt. Adjusting for these items, the Company's net income for 2007 would have been $61.0 million, or $0.89 per diluted common share.
A Vector Group unit must pay about $700,000 to the family of a retired trucking-company supervisor who died of lung cancer after smoking for 55 years, a Florida jury ruled.
A state court jury in Fort Lauderdale concluded Friday that Vector's Liggett Group LLC is liable for Joseph Ferlanti's death in 2004.
Vector Group Ltd. (NYSE: VGR) will conduct a conference call and webcast to discuss its fourth quarter and full year 2008 results on Tuesday, March 3, 2009 at 11:00 a.m. (ET).
Investors can access the call by dialing 800-859-8150 and entering 38114393 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.
Miami-based Vector Group Ltd. said revenue for the year ended Dec. 31 was $565.2 million, up slightly from the $555.4 million reported for 2007.
The country's fifth-largest cigarette company (NYSE: VGR) reported net income for of $60.5 million, or 80 cents a share, for the year, down from net income of $73.8 million, or $1.07 a share, for 2007.
The results for 2008 included $12.6 million in pretax income from the Miami-based company's investment in the St. Regis hotel, which was sold in March 2008.
Vector Group Ltd. (NYSE: VGR) today announced financial results for the fourth quarter and full year ended December 31, 2008.
For the full year ended December 31, 2008, revenues were $565.2 million, compared to $555.4 million for 2007. The Company recorded operating income of $135.3 million for 2008, compared to operating income of $125.5 million for 2007. Net income for 2008 was $60.5 million, or $0.80 per diluted common share, compared to net income of $73.8 million, or $1.07 per diluted common share, for 2007.
Vector Group Ltd. (NYSE: VGR) will conduct a conference call and webcast to discuss its third quarter 2008 results on Tuesday, November 11, 2008 at 11:00 a.m. (ET).
Investors can access the call by dialing 800-859-8150 and entering 58660030 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.
Tobacco products, because of their addictive qualities, remain a relatively unscathed market even in uncertain economic times. And with the market ups and downs, these businesses could even see an increase in sales from smoking clientele looking to quell their nerves.
However, the steady cash returns from tobacco stocks come with some tradeoffs:
* They offer limited growth prospects, especially as tobacco customers die off (as smokers tend to suffer greater death rates actuarially than nonsmokers). * These stocks represent investments in what some refer to as a "sin" sector, eschewed by "socially responsible" portfolio managers. * These stocks' companies stand in the crosshairs of some former-customers-turned-angry-plaintiffs as well as tax-hungry legislators. * Anti-smoking forces have been taking aim at retail distribution of cigarettes as well as venues for smoking and advertisements that they claim are targeting youth to replace the base of mature smokers.
These built-in risks, not to mention the currently treacherous stock market, should be enough to compel any investor interested in investing in tobacco stocks to first consider carefully their investment.
Still, if an investor is unbothered by moral arguments against tobacco and is willing to test the roily investment waters, some arguments exist for considering tobacco stocks.