Q2 2024 Vector Group Ltd Earnings Call Transcript
Key Points
- Vector Group Ltd (VGR) reported an increase in net income to $54.2 million, up from $38.1 million in the previous year.
- Adjusted EBITDA for the second quarter rose to $103.3 million, showing a significant improvement from $94.1 million in the prior year.
- The company's tobacco segment, particularly the Montego brand, demonstrated strong performance with a national retail market share increase to 4.1%.
- Montego's distribution expanded to over 103,000 stores, indicating successful market penetration.
- Vector Group Ltd (VGR) maintained significant liquidity with cash and cash equivalents of approximately $391 million as of June 30, 2024.
- Vector Group Ltd (VGR) experienced a 5.1% decrease in wholesaler shipments during the second quarter.
- Revenues for the six months ended June 30, 2024, slightly decreased to $696.5 million from $699.8 million in the previous year.
- Liggett's second quarter retail shipments declined by 9.6% compared to the same period in 2023.
- The deep discount market segment, while strong, indicates ongoing pressure on consumer disposable income.
- The company faces challenges from inconsistent short-term wholesaler purchasing patterns, affecting shipment performance.
Welcome to Vector Group Limited's second-quarter 2024 earnings conference call. This call is being recorded and simultaneously webcast. An archived version of the webcast will be available on the Investor Relations section of the company's website located at www.vectorgroupltd.com.
During this call, the terms adjusted operating income, adjusted net income, adjusted EBITDA, and tobacco adjusted operating income will be used. These terms are non-GAAP financial measures, and should be considered in addition to, but not as a substitute for, other measures of financial performance prepared in accordance with GAAP.
Reconciliations to adjusted operating income, adjusted net income, adjusted EBITDA and tobacco adjusted operating income are contained in the company's earnings release, which has been posted to the Investor Relations section of the company's website.
Before the call begins, I would like to read a safe harbor statement. The statements made during this conference call that are not historical facts are
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