RSS   Newsletter   Contact   Advertise with us

Reynolds American reported Q4 EPS up 116 percent

Staff writer ▼ | February 12, 2014
Reynolds American Inc. (RAI) announced fourth-quarter 2013 adjusted EPS of $0.77, up 1.3 percent from the prior-year quarter.
Reynolds American
Reynolds AmericanReynolds American Inc. (RAI) announced fourth-quarter 2013 adjusted EPS of $0.77, up 1.3 percent from the prior-year quarter.


Adjusted EPS excludes charges for non-cash trademark impairments, early extinguishment of debt, implementation costs, Engle progeny lawsuits and other tobacco-related litigation. Reported fourth-quarter EPS was $0.54, up 116 percent. For the full year, adjusted EPS was $3.19, up 7.4 percent, while reported EPS was $3.14, up 40.2 percent.

Full-year adjusted results exclude the above-referenced items, as well as and the one-time benefit from the NPM Partial Settlement. RAI issued 2014 EPS guidance in the range of $3.30 to $3.45, up 3.5 percent to 8.2 percent from 2013's adjusted EPS of $3.19. RAI also announced a 6.3 percent increase in its quarterly cash dividend to an annualized $2.68, the 11th dividend increase that RAI has declared since it became a public company on July 30, 2004.

RJR Tobacco's fourth-quarter adjusted operating income increased 4.1 percent from the prior-year quarter, to $595 million, as higher pricing and lower MSA cost more than offset lower cigarette volume.

Adjusted results exclude charges of $32 million for non-cash trademark impairments, $25 million for other tobacco-related litigation, $6 million for implementation costs, and $1 million for Engle progeny cases. For the full year, RJR Tobacco's adjusted operating income increased 7.6 percent from the prior-year period, to $2.47 billion. Adjusted results exclude the above-referenced items, as well as a $217 million one-time benefit from the NPM Partial Settlement.

American Snuff's fourth-quarter adjusted operating income increased 17 percent from the prior-year quarter, to $116 million, benefiting from higher moist-snuff pricing as well as volume gains driven by its flagship Grizzly brand. Adjusted results exclude $2 million for implementation costs. For the full year, the company's adjusted operating income increased 12.1 percent from the prior-year period, to $424 million. Adjusted results also exclude the above-referenced item.

Santa Fe finished up a strong year with fourth-quarter adjusted operating income increasing 12.3 percent from the prior-year quarter, to $73 million, on the strength of higher volume and pricing. Adjusted results exclude a charge of $1 million for implementation costs.

For the full year, the company's adjusted operating income rose 17.9 percent, to $280 million. Adjusted results exclude the above-referenced item, as well as a one-time benefit of $2 million from the NPM Partial Settlement.

Santa Fe finished up a strong year with fourth-quarter adjusted operating income increasing 12.3 percent from the prior-year quarter, to $73 million, on the strength of higher volume and pricing. Adjusted results exclude a charge of $1 million for implementation costs.

For the full year, the company's adjusted operating income rose 17.9 percent, to $280 million. Adjusted results exclude the above-referenced item, as well as a one-time benefit of $2 million from the NPM Partial Settlement.


 

MORE INSIDE POST