UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 8, 2013
ALTRIA GROUP, INC.
(Exact name of registrant as specified in its charter)
Virginia | 1-08940 | 13-3260245 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
6601 West Broad Street, Richmond, Virginia | 23230 | |
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: (804) 274-2200
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01. | Regulation FD Disclosure. |
On November 12, 2013, Altria Group, Inc. issued the press release attached as Exhibit 99.2 hereto and incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 hereto, shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in Item 7.01 of this Current Report on Form 8-K shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.
Item 8.01. | Other Events. |
Preliminary Tender Offer Results
On November 12, 2013, Altria Group, Inc. (Altria) issued a press release announcing the preliminary results, as of 5:00 p.m., New York City time, on November 8, 2013 (the Early Tender Deadline), for its previously announced cash tender offer (the Tender Offer) for its senior unsecured notes identified in the press release (the Notes) and increasing the Tender Cap (as defined in the press release attached as Exhibit 99.1 hereto) from $2,000,000,000 to $2,100,000,000 and the Aggregate Maximum Purchase Sublimit (as defined in the press release attached as Exhibit 99.1 hereto) from $1,500,000,000 to $1,600,000,000. A copy of the press release is attached as Exhibit 99.1 hereto and is incorporated herein by reference.
Pricing of Tender Offer
On November 12, 2013, Altria issued a press release announcing the reference yields, total consideration and tender offer consideration for the Notes validly tendered and not validly withdrawn and accepted for purchase in the Tender Offer. A copy of the press release is attached as Exhibit 99.2 hereto and is incorporated herein by reference, except for the section 2013 Full-Year Earnings Per Share (EPS) Guidance.
This Current Report on Form 8-K is neither an offer to sell nor a solicitation of offers to buy any securities. The Tender Offer is being made only pursuant to the Offer to Purchase and the related Letter of Transmittal. The Tender Offer is not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.
2013 Full-Year Earnings Per Share (EPS) Guidance
Altria has revised its estimate of the previously announced one-time pre-tax charge against 2013 reported earnings, reflecting the estimated loss on early extinguishment of debt related to the Tender Offer (the Estimated Charge). Based on the total consideration for the Notes accepted for purchase in the Tender Offer and the amount of Notes validly tendered by the Early Tender Deadline, Altria expects the Estimated Charge to be approximately $1.1 billion, or $0.34 per share, revised from $0.35 per share. The final charge may vary to the extent that the amount of
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Notes validly tendered and not validly withdrawn at or prior to the Expiration Date (as defined in the press release attached as Exhibit 99.2 hereto) differs from the amount of Notes validly tendered and not validly withdrawn at or prior to the Early Tender Deadline.
Altria has revised its guidance for 2013 full-year reported diluted EPS from a range of $2.22 to $2.27 to a range of $2.23 to $2.28, reflecting the Estimated Charge. The revised forecast reflects estimated total net expenses of $0.13 per share, as detailed in the table below, as compared with 2012 full-year reported diluted EPS of $2.06, which included $0.15 per share of net expenses, as detailed in the table below. Expected 2013 full-year adjusted diluted EPS, which excludes the items in the table below, represents a growth rate of 7% to 9% over 2012 full-year adjusted diluted EPS.
The factors described in the Forward-Looking and Cautionary Statements section of the press release attached as Exhibit 99.2 hereto represent continuing risks to this forecast.
Expense (Income), Net Included in Reported Diluted EPS |
||||||||
2013 | 2012 | |||||||
NPM Adjustment items1 |
$ | (0.21 | ) | $ | | |||
Asset impairment, exit and implementation costs |
| 0.01 | ||||||
SABMiller special items |
0.01 | (0.08 | ) | |||||
PMCC leveraged lease benefit |
| (0.03 | ) | |||||
Loss on early extinguishment of debt |
0.34 | 0.28 | ||||||
Tax items2 |
(0.01 | ) | (0.03 | ) | ||||
|
|
|
|
|||||
$ | 0.13 | $ | 0.15 | |||||
|
|
|
|
1 | Reflects the impact of Philip Morris USA Inc.s settlement with certain states of the non-participating manufacturer adjustment (NPM Adjustment) disputes for 2003-2012 (NPM Adjustment Settlement) ($0.16) and the diligent enforcement rulings of the arbitration panel presiding over the NPM Adjustment dispute for 2003 (NPM Arbitration Panel Decision) ($0.05). |
2 | Excludes the tax impact of the Philip Morris Capital Corporation (PMCC) leveraged lease benefit. |
Adjusted diluted EPS is a financial measure that is not consistent with accounting principles generally accepted in the United States of America (U.S. GAAP). Altrias management reviews diluted EPS on an adjusted basis, which excludes certain income and expense items that management believes are not part of underlying operations. These items may include, for example, loss on early extinguishment of debt, restructuring charges, SABMiller plc (SABMiller) special items, certain PMCC leveraged lease items, certain tax items, tobacco and health judgments, and settlements of, and determinations made in, certain NPM Adjustment disputes. Altrias management does not view any of these special items to be part of its sustainable results as they may be highly variable and difficult to predict and can distort underlying business trends and results. Altrias management believes it is appropriate to disclose this non-GAAP financial measure to provide useful insight into underlying business trends and results, and to provide a more meaningful comparison of year-over-year results. Adjusted
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measures are used by management and regularly provided to Altrias chief operating decision maker for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets. This information should be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with U.S. GAAP.
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits |
99.1 | Altria Group, Inc. Press Release, dated November 12, 2013 (filed pursuant to Item 8.01) | |
99.2 | Altria Group, Inc. Press Release, dated November 12, 2013 (filed pursuant to Item 8.01, except for the section 2013 Full-Year Earnings Per Share (EPS) Guidance, which is furnished pursuant to Item 7.01) |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ALTRIA GROUP, INC. | ||
By: | /s/ W. HILDEBRANDT SURGNER, JR. | |
Name: | W. Hildebrandt Surgner, Jr. | |
Title: | Corporate Secretary and | |
Senior Assistant General Counsel |
DATE: November 12, 2013
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EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Altria Group, Inc. Press Release, dated November 12, 2013 (filed pursuant to Item 8.01) | |
99.2 | Altria Group, Inc. Press Release, dated November 12, 2013 (filed pursuant to Item 8.01, except for the section 2013 Full-Year Earnings Per Share (EPS) Guidance, which is furnished pursuant to Item 7.01) |
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Exhibit 99.1
ALTRIA ANNOUNCES EARLY TENDER RESULTS OF DEBT TENDER OFFER AND INCREASE TO TENDER CAP
RICHMOND, Va. November 12, 2013 - Altria Group, Inc. (Altria) (NYSE: MO) today announces the preliminary results for its previously announced cash tender offer for its senior unsecured notes identified in the table below (the Notes) and increases the Tender Cap from $2,000,000,000 to $2,100,000,000 and the Aggregate Maximum Purchase Sublimit from $1,500,000,000 to $1,600,000,000. The terms and conditions of the tender offer are described in the Offer to Purchase, dated October 28, 2013, and the related Letter of Transmittal, and remain unchanged, except as amended hereby.
According to information provided by Global Bondholder Services Corporation, the Depositary and Information Agent for the tender offer, $1,205,712,000 aggregate principal amount of the 9.950% Notes due 2038, $1,153,572,000 aggregate principal amount of the 10.200% Notes due 2039, $849,174,000 aggregate principal amount of the 9.700% Notes due 2018 and $600,281,000 aggregate principal amount of the 9.250% Notes due 2019 were validly tendered and not validly withdrawn at or prior to 5:00 p.m., New York City time, on November 8, 2013 (the Early Tender Deadline). Tendered Notes may not be withdrawn after the Early Tender Deadline.
The total aggregate principal amount of Notes validly tendered and not validly withdrawn at or prior to the Early Tender Deadline was $3,808,739,000, which amount exceeds the Tender Cap. Since Altria will accept for payment only such portion of the tendered Notes that does not result in it purchasing Notes with an aggregate principal amount above the Aggregate Maximum Purchase Sublimit and the Tender Cap, Altria will purchase a portion of the validly tendered Notes with Acceptance Priority Level 1 up to the Aggregate Maximum Purchase Sublimit and will purchase Notes with Acceptance Priority Level 2 in an aggregate principal amount up to the Tender Cap remaining available for application to the Acceptance Priority Level 2 Notes following the Purchase of the Acceptance Priority Level 1 Notes, in accordance with the terms of the tender offer set forth in the Offer to Purchase, as amended hereby. Assuming that the conditions to the tender offer are satisfied or waived, tendered Notes will be accepted for purchase on a prorated basis as described in the Offer to Purchase, such that the aggregate principal amount of the Notes accepted in the tender offer equals the Tender Cap.
The tender offer for the Notes will expire at 12:00 midnight, New York City time, on Monday, November 25, 2013 (the Expiration Date), unless extended or earlier terminated by Altria.
6601 West Broad Street, Richmond, VA 23230
Title of Securities |
CUSIP Number |
Outstanding Principal Amount |
Acceptance |
Aggregate Maximum Purchase Sublimit* |
Early Tender |
U.S. Treasury Reference Security |
Fixed Spread (bps) |
Bloomberg Reference Page | ||||||||
9.950% Notes due 2038 | 02209SAE3 | $1,500,000,000 | $30 | 2.875% due 05/15/2043 | 198 | FIT1 | ||||||||||
1 | $1,600,000,000 | |||||||||||||||
10.200% Notes due 2039 | 02209SAH6 | $1,500,000,000 | $30 | 2.875% due 05/15/2043 | 198 | FIT1 | ||||||||||
9.700% Notes due 2018 | 02209SAD5 | $1,949,308,000 | $30 | 1.375% due 09/30/2018 | 95 | FIT1 | ||||||||||
2 | Not Applicable | |||||||||||||||
9.250% Notes due 2019 | 02209SAJ2 | $1,350,692,000 | $30 | 1.375% due 09/30/2018 | 135 | FIT1 |
* | Applies to the aggregate principal amount of Notes with Acceptance Priority Level 1. |
** | Per $1,000 principal amount of Notes validly tendered and not validly withdrawn at or prior to the Early Tender Deadline and accepted for purchase. |
For Notes validly tendered and not validly withdrawn at or prior to the Early Tender Deadline and accepted for purchase, the applicable total consideration per $1,000 principal amount of each series of Notes (for each series, the Total Consideration) will be a price determined as described in the Offer to Purchase intended to result in a yield to maturity (calculated in accordance with standard market practice) equal to the sum of (i) the yield to maturity for the applicable U.S. Treasury (UST) Reference Security specified in the table above, calculated based on the bid-side price of such UST Reference Security as of 11:00 a.m., New York City time, today, November 12, 2013 (being the first business day following the Early Tender Deadline), plus (ii) the applicable Fixed Spread specified in the table above. The Total Consideration includes the Early Tender Payment specified in the table above. Holders tendering their Notes after the Early Tender Deadline and at or prior to the Expiration Date will be eligible to receive only the applicable tender offer consideration, namely the applicable Total Consideration less the Early Tender Payment specified in the table above.
In addition, holders whose Notes are purchased in the tender offer will be paid accrued and unpaid interest on their purchased Notes from the applicable last interest payment date up to, but not including, the payment date for such purchased Notes.
Note Issuance
On October 31, 2013, Altria completed an underwritten public offering of senior unsecured notes in an aggregate principal amount sufficient to satisfy the financing condition described in the Offer to Purchase. The tender offer is subject to the satisfaction or waiver of certain other conditions, as specified in the Offer to Purchase.
Information Relating to the Tender Offer
Goldman, Sachs & Co., RBS Securities Inc. and Deutsche Bank Securities, Inc. are acting as the lead dealer managers for the tender offer. Investors with questions may contact Goldman, Sachs & Co. at (800) 828-3182 (toll-free) or (212) 902-6595 (collect) and RBS Securities Inc. at (877) 297-9832 (toll-free) or (203)
2
897-6145 (collect). Global Bondholder Services Corporation is the Information Agent and Depositary and can be contacted at the following numbers: banks and brokers can call (212) 430-3774 (collect), and all others can call (866) 470-4200 (toll-free).
This press release is neither an offer to sell nor a solicitation of offers to buy any securities. The tender offer is being made only pursuant to the Offer to Purchase and the related Letter of Transmittal, each as amended hereby. The tender offer is not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. None of Altria, the Dealer Managers, the Depositary, the Information Agent, or the trustee for the Notes makes any recommendation in connection with the tender offer. Please refer to the Offer to Purchase and related Letter of Transmittal, each as amended hereby, for a description of offer terms, conditions, disclaimers, and other information applicable to the tender offer.
Altrias Profile
Altria directly or indirectly owns 100% of each of Philip Morris USA Inc., U.S. Smokeless Tobacco Company LLC, John Middleton Co., Nu Mark LLC, Ste. Michelle Wine Estates Ltd. (Ste. Michelle) and Philip Morris Capital Corporation. Altria holds a continuing economic and voting interest in SABMiller plc.
The brand portfolios of Altrias tobacco operating companies include Marlboro®, Black & Mild®, Copenhagen®, Skoal® and MarkTen. Ste. Michelle produces and markets premium wines sold under various labels, including Chateau Ste. Michelle®, Columbia Crest®, 14 Hands® and Stags Leap Wine Cellars®, and it imports and markets Antinori®, Champagne Nicolas Feuillatte and Villa Maria Estate products in the United States. Trademarks and service marks related to Altria referenced in this release are the property of Altria or its subsidiaries or are used with permission. More information about Altria is available at altria.com.
Source: Altria Group, Inc. | ||
Altria Client Services | Altria Client Services | |
Investor Relations | Media Relations | |
804-484-8222 | 804-484-8897 |
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Exhibit 99.2
ALTRIA ANNOUNCES CONSIDERATION FOR DEBT TENDER OFFER
RICHMOND, Va. November 12, 2013 - Altria Group, Inc. (Altria) (NYSE: MO) today announces the reference yields, total consideration and tender offer consideration for its previously announced cash tender offer for up to $2,100,000,000 aggregate principal amount (the Tender Cap) of its senior unsecured notes identified in the table below (the Notes). The terms and conditions of the tender offer are described in the Offer to Purchase, dated October 28, 2013, and the related Letter of Transmittal, as amended by Altrias press release issued earlier today increasing the Tender Cap and Aggregate Maximum Purchase Sublimit.
For Notes validly tendered and not validly withdrawn at or prior to 5:00 p.m., New York City time, on November 8, 2013 (the Early Tender Deadline) and accepted for purchase, the applicable total consideration per $1,000 principal amount of each series of Notes (for each series, the Total Consideration) is the price determined as described in the Offer to Purchase intended to result in a yield to maturity (calculated in accordance with standard market practice) equal to the sum of (i) the yield to maturity for the applicable U.S. Treasury (UST) Reference Security specified in the table below, calculated based on the bid-side price of such UST Reference Security as of 11:00 a.m., New York City time, today, November 12, 2013 (being the first business day following the Early Tender Deadline), plus (ii) the applicable Fixed Spread specified in the table below. The Total Consideration includes the Early Tender Payment specified in the table below. Holders tendering their Notes after the Early Tender Deadline and at or prior to 12:00 midnight, New York City time, on Monday, November 25, 2013 (the Expiration Date), will be eligible to receive only the applicable Tender Offer Consideration, namely the applicable Total Consideration less the Early Tender Payment specified in the table below.
Title of Securities |
CUSIP Number |
Acceptance Priority Level |
Aggregate Maximum Purchase Sublimit* |
Early Tender Payment** |
U.S. Treasury Reference Security |
U.S. Treasury Reference Yield |
Fixed Spread (bps) |
Total Consideration *** |
Tender Offer Consideration *** | |||||||||
9.950% Notes due 2038 | 02209SAE3 | $30 | 2.875% due 05/15/2043 | 3.885% | 198 | $1,531.85 | $1,501.85 | |||||||||||
1 | $1,600,000,000 | |||||||||||||||||
10.200% Notes due 2039 | 02209SAH6 | $30 | 2.875% due 05/15/2043 | 3.885% |
198 | $1,566.68 | $1,536.68 | |||||||||||
9.700% Notes due 2018 | 02209SAD5 | $30 | 1.375% due 09/30/2018 | 1.403% |
95 | $1,341.74 | $1,311.74 | |||||||||||
2 | Not Applicable | |||||||||||||||||
9.250% Notes due 2019 | 02209SAJ2 | $30 | 1.375% due 09/30/2018 | 1.403% | 135 | $1,340.19 | $1,310.19 |
* | Applies to the aggregate principal amount of Notes with Acceptance Priority Level 1. |
** | Per $1,000 principal amount of Notes validly tendered and not validly withdrawn at or prior to the Early Tender Deadline and accepted for purchase. |
*** | Per $1,000 principal amount of Notes accepted for purchase. |
In addition, holders whose Notes are purchased in the tender offer will be paid accrued and unpaid interest on their purchased Notes from the applicable last interest payment date up to, but not including, the payment date for such purchased Notes. The payment for Notes accepted for purchase is expected to occur on the first business day after the Expiration Date. Assuming that the tender offer expires on November 25, 2013, and the conditions to the tender offer are satisfied or waived, Altria expects the payment for the purchased Notes to be made on November 26, 2013.
Earlier today, Altria announced that the total aggregate principal amount of Notes validly tendered and not validly withdrawn at or prior to the Early Tender Deadline was $3,808,739,000, which amount exceeds the Tender Cap. Since Altria will accept for payment only such portion of the tendered Notes that does not result in it purchasing Notes with an aggregate principal amount above the Aggregate Maximum Purchase Sublimit and the Tender Cap, Altria will purchase a portion of the validly tendered Notes with Acceptance Priority Level 1 up to the Aggregate Maximum Purchase Sublimit, and will purchase Notes with Acceptance Priority Level 2 in an aggregate principal amount up to the Tender Cap remaining available for application to the Acceptance Priority Level 2 Notes following the purchase of the Acceptance Priority Level 1 Notes, in accordance with the terms of the tender offer set forth in the Offer to Purchase. Assuming that the conditions to the tender offer are satisfied or waived, tendered Notes will be accepted for purchase on a prorated basis as described in the Offer to Purchase, such that the aggregate principal amount of the Notes accepted in the tender offer equals the Tender Cap. All Notes tendered and not accepted for purchase will be returned to holders following the Expiration Date in accordance with the terms of the tender offer.
The tender offer for the Notes will expire on the Expiration Date, unless extended or earlier terminated by Altria.
Note Issuance
On October 31, 2013, Altria completed an underwritten public offering of senior unsecured notes in an aggregate principal amount sufficient to satisfy the financing condition described in the Offer to Purchase. The tender offer is subject to the satisfaction or waiver of certain other conditions, as specified in the Offer to Purchase.
Information Relating to the Tender Offer
Goldman, Sachs & Co., RBS Securities Inc. and Deutsche Bank Securities Inc. are acting as the lead dealer managers for the tender offer. Investors with questions may contact Goldman, Sachs & Co. at (800) 828-3182 (toll-free) or (212) 902-6595 (collect) and RBS Securities Inc. at (877) 297-9832 (toll-free) or (203) 897-6145 (collect). Global Bondholder Services Corporation is the Information Agent and Depositary and can be contacted at the following numbers: banks and brokers can call (212) 430-3774 (collect), and all others can call (866) 470-4200 (toll-free).
This press release is neither an offer to sell nor a solicitation of offers to buy any securities. The tender offer is being made only pursuant to the Offer to Purchase and the related Letter of Transmittal. The tender offer is
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not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. None of Altria, the Dealer Managers, the Depositary, the Information Agent, or the trustee for the Notes makes any recommendation in connection with the tender offer. Please refer to the Offer to Purchase and related Letter of Transmittal for a description of offer terms, conditions, disclaimers, and other information applicable to the tender offer.
2013 Full-Year Earnings Per Share (EPS) Guidance
Based on the Total Consideration described above and the amount of Notes validly tendered by the Early Tender Deadline, Altria is revising its estimate of the previously announced one-time pre-tax charge against 2013 reported earnings, reflecting the estimated loss on early extinguishment of debt related to this debt tender offer (the Estimated Charge). Altria expects the Estimated Charge to be approximately $1.1 billion, or $0.34 per share, revised from $0.35 per share. The final charge may vary to the extent that the amount of Notes validly tendered and not validly withdrawn at or prior to the Expiration Date differs from the amount of Notes validly tendered and not validly withdrawn at or prior to the Early Tender Deadline.
Altria revises its guidance for 2013 full-year reported diluted EPS from a range of $2.22 to $2.27 to a range of $2.23 to $2.28, reflecting the Estimated Charge and the other special items detailed in Table 1 below.
Altria reaffirms its guidance for 2013 full-year adjusted diluted EPS, which excludes the special items shown in Table 1 below, to be in the range of $2.36 to $2.41, representing a growth rate of 7% to 9% from an adjusted diluted EPS base of $2.21 per share in 2012.
The factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to this forecast. Reconciliations of full-year adjusted to reported diluted EPS are shown in Table 1 below.
Table 1 Altrias Full-Year Earnings Per Share Guidance Excluding Special Items | ||||||||||||
Full Year | ||||||||||||
2013 Guidance | 2012 | Change | ||||||||||
Reported diluted EPS |
$ | 2.23 to $ 2.28 | $ | 2.06 | 8% to 11 | % | ||||||
NPM Adjustment items 1 |
(0.21 | ) | | |||||||||
Asset impairment, exit and implementation costs |
| 0.01 | ||||||||||
SABMiller special items |
0.01 | (0.08 | ) | |||||||||
PMCC leveraged lease benefit |
| (0.03 | ) | |||||||||
Loss on early extinguishment of debt |
0.34 | 0.28 | ||||||||||
Tax items 2 |
(0.01 | ) | (0.03 | ) | ||||||||
Adjusted diluted EPS |
$ | 2.36 to $ 2.41 | $ | 2.21 | 7% to 9 | % |
1 | Reflects the impact of Philip Morris USA Inc.s (PM USA) settlement with certain states of the non-participating manufacturer adjustment (NPM Adjustment) disputes for 2003-2012 (NPM Adjustment Settlement) ($0.16) and the diligent enforcement rulings of the arbitration panel presiding over the NPM Adjustment dispute for 2003 (NPM Arbitration Panel Decision) ($0.05). |
2 | Excludes the tax impact of the Philip Morris Capital Corporation (PMCC) leveraged lease benefit. |
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Altrias Profile
Altria directly or indirectly owns 100% of each of PM USA, U.S. Smokeless Tobacco Company LLC (USSTC), John Middleton Co. (Middleton), Nu Mark LLC (Nu Mark), Ste. Michelle Wine Estates Ltd. (Ste. Michelle) and PMCC. Altria holds a continuing economic and voting interest in SABMiller plc (SABMiller).
The brand portfolios of Altrias tobacco operating companies include Marlboro®, Black & Mild®, Copenhagen®, Skoal® and MarkTen. Ste. Michelle produces and markets premium wines sold under various labels, including Chateau Ste. Michelle®, Columbia Crest®, 14 Hands® and Stags Leap Wine Cellars®, and it imports and markets Antinori®, Champagne Nicolas Feuillatte and Villa Maria Estate products in the United States. Trademarks and service marks related to Altria referenced in this release are the property of Altria or its subsidiaries or are used with permission. More information about Altria is available at altria.com.
Forward-Looking and Cautionary Statements
This press release contains projections of future results and other forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Important factors that may cause actual results and outcomes to differ materially from those contained in the projections and forward-looking statements included in this press release are described in Altrias publicly filed reports, including its Annual Report on Form 10-K for the year ended December 31, 2012 and its Quarterly Report on Form 10-Q for the period ended September 30, 2013.
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These factors include the following: Altrias tobacco businesses (PM USA, USSTC, Middleton and Nu Mark) being subject to significant competition; changes in adult tobacco consumer preferences and demand for their products; fluctuations in raw material availability, quality and price; reliance on key facilities and suppliers; reliance on critical information systems, many of which are managed by third-party service providers; fluctuations in levels of customer inventories; the effects of global, national and local economic and market conditions; changes to income tax laws; federal, state and local legislative activity, including actual and potential federal and state excise tax increases; increasing marketing and regulatory restrictions; the effects of price increases related to excise tax increases and concluded tobacco litigation settlements on trade inventories, consumption rates and consumer preferences within price segments; health concerns relating to the use of tobacco products and exposure to environmental tobacco smoke; privately imposed smoking restrictions; and, from time to time, governmental investigations.
Furthermore, the results of Altrias tobacco businesses are dependent upon their continued ability to promote brand equity successfully; to anticipate and respond to evolving adult consumer preferences; to develop, manufacture, market and distribute products that appeal to adult tobacco consumers (including, where appropriate, through arrangements with third parties); to improve productivity; and to protect or enhance margins through cost savings and price increases.
Altria and its tobacco businesses are also subject to federal, state and local government regulation, including broad-based regulation of PM USA and USSTC by the U.S. Food and Drug Administration. Altria and its subsidiaries continue to be subject to litigation, including risks associated with adverse jury and judicial determinations, courts reaching conclusions at variance with the companies understanding of applicable law, bonding requirements in the limited number of jurisdictions that do not limit the dollar amount of appeal bonds and certain challenges to bond cap statutes.
Altria cautions that the foregoing list of important factors is not complete and does not undertake to update any forward-looking statements that it may make except as required by applicable law. All subsequent written and oral forward-looking statements attributable to Altria or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements referenced above.
Source: Altria Group, Inc. | ||
Altria Client Services | Altria Client Services | |
Investor Relations | Media Relations | |
804-484-8222 | 804-484-8897 |
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