Altria Presents at the Barclays Back-To-School Consumer Conference;
Reaffirms 2013 EPS Guidance
RICHMOND, Va. -- September 3, 2013
Altria Group, Inc. (Altria) (NYSE: MO) is participating in the Barclays
Back-To-School Consumer Conference in Boston, Massachusetts today. During the
presentation, Howard Willard, Altria’s Executive Vice President and Chief
Financial Officer, will review how Altria’s financial goals, business model
and strategies have created significant shareholder value and position Altria
to deliver strong returns in the future.
The presentation is being webcast live at altria.com in a listen-only mode,
beginning at approximately 10:30 a.m., Eastern Time. A copy of the business
presentation and remarks and a replay of the audio webcast of the remarks will
be available at altria.com.
2013 Full-Year EPS Guidance
Altria reaffirms its 2013 full-year guidance for reported diluted earnings per
share (EPS) to be in a range of $2.51 to $2.56. Altria also reaffirms its 2013
full-year guidance for adjusted diluted EPS, which excludes special items
shown in the table 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
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 the table below.
Altria’s Full-Year Earnings Per Share Guidance Excluding Special Items
2013 Guidance 2012 Change
Reported diluted $ 2.51 to $ 2.56 $ 2.06 22 % to 24 %
Loss on early
extinguishment — 0.28
NPM Adjustment (0.16 ) —
and — 0.01
SABMiller 0.01 (0.08 )
PMCC leveraged — (0.03 )
Tax items** — (0.03 )
Adjusted diluted $ 2.36 to $ 2.41 $ 2.21 7 % to 9 %
*Reflects the impact of Philip Morris USA Inc.’s (PM USA) settlement with
certain states of the non-participating manufacturer adjustment disputes for
2003-2012 (NPM Adjustment Settlement).
**Excludes the tax impact of the Philip Morris Capital Corporation (PMCC)
leveraged lease benefit.
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 Altria’s 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 Stag’s
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 and today’s remarks contain 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 and today’s remarks are described in
Altria’s 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 June 30, 2013.
These factors include the following: Altria’s tobacco businesses (including 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
Furthermore, the results of Altria’s 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
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