\nAltria Group, Inc. (Altria) (NYSE:MO) announces that we have completed our acquisition of NJOY Holdings, Inc. (Transaction). We have also updated our guidance for 2023 full-year adjusted diluted earnings per share (EPS) in connection with the Transaction.<\/p>\n
\n\u201cThe completion of this Transaction is a transformative step in our goal of Moving Beyond Smoking<\/i>,\u201d said Billy Gifford, Altria\u2019s Chief Executive Officer (CEO). \u201cWe are pleased to have received antitrust clearance and we are now fully focused on responsibly accelerating U.S. adult smoker and adult vaper adoption of NJOY ACE<\/i>, currently the only pod-based e-vapor product to receive marketing authorization from the FDA.\u201d<\/p>\n
\n\u201cOur updated 2023 full-year EPS guidance range includes planned investments behind the U.S. commercialization of NJOY ACE<\/i> and reflects our goal to deliver strong shareholder returns while making progress toward our Vision.\u201d<\/p>\n
\n\u201cWe are excited to combine our resources with NJOY\u2019s talented team to benefit adult tobacco consumers across the country,\u201d said Shannon Leistra, the new President and CEO of NJOY, LLC.<\/p>\n
E-Vapor Marketing and Commercialization Plans<\/b><\/p>\n Transaction-related Financial Implications<\/b><\/p>\n Updated 2023 Full-Year Guidance<\/b><\/p>\n \nAs a result of the Transaction, we expect to deliver 2023 full-year adjusted diluted EPS in a range of $4.89 to $5.03, representing a growth rate of 1% to 4% from an adjusted diluted EPS base of $4.84 in 2022. Our 2023 full-year adjusted diluted EPS guidance range includes planned investments in support of our Vision, such as (i) continued smoke-free product research, development and regulatory preparation expenses, (ii) enhancement of our digital consumer engagement system and (iii) marketplace activities in support of our smoke-free products, including planned investments behind the U.S. commercialization of ACE<\/i>. Our updated guidance range also includes estimated amortization charges of approximately $50 million for the remainder of 2023 related to intangible assets acquired in the Transaction.<\/p>\n \nWhile the 2023 full-year adjusted diluted EPS guidance accounts for a range of scenarios, the external environment remains dynamic. We will continue to monitor conditions related to (i) the economy, including the impact of inflation, interest rates and global supply chain disruptions, (ii) adult tobacco consumer dynamics, including disposable income, purchasing patterns and adoption of smoke-free products, and (iii) regulatory and legislative developments.<\/p>\n \nWe continue to expect our 2023 full-year adjusted effective tax rate to be in a range of 24.5% to 25.5% and our 2023 capital expenditures to be between $175 million and $225 million. As a result of the Transaction, we have revised our estimate for 2023 depreciation and amortization expenses to be approximately $280 million.<\/p>\n \nWe reaffirm our expectation to complete our previously authorized $1 billion share repurchase program by the end of 2023. Share repurchases depend on marketplace conditions and other factors, and the program remains subject to the discretion of our Board of Directors.<\/p>\n Our full-year adjusted diluted EPS guidance<\/i> and full-year forecast for our adjusted effective tax rate exclude the impact of certain income and expense items that our management believes are not part of underlying operations. Additional items that may be excluded from our full-year adjusted diluted EPS guidance and full-year forecast for our adjusted effective tax rate include, for example, loss on early extinguishment of debt, restructuring charges, asset impairment charges, acquisition-related and disposition-related costs, equity investment-related special items (including any changes in fair value of our equity investment recorded at fair value and any changes in the fair value of related warrants and preemptive rights), certain income tax items, charges associated with tobacco and health and certain other litigation items, and resolutions of certain non-participating manufacturer (NPM) adjustment disputes under the Master Settlement Agreement (such dispute resolutions are referred to as \u201cNPM Adjustment Items\u201d). See Schedule 1 for the income and expense items excluded from our guidance range.<\/i><\/p>\n Our management cannot estimate on a forward-looking basis the impact of certain income and expense items, including those items noted in the preceding paragraph, on our reported diluted EPS or our reported effective tax rate because these items, which could be significant, may be unusual or infrequent, are difficult to predict and may be highly variable. As a result, we do not provide a corresponding U.S. generally accepted accounting principles (GAAP) measure for, or reconciliation to, our adjusted diluted EPS guidance or our adjusted effective tax rate forecast.<\/i><\/p>\n Altria\u2019s Profile<\/b><\/p>\n \nWe have a leading portfolio of tobacco products for U.S. tobacco consumers age 21+. Our Vision is to responsibly lead the transition of adult smokers to a smoke-free future (Vision). We are Moving Beyond Smoking<\/i>\u2122, leading the way in moving adult smokers away from cigarettes by taking action to transition millions to potentially less harmful choices – believing it is a substantial opportunity for adult tobacco consumers, our businesses and society.<\/p>\n \nOur wholly owned subsidiaries include leading manufacturers of both combustible and smoke-free products. In combustibles, we own Philip Morris USA Inc. (PM USA), the most profitable U.S. cigarette manufacturer, and John Middleton Co. (Middleton), a leading U.S. cigar manufacturer. Our smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company LLC (USSTC), the leading global moist smokeless tobacco (MST) manufacturer, Helix Innovations LLC (Helix), a leading manufacturer of oral nicotine pouches, and NJOY, LLC (NJOY), currently the only e-vapor manufacturer to receive market authorizations from the U.S. Food and Drug Administration (FDA) for a pod-based e-vapor product.<\/p>\n \nAdditionally, we have a majority-owned joint venture, Horizon Innovations LLC (Horizon), for the U.S. marketing and commercialization of heated tobacco stick products and, through a separate agreement, we have the exclusive U.S. commercialization rights to the IQOS Tobacco Heating System\u00ae <\/i>and Marlboro HeatSticks\u00ae<\/i> through April 2024.<\/p>\n \nOur equity investments include Anheuser-Busch InBev SA\/NV (ABI), the world\u2019s largest brewer, and Cronos Group Inc. (Cronos), a leading Canadian cannabinoid company.<\/p>\n \nThe brand portfolios of our tobacco operating companies include Marlboro<\/i>\u00ae, Black & Mild<\/i>\u00ae, Copenhagen<\/i>\u00ae, Skoal<\/i>\u00ae, on!<\/i>\u00ae and NJOY ACE<\/i>\u00ae. Trademarks and service marks related to Altria referenced in this release are the property of Altria or our subsidiaries or are used with permission.<\/p>\n \nLearn more about Altria at www.altria.com<\/a> and follow us on Twitter, Facebook and LinkedIn.<\/p>\n Forward-Looking and Cautionary Statements<\/b><\/p>\n \nThis release contains projections of future results and other forward-looking statements that are subject to 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 to differ materially from those contained in or implied by the forward-looking statements included in this release are described in our publicly filed reports, including our Annual Report on Form 10-K for the year ended December 31, 2022 and our Quarterly Reports on Form 10-Q. These factors include the following:<\/p>\n \nYou should understand that it is not possible to predict or identify all factors and risks. Consequently, you should not consider the foregoing list complete. We do not undertake to update any forward-looking statement that we may make from time to time except as required by applicable law. All subsequent written and oral forward-looking statements attributable to Altria or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements referenced above.<\/p>\n \nSchedule 1<\/p>\n<\/td>\n<\/tr>\n \nALTRIA GROUP, INC.<\/p>\n \nand Subsidiaries<\/p>\n \nReconciliation of GAAP and non-GAAP Measures<\/p>\n \n(dollars in millions, except per share data)<\/p>\n \n(Unaudited)<\/p>\n<\/td>\n<\/tr>\n Reconciliation of Altria\u2019s Full-Year 2022 Adjusted Results<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Earnings before Income Taxes<\/b><\/p>\n<\/td>\n Provision for Income Taxes<\/b><\/p>\n<\/td>\n Net Earnings<\/b><\/p>\n<\/td>\n Diluted EPS<\/b><\/p>\n<\/td>\n<\/tr>\n 2022 Reported<\/b><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 7,389<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 1,625<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 5,764<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 3.19<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNPM Adjustment Items<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(68<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(17<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(51<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.03<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nAcquisition and disposition-related items<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n11<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTobacco and health and certain other litigation items<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n131<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n33<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n98<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.05<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nJUUL changes in fair value<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,455<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,455<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.81<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nABI-related special items<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,544<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n534<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,010<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1.12<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCronos-related special items<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n186<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n186<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.10<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nIncome tax items<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n729<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(729<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.40<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n 2022 Adjusted for Special Items<\/b><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 11,648<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 2,906<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 8,742<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 4.84<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n (Income) Expense Excluded from 2023 Forecasted Adjusted Diluted EPS (1)<\/sup><\/b><\/p>\n<\/td>\n<\/tr>\n \nAcquisition and disposition-related items(1)<\/sup><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.02<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTobacco and health and certain other litigation items(1)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.16<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nLoss on disposition of JUUL equity securities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.14<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nABI-related special items<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.01<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nCronos-related special items<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.01<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 0.32<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n (1)<\/sup>Represents special items for the first quarter of 2023 and additional estimated second quarter of 2023 per share charges of (i) $0.02 related to acquisition-related costs associated with the Transaction and (ii) $0.12 related to tobacco and health and certain other litigation items, primarily resulting from the previously announced agreement to resolve certain JUUL-related state and federal cases.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nWhile we report our financial results in accordance with GAAP, our management reviews certain financial results, including diluted EPS, on an adjusted basis, which excludes certain income and expense items, including those items noted under \u201cUpdated 2023 Full-Year Guidance\u201d in the release. Our management does not view any of these special items to be part of our underlying results as they may be highly variable, may be unusual or infrequent, are difficult to predict and can distort underlying business trends and results. Our management also reviews income tax rates on an adjusted basis. Our adjusted effective tax rate may exclude certain tax items from our reported effective tax rate. Our management believes that adjusted financial measures provide useful additional insight into underlying business trends and results and provide a more meaningful comparison of year-over-year results. Our management uses adjusted financial measures for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets. These adjusted financial measures are not required by, or calculated in accordance with GAAP and may not be calculated the same as similarly titled measures used by other companies. These adjusted financial measures should thus be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20230531006033\/en\/<\/a><\/span><\/p>\n \nAltria Client Services \nAltria Client Services KEYWORDS:<\/b> Virginia United States North America<\/p>\n INDUSTRY KEYWORDS:<\/b> Tobacco Retail<\/p>\n\n
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