EX-99.2 6 a2024q1ex992.htm EX-99.2

EXHIBIT 99.2

Vector Group Ltd.

Condensed Consolidating Financial Statements

March 31, 2024

(in thousands of dollars)

Presented herein are Condensed Consolidating Balance Sheet as of March 31, 2024 and the related Condensed Consolidating Statements of Operations for the three months ended March 31, 2024 of Vector Group Ltd. (Parent/Issuer), the guarantor subsidiaries (Subsidiary Guarantors) and the subsidiaries that are not guarantors (Subsidiary Non-Guarantors).

CONDENSED CONSOLIDATING BALANCE SHEETS

			March 31, 2024
															Subsidiary												Consolidated
			Parent/						Subsidiary						Non-						Consolidating						Vector Group
			Issuer						Guarantors						Guarantors						Adjustments						Ltd.
ASSETS:
Current assets:
Cash and cash equivalents			$	248,309					$	83,959					$	325					$	—					$	332,593
Investment securities at fair value			129,022						—						—						—						129,022
Accounts receivable - trade, net			—						24,100						—						—						24,100
Intercompany receivables			2,761						—						—						(2,761)						—
Inventories			—						106,566						—						—						106,566
Income taxes receivable, net			12,040						—						18,281						(30,321)						—
Other current assets			1,099						12,021						377						—						13,497
Total current assets			393,231						226,646						18,983						(33,082)						605,778
Property, plant and equipment, net			601						34,646						8,115						—						43,362
Long-term investment securities			49,956						—						—						—						49,956
Investments in real estate ventures			—						—						113,563						—						113,563
Operating lease right-of-use assets			6,782						4,946						—						—						11,728
Investments in consolidated subsidiaries			277,488						—						—						(277,488)						—
Intangible assets			—						107,511						—						—						107,511
Other assets			13,885						63,692						7,802						—						85,379
Total assets			$	741,943					$	437,441					$	148,463					$	(310,570)					$	1,017,277
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Intercompany payables			$	—					$	430					$	2,331					$	(2,761)					$	—
Income taxes payable, net			—						46,148						—						(30,321)						15,827
Current payments due under the Master Settlement Agreement			—						74,503						—						—						74,503
Current operating lease liability			1,740						2,356						—						—						4,096
Other current liabilities			36,926						97,084						563						—						134,573
Total current liabilities			38,666						220,521						2,894						(33,082)						228,999
Notes payable, long-term debt and other obligations, less current portion			1,373,024						—						—						—						1,373,024
Non-current employee benefits			62,041						5,896						—						—						67,937
Deferred income taxes, net			(1,543)						28,348						28,837						—						55,642
Non-current operating lease liability			5,465						2,891						—						—						8,356
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement			3,354						18,643						386						—						22,383
Total liabilities			1,481,007						276,299						32,117						(33,082)						1,756,341
Commitments and contingencies
Total stockholders' (deficiency) equity			(739,064)						161,142						116,346						(277,488)						(739,064)
Total liabilities and stockholders' deficiency			$	741,943					$	437,441					$	148,463					$	(310,570)					$	1,017,277

---

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

									Three Months Ended March 31, 2024
															Subsidiary												Consolidated
			Parent/						Subsidiary						Non-						Consolidating						Vector Group
			Issuer						Guarantors						Guarantors						Adjustments						Ltd.
Revenues			$	—					$	324,567					$	258					$	(258)					$	324,567
Expenses:
Cost of sales			—						217,901						—						—						217,901
Operating, selling, administrative and general expenses			8,760						19,815						377						(258)						28,694
Litigation settlement and judgment expense			—						191						—						—						191
Management fee expense			—						3,663						—						(3,663)						—
Operating (loss) income			(8,760)						82,997						(119)						3,663						77,781
Other income (expenses):
Interest expense			(26,215)						(1,234)						—						—						(27,449)
Equity in losses from real estate ventures			—						—						(10,721)						—						(10,721)
Equity in earnings from investments			2,138						—						—						—						2,138
Equity in earnings in consolidated subsidiaries			51,977						—						—						(51,977)						—
Management fee income			3,663						—						—						(3,663)						—
Other, net			5,007						1,414						(36)						—						6,385
Income (loss) before provision for income taxes			27,810						83,177						(10,876)						(51,977)						48,134
Income tax benefit (expense)			6,990						(23,041)						2,717						—						(13,334)
Net income			$	34,800					$	60,136					$	(8,159)					$	(51,977)					$	34,800
Comprehensive income (loss)			$	34,789					$	60,169					$	(8,159)					$	(52,010)					$	34,789