8-KRegulation FDOther EventsExhibits & Filings

ALTRIA GROUP, INC. 8-K Report, Regulation FD Disclosure (May 16, 2012)

Filed May 16, 2012For Securities:MO

Summary

Altria Group, Inc. filed an 8-K report on May 16, 2012, to disclose a revision to its first-quarter 2012 financial statements. The company will record one-time non-cash gains of $240 million, or $0.11 per share, related to its equity investment in SABMiller plc. These gains stem from SABMiller's strategic alliance transactions with Anadolu Efes and Castel, which were completed in Q1 2012. While Altria initially deemed these gains not material to its Q1 2012 financial statements, a revision is being made. The $240 million non-cash gain will increase reported net earnings and reported diluted earnings per share for Q1 2012. Importantly, these gains do not impact adjusted diluted EPS, cash flows, dividends, or share repurchases. The company also updated its 2012 full-year reported diluted EPS guidance upwards.

Key Highlights

  • 1Altria to record $240 million in one-time, non-cash gains in Q1 2012 reported earnings.
  • 2Gains are from Altria's equity investment in SABMiller plc, arising from SABMiller's strategic alliance transactions.
  • 3Revision of Q1 2012 financial statements to include these non-cash gains.
  • 4Reported diluted EPS for Q1 2012 will increase by $0.11 per share.
  • 5No impact on adjusted diluted EPS, cash flows, dividends, or share repurchases.
  • 6Updated 2012 full-year reported diluted EPS guidance to a range of $2.25 to $2.31.
  • 7Expected 2012 full-year adjusted diluted EPS growth projected at 6% to 9% over 2011.

Frequently Asked Questions

This 8-K filing is primarily to disclose that Altria Group, Inc. will revise its first-quarter 2012 financial statements to include one-time non-cash gains of $240 million ($0.11 per share) from its equity investment in SABMiller plc, resulting from SABMiller's strategic alliance transactions.

No, the filing explicitly states that these non-cash gains will not impact Altria's adjusted diluted EPS, cash flows, dividends, or share repurchase activities. The impact is solely on reported earnings per share.

The $0.11 per share non-cash gain from SABMiller increases Altria's 2012 full-year reported diluted EPS guidance. The previous range of $2.14 to $2.20 has been revised to $2.25 to $2.31. The company also anticipates 6% to 9% growth in adjusted diluted EPS for the full year.

The filing notes that Altria initially determined the non-cash gains were not material to its first quarter 2012 financial statements. However, they are now being reflected in the revised financial statements for the six months ended June 30, 2012.