8-KRegulation FDOther EventsExhibits & Filings

ALTRIA GROUP, INC. 8-K Report, Regulation FD Disclosure (Sep 5, 2012)

Filed September 5, 2012For Securities:MO

Summary

Altria Group, Inc. (MO) filed an 8-K on September 5, 2012, primarily to disclose an upward revision to its 2012 full-year earnings per share (EPS) guidance. The company now anticipates reported diluted EPS to be in the range of $2.03 to $2.07, an increase from the previous forecast of $2.01 to $2.05. This revision is largely attributed to an income tax benefit stemming from the reversal of tax reserves and associated interest following the closure of the Internal Revenue Service audit for the 2004 to 2006 tax years. The filing also highlights that the revised guidance reflects estimated total net expenses of $0.16 per share for 2012, compared to $0.41 per share in 2011. Excluding these net expenses, Altria expects adjusted diluted EPS growth of 7% to 9% for the full year 2012 over 2011. The company also provided details on the specific items impacting reported EPS, including debt extinguishment, asset impairment, SABMiller special items, PMCC leveraged lease items, and tax items.

Key Highlights

  • 1Altria revised its 2012 full-year reported diluted EPS guidance upwards to $2.03 - $2.07, from $2.01 - $2.05.
  • 2The EPS guidance increase is primarily due to an income tax benefit from the reversal of tax reserves and interest related to the closure of the IRS audit for tax years 2004-2006.
  • 3Estimated net expenses included in reported diluted EPS for 2012 are $0.16 per share.
  • 4This compares to $0.41 per share in net expenses for 2011.
  • 5Expected 2012 full-year adjusted diluted EPS (excluding net expenses) represents a growth rate of 7% to 9% over 2011.
  • 6Key items impacting reported EPS in 2012 include loss on early extinguishment of debt ($0.28) and tax items (-$0.02).
  • 7The company furnished the text of remarks by its CEO and CFO and a press release at the Barclays 2012 Back-to-School Consumer Conference.

Frequently Asked Questions

The primary driver for the upward revision in Altria's 2012 full-year EPS guidance is an income tax benefit. This benefit arises from the reversal of tax reserves and associated interest following the successful closure of the Internal Revenue Service audit for the 2004 to 2006 tax years.

Altria expects reported diluted EPS to be between $2.03 and $2.07 for 2012. This guidance includes estimated net expenses of $0.16 per share. The company also projects adjusted diluted EPS growth of 7% to 9% over 2011, which excludes these net expenses and is considered a measure of underlying operations.

For 2012, the significant expense impacting reported diluted EPS is a loss on the early extinguishment of debt, estimated at $0.28 per share. Other items include asset impairment, exit, implementation and integration costs, SABMiller special items, PMCC leveraged lease items, and certain tax items that result in a net expense of $0.16 per share for the full year.

No, this 8-K filing does not contain new financial statements. It is primarily a Regulation FD Disclosure (Item 7.01) and Other Events (Item 8.01) filing. It furnishes exhibits that include the text of remarks by Altria's executives and a press release related to their presentation at the Barclays 2012 Back-to-School Consumer Conference, which contains the updated guidance and expense details.