8-KRegulation FDOther EventsExhibits & Filings

ALTRIA GROUP, INC. 8-K Report, Regulation FD Disclosure (Jun 11, 2013)

Filed June 11, 2013For Securities:MO

Summary

Altria Group, Inc. (MO) filed an 8-K on June 11, 2013, primarily to disclose updates related to its 2013 full-year guidance and to provide restated retail share performance data. The company revised its full-year reported diluted Earnings Per Share (EPS) guidance upward to a range of $2.50 to $2.56, an increase from the previous $2.49 to $2.55 range. This adjustment is attributed to an additional $36 million credit related to the non-participating manufacturer (NPM) adjustment disputes for Philip Morris USA's Master Settlement Agreement payments. Furthermore, the filing addresses changes in how retail share data for cigarettes, cigars, and smokeless products are tracked. Due to the adoption of new tracking services (IRI/MSAi and IRI InfoScan), Altria has restated its 2011 and 2012 retail share performance for these product categories. Investors should note that the new data is not directly comparable to prior periods reported under different tracking methodologies. The company also reiterated that its guidance is subject to various risks and uncertainties outlined in its forward-looking statements.

Key Highlights

  • 1Altria revised its 2013 full-year reported diluted EPS guidance upwards to $2.50 - $2.56.
  • 2The guidance increase is due to a $36 million credit from additional states joining NPM Adjustment dispute settlements.
  • 3The filing includes restated 2011 and 2012 retail share data for cigarettes, cigars, and smokeless products.
  • 4New tracking services (IRI/MSAi, IRI InfoScan) have been adopted for measuring retail share.
  • 5Retail share results using the new services are not directly comparable to previous periods.
  • 6The company presented its Investor Day materials, including remarks and a press release, as exhibits.
  • 7Expected 2013 full-year adjusted diluted EPS growth is projected at 6% to 9% over 2012.

Frequently Asked Questions

Altria revised its 2013 full-year reported diluted EPS guidance upwards due to an additional $36 million credit. This credit arises from two more states joining a settlement regarding non-participating manufacturer (NPM) adjustment disputes, which impacts Philip Morris USA's Master Settlement Agreement payment obligations.

The company has adopted new tracking services for measuring retail share for cigarettes, cigars, and smokeless products. Because these new services (IRI/MSAi, IRI InfoScan) measure market share differently than previous methods, Altria has restated its 2011 and 2012 retail share results to provide a more accurate historical context under the new methodology. Investors should be aware that the new data is not directly comparable to prior periods reported under the old tracking services.

The NPM Adjustment refers to disputes over how to account for payments related to the Master Settlement Agreement (MSA) between states and tobacco companies for states with non-participating manufacturers. Altria's earnings are affected by these disputes and their settlements, which can lead to credits or charges impacting its financial results.

Reported diluted EPS is calculated according to U.S. Generally Accepted Accounting Principles (GAAP) and includes all income and expenses. Adjusted diluted EPS is a non-GAAP measure that excludes certain items management believes are not part of underlying operations (e.g., debt extinguishment, special items, certain settlements). Altria provides adjusted EPS to offer a clearer view of ongoing business trends and results, facilitating year-over-year comparisons.