8-KRegulation FDOther EventsExhibits & Filings

ALTRIA GROUP, INC. 8-K Report, Regulation FD Disclosure (Nov 12, 2013)

Filed November 12, 2013For Securities:MO

Summary

Altria Group, Inc. (MO) filed an 8-K on November 12, 2013, primarily to disclose updates on its debt tender offer and its 2013 full-year earnings per share (EPS) guidance. The company announced preliminary results for its cash tender offer on its senior unsecured notes, increasing the tender cap to $2.1 billion. This action is expected to result in a one-time pre-tax charge against earnings related to the early extinguishment of debt. The most significant financial impact highlighted is the revised estimate for this charge, now projected at approximately $1.1 billion, or $0.34 per share, down slightly from a previous estimate of $0.35 per share. Consequently, Altria has also adjusted its 2013 full-year reported diluted EPS guidance to a range of $2.23 to $2.28, reflecting this charge. The company also provided details on other expense and income items impacting reported EPS for both 2013 and 2012, and reiterated its expectation for adjusted diluted EPS growth.

Key Highlights

  • 1Altria announced preliminary results for its cash tender offer for senior unsecured notes, increasing the tender cap.
  • 2The tender offer is expected to result in a one-time pre-tax charge of approximately $1.1 billion ($0.34 per share) for the early extinguishment of debt.
  • 3The company revised its 2013 full-year reported diluted EPS guidance to a range of $2.23 to $2.28.
  • 4This revision reflects the estimated charge related to the debt tender offer.
  • 5Detailed expense and income items impacting reported EPS for 2013 and 2012 were provided.
  • 6Altria expects 7% to 9% growth in adjusted diluted EPS for 2013 over 2012.

Frequently Asked Questions

This 8-K filing serves to announce Altria's preliminary results for its debt tender offer and to update its 2013 full-year earnings per share (EPS) guidance due to the expected costs associated with early debt extinguishment.

The tender offer is estimated to result in a one-time pre-tax charge of approximately $1.1 billion, which translates to about $0.34 per share, related to the early extinguishment of debt. This charge has been slightly revised downwards from a prior estimate.

Altria has revised its 2013 full-year reported diluted EPS guidance to a range of $2.23 to $2.28, up from the previous range of $2.22 to $2.27, primarily to account for the estimated charge related to the debt tender offer.

Altria anticipates that its adjusted diluted EPS for the full year 2013 will represent a growth rate of 7% to 9% compared to its 2012 full-year adjusted diluted EPS.