BROOKE GROUP REPORTS 1995 FINANCIAL RESULTS.MIAMI--(BUSINESS WIRE)--April 16, 1996--Brooke Group Ltd. (NYSE NYSE See: New York Stock Exchange : BGL BGL The pre-July 1999 ISO 4217 currency code for Bulgarian Lev. ) today reported financial results for the year ended December 31, 1995. Preliminary results had previously been reported on April 2, 1996. Full-year 1995 revenues were $461.5 million compared to revenues of $479.3 million in 1994. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $8.1 million in 1995 versus operating income of $14.2 million in 1994. The loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the before income taxes was $45.0 million in 1995 versus $42.5 million in 1994. Net loss applicable to common shares was $17.1 million, or $0.94 per common share, in 1995 compared to net income of $110.1 million, or $6.25 per common share in 1994. "1995 and the first few months of 1996 have marked a time of pivotal developments for Brooke Group and its shareholders," said Bennett S. LeBow Bennett LeBow is the Chairman of the Board and CEO of Vector Group, the holding company for, among other companies, Liggett Group Inc., the sixth largest manufacturer of cigarettes in the United States. LeBow has been affiliated with the company since 1986. , chairman, president and chief executive of Brooke Group. "Most significantly, in early 1996, Brooke's Liggett tobacco subsidiary entered into comprehensive settlements of tobacco litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with the nationwide Castano class and with the Attorneys General of five states. For a small price, these settlements secure an insurance policy protecting Liggett from all addiction-based claims, the most serious litigation risks facing the industry, and greatly increase Liggett s potential value to Brooke shareholders. "Many important steps were also taken in 1995 by New Valley Corporation, of which we are 42 percent owners. After emerging from bankruptcy in January 1995 with over $300 million in unrestricted cash, New Valley embarked on an aggressive acquisition program, which, in addition to purchasing 5.2 million shares of RJR Nabisco (NYSE: RN), also included purchasing the investment bank, Ladenburg, Thalmann & Co. Inc., acquiring a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in Thinking Machines, a software developer and marketer, and making a $184 million commercial real estate purchase. In 1995, the Company resumed payment of a regular quarterly cash dividend of $0.075 per share, or $0.30 annually, to holders of Brooke Group common stock. Also in 1995, the Company successfully refinanced substantially all of its corporate debt with five year notes due 2001, through its BGLS BGLS Bisexual and Gay and Lesbian Students Inc. subsidiary. LeBow continued, "In our effort to realize value for our shareholders, Brooke Group continues to strive as a contrarian investor, pursuing opportunities in a number of diverse industries. In 1996, we intend to focus on maximizing the value of our current operations while continuing to identify and capitalize on new investment opportunities in the U.S. and abroad." Brooke Group is a holding company which owns controlling interests in New Valley Corporation and Liggett Group, and has tobacco and real estate operations in Russia. CONTACT: George Sard/Anna Cordasco/Paul Caminiti Sard Verbinnen & Co 212/687-8080 |
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