Vector Group Ltd (VGR) 2024 Q2 法說會逐字稿

Welcome to Vector Group Limited's second-quarter 2024 earnings conference call. This call is being recorded and simultaneously webcast. An archived version of the webcast will be available on the Investor Relations section of the company's website located at www.vectorgroupltd.com.

歡迎參加 Vector Group Limited 2024 年第二季財報電話會議。此次通話正在錄音並同時進行網路直播。此網路廣播的存檔版本將在公司網站 www.vectorgroupltd.com 的投資者關係部分提供。

During this call, the terms adjusted operating income, adjusted net income, adjusted EBITDA, and tobacco adjusted operating income will be used. These terms are non-GAAP financial measures, and should be considered in addition to, but not as a substitute for, other measures of financial performance prepared in accordance with GAAP.

在本次電話會議中，將使用調整後營業收入、調整後淨利、調整後 EBITDA 和菸草調整後營業收入等術語。這些術語屬於非公認會計原則財務衡量標準，應作為根據公認會計原則制定的其他財務績效衡量標準的補充，但不能取代這些衡量標準。

Reconciliations to adjusted operating income, adjusted net income, adjusted EBITDA and tobacco adjusted operating income are contained in the company's earnings release, which has been posted to the Investor Relations section of the company's website.

調整後的營業收入、調整後的淨利潤、調整後的 EBITDA 和菸草調整後的營業收入的調節表包含在公司的收益發布中，該發布已發佈在公司網站的投資者關係部分。

Before the call begins, I would like to read a safe harbor statement. The statements made during this conference call that are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements.

在通話開始之前，我想閱讀一份安全港聲明。本次電話會議期間所做的非歷史事實的陳述屬於前瞻性陳述，存在風險和不確定性，可能導致實際結果與前瞻性陳述中闡述或暗示的結果有重大差異。

These risks are described in more detail in the company's Securities and Exchange Commission filings. Now I would like to turn the call over to the President and Chief Executive Officer of Vector Group, Howard Lorber.

該公司向證券交易委員會提交的文件中更詳細地描述了這些風險。現在我想將電話轉給 Vector 集團總裁兼執行長 Howard Lorber。

Good morning and thank you for joining us for Vector Group's second-quarter 2024 earnings conference call. With me today are Richard Lampen, our Chief Operating Officer, Bryant Kirkland, our Chief Financial Officer, and Nick Anson, President and Chief Operating Officer of Liggett Vector Brands.

早安，感謝您參加 Vector Group 2024 年第二季財報電話會議。今天與我在一起的有我們的營運長 Richard Lampen、我們的財務長 Bryant Kirkland 以及 Liggett Vector Brands 的總裁兼營運長 Nick Anson。

I will start the call with an update on our balance sheet and review our consolidated financial results for the second quarter of 2024. Then I will ask Nick to summarize the performance of our tobacco business. I will close with final comments and open the call for questions.

我將首先介紹我們的資產負債表最新情況，並回顧我們 2024 年第二季的綜合財務表現。然後我會請尼克總結我們菸草業務的表現。我將以最後評論結束並開始提問。

As of June 30, 2024, we maintained significant liquidity with cash and cash equivalents of approximately $391 million, including cash of $150 million at Liggett. We also held investment securities and long-term investments with a fair market value of approximately $188 million.

截至 2024 年 6 月 30 日，我們保持著大量流動性，現金和現金等價物約為 3.91 億美元，其中包括 Liggett 的 1.5 億美元現金。我們也持有公平市場價值約 1.88 億美元的投資證券和長期投資。

Turning to Vector's consolidated results for the three months ended June 30, 2024. Vector's revenues for the second quarter of 2024 were $371.9 million, up from $365.7 million in the corresponding 2023 period. Net income increased to $54.2 million or $0.34 per diluted common share, up from $38.1 million or $0.24 per diluted common share in the 2023 period.

轉向 Vector 截至 2024 年 6 月 30 日止三個月的綜合業績。Vector 2024 年第二季的營收為 3.719 億美元，高於 2023 年同期的 3.657 億美元。淨利潤從 2023 年的 3,810 萬美元或稀釋後普通股每股 0.24 美元增至 5,420 萬美元或稀釋後普通股 0.34 美元。

Adjusted EBITDA increased to $103.3 million, up from $94.1 million in the 2023 period. Adjusted net income increased to $53.3 million or $0.34 per diluted share, up from $50.8 million or $0.32 per diluted share in the 2023 period.

調整後 EBITDA 從 2023 年的 9,410 萬美元增至 1.033 億美元。調整後淨利增至 5,330 萬美元，即稀釋後每股收益 0.34 美元，高於 2023 年期間的 5,080 萬美元，即稀釋後每股收益 0.32 美元。

Turning to Vector's consolidated results for the 6 months ended June 30, 2024. Revenues for the 6 months ended June 30, 2024, were $696.5 million compared to $699.8 million in the corresponding 2023 period. Net income was $89 million or $0.56 per diluted common share, up from $72.8 million or $0.46 per diluted common share in the 2023 period.

轉向 Vector 截至 2024 年 6 月 30 日止 6 個月的綜合業績。截至 2024 年 6 月 30 日的 6 個月營收為 6.965 億美元，而 2023 年同期營收為 6.998 億美元。淨利潤為 8,900 萬美元，即每股稀釋普通股 0.56 美元，高於 2023 年期間的 7,280 萬美元，即每股稀釋普通股 0.46 美元。

Adjusted EBITDA increased to $186 million, up from $172.2 million in the 2023 period. Adjusted net income was $90.5 million or $0.57 per diluted share compared to $84.8 million or $0.54 per diluted share in the 2023 period. I will now turn the call over to Nick to discuss our tobacco operations. Nick?

調整後 EBITDA 從 2023 年的 1.722 億美元增至 1.86 億美元。調整後淨利潤為 9,050 萬美元，即稀釋後每股收益 0.57 美元，而 2023 年期間的淨利潤為 8,480 萬美元，即稀釋後每股收益 0.54 美元。我現在將把電話轉給尼克，討論我們的菸草業務。缺口？

Thank you, Howard, and good morning. Liggett delivered strong results in the second quarter and the first half of 2024 as we continued to reap the benefits of our strategic investment in Montego, while also delivering substantial income from our other core brands, Eagle 20's and Pyramid.

謝謝你，霍華德，早安。Liggett 在 2024 年第二季和上半年取得了強勁業績，我們繼續從 Montego 策略投資中獲益，同時也從我們的其他核心品牌 Eagle 20's 和 Pyramid 中獲得了可觀收入。

Adjusted operating income from the Tobacco segment in the second quarter was $103 million, an increase of $9.8 million or 10.5% compared to the prior year period.

第二季菸草業務調整後營業收入為1.03億美元，比去年同期增加980萬美元，即10.5%。

Liggett's total retail market share remained stable at 5.8% during the second quarter of 2024. At the same time, Montego's national retail market share grew to 4.1%, up from 3.5% in the prior year period.

2024 年第二季度，Liggett 的總零售市佔率穩定在 5.8%。同時，Montego 的全國零售市佔率從去年同期的 3.5% 成長至 4.1%。

Our portfolio of brands provides for a substantial income base. Eagle 20's and Pyramid offer significant market presence while Montego enhances our potential for long-term earnings growth. Montego, which is now delivering incremental margin, is demonstrating strong consumer demand.

我們的品牌組合提供了可觀的收入基礎。Eagle 20's 和 Pyramid 提供了重要的市場份額，而 Montego 增強了我們長期獲利成長的潛力。Montego 現在的利潤率不斷提高，顯示出強勁的消費者需求。

The brand remains the largest discount cigarette brand in the United States and the country's fourth largest brand.

該品牌仍然是美國最大的折扣捲菸品牌和該國第四大品牌。

Our ability to consistently improve our gross profit margin while maintaining our market share is a result of our diligent market analysis, strategic brand positioning, broad-based distribution and excellent retail execution.

我們能夠在保持市場份額的同時持續提高毛利率，這得益於我們勤奮的市場分析、戰略品牌定位、廣泛的分銷和卓越的零售執行力。

As a result, we are pleased to note that in the second quarter of 2024, Montego's distribution expanded to more than 103,000 stores, up from approximately 89,000 stores in the prior year period.

因此，我們很高興地註意到，2024 年第二季度，Montego 的分銷店數量從去年同期的約 89,000 家商店擴大到超過 103,000 家商店。

Despite cooling inflation, prices remain elevated and disposable income among many consumers remains under pressure. As a result, the deep discount market segment remained strong and continued to outperform the overall US cigarette market.

儘管通膨降溫，物價仍居高不下，許多消費者的可支配收入仍面臨壓力。因此，深度折扣細分市場依然強勁，並持續跑贏美國捲菸整體市場。

During the second quarter of 2024 based on Management Science Associates, retail data volumes in the deep discount category increased 5.4% while industry volumes declined 10% compared to the prior year period. The deep discount segment comprised 16.3% of the overall market in the second quarter, up from 13.9% in the same period a year ago and 15.9% in the first quarter of 2024.

根據 Management Science Associates 的數據，2024 年第二季度，深度折扣類別的零售數據量與去年同期相比成長了 5.4%，而產業數據量則下降了 10%。第二季深度折扣細分市場佔整體市場的 16.3%，高於去年同期的 13.9% 和 2024 年第一季的 15.9%。

This segment continues to present an attractive price option for consumers, and we are confident that our value-focused brand portfolio and nationwide footprint provide Liggett with a meaningful competitive advantage as the migration to lower-priced products continues.

該細分市場繼續為消費者提供有吸引力的價格選擇，我們相信，隨著向低價產品的遷移繼續，我們以價值為中心的品牌組合和全國覆蓋範圍為Liggett 提供了有意義的競爭優勢。

Liggett's second quarter retail shipments declined by 9.6% compared to the same period in 2023, while industry retail shipments declined by 10% according to data from Management Science Associates. While our second quarter retail shipments modestly outperformed the industry, Liggett's wholesale shipments were stronger, declining by 5.1% while the industry wholesale shipments declined by 10.5% compared to the same period in 2023.

Management Science Associates 的數據顯示，與 2023 年同期相比，Liggett 第二季零售出貨量下降了 9.6%，而產業零售出貨量下降了 10%。雖然我們第二季的零售出貨量略好於業界，但 Liggett 的批發出貨量表現更為強勁，與 2023 年同期相比下降了 5.1%，而業界批發出貨量則下降了 10.5%。

The difference between our retail and wholesale shipment performance reflects the inconsistent nature of short-term wholesaler purchasing patterns. In the second quarter, wholesalers' purchasing patterns were primarily driven by speculation surrounding the timing of manufacturers' price increases and offsetting inventory reductions we faced in the first quarter.

我們的零售和批發出貨表現之間的差異反映了短期批發商採購模式的不一致性質。第二季度，批發商的採購模式主要是由圍繞製造商提價時間和抵消我們在第一季面臨的庫存減少的猜測所推動的。

As we have noted in the past, we believe that retail shipments are a significantly more reliable indicator of industry volume performance. For the six months ended June 30, 2024, Liggett's wholesale shipments declined 7.8% compared to 10.1% decline in industry shipments.

正如我們過去所指出的，我們認為零售出貨量是衡量產業銷售表現的更可靠指標。截至 2024 年 6 月 30 日的六個月，Liggett 的批發出貨量下降了 7.8%，而產業出貨量下降了 10.1%。

As a result, Liggett's longer-term wholesale market share reflects the same stability as our retail share. I will now turn to the consolidated tobacco financials for Liggett Group and Vector Tobacco.

因此，利吉特的長期批發市場份額反映了與我們的零售市場份額相同的穩定性。我現在將談談 Liggett Group 和 Vector Tobacco 的綜合菸草財務狀況。

For the three months ended June 30, 2024, revenues increased 1.7% to $371.9 million from $365.7 million in the second quarter of 2023. The increase was the result of a 7.1% increase in pricing partially offset by a 5.1% decrease in wholesaler shipments during the period.

截至 2024 年 6 月 30 日的三個月，營收從 2023 年第二季的 3.657 億美元成長 1.7% 至 3.719 億美元。這一增長的原因是價格上漲了 7.1%，但該期間批發商出貨量下降了 5.1%，部分抵消了這一影響。

For the six months ended June 30, 2024, revenues were $696.5 million, a 0.5% decrease from $699.8 million for the corresponding period in 2023.

截至 2024 年 6 月 30 日的六個月，營收為 6.965 億美元，比 2023 年同期的 6.998 億美元下降 0.5%。

The roughly flat results reflect a 7.8% increase in pricing, offset by a similar 7.8% decrease in wholesale shipment volumes. Liggett's operating income for the three months ended June 30, 2024, was $102.9 million compared to $75.1 million in the corresponding 2023 period.

大致持平的結果反映了價格上漲 7.8%，但批發出貨量也下降了 7.8%，抵消了這種影響。截至 2024 年 6 月 30 日的三個月，Liggett 的營業收入為 1.029 億美元，而 2023 年同期為 7,510 萬美元。

This $27.8 million increase in operating income was primarily the result of a lack of an $18 million accrual related to our second quarter settlement last year with the State of Mississippi along with higher gross margins.

營業收入增加 2,780 萬美元，主要是由於我們去年第二季與密西西比州的結算相關的 1,800 萬美元應計費用以及較高的毛利率所致。

Liggett's adjusted operating income for the three months ended June 30, 2024, increased 10.5% to $103 million compared to $93.2 million in the corresponding 2023 period.

截至 2024 年 6 月 30 日的三個月，Liggett 調整後的營業收入成長了 10.5%，達到 1.03 億美元，而 2023 年同期為 9,320 萬美元。

During the same period, our second quarter gross margin equated to 34.2% of revenues, representing an increase of approximately 230 basis points compared to the corresponding 2023 period. Tobacco adjusted EBITDA in the second quarter increased 10.2% to $104.4 million compared to $94.7 million for the corresponding 2023 period.

同期，我們第二季的毛利率相當於營收的 34.2%，較 2023 年同期成長約 230 個基點。菸草業第二季調整後 EBITDA 成長 10.2%，達到 1.044 億美元，而 2023 年同期為 9,470 萬美元。

For the six months ended June 30, 2024, tobacco adjusted EBITDA increased 8.1% to $188.8 million compared to $174.6 million for the corresponding 2023 period.

截至 2024 年 6 月 30 日的六個月，菸草調整後 EBITDA 成長 8.1%，達到 1.888 億美元，而 2023 年同期為 1.746 億美元。

In summary, the operational and financial performance of our tobacco business remains strong, and our stable retail market share and profit growth validate our long-term strategy and ongoing competitive advantages in the discount segment.

總而言之，我們的菸草業務的營運和財務表現依然強勁，我們穩定的零售市場份額和利潤成長驗證了我們在折扣領域的長期策略和持續的競爭優勢。

We are the leader in the only growth segment in the US market, and remain committed to providing American consumers with the best value propositions in the industry.

我們是美國市場唯一成長領域的領導者，並持續致力於為美國消費者提供業界最佳的價值主張。

With our leadership in the discount segment and proven track record, we are ideally positioned to sustain our momentum and strengthen our foundation for long-term earnings growth. Thanks for your attention, and back to you, Howard.

憑藉我們在折扣領域的領導地位和良好的業績記錄，我們處於理想的位置，可以保持我們的勢頭並鞏固我們長期盈利增長的基礎。感謝您的關注，霍華德。

Thank you, Nick. In summary, we are pleased with our second quarter operating results as well as our long-standing practice of paying a quarterly cash dividend. We expect that this dividend policy will continue. Now operator, please open the call for questions.

謝謝你，尼克。總之，我們對第二季的經營業績以及我們長期以來支付季度現金股利的做法感到滿意。我們預計這一股利政策將持續下去。現在接線員，請打開電話提問。

(Operator Instructions)

（操作員說明）

Ian Zaffino, Oppenheimer

伊恩·扎菲諾，奧本海默

Oh hi, great. Thank you very much. Very strong quarter. I wanted to ask you, what's been driving the really strong market share? And I don't know, maybe give us the relative pricing at Montego versus the relative pricing at non-Montego brands? Just trying to understand this a little bit better. Thank you.

哦嗨，太好了。非常感謝。非常強勁的季度。我想問您，是什麼推動瞭如此強勁的市場佔有率？我不知道，能否給我們蒙特哥品牌與非蒙特哥品牌的相對定價？只是想更好地理解這一點。謝謝。

Nick, maybe you want to take that?

尼克，也許你想接受這個？

Sure. Yes, absolutely. Look, as I alluded to in my earlier remarks, we're continuing to reap the benefits of the strategic investment in Montego while at the same time, managing our two other core brands of Eagle 20's and Pyramid.

當然。是的，絕對是。看，正如我在先前的演講中提到的，我們將繼續從 Montego 戰略投資中獲益，同時管理我們的另外兩個核心品牌 Eagle 20's 和 Pyramid。

Look, we're laser focused on the right segment of the market, and our ability to improve the margins while at the same time, maintaining the market share is the result of our retail execution and brand positioning. And we've done an excellent job in the second quarter, and we're expecting those results to continue.

看，我們專注於正確的市場領域，我們提高利潤率同時保持市場份額的能力是我們零售執行和品牌定位的結果。我們在第二季度做得非常出色，我們預計這些結果將持續下去。

From a pricing perspective, the price gap remains stable. With respect to Montego, you're looking at between a 45% to 50% discount to Marlboro. And that's obviously a compelling value proposition for those smokers looking for value in this day and age.

從定價角度來看，價差保持穩定。至於 Montego，您會看到比萬寶路有 45% 到 50% 的折扣。對於當今時代尋求價值的吸煙者來說，這顯然是一個令人信服的價值主張。

Okay. Thank you. And then I guess the second question would be, if I heard this right, you said that you're enjoying right now a trade down because of, I guess, economic conditions. How does the business eventually do if economic conditions continue to deteriorate? Does that roll in then fall off, or how do we think about it maybe to reference like the financial crisis or to recession? Basically, how this category would then do if we see continued economic recession?

好的。謝謝。然後我想第二個問題是，如果我沒聽錯的話，你說你現在正在享受降價交易，我想是因為經濟狀況。如果經濟狀況持續惡化，企業最終會變成怎樣？它會先滾後落嗎？基本上，如果我們看到經濟持續衰退，這個​​類別會如何表現？

I mean I would say, if we see continued economic weakness, we're going to see continued down trading as the pressure gets on the pressure continues on the consumer. So again, we're in a very good place to take advantage of that kind of situation.

我想說的是，如果我們看到經濟持續疲軟，隨著消費者繼續承受壓力，我們將看到交易持續下跌。再說一次，我們處於一個很好的位置來利用這種情況。

Even if the economic environment improves, I would argue that the premium segment at the moment is not a good option under any economic scenario for smokers. Prices are high, and with our 45% to 50% discount, again, it's a good value proposition and alternative for smokers.

即使經濟環境有所改善，我認為目前的高端市場對於吸煙者來說在任何經濟情況下都不是一個好的選擇。價格很高，而且我們有 45% 到 50% 的折扣，這對於吸煙者來說是一個很好的價值主張和替代品。

So I mean we've seen as well when conditions do, in fact, improve based on the quality of our cigarettes, people stay with the discount segment. I mean it's a good quality cigarette. It provides the same kind of satisfaction as a premium cigarette. So we are confident in the long term that we can sustain this momentum.

所以我的意思是，我們也看到，事實上，當情況確實根據我們捲菸的品質而改善時，人們就會繼續購買折扣產品。我的意思是這是一支質量很好的香煙。它提供了與優質香煙相同的滿足感。因此，從長遠來看，我們有信心能夠維持這一勢頭。

All right. Great. Thank you very much. Good quarter again.

好的。偉大的。非常感謝。又是一個好季度。

Thanks Ian.

謝謝伊恩。

Hale Holden, Barclays.

黑爾·霍頓，巴克萊銀行。

Hi, good morning. Nick, I was wondering if you could talk a little bit about what you're seeing by different retail channel? So we've heard some that are softer than others. And I was wondering if there are places where you were seeing strength or if it was just sort of universal across different channels and outlets or regions?

嗨，早安。尼克，我想知道您是否可以談談您透過不同零售管道看到的情況？所以我們聽到了一些比其他更溫和的聲音。我想知道您是否在某些地方看到了優勢，或者它是否在不同管道、管道或地區具有普遍性？

Yes. Sure, Hale. I mean, and certainly, our independents remain very, very strong when Montego is doing well. But certainly, we've got very strong presence in both Dollar General and Family Dollar, and those kind of discount stores at the moment are performing very, very well.

是的。當然，黑爾。我的意思是，當然，當蒙特哥表現良好時，我們的獨立人士仍然非常非常強大。但可以肯定的是，我們在 Dollar General 和 Family Dollar 上都有很強的影響力，而且這些折扣店目前的表現非常非常好。

And our placement and the visibility that we have in those stores and the partnerships that we have are really paying dividends. So we're very pleased with the way those key chains are operating at the moment, Hale.

我們在這些商店中的佈局和知名度以及我們所擁有的合作夥伴關係確實帶來了紅利。因此，我們對這些鑰匙鏈目前的運作方式非常滿意，Hale。

Great. And just sort of a follow-up to the first question you guys got. I think a couple of years ago, we said that the discount share was going to be 16%, 17%. It would have seemed a little heroic, but here you are.

偉大的。這只是你們提出的第一個問題的後續。我想幾年前，我們說過折扣份額將為 16%、17%。這看起來有點英雄主義，但你就在這裡。

So I guess the question is you kind of continue to see that expanding as core numbers continue to decline from the premium sector. Is that the way to think about it over the next five years?

所以我想問題是，隨著高端產業的核心數量繼續下降，您會繼續看到這種擴張。這是未來五年的思考方式嗎？

So from my perspective, Hale, again, I mean, you're seeing that the premium players continue to take higher price increases, more frequent price increases as the volumes in that channel decrease. They also need those price increases to sustain the investments in their reduced risk products.

因此，從我的角度來看，黑爾，我的意思是，你會看到高端玩家繼續採取更高的價格上漲，隨著該管道的交易量減少，價格上漲更頻繁。他們還需要價格上漲來維持對其低風險產品的投資。

So again, I do not see the premium segment being a good option for the smoker over the long term. So again, we're feeling good about the trends in the marketplace. And certainly, as the leaders of the discount segment, we're feeling good about our position within that.

因此，從長遠來看，我認為高端細分市場對於吸菸者來說不是一個好的選擇。再說一遍，我們對市場趨勢感覺良好。當然，作為折扣領域的領導者，我們對自己在該領域的地位感到滿意。

Great! Thank you so much. I appreciate it, fellas.

偉大的！太感謝了。我很感激，夥計們。

Karru Martinson, Jefferies.

卡魯馬丁森，傑弗里斯。

Good morning. We've seen growth in the pouch segment of tobacco, such as Zyn. Is this a challenge to the deep discount market? Or would this be an area of potential growth for you?

早安.我們看到了袋裝菸草領域的成長，例如 Zyn。這是否是對深度折扣市場的挑戰？或者這對您來說是一個潛在成長的領域嗎？

Yes. I mean we're not seeing necessarily that the pouch segment is impacting the combustible segment and certainly not the discount segment. I mean it is certainly growing, Karru, but it's off a very, very small base at the moment.

是的。我的意思是，我們不一定會看到小袋部分正在影響可燃部分，當然也不會影響折扣部分。我的意思是，卡魯，它確實在成長，但目前的基礎非常非常小。

So we're not concerned about the growth segment. I mean, we're looking at it as we do with all new reduced risk products, Karru. We evaluate it, and certainly, if the right investment opportunity came along, we would take advantage of it.

所以我們並不擔心成長部分。我的意思是，我們正在像對待所有新的降低風險產品一樣看待它，Karru。我們對其進行評估，當然，如果出現合適的投資機會，我們會利用它。

But at the moment, we continue to remain focused on our core competencies in the discount segment in the only growing segment of the combustible market and remain laser focused on that at the moment.

但目前，我們繼續專注於我們在可燃物市場唯一成長領域的折扣領域的核心競爭力，並且目前仍高度關注這一點。

All right. And then on the regulatory front, is there anything new? It seems to have gone quiet there.

好的。那麼在監管方面，有什麼新的改變嗎？那裡似乎變得安靜了。

Yes, I'll answer that. Yes, the fact is it seems to have gone quiet because it has gone quiet. And so obviously, politics plays a role in that, and that may be why. It's just like on the -- you wouldn't want to be in the marijuana business these days because every few months, they say it's going to be federally legalized.

是的，我會回答這個問題。是的，事實上它似乎已經安靜了，因為它已經安靜了。顯然，政治在其中發揮作用，這可能是原因。就像現在你不想從事大麻生意一樣，因為每隔幾個月，他們就會說大麻將在聯邦合法化。

And then when the Democrats came into office, they were positive it was going to be legalized, and guess what, no. So it's hard to say, it's hard to play that game. But I think, as Nick has said, we're really in a perfect position at this particular point.

然後當民主黨上台時，他們確信它會合法化，你猜怎麼著，沒有。所以很難說，玩這個遊戲很難。但我認為，正如尼克所說，我們在這一點上確實處於完美的位置。

And with that perfect position, how are you guys thinking about the capital structure these days?

有了這個完美的位置，你們現在如何看待資本結構？

Yes. Well, we are going to have bonds that come due, and we're ready to maybe get started on working on that. And I think the capital structure is good. I think we're building cash, which is good. It's always good, and we'll see if we can do something with the cash that makes sense.

是的。好吧，我們的債券將會到期，我們已經準備好開始解決這個問題了。我認為資本結構良好。我認為我們正在累積現金，這很好。這總是好的，我們會看看是否可以用這些現金做一些有意義的事情。

Thank you very much, guys. Appreciate it.

非常感謝你們，夥伴們。欣賞它。

Okay. Thank you.

好的。謝謝。

Ladies and gentlemen, those are all the questions that we have for today. Thank you for joining us on Vector Group's quarterly earnings conference call.

女士們、先生們，這就是我們今天提出的所有問題。感謝您參加 Vector Group 的季度財報電話會議。

On behalf of all of us at Vector Group and Liggett, we thank you for your participation, and this concludes today's call.

我們代表 Vector Group 和 Liggett 的全體員工感謝您的參與，今天的電話會議到此結束。

Thank you.

謝謝。