On this page of StockholderLetter.com we present the latest annual shareholder letter from VECTOR GROUP LTD — ticker symbol VGR. Reading current and past VGR letters to shareholders can bring important insights into the investment thesis.

 •  7/10/2024 Letter Continued (Full PDF)
 •  6/16/2023 VGR Stockholder Letter
 •  More "Cigarettes & Tobacco" Category Stockholder Letters
 •  VGR Benford's Law Stock Score = 77

VGR Shareholder/Stockholder Letter Transcript:

July 10, 2024
Dear Fellow Stockholder:
This year we celebrated Liggett   s 150th anniversary with one of our strongest operational and market
performances since the company   s founding. In 2023, we grew market share, delivered record earnings, and
Montego became the largest discount cigarette brand in the United States and the fourth largest brand
overall. Through careful market analysis, an extensive distribution network and exceptional retail
performance, we maintained our leadership position in the deep discount segment.
Financial Performance
Vector Group reported revenues in 2023 of $1.42 billion, compared to $1.44 billion in the
corresponding 2022 period. Net income increased to $183.5 million or $1.16 per diluted common share, up
from $158.7 million or $1.01 per diluted common share in the 2022 period. Adjusted EBITDA1 increased to
$363.2 million, up from $352.2 million in the 2022 period.
We maintained a strong balance sheet and significant liquidity, with cash and cash equivalents of
approximately $269 million as well as investment securities and long-term investments with a fair value of
approximately $158 million. Our quarterly cash dividend policy remains a cornerstone of our capital
allocation strategy and long-standing commitment to delivering value to our stockholders.
Tobacco Business
We continued to navigate a challenging income environment in 2023 and built upon our momentum in
2022. Our tobacco segment delivered a record Adjusted EBITDA1 of $370.6 million in 2023, an increase of
5.5% from the previous year. Additionally, our annual retail market share grew to 5.8%, the highest it has
been in over 50 years, underscoring the enduring strength of our brands. As evidenced by Montego, our
targeted investment strategy and commitment to providing consumers with superior value continue to bear
fruit.
Operational Metrics
Liggett   s exceptional performance and industry-leading position resulted in market share growth in
2023. We outperformed our peers and have seen our key brands, including Montego, Eagle 20   s, and
Pyramid, continue to deliver substantial income and garner increased market presence.
For the year ended December 31, 2023, our tobacco segment experienced a 6.2% decline in wholesale
shipments, compared to 7.5% declines industry wide. The tobacco segment   s wholesale market share
increased to 5.5% from 5.4%, and Montego   s wholesale market share rose significantly to 3.5% from 2.5%.
Retail shipments for the segment fell by 3.4% compared to industry-wide declines of 8.3%. As mentioned,
the tobacco segment   s retail market share grew to its highest in 50 years at 5.8% while Montego   s retail
market share increased to 3.6% from 2.6%.
Our strong market share performance reflects our ability to effectively navigate market challenges. We
remain competitively positioned in the discount segment by leveraging our broad distribution base, use of
technology in developing consumer-focused programs and our salesforce   s expertise and efficiency to deliver
value.
Discount Brand Portfolio
This year, Montego became the largest discount brand in the United States and remains the country   s
fourth largest brand. Montego   s distribution network expanded from 77,000 stores in 2022 to 95,000 in
2023.

Our approach to successfully growing Montego is aligned with our long-term goal of maximizing
profitability through carefully balancing volume, pricing and market share across our value-based portfolio.
Liggett has successfully relaunched and managed its brands through various investment cycles that have
invariably delivered long-term profit growth. Eagle 20   s and Pyramid remain important tenets of this
strategy and continue to deliver substantial income and market presence.
In 2023, the deep discount tobacco segment outpaced the broader United States cigarette market,
driven by declining brand loyalty among budget-conscious smokers. Brands like Montego     which
consistently offers 40% to 50% price discounts compared to leading premium brands     provide the same
quality as more expensive options, but at a lower cost.
Our focus on value and national distribution has positioned us well to capitalize on the growth of the
deep discount segment. We remain confident our momentum will continue in 2024, driving sustained
earnings growth.
Outlook
We are confident in the operational and financial strength of our tobacco business and look forward to
further building this platform as leaders in the only growth segment of the cigarette market. Throughout
the remainder of 2024, we remain committed to our mission of offering the best value proposition in the
U.S. market.
On behalf of the Board of Directors and the management team, I extend sincere thanks to our
stockholders, employees, and customers for their dedication to helping us achieve operational excellence in
2023 and beyond. We are confident that we have the right strategy and team in place to continue optimizing
long-term profitability and delivering value to our stockholders.
Very truly yours,
Howard M. Lorber
President and Chief Executive Officer
Vector Group Ltd.
1
Adjusted EBITDA is a non-GAAP financial measure and should be considered in addition to, but not
as a substitute for, other measures of financial performance prepared in accordance with GAAP. A
reconciliation of Adjusted EBITDA is included in Exhibit 99.1 to the Company   s earnings release on
Form 8-K, furnished to the Securities Exchange Commission on February 14, 2024. This letter
includes forward-looking statements within the meaning of the federal securities law.
All statements other than statements of historical or current fact, made in this letter are
forward-looking. We identify forward-looking statements in this document by using words or phrases
such as    anticipate,       believe,       continue,       estimate,       expect,       intend,       may be,       objective,   
   opportunistically,       plan,       potential,       predict,       project,       prospects,       seek,    and    will be    as well
as similar words or phrases or their negatives. Forward-looking statements reflect our current
expectations and are inherently uncertain. Actual results could differ materially for a variety of
reasons. Risks and uncertainties that could cause our actual results to differ significantly from our
current expectations are described in our 2023 Annual Report on Form 10-K. We undertake no
responsibility to publicly update or revise any forward-looking statement except as required by
applicable law.

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For The Fiscal Year Ended December 31, 2023
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
VECTOR GROUP LTD.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation
incorporation or organization)
1-5759
65-0949535
Commission File Number
(I.R.S. Employer
Identification No.)
4400 Biscayne Boulevard
Miami, Florida 33137
305-579-8000
(Address, including zip code and telephone number, including area code,
of the principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:
Trading Symbol(s)
Name of each exchange on which registered:
Common stock, par value $0.10 per share
VGR
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.     Yes     No
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange
Act.     Yes     No
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended (the    Exchange Act   ), during the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes     No
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (   232.405 of this chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit such files).     Yes     No
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of
   accelerated filer and large accelerated filer    in Rule 12b-2 of the Exchange Act.
Large accelerated filer    
Accelerated filer    
Non-accelerated filer    
Smaller reporting company    
Emerging Growth Company    
Indicate by check mark whether the registrant has filed a report on and attestation to its management   s assessment of the effectiveness of
its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public
accounting firm that prepared or issued its audit report.    
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.    
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based
compensation received by any of the registrant   s executive officers during the relevant recovery period pursuant to    240.10D-1(b)    
Indicate by check mark whether the Registrant is a shell company as defined in Rule 12b-2 of the Exchange Act.     Yes     No
The aggregate market value of the common stock held by non-affiliates of Vector Group Ltd. as of June 30, 2023 was approximately
$1.89 billion.
At February 14, 2024, Vector Group Ltd. had 157,683,020 shares of common stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE:
Part III (Items 10, 11, 12, 13 and 14) from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders to be filed with
the Securities and Exchange Commission no later than 120 days after the end of the Registrant   s fiscal year covered by this report.

VECTOR GROUP LTD.
FORM 10-K
TABLE OF CONTENTS
Page
PART I
Item 1.
Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 1A. Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 1B. Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
14
29
Item 1C.
Item 2.
Item 3.
Item 4.



29
30
31
31


32
34


34
54

54


54
54
57
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections . . . . . . . . . . . . .
57
PART III
Directors, Executive Officers and Corporate Governance . . . . . . . . . . . . . . . . . . . . .
Executive Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
58
58
Item 13.
Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certain Relationships and Related Transactions, and Director Independence . . . . . . .
58
58
Item 14.
Principal Accountant Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
58
PART IV
Item 15. Exhibits and Financial Statement Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 16. Form 10-K Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59
63
64
Cybersecurity . . . . . . .
Properties . . . . . . . . . .
Legal Proceedings . . . .
Mine Safety Disclosures







































































































PART II
Item 5.
Market for Registrant   s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 6.
Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 7.
Management   s Discussion and Analysis of Financial Condition and Results of
Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 7A. Quantitative and Qualitative Disclosures About Market Risk . . . . . . . . . . . . . . .
Item 8.
Item 9.
Financial Statements and Supplementary Data . . . . . . . . . . . . . . . . . . . . . . .
Changes In and Disagreements with Accountants on Accounting and Financial
Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 9A. Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 9B. Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 10.
Item 11.
Item 12.
2








 7/10/2024 Letter Continued (Full PDF)