(RTTNews) -  Monday, cigarette manufacturer Vector Group Ltd. (VGR: News ) reported a decline in the first-quarter net income from the year-ago period primarily due to higher other expenses that reflect an impairment charge, higher interest expense, lower interest and dividend income, and an equity loss from non-consolidated real estate businesses.

The Miami, Florida-based company reported a first-quarter net income of $3.1 million or $0.04 per share, down from $14.31 million or $0.21 per share in the corresponding quarter last year.

The results for 2009 included a one-time pre-tax gain of $5.0 million related to an exercise of an option from the 1999 brand transaction with Philip Morris, pre-tax impairment charges of $8.5 million on real estate investments and $1.0 million of restructuring charges.

Excluding items, the company's adjusted net income for 2009 would have been $5.7 million or $0.08 per share compared with $7.2 million or $0.11 per share in the first-quarter of 2008. The results for 2008 included $12.0 million of pre-tax income from the company's investment in the St. Regis hotel, which was sold in March 2008.

Revenues for the first-quarter declined to $121.22 million from $132.21 million in the similar period last year.

Operating income for the quarter increased to $31.16 million from $28.04 million in the comparable period of fiscal 2008.
Income tax expense for the quarter was $2.34 million, down from $10.76 million in the first-quarter of fiscal 2008.

Interest expense for the quarter was $16.07 million, up from $15.25 million in the corresponding period last year.

Interest and dividend income for the quarter was $0.15 million compared to $1.97 million in the prior-year's quarter.

The company had an equity loss from non-consolidated real estate businesses of $1.0 million compared to an equity income of $13.32 million in the year-ago similar period.

Vector Group closed Monday's regular trading at $14.14, down $0.06 or 0.42%, on a volume of 322,438 shares on the NYSE.

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by RTT Staff Writer

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