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Reynolds American, Inc. (RAI)

  • Wed, Feb. 25, 5:45 PM
    • The three largest U.S. tobacco companies - Altria (NYSE:MO), Reynolds American (NYSE:RAI) and Lorillard (NYSE:LO) - agree to pay a combined $100M to settle hundreds of pending federal lawsuits in Florida, resolving some but not all of the legal uncertainty that has hung over the industry since a class-action lawsuit was brought by state residents in 1994.
    • The settlement is far less than the $500M-plus the industry has had to pay winning plaintiffs in Florida over the past decade, but it leaves unresolved more than 3,000 cases pending in state courts, cases that are bigger and more potentially damaging.
    • MO and RAI each will pay $42.5M to resolve ~400 federal cases, and LO will pay $15M.
  • Wed, Feb. 25, 9:56 AM
    • Lorillard (LO +0.1%) and Reynolds American (RAI +0.3%) have entered into a tentative agreement in the Engle progeny class action cases circulating around in federal courts.
    • Lorillard says it will pay $15M to resolve the issue.
    • Reynolds American will make a payment of $42.5M.
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  • Tue, Feb. 10, 9:27 AM
    • Reynolds American (NYSE:RAI) reports cigarette volume fell 4.9% to 14.9B in Q4 vs. the -2.0% industry average.
    • Cigarette market share -30 bps to 26.4%.
    • Premium mix +80 bps to 58.4%.
    • SG&A expenses +91% Y/Y to $703M (Vuse investment).
    • Guidance from the company was in-line expectations going into the company's merger with Lorillard.
    • RAI +1.5% premarket.
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  • Tue, Feb. 10, 7:13 AM
    • Reynolds American (NYSE:RAI): Q4 EPS of $0.87 in-line.
    • Revenue of $2.13B (+4.4% Y/Y) in-line.
    • Press Release
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  • Mon, Feb. 9, 5:30 PM
  • Wed, Jan. 28, 9:44 AM
    • Shareholders with Reynolds American (RAI +1.5%) have approved an issuance of shares in connection with the company's acquisition of Lorillard (LO +0.8%).
    • The merger is still subject to regulatory approval.
    • The company expects a closing in the first half of 2015.
    • Reynolds American merger update (.pdf)
  • Mon, Jan. 26, 2:26 AM
    • Reynolds (NYSE:RAI) Chief Executive Susan Cameron is confident shareholders will approve the Reynolds American and Lorillard (NYSE:LO) deal this Wednesday, which will combines the two to create a more formidable rival against Marlboro (NYSE:MO).
    • Shareholders of Imperial Tobacco (OTCQX:ITYBY) (the third party which is expected to buy several brands of Reynolds American as part of the deal) are also expected to approve the transaction because it turns Imperial into the No. 3 player in the U.S.
    • However, the real test for the merger and the related divestiture of brands will come later this quarter, when the FTC weighs in on deal.
    • Previously: The FTC asks Reynolds American and Lorillard for more info on merger (Aug. 29 2014)
  • Thu, Jan. 22, 4:08 AM
    • Following in the footsteps of Australia, which two years ago enacted a law forcing cigarettes to be sold in plain olive green packaging, the British government will try to pass a law before May forcing tobacco firms to sell cigarettes in plain packs.
    • Around 3.4% fewer cigarettes were sold in Australia in 2013, compared with 2012.
    • The tobacco industry has fiercely resisted the new law, arguing that plain packs infringe on the intellectual property rights covering brands.
    • TRelated stocks: LO, PM, MO, VGR, RAI, OTCQX:ITYBY, BTI
  • Wed, Jan. 14, 8:10 AM
    • The tobacco industry will see a big tailwind this year as payments for buyouts of tobacco growers end.
    • Where the extra funds will go is still unknown until Q4 reports start to roll in. Further investment in e-cig development or volume/pricing actions are possibilities.
    • Morgan Stanley sees an earnings boost of up to 5% due to the development, but is cautious on the "effectively priced" sector.
    • Major tobacco stocks: LO, PM, MO, VGR, RAI, OTCQX:ITYBY, BTI.
  • Dec. 15, 2014, 7:44 AM
    • Reynolds American (NYSE:RAI) and Lorillard (NYSE:LO) set January 28 as the date shareholders will vote on the proposed merger between the tobacco giants.
    • A closing date on the merger is expected in the first half of 201 after the FTC rules on the antritrust impact.
    | 1 Comment
  • Dec. 11, 2014, 10:38 AM
    • RBC Capital Markets picks Reynolds American (RAI) as its top tobacco stock for 2015.
    • Though some regulatory hurdles remain to be cleared with the Lorillard (LO +0.8%) merger, the investment firm thinks the combined company will provide immediate value for shareholders.
    • The last word from Reynolds was that it expected the merger to close in the first half of 2015.
  • Dec. 4, 2014, 5:17 PM
    • Reynolds American (NYSE:RAI) announces Andrew Gilchrist has been promoted to the CFO position.
    • The exec will replace Thomas Adams on March 15, 2015.
    • In addition, the company says it added Ricardo Oberlander to its board.
    • Oberlander is also a board member of a British American Tobacco subsidiary in Brazil.
    | 1 Comment
  • Nov. 25, 2014, 3:54 AM
    • China is considering a broad ban on smoking, including tobacco advertising, smoking in public places, prohibiting vending machine sales of cigarettes and cutting smoking scenes in film and TV.
    • Up more than 10% from the year before, the country’s tobacco industry generated nearly 956B yuan ($155.6B) in taxes and profits in 2013.
    • China is home to more than 300M smokers.
    • Tobacco stocks: LO, PM, MO, VGR, RAI, OTCQX:ITYBY, BTI
  • Nov. 21, 2014, 7:48 AM
    • Reynolds American (NYSE:RAI) discloses that the company received a second request for information from the FTC in relation to the acquisition of Lorillard (NYSE:LO).
    • The company says the merger is still on track to close in the first half of 2015.
    • SEC Form 8-K
    | 1 Comment
  • Nov. 17, 2014, 4:01 PM
    • Reynolds American (NYSE:RAI) plans to introduce a new cigarette that won't burn tobacco.
    • The dormant Revo brand will feature cigarettes with carbon tips that heat tobacco to form a vapor that is milder than smoke.
    • Revo will be tested in Wisconsin before a wide roll-out is considered.
    | 1 Comment
  • Nov. 13, 2014, 2:56 PM
    • Teenagers are sampling electronic cigarettes at a higher rate, according to a study by the CDC.
    • The number of high school student who tried an e-cig over the last 30 days was 4.5% vs. 2.8% a year ago.
    • 12% of all high school students say they have tried the product.
    • The CDC notes the impact of e-cigs use on public health remains uncertain.
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Company Description
Reynolds American Inc, through its subsidiaries, manufactures cigarettes and other tobacco products in the United States. The products brand include CAMEL, PALL MALL, WINSTON, among others.
Industry: Cigarettes
Country: United States