Tobacco Documents Online

ZJlre Principal Pj^odzccts of Liggett & 3Iyers Tobacco G'ojjzpany [x,n. Niiu GARETtfs 0 y/~.~ z R I IGAF~ETTES 4GGE1T 5 MViRS TO©ACCO CO. WITH 1Ylrn~finC_ Il~t FILTERS 1I4rti5 -~3ati.C.) ..Y, ,day the Company makes 63 different kinds of cigarettes ind •nio~king and chewing tobacco. Leaders are Lesterfield, L&M and Oasis cigarettes and Velvet and Gr.in-,cr '1nf,l.inq tobaccos. Not shown are Red Man. d Horse and Pay Car, principal products of a subsicliar.. I lu• E'inkcrton Tobacco Company. Non-filter inds account for over 50% of all cigarette sales and Cfu•,tcrtu•Id mntinues to be one of the most popular. :esterfie].d is showing added strength. L&M, a leader in the tiltcr tirIcl. is also among the top-selling brands :all cigarettes. Oasis, more recently introduced, meets the demand for menthol-type cigarettes. .j F 1 LT E R C I G A R E T T E S THE MIRACLE TIP ® THE MIRACLE TaP I d I1 TIMN 446227 13

ONE OF TOBACCO'S MOST RESPECTED NAMES 1911-195 S TIMN 446240

Closing the cartons is one of the factay operations seen by risitors fron< every state and many foreign countries as well. NTAINER PACKIN6 MACHINE The most modern machinery, like this container packing machine, is used throughout all de,bartments for the utmost efficiency and economy. Erery_year billions of cigarettes leave the factory in these newly designed cases to be shipped to the four corners of the world. TIMN 446224 10

LIGGETT 8c MYERS TOBACCO COMPANY Consolidated Balance Slref ASSETS CURRENT ASSETS : Cash. . . . . .. . . . . . . . . . . . . . . . . . Accounts receivable, customers . . . . . . . . , , , Accounts receivable, others . . . . . . . . . . . . . Leaf tobacco, at average cost . . . . . . . . . , . . Manufactured stock and operating supplies, at average cost TOTAL CL: RRE\T ASSETS . . . . . . . . . , PROPERTI', PLANT AND EQ:IPME\'T-AT COST: Land and buildings . . .. . . . . . . .. . . . . . . Machinerv and equipment . . . . . . . . . . . . . Total . . . . . Less accumulated depreciation. . . NET PROPERTY. PLANT AND EQUIPMENT OTHER ASSETS: Brands, trade-marks and good will . . . . . . . , . . Investments in unconsolidated subsidiary companies, at cost . . . . . . . . . . . . . . . . . . . . . Investment in foreign tobacco compan~-, at cost .... Foreign currency deposits subject to withdrawal restrictions . . . . . . . . . . . . . Prepaid expenses and deferred charges . . . . . . . . TOTAL OTHER ASSETS. . . . . . . . . . , . TOTAL . . . . . . . . . . . . . . . . 1957 S 11.308.688 23.089.890 1.030.079 346.471.691 3-1,557,606 -F16.-157,954 19,421,927 53,355,351 72,777,278 36,562,302 36,214,976 1 829,004 4,000 ')54,265 1,979,598 3,766,868 5-156,439,798 TIMN 446234 20

Research J 1* Liggett & Myers has been a pioneer and leader in the field of tobacco research for over 40 years. Our Research Department, working with the U. S. Department of Agriculture and State Agriculture departments, has helped make significant im- provements in tobacco growing, harvesting and curing of great benefit to the tobacco farmer, as well as the entire industry. At our central Research Laboratories, in Durham, every major improvement in our products is tested and approved before adopted for use in manufacture. \Iany improvements in the efficiency and economy of our factory operation were also cleweloped from discoveries in our laboratories. Today our products enjoy the brne•tit, of every major advance in the growing, processing, blending and pack,i,',in- ut' tobacco. Examples are the first U. S. Government patented filter, `'The NIiracle Tip" used on L&M and Oasis, and Accu-Ray quality control, a nuclear gauge that assures uniformity of product. TIMN 446225 11

Our Durham and Richmond factories are looked up to as the finest and most modern in the industrr. Again, thisyear, you are invited to tour our factories when_l'on're "in the neighborhood."

LIGGETT ~, MYERS TOBACCO COMPANY Stcr.tc'1>lent ofG'ojisolidated Eaj'n 2jl0a (f',' V(W,~5 0„(l,-d Dar,,,f,,.r 31) 1957 NET S ALES . . . . . . . . . . . . . . . . . . . . . OTHER EARNINGS: Interest and dividends received . . . . . , . . . , , Profit from sale of land and buildino-s. ...,.,,. Profit from redemption of sinking fund debentures ... Miscellaneous . . . . . . . . . . . . . . . . . . TOT AL EARN I\'GS . . .. . . . . , . . . COSTS AND EXPENSES: Cost of goods sold, selling, administrative and general expenses . . . . . . . . . . . . . . . . . . . Provision for depreciation . . . . . . . . . . . . . . Interest and amortization on funded debt ....... Interest on bank loans . . . . . . . . . . . . . . . Miscellaneous . . . . . . , . . , , , , , , , , , Provision for Federal income tax . . . . . , . , . . , Provision for State income and franchise taxes ..... TOTAL COSTS AND EXPENSES . . . . . NET EARNINGS FOR THE YEAR . . . . . . . . . . . DIVIDENDS ON PREFERRED STOCK . . . . . . . . . NET EARNINGS APPLICABLE TO CO.%i.%1ON STOCK .. S570,38-1,860 191,715 78,757 68.089 570,723,421 499,052,009 3,488,428 2,801,347 3,462,528 24,502 30,855,000 2.766.000 5-12.-1-19,814 28,273,607 I.-161,187 S 26.812,420 TIMN 446236 22

Recoy°cl foj• Fifteen Years SALES / EARNINGS / DIVIDENDS Xet Sales Net Earnings Applicable to Commo n Stock Diridends Paid on Common Stock YEAR AMOUNT A14OUNT PERCENT OF S aLES PER SHARE AMOUNT PER SHARE 1944 $374,032,971 S 13,332,272 3.56 0 $4.25 $10,979,286 $3.50 1945 399,212,620 13,477,648 3.38 4.30 10,979,286 3.50 1946 464,507,825 16, 907, 740 3.64 5.39 12,547,756 4.00 1947 513,771,422 21,439,504 4.17 6.83 14,116,225 4.50 1948 556,506,847 27,799,934 4.99 8.86 15,684,695 5.00 1949 557,733,433 28,105,507 5.04 7.18 18,783,023 5.00 1950 530,547,285 27,597,044 5.20 7.05 19,557,605 5.00 1951 539,947,406 20,292,047 3.76 5.19 19,551,605 5.00 1952 603,080,876 19,987,339 3.31 5.11 19,557,605 5.00 1953 586,498,727 21,517,389 3.67 5.50 19,557,605 5.00 1954 548,861,959 20,740,177 3.78 5.30 19,557,605 5.00 1955 546,964,616 25,259,785 4.62 6.46 15,646,084 4.00 * 1956 564,965,808 24,989,563 4.42 6.39 19,561,325 5.00 1957 570,384,860 26,812,420 4.70 6.85 19,563,805 5.00 1958 556,045,710 29,761,821 5.35 7.60 19,570,955 5.00 *Represents four quarterly payments of S 1.00 each. The payment of the extra dividend of $1.00 per share was deferred until March l, 1956. Similar action has been followed for subsequent years. Earnings per share are based on the nurnlx•r r,('shares of Common Stock (including Common B Stock prior to 1949) outstandinsz .cc thr• end of each year. In addition to the annual dividend of S- 114) l,c r,h,ire on its Preferred Stock, the Company has paid a substantial cash di.rd,•nri r.- h-dcic•rs of its Common Stock in every year since its organization in 1911. Tj[MN 446239

I MEN OF AMERICA: FREIGHTER s CREW ~ r NOTHING SATISFIES 'f!' IIII LIKE THE BIG CLEAN TASTE OFTOP-TOBACCO ~Jatt;p('tl i CIIESTEB FlELO'___?Kn+c I Adeertisements in the leading ma;a;,ines and nezespapers of eeidest circulation remind smokers of Liggett & .th,ers ,broducts. ABOVE: representatine adrertising for L v-'Jf, Chesterfield and Oasis. sELOt~•: this 1958 Christmas adrertisement featured all 3 hrands. Promotion Every proven advertising medium is used to promote the sale of the Company's products. National magazines, newspapers, network television and radio carried our major brands' sales messages to millions of smokers across the nation. Special regional promotions also reached millions through college and armed forces publications, baseball and football hrot-rams and broadcasts, horse-racing pro- grams and other special events. Nft)r<' Inlll)t)ns were reached by the important media of car cards, billboards, poste•r• ,In<i point-of-sale display material. TIMN 446229 ViSR1sP aS liess ta rs ' More taste 15

of DeCe1)1 bej' 31 LIABILITIES CURRENT LIABILITIES: \otes payable to banks . . . . . . . . . . . . . . . Accounts payable . . . . . . . . . . . . . . . . . Dividend payable on preferred stock . . . . . . . . . Accrued interest on debentures . . . . . . . . . . . Funded debt payable within one year (less, for 1958, S1,29-1,000 of debentures redeemed and held by Trus tee) . . . . . . . . . . . . . . . . . . . Taxes payable and accrued . . . . . . . . . . . . . TOTAL CURRENT LIABILITIES . . . . . . . . FUNDED DEBT: 2' /o Sinking Fund Debentures, S5.750,000 payable annuallv durinIg the vears 1960 through 1964. S23,750.000 pavable in 1965, and S37,500,000 pa-Nr- able in 1966 . . . . . . . . . . .- . . . . . . STOCKHOLDERS' EQUITY: Preferred stock 7 o cumulative, par value S 100-author- ized, 341.398 shares; issued, 225,141 shares; in treasurv, 16,400 shares . . . . . . . . . . . C:ommon stock, par value S25-authorized, 5.000.000 shares; issued, 1958, 3,917,8-12 shares, and 1957, 3,912,761 shares (Note 1) . . . . . . . _ Paid-in capital in excess of par values of capital >tocks (Note 2) . . . . . . . . . . . . . . . . ._ . Retained earnings (\ote 3) . . . . . . . . . . . . TOTAL STOCKHOLDERS' EQUIT1' . . . . . TOTAL . . . . . . . . . . 1957 S 53,310,000 3, 808, 567 365,297 814,844 5,750,000 2-1.992, 145 K9,0-10,853 95,750,000 20,874,100 97,819,025 19,-117,-105 133,538.-115 271,648.9-15 5-156.439.798 TIMN 446235 21