Name: Reynolds American Inc. (NYSE:RAI) | Income Statement (Quarterly)
Creator: Stock Analysis on Net

Income Statement
Quarterly Data

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Reynolds American Inc., consolidated income statement (quarterly data)

US$ in millions

3 months ended:	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013	Dec 31, 2012	Sep 30, 2012	Jun 30, 2012	Mar 31, 2012
Net sales, includes excise taxes	3,893)	4,191)	4,276)	4,261)	3,892)	4,159)	4,315)	3,336)	2,815)	2,961)	3,131)	2,998)	2,695)	2,875)	3,027)	3,070)	2,657)	2,976)	3,013)	3,117)	2,779)
Net sales, related party	38)	63)	54)	54)	55)	57)	66)	54)	82)	63)	71)	91)	86)	84)	80)	92)	81)	81)	97)	87)	77)
Net sales, includes excise taxes	3,931)	4,254)	4,330)	4,315)	3,947)	4,216)	4,381)	3,390)	2,897)	3,024)	3,202)	3,089)	2,781)	2,959)	3,107)	3,162)	2,738)	3,057)	3,110)	3,204)	2,856)
Cost of products sold, excludes excise taxes	(1,199)	(1,212)	(1,189)	(1,275)	(1,165)	(1,350)	(1,404)	(1,084)	(850)	(1,135)	(1,034)	(959)	(930)	(981)	(1,004)	(999)	(694)	(1,133)	(1,082)	(1,112)	(994)
Excise taxes	(982)	(1,068)	(1,125)	(1,120)	(1,030)	(1,162)	(1,220)	(987)	(840)	(890)	(962)	(927)	(846)	(920)	(972)	(983)	(855)	(979)	(993)	(1,028)	(923)
Gross profit	1,750)	1,974)	2,016)	1,920)	1,752)	1,704)	1,757)	1,319)	1,207)	999)	1,206)	1,203)	1,005)	1,058)	1,131)	1,180)	1,189)	945)	1,035)	1,064)	939)
Selling, general and administrative expenses	(418)	(483)	(484)	(499)	(465)	(683)	(453)	(451)	(511)	(703)	(391)	(364)	(413)	(369)	(339)	(380)	(301)	(536)	(311)	(325)	(298)
Gain on divestitures	—)	—)	—)	—)	4,861)	(325)	7)	3,499)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Amortization expense	(6)	(5)	(6)	(6)	(6)	(6)	(6)	(3)	(3)	(3)	(3)	(3)	(2)	(1)	(1)	(2)	(1)	(5)	(5)	(5)	(6)
Asset impairment and exit charges	—)	—)	—)	—)	—)	—)	(99)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Trademark and other intangible asset impairment charges	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(32)	—)	—)	—)	(129)	—)	—)	—)
Restructuring charge	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(149)
Operating income	1,326)	1,486)	1,526)	1,415)	6,142)	690)	1,206)	4,364)	693)	293)	812)	836)	590)	656)	791)	798)	887)	275)	719)	734)	486)
Interest and debt expense	(149)	(150)	(150)	(152)	(174)	(185)	(189)	(105)	(91)	(89)	(76)	(62)	(59)	(66)	(66)	(65)	(62)	(64)	(56)	(58)	(56)
Interest income	2)	1)	2)	2)	3)	2)	3)	—)	1)	—)	1)	1)	1)	1)	1)	1)	2)	2)	1)	2)	2)
Other income (expense), net	(4)	1)	(10)	1)	(252)	3)	(5)	(20)	17)	5)	10)	—)	(1)	(131)	(6)	(2)	2)	(28)	(1)	(2)	(3)
Income from continuing operations before income taxes	1,175)	1,338)	1,368)	1,266)	5,719)	510)	1,015)	4,239)	620)	209)	747)	775)	531)	460)	720)	732)	829)	185)	663)	676)	429)
Provision for income taxes	(395)	(487)	(507)	(470)	(2,154)	(231)	(358)	(2,311)	(231)	(61)	(280)	(283)	(193)	(168)	(263)	(271)	(321)	(46)	(243)	(233)	(159)
Income from continuing operations	780)	851)	861)	796)	3,565)	279)	657)	1,928)	389)	148)	467)	492)	338)	292)	457)	461)	508)	139)	420)	443)	270)
Income from discontinued operations, net of tax	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	25)	—)	—)	—)	—)	—)	—)	—)	—)
Net income	780)	851)	861)	796)	3,565)	279)	657)	1,928)	389)	148)	467)	492)	363)	292)	457)	461)	508)	139)	420)	443)	270)

The financial performance of the company over the analyzed period reveals a transition from stable, consistent revenue streams to a period of significant growth and high volatility driven by non-recurring events. While core operations demonstrate steady margins, the bottom line was heavily influenced by strategic divestitures and an increasing debt service burden.

Revenue and Gross Profit Trends: Net sales remained relatively stable between March 2012 and March 2015, typically fluctuating between 2.7 billion and 3.2 billion US dollars per quarter. A structural shift occurred in June 2015, where net sales increased to 4.3 billion US dollars and remained consistently above 3.8 billion US dollars through March 2017. Gross profit mirrored this trajectory, rising from a range of 900 million to 1.2 billion US dollars in the early period to a higher plateau of 1.7 billion to 2.0 billion US dollars starting in mid-2015.
Operating Expenses and Margin Analysis: Selling, general and administrative expenses were largely maintained between 300 million and 500 million US dollars, with a notable exception in December 2014 when expenses spiked to 703 million US dollars. Amortization remained negligible throughout the period. Operating income showed extreme volatility due to non-operational gains, most notably in June 2015 and March 2016, where income reached 4.36 billion and 6.14 billion US dollars respectively, primarily due to significant gains on divestitures.
Financial Costs and Obligations: A clear upward trend is observed in interest and debt expenses. From March 2012 to March 2014, quarterly interest expenses were stable around 56 million to 64 million US dollars. However, these costs increased significantly beginning in late 2014, peaking and stabilizing at approximately 150 million US dollars per quarter by 2016 and early 2017, indicating a substantial increase in the company's leverage or borrowing costs.
Net Income and Non-Recurring Items: Net income typically ranged from 140 million to 860 million US dollars in standard operating quarters. However, the divestiture gains in June 2015 and March 2016 resulted in net income spikes of 1.93 billion and 3.57 billion US dollars, respectively. These gains were partially offset by corresponding surges in the provision for income taxes, which reached 2.31 billion US dollars in June 2015 and 2.15 billion US dollars in March 2016. Excluding these anomalies, the company demonstrated a gradual improvement in baseline quarterly net income towards the end of the period.

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Reynolds American Inc. (NYSE:RAI)

Income StatementQuarterly Data

Income Statement
Quarterly Data