Stock Analysis on Net
Stock Analysis on Net

Reynolds American Inc. (NYSE:RAI)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 3, 2017.

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

Microsoft Excel
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
Net sales, related party
Net sales, includes excise taxes
Cost of products sold, excludes excise taxes
Excise taxes
Gross profit
Selling, general and administrative expenses
Gain on divestitures
Amortization expense
Asset impairment and exit charges
Trademark and other intangible asset impairment charges
Restructuring charge
Operating income
Interest and debt expense
Interest income
Other income (expense), net
Income from continuing operations before income taxes
Provision for income taxes
Income from continuing operations
Income from discontinued operations, net of tax
Net income

Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).

Net Sales
The net sales, including excise taxes, exhibited fluctuations over the observed quarters. From early 2012 to the end of 2013, sales generally ranged between approximately 2,600 to 3,100 million US dollars, with occasional dips and recoveries. Beginning in 2014, a noticeable increase occurred, culminating in a peak around Q3 2015, with a value exceeding 4,300 million US dollars. Following this peak, net sales demonstrated a declining trend through early 2017, falling back to levels near 3,900 million US dollars.
Cost of Products Sold and Excise Taxes
Cost of products sold (excluding excise taxes) and excise taxes both showed variability but established a general pattern of increase and decrease corresponding to net sales movements. Costs excluding excise taxes decreased sharply in early 2013 but increased again toward late 2015 and 2016, reaching highs of over 1,400 million US dollars before slightly reducing. Excise taxes follow a similar pattern, initially decreasing from early 2013 to mid-2014, then rising to a peak near the end of 2015, followed by a moderate decline into 2017.
Gross Profit
Gross profit mirrored the dynamics of sales and costs, maintaining above 900 million US dollars for most quarters, with peaks notably in the later part of the timeframe (2015 and 2016), surpassing 2,000 million US dollars. This suggests effective margin control despite fluctuations in costs and variable excise tax burdens.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses exhibited volatile behavior, with substantial increases in certain quarters. For example, Q4 2012 and Q4 2014 show significant enlargements in expenses, peaking near 700 million US dollars. There is no consistent seasonal trend, but spikes correspond to periods where operating income also behaves irregularly, suggesting possible episodic investments or nonrecurring costs.
Divestitures and Impairments
A significant gain on divestitures appeared sharply in Q4 2015 with 3,499 million US dollars and another large gain in Q4 2016 with 4,861 million US dollars. There are occasional asset impairments and restructuring charges recorded in the dataset, such as a restructuring charge in Q1 2012 and impairments in later years, indicating periodic strategic adjustments or asset revaluations impacting results.
Operating Income
Operating income fluctuated considerably, with a marked increase to 4,364 million US dollars in Q4 2015 and even higher in Q4 2016 at 6,142 million US dollars, largely attributed to divestiture gains. Outside of these spikes, operating income showed moderate variability, generally ranging between 400 to 1,500 million US dollars, reflecting core operational profitability aside from one-time gains.
Interest and Debt Expenses
Interest and debt expenses trended upward from roughly 56 million US dollars in early 2012 to peaks near 189 million US dollars in late 2015, then stabilized around 150 million US dollars through 2016 and early 2017. This pattern may reflect changes in debt structure or interest rates during the period.
Income from Continuing Operations
Income from continuing operations before taxes displayed volatility, with a remarkable surge in late 2015 and 2016 that aligns with operating income spikes. The net income after tax also mirrors this pattern, signaling strong underlying earnings supplemented by substantial gains on divestitures. Despite variability, income remained positive every quarter, indicating sustained profitability.
Income Taxes
The provision for income taxes aligned with fluctuations in pre-tax income, with notable spikes in tax provision during quarters of elevated income, such as late 2015 and 2016. There are also instances of reduced tax provision associated with lower income periods.
Overall Financial Trends
The data reveals a company with cyclical net sales and variable costs, managing to maintain gross profits and positive operating income consistently. Significant one-time gains from divestitures in late 2015 and 2016 greatly enhanced profitability during those periods. Interest expense increased moderately over time but did not overwhelm operational earnings. The company’s financial performance shows signs of periodic strategic shifts, likely involving asset sales and restructuring, which have materially influenced reported earnings.