RICHMOND, Va., Aug. 6, 2015 /PRNewswire/ --
HIGHLIGHTS
- Revenues up 1%, to $275.4 million
on higher volumes
- Segment operating loss of $3.5
million improved by $4.1
million
- Fiscal year lamina volumes expected to increase compared to the
prior year
George C. Freeman, III, Chairman,
President, and Chief Executive Officer of Universal Corporation
(NYSE: UVV), reported a net loss of $5.9
million, or $0.43 per diluted
share, for the first quarter of fiscal year 2016, which ended on
June 30, 2015. Those results were
down from net income of $0.7 million,
or a $0.13 per diluted share loss for
the first quarter of fiscal year 2015. Results for the first fiscal
quarter of 2016 included restructuring costs of $2.4 million ($1.6
million after-tax or $0.07 per
diluted share), while results for last year's first fiscal quarter
included an income tax benefit of $8.0
million (or $0.34 per diluted
share) arising from a subsidiary's payment of a portion of a fine
following the unsuccessful appeal of a long-running court case.
Excluding those items, the first fiscal quarter net loss improved
by $2.9 million ($0.11 per diluted share) compared to the same
period last year. Segment operating loss of $3.5 million for the quarter also improved by
$4.1 million compared to the same
period last year mainly as a result of earnings improvements in the
North America and Other Regions
segments. Revenues for the first fiscal quarter of 2016 of
$275.4 million increased by
$3.9 million as higher total volumes
were partly offset by lower overall green prices, a less favorable
product mix, and lower processing revenues.
Mr. Freeman stated, "As we enter the second year of the global
leaf oversupply, we are seeing progress in moving towards more
balanced markets. Production has come down in most origins. Burley
tobacco supply is now balanced, while supply continues to exceed
demand for certain qualities and stalk positions of flue-cured
tobacco. Although global oversupply conditions have improved, based
on customer shipment indications, we believe that volumes will be
heavily weighted towards the second half of the fiscal year,
similar to last year's trend. Given this, the first fiscal
quarter's seasonally weak results were expected. However, total
volumes shipped, as well as segment operating income, were higher
this quarter than the comparable quarter last year.
"Crop purchases in Brazil have
been progressing at a normal pace, while purchases in some African
origins have started more slowly, due in part to crops delayed by
weather conditions. In addition, customer orders have been coming
in at a slow pace as customers evaluate the global markets. Green
leaf tobacco prices have continued to decline this year,
particularly in Brazil,
Africa, and Europe where currency movements have reduced
U.S. dollar-based prices. The lower prices in Brazil have increased demand for that above
average quality flue-cured crop and conversely, may reduce demand
for tobacco from other origins.
"Looking forward, we are continuing to carefully monitor crop
purchases this season, and our uncommitted inventories remain well
within our normal range. It is still early in the season, but
customer orders and indications remain in line with our
expectations, and we currently anticipate that lamina volumes for
fiscal year 2016 will exceed those of the prior year, barring any
unexpected logistical challenges. We also recently announced that
commencing with the 2016 crop season, we are scaling down our
operations in Zambia, where we
have historically contracted with growers to purchase flue-cured
crops but do not own processing facilities. This change is a result
of continual assessment of our operations to achieve efficiencies
and structures that deliver value for all stakeholders and is
consistent with industry movements to reduce sourcing
complexity."
FLUE-CURED AND BURLEY LEAF TOBACCO OPERATIONS:
OTHER REGIONS:
The Other Regions segment reported an operating loss of
$7.8 million for the quarter ended
June 30, 2015, reflecting an
improvement of $2.8 million compared
with the prior year's first quarter loss of $10.6 million, primarily as a result of reduced
selling, general and administrative costs. Although sales volumes
were up for the segment, gross margins were lower due mainly to a
less favorable product mix. Selling, general and administrative
costs for the segment benefited from the absence of last year's
large value-added tax valuation provision as well as the impact of
the stronger U.S. dollar on local currency expenses in Brazil, partially offset by unfavorable
currency remeasurement comparisons, particularly in the Philippines. Sales volumes increased
modestly in Africa on higher
carryover crop sales in Tanzania.
Volumes were also up in Asia on a
reversal of the prior year's first quarter shipment timing delays.
Conversely, sales volumes declined in Brazil from delays in customer shipment
timing, and in Europe, on reduced
volumes driven in part by changes in tax regulations affecting
cigar products. Revenues for the Other Regions segment of
$177.4 million were down by about 10%
compared to the same period last year, on higher volumes offset by
a less favorable product mix and reduced green leaf tobacco prices,
including the effects of the devaluation of local currencies in
South America and Europe against the U.S. dollar.
NORTH AMERICA:
Operating income for the North
America segment was up $1.7
million in the quarter ended June 30,
2015, compared to last year's first quarter, on higher
domestic volumes mainly as a result of shipments that were delayed
into the first fiscal quarter. Selling, general, and administrative
costs for the North America
segment were flat. Revenues for this segment similarly increased by
$16.9 million to $48.6 million on those higher volumes partly
offset by a less favorable product mix.
OTHER TOBACCO OPERATIONS
The Other Tobacco Operations segment operating income for the
first quarter of fiscal year 2016 of $0.9
million was down by $0.4
million compared with the same period last year. Results for
the dark tobacco operations improved for the quarter, on higher
volumes, margin improvement, and a better product mix compared with
the prior year. Those results were mostly offset by losses for the
special services group, primarily as a result of startup costs for
the new food ingredients business, which will commence operations
later this year. The oriental joint venture reported lower results
for the quarter due to a less favorable product and customer mix
despite reduced operating expenses. Revenues for this segment
increased by about 17% to $49.4
million driven by the volume improvements in the dark
tobacco business, partly offset by lower overall lamina and wrapper
prices. Selling, general, and administrative costs for the segment
were modestly lower compared with the prior year quarter.
OTHER ITEMS:
Cost of goods sold increased by about 5% to $227.0 million in the quarter ended June 30, 2015, compared with the same period last
year, mainly attributable to the higher volumes at lower green leaf
costs. Selling, general, and administrative costs for the first
fiscal quarter declined by about 20% to $51.3 million on a combination of favorable
comparisons to last year's accruals for value-added tax reserves
and benefits from a stronger dollar on local currency costs in
Brazil and Europe, net of foreign currency remeasurement
and exchange losses in the current fiscal period compared with
gains in the prior year, largely in the Africa and Asia regions.
Interest expense of $3.9 million
for the first fiscal quarter of 2016 was down about 3% due to the
absence of interest paid in the same period last year for the
European Commission fine, partly offset by slightly higher average
interest rates this year.
The consolidated income tax rate for the first quarter of fiscal
year 2016 was 36%, which is comparable to the U.S. federal
statutory rate of 35%. Income taxes for the first quarter of fiscal
year 2015 were impacted by a non-recurring benefit of $8.0 million arising from the partial payment of
the European Commission fine by our Italian subsidiary. Excluding
that item, the consolidated income tax rate for last year's first
fiscal quarter was approximately 35%.
Additional information
Amounts included in the previous discussion are attributable to
Universal Corporation and exclude earnings related to
non-controlling interests in subsidiaries. In addition, the total
for segment operating income (loss) referred to in this discussion
is a non-GAAP measure. This measure is not a financial measure
calculated in accordance with GAAP and should not be considered as
a substitute for net income, operating income, cash from operating
activities or any other operating performance measure calculated in
accordance with GAAP, and it may not be comparable to similarly
titled measures reported by other companies. A reconciliation of
the total for segment operating income (loss) to consolidated
operating income (loss) is in Note 3. Segment Information,
included in this earnings release. The Company evaluates its
segment performance excluding certain significant charges or
credits. The Company believes this measure, which excludes these
items that it believes are not indicative of its core operating
results, provides investors with important information that is
useful in understanding its business results and trends.
This information includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. The Company cautions readers that any statements contained
herein regarding earnings and expectations for its performance are
forward-looking statements based upon management's current
knowledge and assumptions about future events, including
anticipated levels of demand for and supply of its products and
services; costs incurred in providing these products and services;
timing of shipments to customers; changes in market structure;
government regulation; product taxation; industry consolidation and
evolution; and general economic, political, market, and weather
conditions. Actual results, therefore, could vary from those
expected. A further list and description of these risks,
uncertainties, and other factors can be found in the Company's
Annual Report on Form 10-K for the fiscal year ended March 31, 2015, and in other documents the
Company files with the Securities and Exchange Commission. This
information should be read in conjunction with the Annual Report on
Form 10-K for the fiscal year ended March
31, 2015.
At 5:00 p.m. (Eastern Time) on
August 6, 2015, the Company will host
a conference call to discuss these results. Those wishing to listen
to the call may do so by visiting www.universalcorp.com at
that time. A replay of the webcast will be available at that site
through November 4, 2015. A taped
replay of the call will be available through August 19, 2015, by dialing (855) 859-2056. The
confirmation number to access the replay is 95972066.
Headquartered in Richmond,
Virginia, Universal Corporation is the leading global leaf
tobacco supplier and conducts business in more than 30 countries.
Its revenues for the fiscal year ended March
31, 2015, were $2.3 billion.
For more information on Universal Corporation, visit its website at
www.universalcorp.com.
UNIVERSAL
CORPORATION
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(in thousands of
dollars, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
Sales and other
operating revenues
|
|
$
|
275,419
|
|
|
$
|
271,472
|
|
Costs and
expenses
|
|
|
|
|
Cost of goods
sold
|
|
227,030
|
|
|
215,932
|
|
Selling, general and
administrative expenses
|
|
51,296
|
|
|
63,777
|
|
Restructuring
costs
|
|
2,389
|
|
|
--
|
|
Operating income
(loss)
|
|
(5,296)
|
|
|
(8,237)
|
|
Equity in pretax
earnings (loss) of unconsolidated affiliates
|
|
(616)
|
|
|
601
|
|
Interest
income
|
|
239
|
|
|
143
|
|
Interest
expense
|
|
3,884
|
|
|
4,020
|
|
Income (loss) before
income taxes
|
|
(9,557)
|
|
|
(11,513)
|
|
Income tax expense
(benefit)
|
|
(3,432)
|
|
|
(12,038)
|
|
Net income
(loss)
|
|
(6,125)
|
|
|
525
|
|
Less: net loss
attributable to noncontrolling interests in subsidiaries
|
|
178
|
|
|
192
|
|
Net income (loss)
attributable to Universal Corporation
|
|
(5,947)
|
|
|
717
|
|
Dividends on
Universal Corporation convertible perpetual preferred
stock
|
|
(3,687)
|
|
|
(3,712)
|
|
Earnings (loss)
available to Universal Corporation common shareholders
|
|
$
|
(9,634)
|
|
|
$
|
(2,995)
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to Universal Corporation common
shareholders:
|
|
|
|
|
Basic
|
|
$
|
(0.43)
|
|
|
$
|
(0.13)
|
|
Diluted
|
|
$
|
(0.43)
|
|
|
$
|
(0.13)
|
|
|
|
|
|
|
|
|
|
|
See accompanying
notes.
|
|
|
|
|
|
|
|
|
UNIVERSAL
CORPORATION
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
130,439
|
|
|
$
|
148,457
|
|
|
$
|
248,783
|
|
Accounts receivable,
net
|
|
257,349
|
|
|
238,900
|
|
|
434,362
|
|
Advances to
suppliers, net
|
|
58,041
|
|
|
77,273
|
|
|
114,883
|
|
Accounts
receivable--unconsolidated affiliates
|
|
65,821
|
|
|
82,196
|
|
|
1,907
|
|
Inventories--at lower
of cost or market:
|
|
|
|
|
|
|
Tobacco
|
|
921,920
|
|
|
1,047,613
|
|
|
636,488
|
|
Other
|
|
69,851
|
|
|
83,484
|
|
|
62,195
|
|
Prepaid income
taxes
|
|
28,828
|
|
|
30,688
|
|
|
17,811
|
|
Deferred income
taxes
|
|
35,296
|
|
|
20,431
|
|
|
36,611
|
|
Other current
assets
|
|
72,898
|
|
|
78,186
|
|
|
81,570
|
|
Total current
assets
|
|
1,640,443
|
|
|
1,807,228
|
|
|
1,634,610
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
|
|
|
Land
|
|
16,853
|
|
|
17,239
|
|
|
16,790
|
|
Buildings
|
|
239,218
|
|
|
241,909
|
|
|
238,372
|
|
Machinery and
equipment
|
|
590,470
|
|
|
574,178
|
|
|
576,010
|
|
|
|
846,541
|
|
|
833,326
|
|
|
831,172
|
|
Less: accumulated
depreciation
|
|
(534,461)
|
|
|
(528,596)
|
|
|
(525,783)
|
|
|
|
312,080
|
|
|
304,730
|
|
|
305,389
|
|
Other
assets
|
|
|
|
|
|
|
Goodwill and other
intangibles
|
|
99,120
|
|
|
99,429
|
|
|
99,146
|
|
Investments in
unconsolidated affiliates
|
|
78,450
|
|
|
94,802
|
|
|
76,512
|
|
Deferred income
taxes
|
|
8,414
|
|
|
18,616
|
|
|
6,301
|
|
Other noncurrent
assets
|
|
74,221
|
|
|
76,599
|
|
|
76,515
|
|
|
|
260,205
|
|
|
289,446
|
|
|
258,474
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
2,212,728
|
|
|
$
|
2,401,404
|
|
|
$
|
2,198,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying
notes.
|
|
|
|
|
|
|
|
|
|
UNIVERSAL
CORPORATION
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Notes payable and
overdrafts
|
|
$
|
86,553
|
|
|
$
|
205,370
|
|
|
$
|
59,862
|
|
Accounts payable and
accrued expenses
|
|
171,963
|
|
|
198,085
|
|
|
140,112
|
|
Accounts
payable--unconsolidated affiliates
|
|
4,650
|
|
|
42
|
|
|
3,281
|
|
Customer advances and
deposits
|
|
4,328
|
|
|
61,147
|
|
|
30,183
|
|
Accrued
compensation
|
|
24,597
|
|
|
26,213
|
|
|
28,232
|
|
Income taxes
payable
|
|
6,934
|
|
|
12,072
|
|
|
9,243
|
|
Current portion of
long-term obligations
|
|
--
|
|
|
117,500
|
|
|
--
|
|
Total current
liabilities
|
|
299,025
|
|
|
620,429
|
|
|
270,913
|
|
|
|
|
|
|
|
|
Long-term
obligations
|
|
370,000
|
|
|
235,000
|
|
|
370,000
|
|
Pensions and other
postretirement benefits
|
|
95,985
|
|
|
82,759
|
|
|
97,048
|
|
Other long-term
liabilities
|
|
34,091
|
|
|
36,279
|
|
|
36,790
|
|
Deferred income
taxes
|
|
29,785
|
|
|
36,346
|
|
|
26,628
|
|
Total
liabilities
|
|
828,886
|
|
|
1,010,813
|
|
|
801,379
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Universal
Corporation:
|
|
|
|
|
|
|
Preferred
stock:
|
|
|
|
|
|
|
Series A Junior
Participating Preferred Stock, no par value, 500,000 shares
authorized, none issued or outstanding
|
|
--
|
|
|
--
|
|
|
--
|
|
Series B 6.75%
Convertible Perpetual Preferred Stock, no par value, 220,000 shares
authorized, 218,490 shares issued and outstanding (219,999 at June
30, 2014, and 218,490 at March 31, 2015)
|
|
211,562
|
|
|
213,023
|
|
|
211,562
|
|
Common stock, no par
value, 100,000,000 shares authorized, 22,668,025 shares issued and
outstanding (23,169,976 at June 30, 2014, and 22,593,266 at March
31, 2015)
|
|
206,018
|
|
|
206,538
|
|
|
206,002
|
|
Retained
earnings
|
|
998,560
|
|
|
972,068
|
|
|
1,020,155
|
|
Accumulated other
comprehensive loss
|
|
(66,403)
|
|
|
(33,752)
|
|
|
(74,994)
|
|
Total Universal
Corporation shareholders' equity
|
|
1,349,737
|
|
|
1,357,877
|
|
|
1,362,725
|
|
Noncontrolling
interests in subsidiaries
|
|
34,105
|
|
|
32,714
|
|
|
34,369
|
|
Total shareholders'
equity
|
|
1,383,842
|
|
|
1,390,591
|
|
|
1,397,094
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
2,212,728
|
|
|
$
|
2,401,404
|
|
|
$
|
2,198,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying
notes.
|
|
|
|
|
|
|
|
|
|
UNIVERSAL
CORPORATION
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in thousands of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
(loss)
|
|
$
|
(6,125)
|
|
|
$
|
525
|
|
Adjustments to
reconcile net income (loss) to net cash used by operating
activities:
|
|
|
|
|
Depreciation
|
|
9,145
|
|
|
8,653
|
|
Amortization
|
|
223
|
|
|
409
|
|
Net provision
(recoveries) for losses on advances and guaranteed loans to
suppliers
|
|
(2,037)
|
|
|
(516)
|
|
Foreign
currency remeasurement loss (gain), net
|
|
2,806
|
|
|
(1,283)
|
|
Restructuring
and impairment costs
|
|
2,389
|
|
|
--
|
|
Other, net
|
|
8,457
|
|
|
(4,395)
|
|
Changes in operating
assets and liabilities, net
|
|
(129,793)
|
|
|
(118,286)
|
|
Net cash used by
operating activities
|
|
(114,935)
|
|
|
(114,893)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(14,900)
|
|
|
(16,808)
|
|
Proceeds from sale of
property, plant and equipment
|
|
613
|
|
|
393
|
|
Net cash used by
investing activities
|
|
(14,287)
|
|
|
(16,415)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Issuance (repayment)
of short-term debt, net
|
|
26,306
|
|
|
142,489
|
|
Repayment of
long-term obligations
|
|
--
|
|
|
(3,750)
|
|
Issuance of common
stock
|
|
--
|
|
|
187
|
|
Repurchase of common
stock
|
|
--
|
|
|
(7,202)
|
|
Dividends paid on
convertible perpetual preferred stock
|
|
(3,687)
|
|
|
(3,712)
|
|
Dividends paid on
common stock
|
|
(11,749)
|
|
|
(11,844)
|
|
Net cash provided
by financing activities
|
|
10,870
|
|
|
116,168
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
8
|
|
|
65
|
|
Net decrease in cash
and cash equivalents
|
|
(118,344)
|
|
|
(15,075)
|
|
Cash and cash
equivalents at beginning of year
|
|
248,783
|
|
|
163,532
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
130,439
|
|
|
$
|
148,457
|
|
|
|
|
|
|
|
|
|
|
See accompanying
notes.
|
|
|
|
|
|
|
|
|
NOTE 1. BASIS OF PRESENTATION
Universal Corporation, with its subsidiaries
("Universal" or the "Company"), is the leading global leaf tobacco
supplier. Because of the seasonal nature of the Company's business,
the results of operations for any fiscal quarter will not
necessarily be indicative of results to be expected for other
quarters or a full fiscal year. All adjustments necessary to state
fairly the results for the period have been included and were of a
normal recurring nature. Certain amounts in prior year statements
have been reclassified to conform to the current year presentation.
These financial statements should be read in conjunction with the
financial statements and notes thereto included in the Company's
Annual Report on Form 10-K for the fiscal year ended March 31, 2015.
NOTE 2. EARNINGS PER SHARE
The following table sets forth the computation of basic and
diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
(in thousands,
except share and per share data)
|
|
2015
|
|
2014
|
|
|
|
|
|
Basic Earnings
(Loss) Per Share
|
|
|
|
|
Numerator for
basic earnings (loss) per share
|
|
|
|
|
Net income (loss)
attributable to Universal Corporation
|
|
$
|
(5,947)
|
|
|
$
|
717
|
|
Less: Dividends on
convertible perpetual preferred stock
|
|
(3,687)
|
|
|
(3,712)
|
|
Earnings (loss)
available to Universal Corporation common shareholders for
calculation of basic earnings (loss) per share
|
|
(9,634)
|
|
|
(2,995)
|
|
|
|
|
|
|
Denominator
for basic earnings (loss) per share
|
|
|
|
|
Weighted
average shares outstanding
|
|
22,622,930
|
|
|
23,223,343
|
|
|
|
|
|
|
Basic
earnings (loss) per share
|
|
$
|
(0.43)
|
|
|
$
|
(0.13)
|
|
|
|
|
|
|
Diluted Earnings
(Loss) Per Share
|
|
|
|
|
Numerator for
diluted earnings (loss) per share
|
|
|
|
|
Earnings (loss)
available to Universal Corporation common shareholders
|
|
$
|
(9,634)
|
|
|
$
|
(2,995)
|
|
Add: Dividends
on convertible perpetual preferred stock (if conversion
assumed)
|
|
--
|
|
|
--
|
|
Earnings (loss)
available to Universal Corporation common shareholders for
calculation of diluted earnings (loss) per share
|
|
(9,634)
|
|
|
(2,995)
|
|
|
|
|
|
|
Denominator for
diluted earnings (loss) per share
|
|
|
|
|
Weighted average
shares outstanding
|
|
22,622,930
|
|
|
23,223,343
|
|
Effect of dilutive
securities (if conversion or exercise assumed)
|
|
|
|
|
Convertible perpetual
preferred stock
|
|
--
|
|
|
--
|
|
Employee share-based
awards
|
|
--
|
|
|
--
|
|
Denominator for
diluted earnings (loss) per share
|
|
22,622,930
|
|
|
23,223,343
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
$
|
(0.43)
|
|
|
$
|
(0.13)
|
|
NOTE 3. SEGMENT INFORMATION
The principal approach used by management to
evaluate the Company's performance is by geographic region,
although the dark air-cured and oriental tobacco businesses are
each evaluated on the basis of their worldwide operations. The
Company evaluates the performance of its segments based on
operating income after allocated overhead expenses (excluding
significant non-recurring charges or credits), plus equity in the
pretax earnings of unconsolidated affiliates.
Operating results for the Company's reportable
segments for each period presented in the consolidated statements
of income were as follows:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
(in thousands of
dollars)
|
|
2015
|
|
2014
|
|
|
|
|
|
SALES AND OTHER
OPERATING REVENUES
|
|
|
|
|
Flue-cured and burley
leaf tobacco operations:
|
|
|
|
|
North
America
|
|
$
|
48,572
|
|
|
$
|
31,698
|
|
Other
regions (1)
|
|
177,401
|
|
|
197,572
|
|
Subtotal
|
|
225,973
|
|
|
229,270
|
|
Other tobacco
operations (2)
|
|
49,446
|
|
|
42,202
|
|
Consolidated sales
and other operating revenues
|
|
$
|
275,419
|
|
|
$
|
271,472
|
|
|
|
|
|
|
OPERATING INCOME
(LOSS)
|
|
|
|
|
Flue-cured and burley
leaf tobacco operations:
|
|
|
|
|
North
America
|
|
$
|
3,416
|
|
|
$
|
1,679
|
|
Other
regions (1)
|
|
(7,847)
|
|
|
(10,575)
|
|
Subtotal
|
|
(4,431)
|
|
|
(8,896)
|
|
Other tobacco
operations (2)
|
|
908
|
|
|
1,260
|
|
Segment operating
income (loss)
|
|
(3,523)
|
|
|
(7,636)
|
|
Deduct: Equity
in pretax loss (earnings) of unconsolidated affiliates
(3)
|
|
616
|
|
|
(601)
|
|
Restructuring and
impairment costs (4)
|
|
(2,389)
|
|
|
--
|
|
Consolidated
operating income (loss)
|
|
$
|
(5,296)
|
|
|
$
|
(8,237)
|
|
|
|
(1)
|
Includes South
America, Africa, Europe, and Asia regions, as well as inter-region
eliminations.
|
|
|
(2)
|
Includes Dark
Air-Cured, Special Services, and Oriental, as well as inter-company
eliminations. Sales and other operating revenues for this
reportable segment include limited amounts for Oriental because its
financial results consist principally of equity in the pretax
earnings of an unconsolidated affiliate.
|
|
|
(3)
|
Equity in pretax
(earnings) loss of unconsolidated affiliates is included in segment
operating income (loss)(Other Tobacco Operations segment), but is
reported below consolidated operating income (loss) and excluded
from that total in the consolidated statements of income and
comprehensive income.
|
|
|
(4)
|
Restructuring and
impairment costs are excluded from segment operating income (loss),
but are included in consolidated operating income (loss) in the
consolidated statements of income and comprehensive
income.
|
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SOURCE Universal Corporation