RICHMOND, Va., May 23, 2018 /PRNewswire/ -- Universal
Corporation (NYSE: UVV) today announced that its Board of Directors
approved on Tuesday, May 22, 2018, an
enhanced capital allocation strategy that demonstrates the
Company's focus on sustainable shareholder value creation. The
enhanced strategy is the result of an extensive review of
Universal's business and capital allocation strategies by the
Company and its outside advisors that began in November 2016.
The Company's strategy focuses on four strategic priorities:
- Strengthening and investing for growth in Universal's core
tobacco business;
- Increasing its strong dividend;
- Exploring growth opportunities in adjacent industries and
markets that utilize our assets and capabilities; and
- Returning excess capital through share repurchases.
As part of the Company's commitment to shareholder returns, the
Board has increased Universal's annual dividend per share to
$3.00, by declaring an increase in
its quarterly dividend to seventy-five
cents ($0.75) per share on the
common shares of the Company, payable August
06, 2018, to common shareholders of record at the close of
business on July 9, 2018. This
represents a 36% increase, or $0.80
per share, from the current annual dividend rate of $2.20 per share, and reflects a return of
approximately 70% of net income attributable to Universal
Corporation for fiscal year 2018.
George C. Freeman, III, Chairman,
President, and Chief Executive Officer of Universal Corporation,
said, "We have devoted considerable time to analyzing our business,
as well as the market environment, to determine how we can create a
strategy that capitalizes on our core competencies to ensure we are
well positioned for the future. Through this review, we have
reaffirmed that our mission is to remain the leading global leaf
tobacco supplier. By continuing to make disciplined investments
within our core business and taking advantage of growth
opportunities in tobacco as well as in adjacent industries and
markets that utilize our assets and capabilities, we will be able
to deliver enhanced value for all shareholders through earnings
growth and the generation of free cash flow despite operating in a
mature industry.
Mr. Freeman continued, "We are confident in our continued
ability to generate strong free cash flow. Our focus on
strengthening our balance sheet in recent years has positioned us
to enhance our capital allocation strategy and we will continually
evaluate opportunities to return capital to shareholders on an
ongoing basis. At the same time, we remain committed to
maintaining our investment grade credit rating and extending our
47-year history of dividend increases."
In a separate press release today, the Company reported its
annual results for the fiscal year ended March 31, 2018.
Forward-Looking Statements
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, including the impact of regulations on
tobacco products; product taxation; changes in U.S. federal income
tax rates and legislation; industry consolidation and evolution;
changes in global supply and demand positions for tobacco products;
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,
2017, 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 years ended March 31, 2017,
and March 31, 2018, which is expected
to be filed later this week.
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, 2018, were $2.0 billion. For more information on Universal
Corporation, visit its website at www.universalcorp.com.
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SOURCE Universal Corporation