RICHMOND, Va., Nov. 7,
2017 /PRNewswire/ -- George C. Freeman,
III, Chairman, President, and Chief Executive Officer of
Universal Corporation (NYSE: UVV), reported that net income for the
six months ended September 30, 2017,
was $29.7 million, or $1.16 per diluted share, compared with
$19.8 million, or $0.54 per diluted share for the same period of
the prior fiscal year. Operating income for the six months
ended September 30, 2017, of
$51.5 million, increased by
$16.2 million compared to the first
half of the prior fiscal year. For the second fiscal quarter
ended September 30, 2017, net income
was $26.2 million, or $1.02 per diluted share, compared with net income
for the prior year's second quarter of $25.3
million, or $0.90 per diluted
share. Operating income for the second quarter of fiscal year 2018
increased to $45.0 million from
$43.3 million for the three months
ended September 30, 2016. Segment
operating income, which excludes the restructuring and impairment
costs mentioned in Other Items below, was $51.8 million for the first half of fiscal year
2018, an increase of $11.6 million,
and for the quarter ended September 30,
2017, was $45.6 million, a
decrease of $2.6 million, both
compared to the same periods last fiscal year. Results in
both periods reflected earnings improvements in the Other Regions
segment coupled with declines in the North America and the Other Tobacco Operations
segments. Consolidated revenues increased by $20.5 million to $772.9
million for the first half of fiscal year 2018, and by
$31.3 million to $488.2 million for the three months ended
September 30, 2017, compared to the
same periods in the prior year. Those increases were primarily a
result of slightly higher sales volumes, as well as higher
processing and other revenues. Revenues for the six months ended
September 30, 2017, also included
benefits from the timing of receipt of dividend income from
unconsolidated subsidiaries in the first fiscal quarter of
2018.
Mr. Freeman stated, "Our results for the six months ended
September 30, 2017, were in line with
our expectations and reflected slightly higher total sales
volumes and lower selling, general, and administrative costs. In
our second fiscal quarter, we continued to see the benefits of
higher current crop sales and processing volumes and lower factory
unit costs from the recovery in leaf production volumes this year
in Brazil.
"As expected, the recovery of Brazilian crop levels and some
earlier shipment timing in certain regions increased our working
capital needs in the first half of this fiscal year, modestly
increasing our seasonal borrowing requirements. This shift, as well
as the funds utilized in the fourth fiscal quarter of 2017 to
redeem the remaining shares of our preferred stock, reduced our
cash reserves to our more typical mid-year seasonal levels.
Despite those requirements, we have continued to maintain our
strong balance sheet as evidenced by a credit ratings upgrade
announced in October 2017 by S&P
Global Ratings. Our uncommitted inventories have been prudently
managed, remaining within our target range at 14% for the end of
the second fiscal quarter.
"Looking to the second half of our current fiscal year, the
reduced burley leaf production volumes in Africa will impact our total volumes sold for
that region, which mainly ship in the third and fourth fiscal
quarters. Less African burley leaf was grown this fiscal year due
to excess production and low grower prices in fiscal year 2017 and
unfavorable weather conditions this fiscal year. Although we still
expect our total shipments to be weighted to the second half of the
fiscal year, we currently anticipate modestly lower total lamina
sales volumes for fiscal year 2018. We are estimating that this
fiscal year's global burley production declines will recover in
next year's crop.
"Despite supply constraints in certain important origins over
the last two fiscal years, we have been pleased with additional
business opportunities that we have gained from our customers. We
believe that we have increased our market share and that we
continue to bring efficiencies to the leaf tobacco supply chain
while meeting our customers' current and evolving product
needs.
"We also remain focused on providing value to our shareholders.
During the first half of fiscal 2018 we have returned nearly
$40.0 million to our shareholders in
dividends and common stock repurchases and are pleased today to
have announced an annual dividend increase for the 47th
consecutive year."
FLUE-CURED AND BURLEY LEAF TOBACCO OPERATIONS:
OTHER REGIONS:
Operating income for the Other Regions segment improved by
$26.3 million to $41.6 million for
the first half of fiscal year 2018, compared to the first half of
the prior fiscal year. The improvements were driven by a
combination of higher sales volumes, processing and other revenues,
and lower selling, general, and administrative expenses. In
South America, total volumes
declined slightly given larger sales volumes of carryover crops in
fiscal year 2017's first six months, but earnings were lifted by
increased sales and processing volumes and better factory unit
costs on higher current year crop volumes. In Africa, volumes for the first half of the
fiscal year were slightly higher on earlier shipment timing in some
origins. Europe region results
improved on stronger sales, due in part to earlier shipment timing,
and a gain on the sale of a former processing facility in
Hungary, while Asia results benefited from an increase in
trading volumes in some origins. Selling, general, and
administrative costs for the segment were lower for the six-month
period, largely from net foreign currency remeasurement gains in
the first quarter of fiscal year 2018, compared with losses in the
first quarter of the prior year, mainly in Africa. That benefit was partially offset by
unfavorable comparisons to the reversal of value-added tax reserves
in the second quarter of fiscal year 2017.
Segment operating income for the Other Regions segment for the
quarter ended September 30, 2017,
increased by $5.2 million to
$37.5 million, compared with the
second quarter of fiscal year 2017. Although segment sales volumes
were higher for the quarter, results were hampered by higher
selling, general, and administrative costs. Revenues for the Other
Regions segment for the six months and quarter ended September 30, 2017, were up by $69.0 million to $565.6 million and by
$62.6 million to $381.2 million,
respectively, compared with the same periods in the prior year.
Those results reflected higher sales volumes at slightly higher
overall green leaf prices, as well as increased processing and
other revenues.
NORTH AMERICA:
North America segment operating
income of $10.3 million for the six
months, and $7.9 million for the
quarter ended September 30, 2017, was
down by $10.1 million and
$5.6 million, respectively, compared
with the same periods in the previous year. The declines in both
periods were driven by lower sales volumes shipped during the first
half of fiscal year 2018. Volume comparisons in the United States were primarily impacted by
large prior crop carryover sales last year, while offshore origin
results were affected by lower volumes from later shipment timing
in the current fiscal year and less favorable margins. Those
declines were partly mitigated by reduced selling, general and
administrative costs, mainly from lower incentive compensation
accruals. Segment revenues were also down, by $41.5 million to $112.0 million for the first
half, and by $22.1 million to $58.7
million for the second quarter of fiscal year 2018, compared
with the same periods in the prior fiscal year, on those lower
volumes at lower average green leaf prices.
OTHER TOBACCO OPERATIONS:
The Other Tobacco Operations segment operating loss of
$0.1 million for the six months and
segment operating income of $0.2
million for the three months ended September 30, 2017, declined by $4.5 million and $2.2
million, respectively, compared with the same periods last
fiscal year. In both periods, earnings were lower for the dark
tobacco operations largely due to negative currency remeasurement
variances, a value-added tax charge, and an unfavorable product mix
in Indonesia due to a lack of
wrapper tobacco availability. Earnings improvements for the
oriental joint venture in the quarter and six months ended
September 30, 2017, on increased
volumes, were more than offset by declines due to delays in the
delivery of shipments of oriental tobaccos into the United States. Operating results for the
Special Services group were up slightly for both the first half and
second fiscal quarter of fiscal year 2018 compared with fiscal year
2017. Selling, general, and administrative costs for the segment
were higher for both the first half and second fiscal quarter of
fiscal year 2018 compared with fiscal year 2017 principally on
negative currency remeasurement variances and a value-added tax
charge. Revenues for the Other Tobacco Operations segment decreased
by $7.1 million to $95.3 million for the first half, and by
$9.2 million to $48.4 million for the second quarter of fiscal
year 2018, mainly due to lower sales volumes from the timing of
shipments of oriental tobaccos into the
United States, compared to the same periods in the prior
year.
OTHER ITEMS:
Cost of goods sold increased by about 2% to $625.9 million for the first half, and by about
7% to $395.2 million for the second
quarter of fiscal year 2018 compared with the same periods in
fiscal year 2017. For both periods, the increase reflected modestly
higher leaf sales volumes. Selling, general, and administrative
costs decreased by $5.6 million in
the six months ended September 30,
2017, compared to the six months ended September 30, 2016. The decrease was largely
driven by net foreign currency remeasurement and exchange gains in
the current fiscal period compared with losses incurred in the
prior fiscal year comparable period, mainly in Africa and the
Philippines, partially offset by the absence of the reversal
in the second quarter of fiscal year 2017 of value-added tax
reserves. Selling, general, and administrative costs were up
$7.3 million in the three months
ended September 30, 2017, compared to
the prior year on the absence of the reversal of value-added tax
reserves.
The consolidated effective tax rates for the quarter and
six-month periods ended September 30,
2017, were approximately 33% and 30%, respectively. Income
taxes for the first half of fiscal year 2018 were lower than the
35% federal statutory rate because of the effect of exchange rate
changes on deferred tax assets and liabilities of foreign
subsidiaries, as well as additional non-recurring discrete tax
adjustments for both the quarter and six months that reduced
consolidated tax expense by about $2.0
million for the six-month period. Without these items, the
effective tax rates for the second quarter and first six months of
fiscal 2018 would be comparable to those of the prior year. The
consolidated effective income tax rates were approximately 35% and
34% for the quarter and six months ended September 30, 2016, respectively, which
approximate the U.S. statutory rate.
Results for the second fiscal quarter and six months ended
September 30, 2016, included
restructuring and impairment costs of $3.7
million ($0.09 per diluted
share for the quarter or $0.10 for
the six months).
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 (loss), operating income (loss), 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 provided
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 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, including the impact of regulations on
tobacco products; product taxation; 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 year ended March 31, 2017.
At 5:00 p.m. (Eastern Time) on
November 7, 2017, 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 February 5, 2018. A taped
replay of the call will be available through November 20, 2017, by dialing (855) 859-2056. The
confirmation number to access the replay is 5697004.
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, 2017, were $2.1 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
September 30,
|
|
Six Months
Ended
September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Sales and other
operating revenues
|
$
|
488,248
|
|
$
|
456,942
|
|
$
|
772,870
|
|
$
|
752,417
|
Costs and
expenses
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
395,172
|
|
369,098
|
|
625,937
|
|
612,376
|
Selling, general and
administrative expenses
|
48,101
|
|
40,834
|
|
95,403
|
|
101,033
|
Restructuring and
impairment costs
|
—
|
|
3,682
|
|
—
|
|
3,682
|
Operating
income
|
|
44,975
|
|
43,328
|
|
51,530
|
|
35,326
|
Equity in pretax
earnings of unconsolidated affiliates
|
667
|
|
1,260
|
|
232
|
|
1,130
|
Interest
income
|
|
526
|
|
271
|
|
1,196
|
|
634
|
Interest
expense
|
|
3,964
|
|
4,335
|
|
7,896
|
|
8,389
|
Income before income
taxes and other items
|
42,204
|
|
40,524
|
|
45,062
|
|
28,701
|
Income
taxes
|
|
13,898
|
|
14,026
|
|
13,435
|
|
9,707
|
Net income
|
|
28,306
|
|
26,498
|
|
31,627
|
|
18,994
|
Less: net (income)
loss attributable to noncontrolling interests in
subsidiaries
|
(2,139)
|
|
(1,234)
|
|
(1,883)
|
|
794
|
Net income
attributable to Universal Corporation
|
26,167
|
|
25,264
|
|
29,744
|
|
19,788
|
Dividends on
Universal Corporation convertible perpetual preferred
stock
|
—
|
|
(3,687)
|
|
—
|
|
(7,374)
|
Earnings available to
Universal Corporation common shareholders
|
$
|
26,167
|
|
$
|
21,577
|
|
$
|
29,744
|
|
$
|
12,414
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Universal Corporation common
shareholders:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.03
|
|
$
|
0.95
|
|
$
|
1.17
|
|
$
|
0.55
|
Diluted
|
|
$
|
1.02
|
|
$
|
0.90
|
|
$
|
1.16
|
|
$
|
0.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying
notes.
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL
CORPORATION
CONSOLIDATED
BALANCE SHEETS
(in thousands of
dollars)
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
March 31,
|
|
2017
|
|
2016
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
41,203
|
|
$
|
294,894
|
|
$
|
283,993
|
Accounts receivable,
net
|
338,700
|
|
251,805
|
|
439,288
|
Advances to
suppliers, net
|
66,580
|
|
47,841
|
|
103,750
|
Accounts
receivable—unconsolidated affiliates
|
50,533
|
|
51,558
|
|
2,373
|
Inventories—at lower
of cost or net realizable value:
|
|
|
|
Tobacco
|
869,325
|
|
827,936
|
|
565,943
|
Other
|
90,108
|
|
86,472
|
|
68,087
|
Prepaid income
taxes
|
21,110
|
|
24,448
|
|
16,713
|
Other current
assets
|
94,294
|
|
56,026
|
|
81,252
|
Total current
assets
|
1,571,853
|
|
1,640,980
|
|
1,561,399
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
Land
|
22,822
|
|
22,914
|
|
22,852
|
Buildings
|
268,702
|
|
266,107
|
|
266,802
|
Machinery and
equipment
|
612,722
|
|
599,897
|
|
597,213
|
|
904,246
|
|
888,918
|
|
886,867
|
Less accumulated
depreciation
|
(587,465)
|
|
(566,686)
|
|
(569,527)
|
|
316,781
|
|
322,232
|
|
317,340
|
Other
assets
|
|
|
|
Goodwill and other
intangibles
|
99,059
|
|
99,033
|
|
98,888
|
Investments in
unconsolidated affiliates
|
86,247
|
|
81,441
|
|
78,457
|
Deferred income
taxes
|
23,136
|
|
25,720
|
|
25,422
|
Other noncurrent
assets
|
42,434
|
|
49,107
|
|
41,899
|
|
250,876
|
|
255,301
|
|
244,666
|
|
|
|
|
Total
assets
|
$
|
2,139,510
|
|
$
|
2,218,513
|
|
$
|
2,123,405
|
|
|
|
|
|
|
|
|
|
See accompanying
notes.
|
|
|
|
|
|
|
|
|
UNIVERSAL
CORPORATION
CONSOLIDATED
BALANCE SHEETS
(in thousands of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
March 31,
|
|
2017
|
|
2016
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Notes payable and
overdrafts
|
$
|
98,268
|
|
$
|
71,002
|
|
$
|
59,133
|
Accounts payable and
accrued expenses
|
142,337
|
|
133,133
|
|
153,515
|
Accounts
payable—unconsolidated affiliates
|
56
|
|
—
|
|
7,231
|
Customer advances and
deposits
|
16,807
|
|
37,334
|
|
11,007
|
Accrued
compensation
|
19,509
|
|
18,885
|
|
32,007
|
Income taxes
payable
|
3,935
|
|
1,240
|
|
5,103
|
Current portion of
long-term debt
|
—
|
|
—
|
|
—
|
Total current
liabilities
|
280,912
|
|
261,594
|
|
267,996
|
|
|
|
|
Long-term
debt
|
368,909
|
|
368,556
|
|
368,733
|
Pensions and other
postretirement benefits
|
74,636
|
|
80,005
|
|
80,689
|
Other long-term
liabilities
|
31,338
|
|
41,413
|
|
31,424
|
Deferred income
taxes
|
54,733
|
|
28,047
|
|
47,985
|
Total
liabilities
|
810,528
|
|
779,615
|
|
796,827
|
|
|
|
|
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, no shares outstanding (218,490 at
September
30, 2016, and none at March 31, 2017)
|
—
|
|
211,562
|
|
—
|
Common stock, no par
value, 100,000,000 shares authorized 25,114,349
shares issued and outstanding (22,783,633 at September 30,
2016, and
25,274,506 at March 31, 2017)
|
320,121
|
|
210,569
|
|
321,207
|
Retained
earnings
|
1,027,147
|
|
1,054,004
|
|
1,034,841
|
Accumulated other
comprehensive loss
|
(58,887)
|
|
(73,579)
|
|
(69,559)
|
Total Universal
Corporation shareholders' equity
|
1,288,381
|
|
1,402,556
|
|
1,286,489
|
Noncontrolling
interests in subsidiaries
|
40,601
|
|
36,342
|
|
40,089
|
Total shareholders'
equity
|
1,328,982
|
|
1,438,898
|
|
1,326,578
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
2,139,510
|
|
$
|
2,218,513
|
|
$
|
2,123,405
|
|
|
|
|
|
|
|
|
|
See accompanying
notes.
|
|
|
|
|
|
|
|
|
UNIVERSAL
CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
September 30,
|
|
2017
|
|
2016
|
|
(Unaudited)
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net income
|
$
|
31,627
|
|
$
|
18,994
|
Adjustments to
reconcile net income to net cash provided (used) by operating
activities:
|
|
|
|
Depreciation
|
17,485
|
|
17,324
|
Net provision for
losses (recoveries) on advances and guaranteed loans to
suppliers
|
937
|
|
(2,038)
|
Foreign currency
remeasurement (gain) loss, net
|
(3,944)
|
|
11,119
|
Restructuring and
impairment costs
|
—
|
|
3,682
|
Other, net
|
8,610
|
|
(1,108)
|
Changes in operating
assets and liabilities, net
|
(278,560)
|
|
(25,548)
|
Net cash provided
(used) by operating activities
|
(223,845)
|
|
22,425
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Purchase of property,
plant and equipment
|
(14,769)
|
|
(17,567)
|
Proceeds from sale of
property, plant and equipment
|
3,273
|
|
447
|
Net cash used by
investing activities
|
(11,496)
|
|
(17,120)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Issuance (repayment)
of short-term debt, net
|
36,085
|
|
5,210
|
Dividends paid to
noncontrolling interests
|
(1,260)
|
|
(1,260)
|
Repurchase of common
stock
|
(12,639)
|
|
—
|
Dividends paid on
convertible perpetual preferred stock
|
—
|
|
(7,374)
|
Dividends paid on
common stock
|
(27,324)
|
|
(24,106)
|
Other
|
(2,828)
|
|
(2,245)
|
Net cash used by
financing activities
|
(7,966)
|
|
(29,775)
|
|
|
|
|
Effect of exchange
rate changes on cash
|
517
|
|
(83)
|
Net decrease in cash
and cash equivalents
|
(242,790)
|
|
(24,553)
|
Cash and cash
equivalents at beginning of year
|
283,993
|
|
319,447
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
|
41,203
|
|
$
|
294,894
|
|
|
|
|
|
|
See accompanying
notes.
|
|
|
|
|
|
NOTE 1. BASIS OF PRESENTATION
Universal Corporation, which together with its subsidiaries is
referred to herein as "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. This Form 10-Q 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, 2017.
NOTE 2. EARNINGS PER SHARE
The following table sets forth the computation of basic and
diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Six Months
Ended
September 30,
|
(in thousands,
except share and per share data)
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
|
|
|
|
|
|
Numerator for
basic earnings per share
|
|
|
|
|
|
|
|
Net income
attributable to Universal Corporation
|
$
|
26,167
|
|
$
|
25,264
|
|
$
|
29,744
|
|
$
|
19,788
|
Less: Dividends on
convertible perpetual preferred stock
|
—
|
|
(3,687)
|
|
—
|
|
(7,374)
|
Earnings available to
Universal Corporation common shareholders for calculation of basic
earnings per share
|
26,167
|
|
21,577
|
|
29,744
|
|
12,414
|
|
|
|
|
|
|
|
|
|
Denominator for
basic earnings per share
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
25,334,661
|
|
22,777,394
|
|
25,370,783
|
|
22,755,927
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
1.03
|
|
$
|
0.95
|
|
$
|
1.17
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share
|
|
|
|
|
|
|
|
Numerator for
diluted earnings per share
|
|
|
|
|
|
|
|
Earnings available to
Universal Corporation common shareholders
|
$
|
26,167
|
|
$
|
21,577
|
|
$
|
29,744
|
|
$
|
12,414
|
Add: Dividends on
convertible perpetual preferred stock (if conversion
assumed)
|
—
|
|
3,687
|
|
—
|
|
—
|
Earnings available to
Universal Corporation common shareholders for calculation of
diluted earnings per share
|
26,167
|
|
25,264
|
|
29,744
|
|
12,414
|
|
|
|
|
|
|
|
|
|
Denominator for
diluted earnings per share:
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
25,334,661
|
|
22,777,394
|
|
25,370,783
|
|
22,755,927
|
Effect of dilutive
securities (if conversion or exercise assumed)
|
|
|
|
|
|
|
|
Convertible perpetual
preferred stock
|
—
|
|
4,883,372
|
|
—
|
|
—
|
Employee share-based
awards
|
211,885
|
|
307,390
|
|
218,375
|
|
317,414
|
Denominator for
diluted earnings per share
|
25,546,546
|
|
27,968,156
|
|
25,589,158
|
|
23,073,341
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
1.02
|
|
$
|
0.90
|
|
$
|
1.16
|
|
$
|
0.54
|
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 (loss) after
allocated overhead expenses (excluding significant non-recurring
charges or credits), plus equity in the pretax earnings (loss) of
unconsolidated affiliates.
Operating results for the Company's reportable segments for each
period presented in the consolidated statements of income and
comprehensive income were as follows:
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Six Months
Ended
September 30,
|
(in thousands of
dollars)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
SALES AND OTHER
OPERATING REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
Flue-Cured and Burley
Leaf Tobacco Operations:
|
|
|
|
|
|
|
|
North America
|
$
|
58,668
|
|
$
|
80,789
|
|
$
|
111,992
|
|
$
|
153,471
|
Other Regions
(1)
|
381,164
|
|
318,576
|
|
565,576
|
|
496,592
|
Subtotal
|
439,832
|
|
399,365
|
|
677,568
|
|
650,063
|
Other Tobacco
Operations (2)
|
48,416
|
|
57,577
|
|
95,302
|
|
102,354
|
Consolidated sales
and other operating revenue
|
$
|
488,248
|
|
$
|
456,942
|
|
$
|
772,870
|
|
$
|
752,417
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
(LOSS)
|
|
|
|
|
|
|
|
Flue-Cured and Burley
Leaf Tobacco Operations:
|
|
|
|
|
|
|
|
North America
|
|
$
|
7,899
|
|
$
|
13,531
|
|
$
|
10,264
|
|
$
|
20,379
|
Other Regions
(1)
|
37,516
|
|
32,342
|
|
41,593
|
|
15,325
|
Subtotal
|
|
45,415
|
|
45,873
|
|
51,857
|
|
35,704
|
Other Tobacco
Operations (2)
|
227
|
|
2,397
|
|
(95)
|
|
4,434
|
Segment operating
income
|
45,642
|
|
48,270
|
|
51,762
|
|
40,138
|
Deduct: Equity
in pretax earnings of unconsolidated affiliates
(3)
|
(667)
|
|
(1,260)
|
|
(232)
|
|
(1,130)
|
Restructuring and impairment costs
(4)
|
—
|
|
(3,682)
|
|
—
|
|
(3,682)
|
Consolidated
operating income
|
$
|
44,975
|
|
$
|
43,328
|
|
$
|
51,530
|
|
$
|
35,326
|
(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 the
business is accounted for on the equity method and its financial
results consist principally of equity in the pretax earnings (loss)
of an unconsolidated affiliate.
|
|
|
(3)
|
Equity in pretax
earnings of unconsolidated affiliates is included in segment
operating income (Other Tobacco Operations segment), but is
reported below consolidated operating income 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, but
are included in consolidated operating income in the consolidated
statements of income and comprehensive income.
|
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SOURCE Universal Corporation