Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________________________________

FORM 8-K
____________________________________________

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 7, 2018
____________________________________________

UNIVERSAL CORPORATION
(Exact name of registrant as specified in its charter)
____________________________________________


Virginia
 
001-00652
 
54-0414210
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
 
 
 
 
 
9201 Forest Hill Avenue, Richmond, Virginia
 
 
 
23235
(Address of principal executive offices)
 
 
 
(Zip Code)

Registrant’s telephone number, including area code
(804) 359-9311

Not applicable
(Former name or former address, if changed since last report)
____________________________________________


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company    ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.             ¨






Item 2.02.
Results of Operations and Financial Condition.

Universal Corporation (the “Company”) issued a press release on August 7, 2018, discussing its results for the quarter ended June 30, 2018. The press release is attached as Exhibit 99.1 and is incorporated by reference into this Item 2.02.

Item 8.01.
Other Events.

On August 7, 2018, the Company issued a press release announcing a quarterly dividend for the Company’s common stock. The press release is attached as Exhibit 99.2 and is incorporated by reference into this Item 8.01.





Item 9.01.
Financial Statements and Exhibits.

(d)
Exhibits
 
 
 
 
 
 
 
No.
 
Description
 
 
 
 
 
99.1
 
 
 
 
 
 
99.2
 







SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
UNIVERSAL CORPORATION
 
 
(Registrant)
 
 
 
 
 
Date:
August 7, 2018
By:
/s/ Preston D. Wigner
 
 
 
 
Preston D. Wigner
 
 
 
 
Vice President, General Counsel, and Secretary








Exhibit Index
Exhibit
 
 
Number
 
Document
 
 
 
99.1
 
 
 
 
99.2
 




Exhibit
Exhibit 99.1
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12394572&doc=4
P.O. Box 25099 ~ Richmond, VA 23260 ~ Phone: (804) 359-9311 ~ Fax: (804) 254-3584
______________________________________________________________________________________________________
P R E S S R E L E A S E
CONTACT:
Candace C. Formacek
RELEASE:
4:15 p.m. ET
 
Phone: (804) 359-9311
 
 
 
Fax: (804) 254-3584
 
 
 
Email: investor@universalleaf.com
 
 
Universal Corporation Reports Strong First Quarter Results
Richmond, VA August 7, 2018/ PRNEWSWIRE
___________________________________________________________________________________

George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation (NYSE:UVV), reported net income of $13.2 million, or $0.52 per diluted share, for the first quarter of fiscal year 2019, which ended on June 30, 2018. Those results were up $9.6 million compared with net income of $3.6 million, or $0.14 per diluted share, for the first quarter of fiscal year 2018. The first quarter of fiscal year 2019 included a non-recurring tax benefit from the reversal of a previously recorded foreign dividend withholding tax liability that reduced income taxes and increased net income by $6.9 million, or $0.27 per diluted share. Operating income of $8.4 million for the quarter ended June 30, 2018, improved $2.0 million, or 31%, compared to operating income of $6.4 million for the quarter ended June 30, 2017. Similarly, segment operating income was $8.9 million for the first quarter of fiscal year 2019, up $3.0 million compared to the same period last fiscal year, mainly as a result of earnings improvements in the North America and Other Tobacco Operations segments, partially offset by earnings declines in the Other Regions segment. Revenues of $379.7 million for the quarter ended June 30, 2018, increased by $95.1 million, or 33%, on higher total volumes and processing revenues and a more favorable product mix.

Mr. Freeman stated, “We are off to a strong start to what we believe will be a good year. Our first quarter results benefited from higher carryover crop sales in several origins, particularly in our North America segment where sales volumes in the fourth quarter of fiscal year 2018 were hampered by shipping delays from reduced transportation availability in the United States. We are also continuing to see robust demand for both wrapper style tobaccos and related value-added processing services. We have increased our offerings to meet demand for natural wrappers in both the United States and Europe and continue to be a leading wrapper tobacco supplier.


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Universal Corporation
Page 2

“Crop purchases are progressing as anticipated with purchasing effectively complete in Brazil and well underway in Africa. We are not seeing any significant supply disruptions thus far this year. Burley production volumes have recovered in Africa, and crop sizes there for both flue-cured and burley tobaccos are coming in somewhat higher than previous estimates.

“Although it is still early in our fiscal year, we are pleased with our results to date and continue to expect that our volumes will be above those achieved last fiscal year. We are also focused on our enhanced capital allocation strategy that reflects the strength of our balance sheet and demonstrates our commitment to sustainable shareholder value creation. As announced in conjunction with our 36% dividend increase in May 2018, our strategy has four key priorities: strengthening and investing for growth in our core tobacco business; increasing our strong dividend; exploring growth opportunities in adjacent industries that would utilize our assets and capabilities; and returning excess capital to our shareholders. In line with this strategy, we are positioning our Company for ongoing success as we continue to identify areas where we can provide additional value and expand the services we provide customers in our core tobacco business.”

FLUE-CURED AND BURLEY LEAF TOBACCO OPERATIONS:
OTHER REGIONS:

The Other Regions segment operating loss of $2.0 million for the quarter ended June 30, 2018, was down $5.9 million compared with the prior year’s first fiscal quarter operating income of $3.9 million. In the first quarter of fiscal year 2019, the segment benefited from higher carryover crop sales, mainly in Africa, and higher processing volumes in both Europe and South America. Despite these volume improvements and higher gross margins, results for the segment were down on higher selling, general and administrative costs, largely from lower currency remeasurement gains and higher currency exchange losses and higher customer claim costs, compared to the same period in the prior fiscal year. In South America, volumes were flat, but the product mix was more favorable for the first fiscal quarter of 2019 compared to the prior year, as higher carryover crop sales offset lower current crop shipments. Results for Asia were negatively impacted by lower sales volumes and higher currency remeasurement losses. Revenues for the Other Regions segment of $207.9 million for the quarter ended June 30, 2018, were up about 13% compared to the same period last year, on higher volumes largely from carryover sales, processing revenues, and a better product mix.

NORTH AMERICA:
Operating income for the North America segment for the quarter ended June 30, 2018, was $9.0 million, up $6.6 million from the comparable prior year period, mainly on higher carryover crop sales volumes. The increased volumes included some shipments delayed from earlier in the calendar year due to reduced transportation availability. In addition, current crop tobaccos in Mexico shipped earlier this fiscal year compared to the prior fiscal year. Selling, general, and administrative costs for the North America segment were relatively flat, compared to the prior year’s first fiscal quarter. Revenues for this segment increased by $62.2 million to $115.6 million for the quarter ended June 30, 2018, compared to the same period in the prior fiscal year, on the higher sales volumes and a more favorable product mix.

OTHER TOBACCO OPERATIONS:
The Other Tobacco Operations segment operating income of $2.0 million for the first quarter of fiscal year 2019 reflected an increase of about $2.3 million, compared with an operating loss of $0.3 million for this segment in the same period last year. Results for the dark tobacco operations were up for the quarter ended June 30, 2018, bouyed by higher sales from strong wrapper tobacco demand. Despite slightly lower sales volumes, results for the oriental joint venture were up for its seasonally weak first fiscal quarter ended June 30, 2018, compared to the prior fiscal year. The increase was due to a favorable currency remeasurement

-- M O R E --


Universal Corporation
Page 3

variance caused by the devaluation of the Turkish Lira during the first fiscal quarter. Revenues for this segment in the quarter ended June 30, 2018, increased by $9.3 million to $56.2 million on the higher wrapper tobacco sales. Selling, general, and administrative costs for the segment were flat compared with the prior year's first fiscal quarter.

OTHER ITEMS:
Cost of goods sold in the quarter ended June 30, 2018, of $307.5 million was up by about 33% compared with the same period last year, consistent with the similar percentage increase in revenues for the current period. Selling, general, and administrative costs for the first quarter of fiscal year 2019 increased by $16.4 million to $63.9 million, mainly driven by negative foreign currency remeasurement and exchange variances of about $10 million, primarily in Mozambique and Brazil, higher customer claim costs, and higher compensation and incentive benefit accruals in the quarter ended June 30, 2018, compared with the same period in the prior year.

For the three months ended June 30, 2018, the Company reported a net tax benefit on pretax earnings due to a $6.9 million benefit from reversing a portion of a liability previously recorded for dividend withholding taxes on the cumulative retained earnings of a foreign subsidiary.  The reversal followed the resolution of uncertainties with local taxing authorities with respect to the inclusion of the tax under a tax holiday applicable to a subsidiary and was attributable to the portion of cumulative retained earnings that the Company expects to distribute prior to the expiration of the holiday.  Without the dividend withholding tax reversal, income taxes for the quarter would have been expense of approximately $1.5 million, or a consolidated effective tax rate of approximately 27%. 
  
Income taxes for the quarter ended June 30, 2017, were favorably impacted by a lower effective tax rate on dividend income from unconsolidated operations and by excess tax deductions related to stock-based compensation awards that vested during the quarter. Under the tax law in effect at that time, both of these items were accounted for as discrete tax benefits during the quarter, resulting in a net tax benefit on pretax earnings for the period. Without the benefit from the discrete items, income taxes for the quarter would have been expense of approximately $1 million, or a consolidated effective tax rate of about 34%.




-- M O R E --


Universal Corporation
Page 4

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; changes in the 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, 2018, 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, 2018.

At 5:00 p.m. (Eastern Time) on August 7, 2018, 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 7, 2018. A taped replay of the call will be available through August 21, 2018, by dialing (855) 859-2056. The confirmation number to access the replay is 1249369.

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.





-- M O R E --


Universal Corporation
Page 5

UNIVERSAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands of dollars, except per share data)


 
 
Three Months Ended June 30,
 
 
2018
 
2017
 
 
(Unaudited)
Sales and other operating revenues
 
$
379,719

 
$
284,622

Costs and expenses
 
 
 
 
Cost of goods sold
 
307,498

 
230,765

Selling, general and administrative expenses
 
63,852

 
47,480

Operating income
 
8,369

 
6,377

Equity in pretax earnings (loss) of unconsolidated affiliates
 
539

 
(435
)
Other non-operating income (expense)
 
190

 
178

Interest income
 
512

 
670

Interest expense
 
3,949

 
3,932

Income before income taxes and other items
 
5,661

 
2,858

Income taxes
 
(5,399
)
 
(463
)
Net income
 
11,060

 
3,321

Less: net loss attributable to noncontrolling interests in subsidiaries
 
2,119

 
256

Net income attributable to Universal Corporation
 
13,179

 
3,577

 
 
 
 
 
Earnings per share:
 
 
 
 
Basic
 
$
0.53

 
$
0.14

Diluted
 
$
0.52

 
$
0.14


See accompanying notes.



-- M O R E --


Universal Corporation
Page 6

UNIVERSAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)

 
 
June 30,
 
June 30,
 
March 31,
 
 
2018
  
2017
 
2018
 
 
(Unaudited)
 
(Unaudited)
 
 
ASSETS
 
 
 
 
 
 
Current assets
 
 
  
 
 
 
Cash and cash equivalents
 
$
66,008

  
$
128,605

 
$
234,128

Accounts receivable, net
 
247,812

  
209,321

 
377,119

Advances to suppliers, net
 
70,731

  
58,218

 
122,786

Accounts receivable—unconsolidated affiliates
 
101,483

  
62,239

 
2,040

Inventories—at lower of cost or net realizable value:
 
 
  
 
 
 
Tobacco
 
947,520

  
917,945

 
679,428

Other
 
73,358

  
74,628

 
69,301

Prepaid income taxes
 
20,242

  
16,523

 
16,032

Other current assets
 
71,511

  
71,823

 
88,209

Total current assets
 
1,598,665

  
1,539,302

 
1,589,043

 
 
 
 
 
 
 
Property, plant and equipment
 
 
  
 
 
 
Land
 
23,041

  
22,787

 
23,180

Buildings
 
268,789

  
267,740

 
271,757

Machinery and equipment
 
636,425

  
606,473

 
634,660

 
 
928,255

  
897,000

 
929,597

Less accumulated depreciation
 
(604,765
)
  
(580,927
)

(605,803
)
 
 
323,490

  
316,073

 
323,794

Other assets
 
 
  
 
 
 
Goodwill and other intangibles
 
98,892

  
99,023

 
98,927

Investments in unconsolidated affiliates
 
83,327

  
82,645

 
89,302

Deferred income taxes
 
19,162

  
25,451

 
17,118

Other noncurrent assets
 
45,632

  
42,494

 
50,448

 
 
247,013

  
249,613

 
255,795

 
 
 
 
 
 
 
Total assets
 
$
2,169,168

  
$
2,104,988

 
$
2,168,632


See accompanying notes.






-- M O R E --


Universal Corporation
Page 7

UNIVERSAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)

 
 
June 30,
 
June 30,
 
March 31,
 
 
2018
  
2017
 
2018
 
 
(Unaudited)
  
(Unaudited)
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
Current liabilities
 
 
  
 
 
 
Notes payable and overdrafts
 
$
73,291

 
$
45,064

 
$
45,421

Accounts payable and accrued expenses
 
199,214

 
189,676

 
163,763

Accounts payable—unconsolidated affiliates
 

 
869

 
16,072

Customer advances and deposits
 
3,414

 
1,841

 
7,021

Accrued compensation
 
20,969

 
19,404

 
27,886

Income taxes payable
 
6,813

 
2,132

 
7,557

Current portion of long-term debt
 

 

 

Total current liabilities
 
303,701

  
258,986

 
267,720

 
 
 
 
 
 
 
Long-term debt
 
369,174

 
368,821

 
369,086

Pensions and other postretirement benefits
 
60,360

 
77,312

 
64,843

Other long-term liabilities
 
45,628

 
31,189

 
45,955

Deferred income taxes
 
28,033

 
46,836

 
35,726

Total liabilities
 
806,896

 
783,144

 
783,330

 
 
 
 
 
 
 
Shareholders’ equity
 
 
  
 
 
 
Universal Corporation:
 
 
 
 
 
 
Preferred stock:
 
 
  
 
 
 
Series A Junior Participating Preferred Stock, no par value, 500,000 shares authorized, none issued or outstanding
 

  

 

Common stock, no par value, 100,000,000 shares authorized 24,957,418 shares issued and outstanding (25,325,595 at June 30, 2017, and 24,930,725 at March 31, 2018)
 
322,889

 
321,215

 
321,559

Retained earnings
 
1,072,230

  
1,024,567

 
1,080,934

Accumulated other comprehensive loss
 
(73,442
)
  
(63,723
)
 
(60,064
)
Total Universal Corporation shareholders' equity
 
1,321,677

  
1,282,059

 
1,342,429

Noncontrolling interests in subsidiaries
 
40,595

 
39,785

 
42,873

Total shareholders' equity
 
1,362,272

 
1,321,844

 
1,385,302

 
 
 
 
 
 
 
Total liabilities and shareholders' equity
 
$
2,169,168

  
$
2,104,988

 
$
2,168,632


See accompanying notes.




-- M O R E --


Universal Corporation
Page 8

UNIVERSAL CORPORATION     
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of dollars)
 
 
Three Months Ended June 30,
 
 
2018
 
2017
 
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
Net income
 
$
11,060

 
$
3,321

Adjustments to reconcile net income to net cash used by operating activities:
 
 
 
 
Depreciation
 
8,645

 
8,818

Net provision for losses (recoveries) on advances and guaranteed loans to suppliers
 
(797
)
 
1,290

Foreign currency remeasurement (gain) loss, net
 
(943
)
 
(5,917
)
Other, net
 
(6,928
)
 
(1,944
)
Changes in operating assets and liabilities, net
 
(179,366
)
 
(122,647
)
Net cash used by operating activities
 
(168,329
)
 
(117,079
)
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
Purchase of property, plant and equipment
 
(11,018
)
 
(6,356
)
Proceeds from sale of property, plant and equipment
 
589

 
206

Net cash used by investing activities
 
(10,429
)
 
(6,150
)
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
Issuance (repayment) of short-term debt, net
 
28,978

 
(16,058
)
Repurchase of common stock
 
(1,443
)
 

Dividends paid on common stock
 
(13,712
)
 
(13,649
)
Other
 
(2,656
)
 
(2,827
)
Net cash provided (used) by financing activities
 
11,167

 
(32,534
)
 
 
 
 
 
Effect of exchange rate changes on cash
 
(529
)
 
375

Net decrease in cash and cash equivalents
 
(168,120
)
 
(155,388
)
Cash and cash equivalents at beginning of year
 
234,128

 
283,993

 
 
 
 
 
Cash and cash equivalents at end of period
 
$
66,008

 
$
128,605

See accompanying notes.

-- M O R E --


Universal Corporation
Page 9

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, 2018.

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)
 
2018
 
2017
 
 
 
 
 
Basic Earnings Per Share
 
 
 
 
Numerator for basic earnings per share
 
 
 
 
Net income attributable to Universal Corporation
 
$
13,179

 
$
3,577

 
 
 
 
 
Denominator for basic earnings per share
 
 
 
 
Weighted average shares outstanding
 
25,064,420

 
25,407,293

 
 
 
 
 
Basic earnings per share
 
$
0.53

 
$
0.14

 
 
 
 
 
Diluted Earnings Per Share
 
 
 
 
Numerator for diluted earnings per share
 
 
 
 
Net income attributable to Universal Corporation
 
13,179

 
3,577

 
 
 
 
 
Denominator for diluted earnings per share:
 
 
 
 
Weighted average shares outstanding
 
25,064,420

 
25,407,293

Effect of dilutive securities
 
 
 
 
Employee share-based awards
 
220,280

 
224,864

Denominator for diluted earnings per share
 
25,284,700

 
25,632,157

 
 
 
 
 
Diluted earnings per share
 
$
0.52

 
$
0.14



-- M O R E --


Universal Corporation
Page 10

NOTE 4. 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 June 30,
(in thousands of dollars)
 
2018
 
2017
 
 
 
 
 
SALES AND OTHER OPERATING REVENUES
 
 
 
 
Flue-Cured and Burley Leaf Tobacco Operations:
 
 
 
 
   North America
 
$
115,556

   
$
53,324

   Other Regions (1)
 
207,932

   
184,412

      Subtotal
 
323,488

 
237,736

Other Tobacco Operations (2)
 
56,231

   
46,886

Consolidated sales and other operating revenue
 
$
379,719

 
$
284,622

 
 
 
 
 
OPERATING INCOME (LOSS)
 
 
 
 
Flue-Cured and Burley Leaf Tobacco Operations:
 
 
 
 
   North America
 
$
8,952

   
$
2,330

   Other Regions (1)
 
(2,017
)
   
3,944

      Subtotal
 
6,935

 
6,274

Other Tobacco Operations (2)
 
1,973

   
(332
)
Segment operating income
 
8,908

 
5,942

 Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates (3)
 
(539
)
 
435

Consolidated operating income
 
$
8,369

 
$
6,377


(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 (loss) 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.




###

Exhibit


Exhibit 99.2
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12394572&doc=4
P.O. Box 25099 ~ Richmond, VA 23260 ~ phone: (804) 359-9311 ~ fax (804) 254-3584
_____________________________________________________________________________________
P R E S S R E L E A S E
CONTACT:
Candace C. Formacek
RELEASE:
Immediately
 
Phone: (804) 359-9311
 
 
 
Fax: (804) 254-3584
 
 
 
Email: investor@universalleaf.com
 
 

Universal Corporation Announces Dividend
Richmond, VA August 7, 2018 / PRNEWSWIRE

George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation (NYSE:UVV), announced today that the Company's Board of Directors declared a quarterly dividend of seventy-five cents ($0.75) per share on the common shares of the Company, payable November 5, 2018, to common shareholders of record at the close of business on October 9, 2018.

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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