Document
false0000102037 0000102037 2019-08-06 2019-08-06


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, 2019
____________________________________________

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))

Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each class
Trading Symbols
Name of Exchange on which registered
Common Stock, no par value
UVV
New York Stock Exchange

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, 2019, discussing its results for the quarter ended June 30, 2019. 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, 2019, 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, 2019
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=13048129&doc=9
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:
4:16 p.m. ET
 
Phone: (804) 359-9311
 
 
 
Fax: (804) 254-3584
 
 
 
Email: investor@universalleaf.com
 
 
Universal Corporation Reports First Quarter Results
Richmond, VA August 7, 2019/ PRNEWSWIRE
___________________________________________________________________________________

George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation (NYSE:UVV), reported net income of $2.1 million, or $0.08 per diluted share, for the first quarter of fiscal year 2020, which ended on June 30, 2019. Those results were down $11.1 million compared with net income of $13.2 million, or $0.52 per diluted share, for the first quarter of fiscal year 2019. Included in the results for both periods were certain non-recurring income tax items, detailed in Other Items below, which reduced diluted earnings per share by $0.11 and increased diluted earnings per share by $0.27 for the three months ended June 30, 2019 and June 30, 2018, respectively. Excluding those non-recurring items, net income and diluted earnings per share declined by $1.4 million and $0.06, respectively, for the quarter ended June 30, 2019, compared to the quarter ended June 30, 2018. Operating income of $7.5 million for the quarter ended June 30, 2019, decreased by $0.9 million, compared to operating income of $8.4 million for the quarter ended June 30, 2018. Similarly, segment operating income was $7.6 million for the first quarter of fiscal year 2020, down $1.4 million compared to the same period last fiscal year, mainly as a result of earnings declines in the North America and Other Regions segments, partially offset by earnings improvements in the Other Tobacco Operations segment. Revenues of $296.9 million for the quarter ended June 30, 2019, decreased by $82.8 million, or 22%, on lower total sales volumes primarily due to reduced carryover crop sales.

Mr. Freeman stated, “We are starting off fiscal year 2020 with sales results in line with our expectations. Our first fiscal quarter is a seasonally slow quarter for us, and our volumes for the quarter are lower than the prior year, as fiscal year 2019 benefited from large carryover crop volumes, particularly in North America and Africa. However, our overall volumes are similar to those in prior first fiscal quarters when we were not impacted by large carryover shipments. In addition, our results benefited from lower selling, general, and administrative expenses, primarily from more favorable currency variances this fiscal year.

-- M O R E --



Universal Corporation
Page 2


“Crop purchases are almost complete in Brazil and well underway in Africa. Flue-cured crop sizes are larger in several key origins this year, and we believe that the supply of flue-cured tobacco exceeds demand. As a result, we are seeing slower movement in flue-cured markets, soft demand, and pressure on margins. However, it is still very early, and some markets have not opened yet. In contrast to the flue-cured crops, burley crop sizes are coming in lower than expected, and we believe that burley supply is in line with demand.

“We are also seeing softer demand for U.S. tobacco. Currently, U.S. tobacco prices are not competitive in the global marketplace. Additionally, there is pressure on export volumes from the suspension of purchases by China due to the current trade discussions, as well as consistent declining domestic consumption in the United States.

“Although we are cautiously watching some market developments, we believe that we are off to a good start this year. We are forecasting modest increases in our capital expenditures as we continue to work on additional supply chain and service opportunities in our leaf tobacco business. We are also making steady progress on building out our investment pipeline. In fiscal year 2020, we look forward to continuing to provide products that are responsibly-sourced and processed with transparency, while maintaining our position as the leading global leaf tobacco supplier and delivering sustainable shareholder value.”

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

The Other Regions segment operating loss of $3.8 million for the quarter ended June 30, 2019, was $1.8 million greater than the prior year’s first fiscal quarter operating loss of $2.0 million. In the first quarter of fiscal year 2020, benefits from higher carryover crop sales in Brazil and increased trading volumes in Asia were offset by lower results from Africa on lower carryover crop sales and distributions from unconsolidated subsidiaries. Selling, general and administrative costs for the segment were lower in the quarter ended June 30, 2019, largely from favorable foreign currency comparisons, lower customer claim costs, and lower legal and professional expenses, compared to the same period in the prior fiscal year. Revenues for the Other Regions segment of $202.1 million for the quarter ended June 30, 2019, were down $5.9 million compared to the same period last year, as increases in sales revenues were offset by lower processing revenues, primarily in Europe, and reduced dividend income from unconsolidated affiliates.

NORTH AMERICA:
Operating income for the North America segment for the quarter ended June 30, 2019, was $0.9 million, down $8.1 million from the comparable prior year period, mainly on significantly lower carryover crop sales volumes. Carryover crop volumes in the United States were high in the quarter ended June 30, 2018, as reduced transportation availability had delayed some shipments into that quarter, which would otherwise have shipped earlier in calendar year 2018. In addition, current crop tobacco volumes were down in Mexico due to later shipment timing this fiscal year compared to fiscal year 2019. Selling, general, and administrative costs for the North America segment were down slightly, compared to the prior year’s first fiscal quarter. Revenues for this segment decreased by $87.9 million to $27.7 million for the quarter ended June 30, 2019, compared to the same period in the prior fiscal year, on the lower carryover crop sales volumes.

OTHER TOBACCO OPERATIONS:
The Other Tobacco Operations segment operating income of $10.5 million for the first quarter of fiscal year 2020 reflected an increase of $8.5 million, compared to operating income of $2.0 million for this

-- M O R E --



Universal Corporation
Page 3

segment in the same period last year, largely due to improved results from our dark tobacco operations on higher wrapper sales and lower costs. Despite increased sales volumes, results for the oriental joint venture were down for its seasonally weak first fiscal quarter ended June 30, 2019, compared to the prior fiscal year on lower foreign currency remeasurement gains. However, selling, general, and administrative costs for the segment were down compared with the prior year's first fiscal quarter mainly due to favorable foreign currency comparisons. Revenues for this segment in the quarter ended June 30, 2019, increased by $11.0 million to $67.2 million on the higher dark tobacco sales.

OTHER ITEMS:
Cost of goods sold in the quarter ended June 30, 2019, of $238.3 million was down by about 23% compared with the same period last year, consistent with the similar percentage decrease in revenues for the current period. Selling, general, and administrative costs for the first quarter of fiscal year 2020 decreased by $12.7 million to $51.1 million, mainly driven by positive net foreign currency remeasurement and exchange variances of about $6 million, primarily in Brazil, the Philippines, Europe, and Indonesia, lower customer claim costs, and reduced legal and professional expenses, compared with the same period in the prior year.

For the three months ended June 30, 2019, the Company’s income tax expense included a $2.8 million net tax accrual ($0.11 per diluted share) for an unresolved tax matter at a foreign subsidiary. Without the accrual for the unresolved tax matter, income taxes for the quarter ended June 30, 2019, would have been approximately $1.5 million, or a consolidated effective tax rate of approximately 29%. 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 ($0.27 per diluted share) from reversing a portion of a liability previously recorded for dividend withholding taxes on the cumulative retained earnings of a foreign subsidiary.  Without the dividend withholding tax reversal, income taxes for the quarter ended June 30, 2018, would have been expense of approximately $1.5 million, or a consolidated effective tax rate of approximately 27%.



-- 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 release 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 financial condition, results of operation, and future business plans, operations, opportunities, and prospects for its performance are forward-looking statements based upon management’s current knowledge and assumptions about future events, and involve risks and uncertainties that could cause actual results, performance, or achievements to be materially different from any anticipated results, prospects, performance, or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, product purchased not meeting quality and quantity requirements; reliance on a few large customers; its ability to maintain effective information technology systems and safeguard confidential information; 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; changes in exchange rates and interest rates; impacts of regulation and litigation on its customers; industry-specific risks related to its food ingredient business; exposure to certain regulatory and financial risks related to climate change; changes in estimates and assumptions underlying its critical accounting policies; the promulgation and adoption of new accounting standards, new government regulations and interpretation of existing standards and regulations; 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, 2019, 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 year ended March 31, 2019 and the Form 10-Q for the most recently ended fiscal quarter. The Company cautions investors not to place undue reliance on any forward-looking statements as these statements speak only as of the date when made, and it undertakes no obligation to update any forward-looking statements made.

At 5:00 p.m. (Eastern Time) on August 7, 2019, 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, 2019. A taped replay of the call will be available through August 21, 2019, by dialing (855) 859-2056. The confirmation number to access the replay is 8587006.

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, 2019, were $2.2 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,
 
 
2019
 
2018
 
 
(Unaudited)
Sales and other operating revenues
 
$
296,915

 
$
379,719

Costs and expenses
 
 
 
 
Cost of goods sold
 
238,265

 
307,498

Selling, general and administrative expenses
 
51,136

 
63,852

Operating income
 
7,514

 
8,369

Equity in pretax earnings of unconsolidated affiliates
 
40

 
539

Other non-operating income (expense)
 
627

 
190

Interest income
 
1,008

 
512

Interest expense
 
4,028

 
3,949

Income before income taxes and other items
 
5,161

 
5,661

Income taxes
 
4,266

 
(5,399
)
Net income
 
895

 
11,060

Less: net (income) loss attributable to noncontrolling interests in subsidiaries
 
1,177

 
2,119

Net income attributable to Universal Corporation
 
2,072

 
13,179

 
 
 
 
 
Earnings per share:
 
 
 
 
Basic
 
$
0.08

 
$
0.53

Diluted
 
$
0.08

 
$
0.52


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,
 
 
2019
  
2018
 
2019
 
 
(Unaudited)
 
(Unaudited)
 
 
ASSETS
 
 
 
 
 
 
Current assets
 
 
  
 
 
 
Cash and cash equivalents
 
$
167,996

  
$
66,008

 
$
297,556

Accounts receivable, net
 
217,905

  
247,812

 
368,110

Advances to suppliers, net
 
80,032

  
70,731

 
106,850

Accounts receivable—unconsolidated affiliates
 
63,388

  
101,483

 
30,951

Inventories—at lower of cost or net realizable value:
 
 
  
 
 
 
Tobacco
 
898,409

  
947,520

 
629,606

Other
 
77,654

  
73,358

 
69,611

Prepaid income taxes
 
20,985

  
20,242

 
14,264

Other current assets
 
75,689

  
71,511

 
71,197

Total current assets
 
1,602,058

  
1,598,665

 
1,588,145

 
 
 
 
 
 
 
Property, plant and equipment
 
 
  
 
 
 
Land
 
22,785

  
23,041

 
22,952

Buildings
 
262,688

  
268,789

 
261,976

Machinery and equipment
 
611,209

  
636,425

 
608,191

 
 
896,682

  
928,255

 
893,119

Less accumulated depreciation
 
(597,257
)
  
(604,765
)

(590,625
)
 
 
299,425

  
323,490

 
302,494

Other assets
 
 
  
 
 
 
Operating lease right-of-use assets
 
34,472

 

 

Goodwill and other intangibles
 
98,029

  
98,892

 
97,994

Investments in unconsolidated affiliates
 
80,985

  
83,327

 
80,482

Deferred income taxes
 
15,582

  
19,162

 
13,357

Other noncurrent assets
 
47,333

  
45,632

 
50,712

 
 
276,401

  
247,013

 
242,545

 
 
 
 
 
 
 
Total assets
 
$
2,177,884

  
$
2,169,168

 
$
2,133,184


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,
 
 
2019
  
2018
 
2019
 
 
(Unaudited)
  
(Unaudited)
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
Current liabilities
 
 
  
 
 
 
Notes payable and overdrafts
 
$
73,640

 
$
73,291

 
$
54,023

Accounts payable and accrued expenses
 
179,297

 
199,214

 
145,506

Accounts payable—unconsolidated affiliates
 
10

 

 
106

Customer advances and deposits
 
4,397

 
3,414

 
21,675

Accrued compensation
 
23,084

 
20,969

 
31,372

Income taxes payable
 
1,576

 
6,813

 
1,066

Current portion of operating lease liabilities
 
8,938

 

 

Current portion of long-term debt
 

 

 

Total current liabilities
 
290,942

  
303,701

 
253,748

 
 
 
 
 
 
 
Long-term debt
 
368,568

 
369,174

 
368,503

Pensions and other postretirement benefits
 
59,364

 
60,360

 
59,257

Long-term operating lease liabilities
 
23,098

 

 

Other long-term liabilities
 
52,387

 
45,628

 
43,214

Deferred income taxes
 
31,447

 
28,033

 
28,584

Total liabilities
 
825,806

 
806,896

 
753,306

 
 
 
 
 
 
 
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 24,971,489 shares issued and outstanding (24,957,418 at June 30, 2018 and 24,989,946 at March 31, 2019)
 
325,515

 
322,889

 
326,600

Retained earnings
 
1,084,987

  
1,072,230

 
1,106,178

Accumulated other comprehensive loss
 
(100,161
)
  
(73,442
)
 
(95,691
)
Total Universal Corporation shareholders' equity
 
1,310,341

  
1,321,677

 
1,337,087

Noncontrolling interests in subsidiaries
 
41,737

 
40,595

 
42,791

Total shareholders' equity
 
1,352,078

 
1,362,272

 
1,379,878

 
 
 
 
 
 
 
Total liabilities and shareholders' equity
 
$
2,177,884

  
$
2,169,168

 
$
2,133,184


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,
 
 
2019
 
2018
 
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
Net income
 
$
895

 
$
11,060

Adjustments to reconcile net income to net cash used by operating activities:
 
 
 
 
Depreciation
 
9,067

 
8,645

Net provision for losses (recoveries) on advances and guaranteed loans to suppliers
 
(165
)
 
(797
)
Foreign currency remeasurement (gain) loss, net
 
(1,497
)
 
(943
)
Other, net
 
3,780

 
(6,928
)
Changes in operating assets and liabilities, net
 
(128,819
)
 
(179,366
)
Net cash used by operating activities
 
(116,739
)
 
(168,329
)
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
Purchase of property, plant and equipment
 
(5,679
)
 
(11,018
)
Proceeds from sale of property, plant and equipment
 
226

 
589

Net cash used by investing activities
 
(5,453
)
 
(10,429
)
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
Issuance (repayment) of short-term debt, net
 
19,257

 
28,978

Repurchase of common stock
 
(5,214
)
 
(1,443
)
Dividends paid on common stock
 
(18,742
)
 
(13,712
)
Other
 
(2,883
)
 
(2,656
)
Net cash provided (used) by financing activities
 
(7,582
)
 
11,167

 
 
 
 
 
Effect of exchange rate changes on cash
 
214

 
(529
)
Net decrease in cash and cash equivalents
 
(129,560
)
 
(168,120
)
Cash and cash equivalents at beginning of year
 
297,556

 
234,128

 
 
 
 
 
Cash and cash equivalents at end of period
 
$
167,996

 
$
66,008

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, 2019.

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)
 
2019
 
2018
 
 
 
 
 
Basic Earnings Per Share
 
 
 
 
Numerator for basic earnings per share
 
 
 
 
Net income attributable to Universal Corporation
 
$
2,072

 
$
13,179

 
 
 
 
 
Denominator for basic earnings per share
 
 
 
 
Weighted average shares outstanding
 
25,158,369

 
25,064,420

 
 
 
 
 
Basic earnings per share
 
$
0.08

 
$
0.53

 
 
 
 
 
Diluted Earnings Per Share
 
 
 
 
Numerator for diluted earnings per share
 
 
 
 
Net income attributable to Universal Corporation
 
2,072

 
13,179

 
 
 
 
 
Denominator for diluted earnings per share:
 
 
 
 
Weighted average shares outstanding
 
25,158,369

 
25,064,420

Effect of dilutive securities
 
 
 
 
Employee share-based awards
 
125,889

 
220,280

Denominator for diluted earnings per share
 
25,284,258

 
25,284,700

 
 
 
 
 
Diluted earnings per share
 
$
0.08

 
$
0.52



-- M O R E --



Universal Corporation
Page 10

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 and comprehensive income were as follows:

 
 
Three Months Ended June 30,
(in thousands of dollars)
 
2019
 
2018
 
 
 
 
 
SALES AND OTHER OPERATING REVENUES
 
 
 
 
Flue-Cured and Burley Leaf Tobacco Operations:
 
 
 
 
   North America
 
$
27,659

   
$
115,556

   Other Regions (1)
 
202,065

   
207,932

      Subtotal
 
229,724

 
323,488

Other Tobacco Operations (2)
 
67,191

   
56,231

Consolidated sales and other operating revenue
 
$
296,915

 
$
379,719

 
 
 
 
 
OPERATING INCOME
 
 
 
 
Flue-Cured and Burley Leaf Tobacco Operations:
 
 
 
 
   North America
 
$
890

   
$
8,952

   Other Regions (1)
 
(3,815
)
   
(2,017
)
      Subtotal
 
(2,925
)
 
6,935

Other Tobacco Operations (2)
 
10,479

   
1,973

Segment operating income
 
7,554

 
8,908

Deduct: Equity in pretax earnings of unconsolidated affiliates (3)
 
(40
)
 
(539
)
Consolidated operating income
 
$
7,514

 
$
8,369


(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 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.



###


Exhibit


Exhibit 99.2
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13048129&doc=9
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 Announces Quarterly Dividend
Richmond, VA August 7, 2019 / 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-six cents ($0.76) per share on the common shares of the Company, payable November 4, 2019, to common shareholders of record at the close of business on October 7, 2019.

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, 2019, were $2.2 billion. For more information on Universal Corporation, visit its website at www.universalcorp.com.

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