Universal Corporation Reports Nine Month Results
Net income for the nine months ended on
Segment operating income was
"Given our significant and strategic investments in our plant-based ingredients platform, we evaluated our operating segments for financial reporting purposes during the quarter ended
"We are pleased with the ongoing integration of our plant-based ingredients platform, and with these acquisitions, we continue to expect the new platform will generate between 10% and 20% of our EBITDA in our fiscal year 2022, ahead of our capital allocation strategy objectives. We are excited about our plant-based ingredients platform and its potential for future success. We also remain committed to our role as the leading global leaf tobacco supplier. Supported by our compliance and sustainability programs, we continue to see opportunities to increase market share and enhance our leaf tobacco businesses. Operating and growing our businesses during the pandemic has not been easy, and our thoughts go out to all who have been impacted by COVID-19. We are deeply grateful for the confidence our customers have shown in us as well as their commitment to our business relationships during the pandemic. We would like to thank all of our employees, both new and old, for their hard work and our customers, growers, and other partners for their continued support, all of which has enabled us to continue to operate successfully during these unprecedented times."
TOBACCO OPERATIONS
Operating income for the Tobacco Operations segment increased by
In the nine months ended
INGREDIENTS OPERATIONS
As part of our capital allocation strategy to build and enhance our plant-based ingredients platform, we acquired two companies,
COVID-19 PANDEMIC IMPACT
On
We continue to work with our suppliers to mitigate the impacts to our supply chain due to the ongoing pandemic. To date, we have not experienced a material impact to our supply chain, although the ongoing COVID-19 pandemic has resulted in delays in certain operations. In addition, our plant-based ingredients platform has seen some shifts in product mix due to the ongoing COVID-19 pandemic related to changes in customer demand. Since
We continue to monitor the impacts of the ongoing COVID-19 pandemic, which include slower processing of our products due to controlled staffing in our facilities that could lead to further delays of shipments to our customers. We believe we currently have sufficient liquidity to meet our current obligations and our business operations remain fundamentally unchanged other than shipping delays, which could continue to impact quarterly comparisons. This is, however, a rapidly evolving situation, and we cannot predict the extent, resurgence, or duration of the ongoing COVID-19 pandemic, the effects of it on the global, national or local economy, including the impacts on our ability to access capital, or its effects on our business, financial position, results of operations, and cash flows. We continue to monitor developments affecting our employees, customers and operations. We will take additional steps to address the spread of COVID-19 and its impacts, as necessary, and remain thankful for the hard work of our employees and the continued support of our customers, growers, and other partners during these challenging times.
OTHER ITEMS
Cost of goods sold in the nine months and quarter ended
For the nine months and quarter ended
Our consolidated effective tax rates for the nine months and quarter ended
The following tables set forth certain non-recurring items included in reported results to reconcile adjusted operating income to consolidated operating income and adjusted net income to net income attributable to
Adjusted Operating Income Reconciliation |
|||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||
(in thousands) |
2020 |
2019 |
2020 |
2019 |
|||||||||||||||||||
As Reported: Consolidated operating income |
$ |
60,186 |
$ |
44,115 |
$ |
85,065 |
$ |
94,828 |
|||||||||||||||
Silva acquisition purchase accounting adjustment (1) |
2,800 |
— |
2,800 |
— |
|||||||||||||||||||
Transaction costs for acquisitions(2) |
2,252 |
939 |
3,915 |
1,864 |
|||||||||||||||||||
Restructuring and impairment costs(3) |
19,979 |
— |
19,979 |
— |
|||||||||||||||||||
Fair value adjustment to contingent consideration for |
— |
— |
(4,173) |
— |
|||||||||||||||||||
Adjusted operating income |
$ |
85,217 |
$ |
45,054 |
$ |
107,586 |
$ |
96,692 |
|||||||||||||||
Adjusted Net Income and Diluted Earnings Per Share |
|||||||||||||||||||||||
(in thousands and reported net of income taxes) |
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||||||||||
As Reported: Net income available to |
$ |
33,273 |
$ |
25,966 |
$ |
48,049 |
$ |
56,115 |
|||||||||||||||
Silva acquisition purchase accounting adjustment (1) |
2,800 |
— |
2,800 |
— |
|||||||||||||||||||
Transaction costs for acquisitions(2) |
2,252 |
939 |
3,915 |
1,864 |
|||||||||||||||||||
Restructuring and impairment costs(3) |
16,100 |
— |
16,100 |
— |
|||||||||||||||||||
Fair value adjustment to contingent consideration for |
— |
— |
(4,173) |
— |
|||||||||||||||||||
Interest expense related to an uncertain tax matter at a foreign subsidiary |
— |
— |
1,849 |
— |
|||||||||||||||||||
Income tax benefit from dividend withholding tax liability reversal(5) |
— |
— |
(4,421) |
— |
|||||||||||||||||||
Income tax settlement for a foreign subsidiary(6) |
— |
— |
— |
2,766 |
|||||||||||||||||||
Adjusted net income available to |
$ |
54,425 |
$ |
26,905 |
$ |
64,119 |
$ |
60,745 |
|||||||||||||||
As reported: Diluted earnings per share |
$ |
1.34 |
$ |
1.04 |
$ |
1.94 |
$ |
2.23 |
|||||||||||||||
As adjusted: Diluted earnings per share |
$ |
2.19 |
$ |
1.08 |
$ |
2.59 |
$ |
2.41 |
(1) |
The Company recognized an increase in cost of goods sold in the third quarter of fiscal year 2021, relating to the expensing of a fair value adjustment to inventory associated with the initial acquisition accounting for Silva. This cost is not deductible for |
(2) |
The Company incurred selling, general, and administrative expenses for due diligence and other transaction costs associated with the acquisitions of Silva (effective |
(3) |
Restructuring and impairment costs are included in consolidated operating income in the consolidated statements of income, but excluded for purposes of Adjusted operating income, Adjusted net income available to |
(4) |
The Company reversed a portion of the contingent consideration liability for the |
(5) |
The Company recognized an income tax benefit for final |
(6) |
During the first quarter of fiscal year 2020, the Company recognized an income tax settlement charge related to operations at a foreign subsidiary. |
Additional information
Amounts described as net income (loss) and earnings (loss) per diluted share in the previous discussion are attributable to
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, impacts of the ongoing COVID-19 pandemic; integration of
At
|
||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||||||||||||
(in thousands of dollars, except per share data) |
||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||||||||||||
Sales and other operating revenues |
$ |
672,931 |
$ |
505,049 |
$ |
1,365,767 |
$ |
1,277,885 |
||||||||||||||||||
Costs and expenses |
||||||||||||||||||||||||||
Cost of goods sold |
533,431 |
412,076 |
1,103,744 |
1,030,233 |
||||||||||||||||||||||
Selling, general and administrative expenses |
59,335 |
48,858 |
161,152 |
152,824 |
||||||||||||||||||||||
Other income |
— |
— |
(4,173) |
— |
||||||||||||||||||||||
Restructuring and impairment costs |
19,979 |
— |
19,979 |
— |
||||||||||||||||||||||
Operating income |
60,186 |
44,115 |
85,065 |
94,828 |
||||||||||||||||||||||
Equity in pretax earnings (loss) of unconsolidated affiliates |
1,506 |
(69) |
2,089 |
2,281 |
||||||||||||||||||||||
Other non-operating income (expense) |
30 |
633 |
(8) |
1,893 |
||||||||||||||||||||||
Interest income |
2 |
164 |
262 |
1,412 |
||||||||||||||||||||||
Interest expense |
6,735 |
5,197 |
19,140 |
14,361 |
||||||||||||||||||||||
Income before income taxes and other items |
54,989 |
39,646 |
68,268 |
86,053 |
||||||||||||||||||||||
Income taxes |
14,548 |
10,328 |
12,678 |
26,093 |
||||||||||||||||||||||
Net income |
40,441 |
29,318 |
55,590 |
59,960 |
||||||||||||||||||||||
Less: net loss (income) attributable to noncontrolling interests in subsidiaries |
(7,168) |
(3,352) |
(7,541) |
(3,845) |
||||||||||||||||||||||
Net income attributable to |
$ |
33,273 |
$ |
25,966 |
$ |
48,049 |
$ |
56,115 |
||||||||||||||||||
Earnings per share: |
||||||||||||||||||||||||||
Basic |
$ |
1.35 |
$ |
1.04 |
$ |
1.95 |
$ |
2.24 |
||||||||||||||||||
Diluted |
$ |
1.34 |
$ |
1.04 |
$ |
1.94 |
$ |
2.23 |
See accompanying notes. |
|
||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||||||||||||||
(in thousands of dollars) |
||||||||||||||||||||
|
|
|
||||||||||||||||||
2020 |
2019 |
2020 |
||||||||||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||||||
ASSETS |
||||||||||||||||||||
Current assets |
||||||||||||||||||||
Cash and cash equivalents |
$ |
95,405 |
$ |
64,734 |
$ |
107,430 |
||||||||||||||
Accounts receivable, net |
354,676 |
271,981 |
340,711 |
|||||||||||||||||
Advances to suppliers, net |
102,795 |
120,079 |
133,778 |
|||||||||||||||||
Accounts receivable—unconsolidated affiliates |
6,197 |
24,748 |
11,483 |
|||||||||||||||||
Inventories—at lower of cost or net realizable value: |
||||||||||||||||||||
Tobacco |
814,287 |
937,661 |
707,298 |
|||||||||||||||||
Other |
144,333 |
84,621 |
99,275 |
|||||||||||||||||
Prepaid income taxes |
18,174 |
13,619 |
12,144 |
|||||||||||||||||
Other current assets |
68,928 |
61,450 |
67,498 |
|||||||||||||||||
Total current assets |
1,604,795 |
1,578,893 |
1,479,617 |
|||||||||||||||||
Property, plant and equipment |
||||||||||||||||||||
Land |
22,499 |
22,510 |
21,376 |
|||||||||||||||||
Buildings |
268,377 |
255,202 |
256,488 |
|||||||||||||||||
Machinery and equipment |
662,854 |
609,976 |
634,395 |
|||||||||||||||||
953,730 |
887,688 |
912,259 |
||||||||||||||||||
Less accumulated depreciation |
(621,928) |
(592,457) |
(597,106) |
|||||||||||||||||
331,802 |
295,231 |
315,153 |
||||||||||||||||||
Other assets |
||||||||||||||||||||
Operating lease right-of-use assets |
34,717 |
34,230 |
39,256 |
|||||||||||||||||
|
255,365 |
98,042 |
144,687 |
|||||||||||||||||
Investments in unconsolidated affiliates |
85,610 |
77,783 |
77,543 |
|||||||||||||||||
Deferred income taxes |
22,281 |
16,354 |
20,954 |
|||||||||||||||||
Other noncurrent assets |
54,071 |
50,186 |
43,711 |
|||||||||||||||||
452,044 |
276,595 |
326,151 |
||||||||||||||||||
Total assets |
$ |
2,388,641 |
$ |
2,150,719 |
$ |
2,120,921 |
See accompanying notes. |
|
||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||||||||||||||
(in thousands of dollars) |
||||||||||||||||||||
|
|
|
||||||||||||||||||
2020 |
2019 |
2020 |
||||||||||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||||||||||
Current liabilities |
||||||||||||||||||||
Notes payable and overdrafts |
$ |
129,603 |
$ |
92,592 |
$ |
78,033 |
||||||||||||||
Accounts payable and accrued expenses |
156,421 |
130,165 |
140,202 |
|||||||||||||||||
Accounts payable—unconsolidated affiliates |
7,416 |
7,494 |
55 |
|||||||||||||||||
Customer advances and deposits |
14,498 |
8,230 |
10,242 |
|||||||||||||||||
Accrued compensation |
22,744 |
21,761 |
23,710 |
|||||||||||||||||
Income taxes payable |
6,650 |
1,991 |
5,334 |
|||||||||||||||||
Current portion of operating lease liabilities |
9,014 |
8,394 |
9,823 |
|||||||||||||||||
Current portion of long-term debt |
— |
— |
— |
|||||||||||||||||
Total current liabilities |
346,346 |
270,627 |
267,399 |
|||||||||||||||||
Long-term debt |
518,047 |
368,698 |
368,764 |
|||||||||||||||||
Pensions and other postretirement benefits |
66,764 |
55,305 |
70,680 |
|||||||||||||||||
Long-term operating lease liabilities |
22,709 |
23,465 |
25,893 |
|||||||||||||||||
Other long-term liabilities |
71,346 |
51,185 |
69,427 |
|||||||||||||||||
Deferred income taxes |
46,414 |
28,228 |
29,474 |
|||||||||||||||||
Total liabilities |
1,071,626 |
797,508 |
831,637 |
|||||||||||||||||
Shareholders' equity |
||||||||||||||||||||
|
||||||||||||||||||||
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 24,514,867 shares issued and outstanding at |
325,350 |
324,388 |
321,502 |
|||||||||||||||||
Retained earnings |
1,067,437 |
1,089,718 |
1,076,760 |
|||||||||||||||||
Accumulated other comprehensive loss |
(122,262) |
(104,310) |
(151,597) |
|||||||||||||||||
|
1,270,525 |
1,309,796 |
1,246,665 |
|||||||||||||||||
Noncontrolling interests in subsidiaries |
46,490 |
43,415 |
42,619 |
|||||||||||||||||
Total shareholders' equity |
1,317,015 |
1,353,211 |
1,289,284 |
|||||||||||||||||
Total liabilities and shareholders' equity |
$ |
2,388,641 |
$ |
2,150,719 |
$ |
2,120,921 |
See accompanying notes. |
|
||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||
(in thousands of dollars) |
||||||||||||||
Nine Months Ended |
||||||||||||||
2020 |
2019 |
|||||||||||||
(Unaudited) |
||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||||
Net income |
$ |
55,590 |
$ |
59,960 |
||||||||||
Adjustments to reconcile net income to net cash used by operating activities: |
||||||||||||||
Depreciation and amortization |
32,626 |
27,500 |
||||||||||||
Net provision for losses (recoveries) on advances and guaranteed loans to suppliers |
2,753 |
93 |
||||||||||||
Foreign currency remeasurement (gain) loss, net |
(8,823) |
(2,179) |
||||||||||||
Foreign currency exchange contracts |
(7,723) |
(698) |
||||||||||||
Restructuring and impairment costs |
19,979 |
— |
||||||||||||
Restructuring payments |
(5,179) |
(444) |
||||||||||||
Change in estimated fair value of contingent consideration for |
(4,173) |
— |
||||||||||||
Other, net |
5,260 |
3,412 |
||||||||||||
Changes in operating assets and liabilities, net |
(51,687) |
(260,542) |
||||||||||||
Net cash provided (used) by operating activities |
38,623 |
(172,898) |
||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||||||
Purchase of property, plant and equipment |
(33,794) |
(21,692) |
||||||||||||
Purchase of business, net of cash held by the business |
(161,095) |
— |
||||||||||||
Proceeds from sale of property, plant and equipment |
4,086 |
2,946 |
||||||||||||
Other |
(800) |
496 |
||||||||||||
Net cash used by investing activities |
(191,603) |
(18,250) |
||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||||||
Issuance of short-term debt, net |
57,207 |
41,201 |
||||||||||||
Issuance of long-term debt |
150,000 |
— |
||||||||||||
Dividends paid to noncontrolling interests |
(3,695) |
(3,359) |
||||||||||||
Repurchase of common stock |
— |
(20,125) |
||||||||||||
Dividends paid on common stock |
(56,301) |
(56,601) |
||||||||||||
Other |
(1,949) |
(2,883) |
||||||||||||
Net cash provided (used) by financing activities |
145,262 |
(41,767) |
||||||||||||
Effect of exchange rate changes on cash |
1,693 |
93 |
||||||||||||
Net decrease in cash, restricted cash and cash equivalents |
(6,025) |
(232,822) |
||||||||||||
Cash, restricted cash and cash equivalents at beginning of year |
107,430 |
297,556 |
||||||||||||
Cash, restricted cash and cash equivalents at end of period |
$ |
101,405 |
$ |
64,734 |
||||||||||
Supplemental Information: |
||||||||||||||
Cash and cash equivalents |
$ |
95,405 |
$ |
64,734 |
||||||||||
Restricted cash (Other noncurrent assets) |
6,000 |
— |
||||||||||||
Total cash, restricted cash and cash equivalents |
$ |
101,405 |
$ |
64,734 |
See accompanying notes. |
NOTE 1. BASIS OF PRESENTATION
NOTE 2. EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per share:
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||
(in thousands, except share and per share data) (Unaudited) |
2020 |
2019 |
2020 |
2019 |
||||||||||||||||||||||
Basic Earnings Per Share |
||||||||||||||||||||||||||
Numerator for basic earnings per share |
||||||||||||||||||||||||||
Net income attributable to |
$ |
33,273 |
$ |
25,966 |
$ |
48,049 |
$ |
56,115 |
||||||||||||||||||
Denominator for basic earnings per share |
||||||||||||||||||||||||||
Weighted average shares outstanding |
24,677,122 |
24,931,711 |
24,646,342 |
25,058,525 |
||||||||||||||||||||||
Basic earnings per share |
$ |
1.35 |
$ |
1.04 |
$ |
1.95 |
$ |
2.24 |
||||||||||||||||||
Diluted Earnings Per Share |
||||||||||||||||||||||||||
Numerator for diluted earnings per share |
||||||||||||||||||||||||||
Net income attributable to |
$ |
33,273 |
$ |
25,966 |
$ |
48,049 |
$ |
56,115 |
||||||||||||||||||
Denominator for diluted earnings per share: |
||||||||||||||||||||||||||
Weighted average shares outstanding |
24,677,122 |
24,931,711 |
24,646,342 |
25,058,525 |
||||||||||||||||||||||
Effect of dilutive securities |
||||||||||||||||||||||||||
Employee and outside director share-based awards |
141,796 |
123,343 |
118,097 |
119,992 |
||||||||||||||||||||||
Denominator for diluted earnings per share |
24,818,918 |
25,055,054 |
24,764,439 |
25,178,517 |
||||||||||||||||||||||
Diluted earnings per share |
$ |
1.34 |
$ |
1.04 |
$ |
1.94 |
$ |
2.23 |
NOTE 3. SEGMENT INFORMATION
As a result of recent acquisitions of plant-based ingredients companies in fiscal year 2020 and 2021, during the three months ended
The Tobacco Operations segment activities involve selecting, procuring, processing, packing, storing, shipping, and financing leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products throughout the world. Through various operating subsidiaries located in tobacco-growing countries around the world and significant ownership interests in unconsolidated affiliates, the Company processes and/or sells flue-cured and burley tobaccos, dark air-cured tobaccos, and oriental tobaccos. Flue-cured, burley, and oriental tobaccos are used principally in the manufacture of cigarettes, and dark air-cured tobaccos are used mainly in the manufacture of cigars, pipe tobacco, and smokeless tobacco products. Some of these tobacco types are also increasingly used in the manufacture of non-combustible tobacco products that are intended to provide consumers with an alternative to traditional combustible products. The Tobacco Operations segment also provides physical and chemical product testing and smoke testing for tobacco customers. A substantial portion of the Company's Tobacco Operations' revenues are derived from sales to a limited number of large, multinational cigarette and cigar manufacturers.
The Ingredients Operations segment provides its customers with a broad variety of plant-based ingredients for both human and pet consumption. The Ingredients Operations segment utilizes a variety of value-added manufacturing processes converting raw materials into a wide spectrum of fruit and vegetable juices, concentrates, and dehydrated products. Customers for the Ingredients Operations segment include large multinational food and beverage companies, as well as smaller independent entities.
Universal incurs overhead expenses related to senior management, sales, finance, legal, and other functions that are centralized at its corporate headquarters, as well as functions performed at several sales and administrative offices around the world. These overhead expenses are currently allocated to the reportable operating segments, generally on the basis of volumes planned to be purchased and/or processed. Management believes this method of allocation is currently representative of the value of the related services provided to the operating segments. The Company currently evaluates the performance of its segments based on operating income after allocated overhead expenses, 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, including a recast of the new reportable operating segments presentation for all periods presented below:
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||
(in thousands of dollars) (Unaudited) |
2020 |
2019 |
2020 |
2019 |
||||||||||||||||||||||
SALES AND OTHER OPERATING REVENUES |
||||||||||||||||||||||||||
Tobacco Operations |
$ |
623,851 |
$ |
503,839 |
$ |
1,278,844 |
$ |
1,274,853 |
||||||||||||||||||
Ingredients Operations |
49,080 |
1,210 |
86,923 |
3,032 |
||||||||||||||||||||||
Consolidated sales and other operating revenue |
$ |
672,931 |
$ |
505,049 |
$ |
1,365,767 |
$ |
1,277,885 |
||||||||||||||||||
OPERATING INCOME |
||||||||||||||||||||||||||
Tobacco Operations |
$ |
84,122 |
$ |
45,478 |
$ |
107,658 |
$ |
101,582 |
||||||||||||||||||
Ingredients Operations |
(2,451) |
(1,432) |
(4,698) |
(4,473) |
||||||||||||||||||||||
Segment operating income |
81,671 |
44,046 |
102,960 |
97,109 |
||||||||||||||||||||||
Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates (1) |
(1,506) |
69 |
(2,089) |
(2,281) |
||||||||||||||||||||||
Restructuring and impairment costs (2) |
(19,979) |
— |
(19,979) |
— |
||||||||||||||||||||||
Add: Other income (loss)(3) |
— |
— |
4,173 |
— |
||||||||||||||||||||||
Consolidated operating income |
$ |
60,186 |
$ |
44,115 |
$ |
85,065 |
$ |
94,828 |
(1) |
Equity in pretax earnings (loss) of unconsolidated affiliates is included in segment operating income (Tobacco Operations), but is reported below consolidated operating income and excluded from that total in the consolidated statements of income and comprehensive income. |
(2) |
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. |
(3) |
Other income represents the reversal of a portion of the contingent consideration liability associated with the acquisition of |
NOTE 4. RESTRUCTURING AND IMPAIRMENT COSTS
Universal continually reviews its business for opportunities to realize efficiencies, reduce costs, and realign its operations in response to business changes. Restructuring and impairment costs are periodically incurred in connection with those activities.
Ingredients Operations
During the three months ended
Tobacco Operations
During the three and nine months ended
A summary of the restructuring and impairment costs recorded in the quarter ended
(in thousands) (Unaudited) |
Three Months Ended |
|||||||
Restructuring costs: |
||||||||
Employee termination benefits |
$ |
2,625 |
||||||
Other |
1,766 |
|||||||
Total restructuring costs |
4,391 |
|||||||
Impairment costs: |
||||||||
Property, plant and equipment |
13,886 |
|||||||
Inventory |
1,702 |
|||||||
Total impairment costs |
15,588 |
|||||||
Total restructuring and impairment costs |
$ |
19,979 |
For the three and nine months ended
A reconciliation of the liability for termination benefits through
(in thousands) |
Nine Months Ended |
|||||||
Balance at |
$ |
3,404 |
||||||
Costs charged to expense |
2,625 |
|||||||
Payments |
(5,179) |
|||||||
Balance at |
$ |
850 |
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SOURCE
Candace C. Formacek, Phone: (804) 359-9311, Fax: (804) 254-3584, Email: investor@universalleaf.com