RICHMOND, Va., Aug. 4, 2016 /PRNewswire/ -- George C. Freeman, III, Chairman, President, and
Chief Executive Officer of Universal Corporation (NYSE: UVV),
reported a net loss of $5.5 million,
or $0.40 per diluted share, for the
first quarter of fiscal year 2017, which ended on June 30, 2016. Those results were relatively flat
compared with a net loss of $5.9
million, or a $0.43 per
diluted share, for the first quarter of fiscal year 2016. Results
for the first fiscal quarter of 2016 included restructuring costs
of $2.4 million ($1.6 million after-tax or $0.07 per diluted share). Operating loss of
$8.0 million for the quarter ended
June 30, 2016, was down $2.7 million compared to the quarter ended
June 30, 2015. Segment operating
loss, which excludes restructuring costs, was $8.1 million for the first fiscal quarter of
2017, down $4.6 million compared to
the same period last year, mainly as a result of larger losses in
the Other Regions segment, partially offset by earnings
improvements in the North America
segment. Gross margin percentages were flat for the comparative
quarters with higher selling, general, and administrative costs,
primarily from larger currency remeasurement and exchange losses,
contributing to the earnings decline. Revenues of $295.5 million for the quarter ended June 30, 2016, increased by $20.1 million on modestly higher total volumes,
mostly driven by the change in leaf supply arrangements in the
North America region announced
last year.
Mr. Freeman stated, "Our seasonally weak first quarter results
were in line with our expectations, as we anticipate that fiscal
year 2017 will develop similarly to the past several fiscal years,
with volumes weighted to the second half of the fiscal year.
Results for our North America
segment improved on increased volumes, largely due to carryover
shipments from changes in the business model there. However, higher
currency remeasurement and exchange losses, primarily in our Other
Regions segment, negatively impacted our results. Lower crop levels
in Brazil from El Nino weather
patterns, coupled with our decision to reduce our buying program
there due to escalating and unsustainable green leaf prices,
reduced our Brazilian purchasing and processing volumes in the
first fiscal quarter. We expect decreased volumes from that origin
to continue to affect our results throughout the fiscal year. Our
global leaf production estimates indicate a return to historical
crop levels in Brazil's 2017
growing season, for which plantings are currently underway.
"With the lower 2016 crop levels, we believe that supply of
flue-cured and burley tobaccos is largely in line with demand on a
global basis. However, inventories held by our customers and the
leaf quality and pricing of crops yet to come to market may
influence near-term demand for leaf tobacco and the desirability of
certain types and styles. It is still early in the season, but
customer orders and indications to date remain consistent with our
expectations. We currently anticipate that our volumes sold in
fiscal year 2017 will be lower than those in the prior fiscal year
mainly due to reduced Brazilian volumes, and that shipment timing
will again be weighted to the second half of the fiscal year. We
are continuing to carefully monitor crop purchases this season, and
our uncommitted inventories remain within our normal range.
"We also recently announced that we have discontinued processing
in our factory in Hungary and will
concentrate the future processing of Hungarian tobaccos in our
facilities in Italy. The decision
was not taken lightly, and we are grateful to our hardworking
employees who have supported us in that operation for many years.
This change will yield economies of scale for our Europe region and is another example of our
continual drive to achieve supply chain efficiencies that deliver
value to the industry."
FLUE-CURED AND BURLEY LEAF TOBACCO OPERATIONS:
OTHER REGIONS:
The Other Regions segment reported an operating loss of
$17.0 million for the quarter ended
June 30, 2016, compared with the
prior year's first fiscal quarter loss of $7.8 million. The decline was primarily a result
of higher selling, general and administrative costs, mostly from
larger foreign currency remeasurement and exchange losses in
Africa and South America. Although sales volumes
increased in South America from
sales of prior crops, margins were pressured by higher factory unit
costs resulting from significantly lower total volumes handled in
Brazil. Sales volumes were down in
Africa, in its seasonally low
first fiscal quarter, on comparisons to larger carryover crop sales
in Tanzania last year. Results
were weaker in Asia on customer
shipment timing comparisons and a less favorable product mix, while
Europe saw improved volumes in its
sheet tobacco operations. Revenues for the Other Regions segment of
$178.0 million were relatively flat
compared to the same period last year, as higher volumes in most
regions were offset by reduced volumes in Africa, as well as lower processing revenues
in Brazil.
NORTH AMERICA:
Operating income of $6.8 million
for the North America segment in
the quarter ended June 30, 2016, was
up $3.4 million compared to last
year's first fiscal quarter. Earnings were buoyed by stronger sales
volumes, due in part to carryover crop sales from the previously
announced changes in leaf supply arrangements, as well as positive
comparisons from the earlier timing of earnings recognition as a
result of acquiring full ownership of our processing facility in
Guatemala in the third fiscal
quarter of 2016. Selling, general, and administrative costs for the
North America segment were higher,
moderating those benefits. Revenues for this segment similarly
increased by $24.1 million to
$72.7 million on the higher volumes,
partly reduced by lower green leaf prices.
OTHER TOBACCO OPERATIONS:
The Other Tobacco Operations segment operating income for the
first quarter of fiscal year 2017 of $2.0
million improved $1.1 million
compared with the same period last year. Results for the dark
tobacco operations improved for the quarter, on completion of
previously delayed shipments in Indonesia and an absence of inventory
writedowns in Nicaragua this year
compared with the prior year. The oriental joint venture reported
better results for the quarter mainly from favorable comparisons to
the prior year's currency remeasurement losses. Operating results
for the Special Services group were flat compared with the prior
year's first fiscal quarter. Revenues for this segment in the
quarter ended June 30, 2016,
decreased by about 9% to $44.8
million mostly due to the volume declines in the dark
tobacco business, and lower overall lamina and wrapper prices.
Selling, general, and administrative costs for the segment were
flat compared with the prior year quarter.
OTHER ITEMS:
Cost of goods sold was up by about 7% to $243.3 million in the quarter ended June 30, 2016, compared with the same period last
year, in line with the similar percentage increase in revenues for
the period. Selling, general, and administrative costs for the
first fiscal quarter increased by $8.9
million to $60.2 million on
higher foreign currency remeasurement and exchange losses in the
current fiscal period compared with the prior year, largely in the
Africa and South America regions, and unfavorable
comparisons to reversals of provisions for suppliers and customers
made in last year's first fiscal quarter.
A recently-issued accounting change adopted in the first fiscal
quarter of 2017 affected our long-term debt balances, which are now
recorded on the balance sheet net of the remaining unamortized debt
issuance costs. Interest expense of $4.1
million for the first fiscal quarter of 2017 was up slightly
from $3.9 million in the same period
last year. The consolidated income tax rate was about 37% and 36%
for the first quarters of fiscal years 2017 and 2016, respectively,
which is comparable to the U.S. federal statutory rate of 35%.
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, 2016, 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, 2016.
At 5:00 p.m. (Eastern Time) on
August 4, 2016, 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 4, 2016. A taped
replay of the call will be available through August 17, 2016, by dialing (855) 859-2056. The
confirmation number to access the replay is 57523398.
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, 2016, 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
June 30,
|
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
Sales and other
operating revenues
|
|
$
|
295,475
|
|
|
$
|
275,419
|
|
Costs and
expenses
|
|
|
|
|
Cost of goods
sold
|
|
243,278
|
|
|
227,030
|
|
Selling, general and
administrative expenses
|
|
60,199
|
|
|
51,296
|
|
Restructuring and
impairment costs
|
|
—
|
|
|
2,389
|
|
Operating income
(loss)
|
|
(8,002)
|
|
|
(5,296)
|
|
Equity in pretax
earnings (loss) of unconsolidated affiliates
|
|
(130)
|
|
|
(616)
|
|
Interest
income
|
|
363
|
|
|
239
|
|
Interest
expense
|
|
4,054
|
|
|
3,884
|
|
Income (loss) before
income taxes
|
|
(11,823)
|
|
|
(9,557)
|
|
Income tax expense
(benefit)
|
|
(4,319)
|
|
|
(3,432)
|
|
Net income
(loss)
|
|
(7,504)
|
|
|
(6,125)
|
|
Less: net loss
attributable to noncontrolling interests in subsidiaries
|
|
2,028
|
|
|
178
|
|
Net income (loss)
attributable to Universal Corporation
|
|
(5,476)
|
|
|
(5,947)
|
|
Dividends on
Universal Corporation convertible perpetual preferred
stock
|
|
(3,687)
|
|
|
(3,687)
|
|
Earnings (loss)
available to Universal Corporation common shareholders
|
|
$
|
(9,163)
|
|
|
$
|
(9,634)
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to Universal Corporation common
shareholders:
|
|
|
|
|
Basic
|
|
$
|
(0.40)
|
|
|
$
|
(0.43)
|
|
Diluted
|
|
$
|
(0.40)
|
|
|
$
|
(0.43)
|
|
|
|
|
|
|
|
|
|
|
See accompanying
notes.
|
|
|
|
|
|
|
|
|
UNIVERSAL
CORPORATION
CONSOLIDATED
BALANCE SHEETS
(in thousands of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
316,087
|
|
|
$
|
130,439
|
|
|
$
|
319,447
|
|
Accounts receivable,
net
|
|
218,665
|
|
|
257,349
|
|
|
428,659
|
|
Advances to
suppliers, net
|
|
69,044
|
|
|
58,041
|
|
|
101,890
|
|
Accounts
receivable—unconsolidated affiliates
|
|
46,794
|
|
|
65,821
|
|
|
2,316
|
|
Inventories—at lower
of cost or market:
|
|
|
|
|
|
|
Tobacco
|
|
846,356
|
|
|
921,920
|
|
|
637,132
|
|
Other
|
|
66,080
|
|
|
69,851
|
|
|
60,888
|
|
Prepaid income
taxes
|
|
19,948
|
|
|
28,828
|
|
|
17,814
|
|
Other current
assets
|
|
50,772
|
|
|
72,898
|
|
|
70,400
|
|
Total current
assets
|
|
1,633,746
|
|
|
1,605,147
|
|
|
1,638,546
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
|
|
|
Land
|
|
22,927
|
|
|
16,853
|
|
|
22,987
|
|
Buildings
|
|
264,438
|
|
|
239,218
|
|
|
264,838
|
|
Machinery and
equipment
|
|
593,507
|
|
|
590,470
|
|
|
591,327
|
|
|
|
880,872
|
|
|
846,541
|
|
|
879,152
|
|
Less: accumulated
depreciation
|
|
(557,856)
|
|
|
(534,461)
|
|
|
(553,265)
|
|
|
|
323,016
|
|
|
312,080
|
|
|
325,887
|
|
Other
assets
|
|
|
|
|
|
|
Goodwill and other
intangibles
|
|
99,059
|
|
|
99,120
|
|
|
99,071
|
|
Investments in
unconsolidated affiliates
|
|
79,510
|
|
|
78,450
|
|
|
82,441
|
|
Deferred income
taxes
|
|
20,860
|
|
|
33,725
|
|
|
23,853
|
|
Other noncurrent
assets
|
|
57,693
|
|
|
72,336
|
|
|
61,379
|
|
|
|
257,122
|
|
|
283,631
|
|
|
266,744
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
2,213,884
|
|
|
$
|
2,200,858
|
|
|
$
|
2,231,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL
CORPORATION
CONSOLIDATED
BALANCE SHEETS
(in thousands of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Notes payable and
overdrafts
|
|
$
|
70,753
|
|
|
$
|
86,553
|
|
|
$
|
66,179
|
|
Accounts payable and
accrued expenses
|
|
165,651
|
|
|
171,963
|
|
|
120,527
|
|
Accounts
payable—unconsolidated affiliates
|
|
2,730
|
|
|
4,650
|
|
|
8,343
|
|
Customer advances and
deposits
|
|
8,406
|
|
|
4,328
|
|
|
16,438
|
|
Accrued
compensation
|
|
22,863
|
|
|
24,597
|
|
|
27,593
|
|
Income taxes
payable
|
|
4,057
|
|
|
4,033
|
|
|
7,190
|
|
Current portion of
long-term debt
|
|
—
|
|
|
—
|
|
|
—
|
|
Total current
liabilities
|
|
274,460
|
|
|
296,124
|
|
|
246,270
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
368,468
|
|
|
368,115
|
|
|
368,380
|
|
Pensions and other
postretirement benefits
|
|
88,782
|
|
|
95,985
|
|
|
92,177
|
|
Other long-term
liabilities
|
|
45,480
|
|
|
34,091
|
|
|
41,794
|
|
Deferred income
taxes
|
|
11,778
|
|
|
22,701
|
|
|
29,494
|
|
Total
liabilities
|
|
788,968
|
|
|
817,016
|
|
|
778,115
|
|
|
|
|
|
|
|
|
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, 218,490 shares issued and
outstanding
(218,490 at June 30, 2015 and March 31, 2016)
|
|
211,562
|
|
|
211,562
|
|
|
211,562
|
|
Common
stock, no par value, 100,000,000 shares authorized, 22,766,040
shares issued and outstanding (22,668,025 at June 30, 2015, and
22,717,735 at March 31, 2016)
|
|
209,044
|
|
|
206,018
|
|
|
208,946
|
|
Retained
earnings
|
|
1,044,674
|
|
|
998,560
|
|
|
1,066,064
|
|
Accumulated other
comprehensive loss
|
|
(76,959)
|
|
|
(66,403)
|
|
|
(72,350)
|
|
Total Universal
Corporation shareholders' equity
|
|
1,388,321
|
|
|
1,349,737
|
|
|
1,414,222
|
|
Noncontrolling
interests in subsidiaries
|
|
36,595
|
|
|
34,105
|
|
|
38,840
|
|
Total shareholders'
equity
|
|
1,424,916
|
|
|
1,383,842
|
|
|
1,453,062
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
2,213,884
|
|
|
$
|
2,200,858
|
|
|
$
|
2,231,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL
CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net loss
|
|
$
|
(7,504)
|
|
|
$
|
(6,125)
|
|
Adjustments to
reconcile net loss to net cash provided (used) by operating
activities:
|
|
|
|
|
Depreciation
|
|
8,642
|
|
|
9,145
|
|
Net provision for
losses (recoveries) on advances and guaranteed loans to
suppliers
|
|
(113)
|
|
|
(2,037)
|
|
Foreign currency
remeasurement loss (gain), net
|
|
9,642
|
|
|
2,806
|
|
Restructuring and
impairment costs
|
|
—
|
|
|
2,389
|
|
Other, net
|
|
8,079
|
|
|
8,680
|
|
Changes in operating
assets and liabilities, net
|
|
(2,690)
|
|
|
(127,756)
|
|
Net cash provided
(used )by operating activities
|
|
16,056
|
|
|
(112,898)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(7,303)
|
|
|
(14,900)
|
|
Proceeds from sale of
property, plant and equipment
|
|
252
|
|
|
613
|
|
Net cash used by
investing activities
|
|
(7,051)
|
|
|
(14,287)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Issuance (repayment)
of short-term debt, net
|
|
5,782
|
|
|
26,306
|
|
Dividends paid on
convertible perpetual preferred stock
|
|
(3,687)
|
|
|
(3,687)
|
|
Dividends paid on
common stock
|
|
(12,040)
|
|
|
(11,749)
|
|
Other
|
|
(2,250)
|
|
|
(2,037)
|
|
Net cash provided
(used) by financing activities
|
|
(12,195)
|
|
|
8,833
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(170)
|
|
|
8
|
|
Net decrease in cash
and cash equivalents
|
|
(3,360)
|
|
|
(118,344)
|
|
Cash and cash
equivalents at beginning of year
|
|
319,447
|
|
|
248,783
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
316,087
|
|
|
$
|
130,439
|
|
|
|
|
|
|
|
|
|
|
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, 2016.
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)
|
|
2016
|
|
2015
|
|
|
|
|
|
Basic Earnings
(Loss) Per Share
|
|
|
|
|
Numerator for
basic earnings (loss) per share
|
|
|
|
|
Net income (loss)
attributable to Universal Corporation
|
|
$
|
(5,476)
|
|
|
$
|
(5,947)
|
|
Less: Dividends on
convertible perpetual preferred stock
|
|
(3,687)
|
|
|
(3,687)
|
|
Earnings (loss)
available to Universal Corporation common shareholders for
calculation of basic earnings (loss) per share
|
|
(9,163)
|
|
|
(9,634)
|
|
|
|
|
|
|
Denominator for
basic earnings (loss) per share
|
|
|
|
|
Weighted average
shares outstanding
|
|
22,734,225
|
|
|
22,622,930
|
|
|
|
|
|
|
Basic earnings
(loss) per share
|
|
$
|
(0.40)
|
|
|
$
|
(0.43)
|
|
|
|
|
|
|
Diluted Earnings
(Loss) Per Share
|
|
|
|
|
Numerator for
diluted earnings (loss) per share
|
|
|
|
|
Earnings (loss)
available to Universal Corporation common shareholders
|
|
$
|
(9,163)
|
|
|
$
|
(9,634)
|
|
Add: Dividends on
convertible perpetual preferred stock (if conversion
assumed)
|
|
—
|
|
|
—
|
|
Earnings (loss)
available to Universal Corporation common shareholders for
calculation of diluted earnings (loss) per share
|
|
(9,163)
|
|
|
(9,634)
|
|
|
|
|
|
|
Denominator for
diluted earnings (loss) per share
|
|
|
|
|
Weighted average
shares outstanding
|
|
22,734,225
|
|
|
22,622,930
|
|
Effect of dilutive
securities (if conversion or exercise assumed)
|
|
|
|
|
Convertible perpetual
preferred stock
|
|
—
|
|
|
—
|
|
Employee share-based
awards
|
|
—
|
|
|
—
|
|
Denominator for
diluted earnings (loss) per share
|
|
22,734,225
|
|
|
22,622,930
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
$
|
(0.40)
|
|
|
$
|
(0.43)
|
|
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 were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
(in thousands of
dollars)
|
|
2016
|
|
2015
|
|
|
|
|
|
SALES AND OTHER
OPERATING REVENUES
|
|
|
|
|
Flue-cured and burley
leaf tobacco operations:
|
|
|
|
|
North
America
|
|
$
|
72,682
|
|
|
$
|
48,572
|
|
Other
regions (1)
|
|
178,016
|
|
|
177,401
|
|
Subtotal
|
|
250,698
|
|
|
225,973
|
|
Other tobacco
operations (2)
|
|
44,777
|
|
|
49,446
|
|
Consolidated sales
and other operating revenues
|
|
$
|
295,475
|
|
|
$
|
275,419
|
|
|
|
|
|
|
OPERATING INCOME
(LOSS)
|
|
|
|
|
Flue-cured and burley
leaf tobacco operations:
|
|
|
|
|
North
America
|
|
$
|
6,848
|
|
|
$
|
3,416
|
|
Other
regions (1)
|
|
(17,017)
|
|
|
(7,847)
|
|
Subtotal
|
|
(10,169)
|
|
|
(4,431)
|
|
Other tobacco
operations (2)
|
|
2,037
|
|
|
908
|
|
Segment operating
income (loss)
|
|
(8,132)
|
|
|
(3,523)
|
|
Deduct: Equity
in pretax (earnings) loss of unconsolidated affiliates
(3)
|
|
130
|
|
|
616
|
|
Restructuring and
impairment costs (4)
|
|
—
|
|
|
(2,389)
|
|
Consolidated
operating income (loss)
|
|
$
|
(8,002)
|
|
|
$
|
(5,296)
|
|
(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 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 (loss) (Other Tobacco Operations segment), but is
reported below consolidated operating income (loss) 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 (loss),
but are included in consolidated operating income (loss) in the
consolidated statements of income and comprehensive
income.
|
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SOURCE Universal Corporation