Virginia
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001-00652
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54-0414210
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||
(State
or Other Jurisdiction
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(Commission
File Number)
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(IRS
Employer
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||
of
Incorporation)
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|
|
Identification
No.)
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9201
Forest Hill Avenue
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23235
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|
Richmond,
Virginia
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(Zip
Code)
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(Address
of Principal Executive Offices)
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|
(d)
|
Exhibits.
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||
No.
|
Description
|
||
3.1
|
Amended
and Restated Bylaws, effective as of August 3, 2010.*
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||
99.1
|
Press
release dated August 3, 2010, announcing quarterly
dividends.*
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||
99.2
|
Press
release dated August 3, 2010, announcing results for the quarter ended
June 30, 2010.*
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UNIVERSAL
CORPORATION
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||
(Registrant)
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||
Date:
August 3, 2010
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By:
|
/s/ Preston D. Wigner
|
Preston
D. Wigner
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||
Vice
President, General Counsel, Secretary,
and
Chief Compliance Officer
|
Exhibit
|
||
Number
|
Document
|
|
3.1
|
Amended
and Restated Bylaws, effective as of August 3, 2010.*
|
|
99.1
|
Press
release dated August 3, 2010, announcing quarterly
dividends.*
|
|
99.2
|
|
Press
release dated August 3, 2010, announcing results for the quarter ended
June 30, 2010.*
|
CONTACT
|
RELEASE
|
|
Karen
M. L. Whelan
|
Immediately
|
|
Phone:
|
(804)
359-9311
|
|
Fax:
|
(804)
254-3594
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|
Email:
|
investor@universalleaf.com
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CONTACT:
|
Karen M. L.
Whelan
|
RELEASE:
2:15 p.m.
ET
|
|
Phone: (804)
359-9311
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|||
Fax:
(804) 254-3584
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|||
Email:
investor@universalleaf.com
|
Three Months Ended
June 30,
|
||||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
Sales
and other operating revenues
|
$ | 538,916 | $ | 616,112 | ||||
Costs
and expenses
|
||||||||
Cost
of goods sold
|
436,679 | 476,748 | ||||||
Selling,
general and administrative expenses
|
60,183 | 69,592 | ||||||
Restructuring
costs
|
949 | — | ||||||
Operating
income
|
41,105 | 69,772 | ||||||
Equity
in pretax earnings of unconsolidated affiliates
|
378 | 3,641 | ||||||
Interest
income
|
444 | 565 | ||||||
Interest
expense
|
5,126 | 8,155 | ||||||
Income
before income taxes and other items
|
36,801 | 65,823 | ||||||
Income
taxes
|
12,383 | 22,019 | ||||||
Net
income
|
24,418 | 43,804 | ||||||
Less: net
(income) loss attributable to noncontrolling interests in
subsidiaries
|
902 | (59 | ) | |||||
Net
income attributable to Universal Corporation
|
25,320 | 43,745 | ||||||
Dividends
on Universal Corporation convertible perpetual preferred
stock
|
(3,712 | ) | (3,712 | ) | ||||
Earnings
available to Universal Corporation common shareholders
|
$ | 21,608 | $ | 40,033 | ||||
Earnings
per share attributable to Universal Corporation common
shareholders:
|
||||||||
Basic
|
$ | 0.89 | $ | 1.60 | ||||
Diluted
|
$ | 0.87 | $ | 1.47 |
June 30,
2010
|
June 30,
2009
|
March 31,
2010
|
||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||
ASSETS
|
||||||||||||
Current
|
||||||||||||
Cash
and cash equivalents
|
$ | 61,781 | $ | 131,167 | $ | 245,953 | ||||||
Accounts
receivable, net
|
221,053 | 229,764 | 266,960 | |||||||||
Advances
to suppliers, net
|
122,878 | 141,383 | 167,400 | |||||||||
Accounts
receivable - unconsolidated affiliates
|
42,403 | 15,654 | 11,670 | |||||||||
Inventories
- at lower of cost or market:
|
||||||||||||
Tobacco
|
1,152,427 | 886,232 | 812,186 | |||||||||
Other
|
66,183 | 66,851 | 52,952 | |||||||||
Prepaid
income taxes
|
14,062 | 14,238 | 13,514 | |||||||||
Deferred
income taxes
|
46,058 | 43,385 | 47,074 | |||||||||
Other
current assets
|
72,042 | 80,031 | 75,367 | |||||||||
Total
current assets
|
1,798,887 | 1,608,705 | 1,693,076 | |||||||||
Property,
plant and equipment
|
||||||||||||
Land
|
15,740 | 16,002 | 16,036 | |||||||||
Buildings
|
262,468 | 254,846 | 266,350 | |||||||||
Machinery
and equipment
|
535,480 | 507,681 | 532,824 | |||||||||
813,688 | 778,529 | 815,210 | ||||||||||
Less
accumulated depreciation
|
(486,576 | ) | (462,266 | ) | (485,723 | ) | ||||||
327,112 | 316,263 | 329,487 | ||||||||||
Other
assets
|
||||||||||||
Goodwill
and other intangibles
|
105,409 | 106,030 | 105,561 | |||||||||
Investments
in unconsolidated affiliates
|
95,494 | 112,781 | 106,336 | |||||||||
Deferred
income taxes
|
28,627 | 20,393 | 30,073 | |||||||||
Other
noncurrent assets
|
101,870 | 91,297 | 106,507 | |||||||||
331,400 | 330,501 | 348,477 | ||||||||||
Total
assets
|
$ | 2,457,399 | $ | 2,255,469 | $ | 2,371,040 |
June 30,
2010
|
June 30,
2009
|
March 31,
2010
|
||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||||||
Current
|
||||||||||||
Notes
payable and overdrafts
|
$ | 298,899 | $ | 171,125 | $ | 177,013 | ||||||
Accounts
payable and accrued expenses
|
239,451 | 281,336 | 259,576 | |||||||||
Accounts
payable - unconsolidated affiliates
|
977 | 100 | 6,464 | |||||||||
Customer
advances and deposits
|
144,477 | 57,288 | 107,858 | |||||||||
Accrued
compensation
|
17,978 | 20,818 | 30,097 | |||||||||
Income
taxes payable
|
13,958 | 8,839 | 18,991 | |||||||||
Current
portion of long-term obligations
|
5,000 | 79,500 | 15,000 | |||||||||
Total
current liabilities
|
720,740 | 619,006 | 614,999 | |||||||||
Long-term
obligations
|
418,547 | 329,596 | 414,764 | |||||||||
Pensions
and other postretirement benefits
|
98,686 | 94,219 | 96,888 | |||||||||
Other
long-term liabilities
|
65,412 | 81,639 | 69,886 | |||||||||
Deferred
income taxes
|
38,627 | 51,226 | 46,128 | |||||||||
Total
liabilities
|
1,342,012 | 1,175,686 | 1,242,665 | |||||||||
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, 5,000,000
shares authorized, 219,999 shares issued and outstanding (219,999 at June
30, 2009, and March 31, 2010)
|
213,023 | 213,023 | 213,023 | |||||||||
Common
stock, no par value, 100,000,000 shares authorized, 24,155,316 shares
issued and outstanding (24,901,506 at June 30, 2009, and 24,325,228 at
March 31, 2010)
|
194,960 | 195,437 | 195,001 | |||||||||
Retained
earnings
|
768,772 | 712,684 | 767,213 | |||||||||
Accumulated
other comprehensive loss
|
(66,242 | ) | (45,207 | ) | (52,667 | ) | ||||||
Total
Universal Corporation shareholders' equity
|
1,110,513 | 1,075,937 | 1,122,570 | |||||||||
Noncontrolling
interests in subsidiaries
|
4,874 | 3,846 | 5,805 | |||||||||
Total
shareholders' equity
|
1,115,387 | 1,079,783 | 1,128,375 | |||||||||
Total
liabilities and shareholders' equity
|
$ | 2,457,399 | $ | 2,255,469 | $ | 2,371,040 |
Three Months Ended
June 30,
|
||||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income
|
$ | 24,418 | $ | 43,804 | ||||
Adjustments
to reconcile net income to net cash used by operating
activities:
|
||||||||
Depreciation
|
10,823 | 9,902 | ||||||
Amortization
|
412 | 504 | ||||||
Provisions
for losses on advances and guaranteed loans to suppliers
|
2,991 | 583 | ||||||
Foreign
currency remeasurement loss, net
|
1,876 | 6,261 | ||||||
Restructuring
costs
|
949 | — | ||||||
Other,
net
|
(1,023 | ) | 13,825 | |||||
Changes
in operating assets and liabilities, net
|
(303,270 | ) | (126,603 | ) | ||||
Net
cash used by operating activities
|
(262,824 | ) | (51,724 | ) | ||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase
of property, plant and equipment
|
(13,154 | ) | (11,158 | ) | ||||
Proceeds
from sale of property, plant and equipment, and other
|
945 | 1,813 | ||||||
Net
cash used by investing activities
|
(12,209 | ) | (9,345 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Issuance
(repayment) of short-term debt, net
|
127,985 | (3,124 | ) | |||||
Repayment
of long-term obligations
|
(10,000 | ) | — | |||||
Repurchase
of common stock
|
(10,933 | ) | (2,981 | ) | ||||
Dividends
paid on convertible perpetual preferred stock
|
(3,712 | ) | (3,712 | ) | ||||
Dividends
paid on common stock
|
(11,427 | ) | (11,461 | ) | ||||
Net
cash provided (used) by financing activities
|
91,913 | (21,278 | ) | |||||
Effect
of exchange rate changes on cash
|
(1,052 | ) | 888 | |||||
Net
decrease in cash and cash equivalents
|
(184,172 | ) | (81,459 | ) | ||||
Cash
and cash equivalents at beginning of year
|
245,953 | 212,626 | ||||||
Cash
and cash equivalents at end of period
|
$ | 61,781 | $ | 131,167 |
Three Months Ended
June 30,
|
||||||||
(in
thousands, except per share data)
|
2010
|
2009
|
||||||
Basic Earnings Per Share
|
||||||||
Numerator
for basic earnings per share
|
||||||||
Net
income attributable to Universal Corporation
|
$ | 25,320 | $ | 43,745 | ||||
Less: Dividends
on convertible perpetual preferred stock
|
(3,712 | ) | (3,712 | ) | ||||
Earnings
available to Universal Corporation common shareholders
|
||||||||
for
calculation of basic earnings per share
|
21,608 | 40,033 | ||||||
Denominator
for basic earnings per share
|
||||||||
Weighted
average shares outstanding
|
24,213 | 24,985 | ||||||
Basic
earnings per share
|
$ | 0.89 | $ | 1.60 | ||||
Diluted Earnings Per Share
|
||||||||
Numerator
for diluted earnings per share
|
||||||||
Earnings
available to Universal Corporation common shareholders
|
$ | 21,608 | $ | 40,033 | ||||
Add: Dividends
on convertible perpetual preferred stock (if
|
||||||||
conversion
assumed)
|
3,712 | 3,712 | ||||||
Earnings
available to Universal Corporation common shareholders
|
||||||||
for
calculation of diluted earnings per share
|
25,320 | 43,745 | ||||||
Denominator
for diluted earnings per share:
|
||||||||
Weighted
average shares outstanding
|
24,213 | 24,985 | ||||||
Effect
of dilutive securities (if conversion or exercise assumed)
|
||||||||
Convertible
perpetual preferred stock
|
4,742 | 4,728 | ||||||
Employee
share-based awards
|
260 | 131 | ||||||
Denominator
for diluted earnings per share
|
29,215 | 29,844 | ||||||
Diluted
earnings per share
|
$ | 0.87 | $ | 1.47 |
Three Months Ended
June 30,
|
||||||||
(in thousands
of dollars)
|
2010
|
2009
|
||||||
SALES
AND OTHER OPERATING REVENUES
|
||||||||
Flue-cured
and burley leaf tobacco operations:
|
||||||||
North
America
|
$ | 63,167 | $ | 36,132 | ||||
Other
regions (1)
|
401,819 | 521,172 | ||||||
Subtotal
|
464,986 | 557,304 | ||||||
Other
tobacco operations (2)
|
73,930 | 58,808 | ||||||
Consolidated
sales and other operating revenues
|
$ | 538,916 | $ | 616,112 | ||||
OPERATING
INCOME
|
||||||||
Flue-cured
and burley leaf tobacco operations:
|
||||||||
North
America
|
$ | 3,692 | $ | 306 | ||||
Other
regions (1)
|
32,327 | 63,909 | ||||||
Subtotal
|
36,019 | 64,215 | ||||||
Other
tobacco operations (2)
|
6,413 | 9,198 | ||||||
Segment
operating income
|
42,432 | 73,413 | ||||||
Less:
Equity in pretax earnings of unconsolidated affiliates (3)
|
378 | 3,641 | ||||||
Restructuring costs (4)
|
949 | — | ||||||
Consolidated
operating income
|
$ | 41,105 | $ | 69,772 |
(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 of
an unconsolidated affiliate.
|
(3)
|
Item
is included in segment operating income, but not included in consolidated
operating income.
|
(4)
|
Item
is not included in segment operating income, but is included in
consolidated operating income.
|