| Unaudited Quarterly Financial Data |
UNAUDITED QUARTERLY FINANCIAL DATA Unaudited quarterly financial data for the fiscal years ended March 31, 2018 and 2017 is provided in the table below. Due to the seasonal nature of the Company's business, management believes it is generally more meaningful to focus on cumulative rather than quarterly results. | | | | | | | | | | | | | | | | | | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | Fiscal Year Ended March 31, 2018 | | | | | | | | Operating Results: | | | | | | | | Sales and other operating revenues | $ | 284,622 |
| | $ | 488,248 |
| | $ | 653,581 |
| | $ | 607,496 |
| Gross profit | 53,857 |
| | 93,076 |
| | 108,518 |
| | 116,497 |
| Net income | 3,321 |
| | 28,306 |
| | 50,219 |
| | 34,322 |
| Net income attributable to Universal Corporation | 3,577 |
| | 26,167 |
| | 45,400 |
| | 30,518 |
| Earnings per common share: | | | | | | | | Basic | 0.14 |
| | 1.03 |
| | 1.80 |
| | 1.21 |
| Diluted | 0.14 |
| | 1.02 |
| | 1.78 |
| | 1.20 |
| Cash Dividends Declared: | | | | | | | | Per share of common stock | 0.54 |
| | 0.54 |
| | 0.55 |
| | 0.55 |
| Market Price Range of Common Stock: | | | | | | | | High | 75.70 |
| | 65.90 |
| | 60.45 |
| | 53.85 |
| Low | 63.15 |
| | 55.00 |
| | 52.05 |
| | 45.95 |
| | | | | | | | | Fiscal Year Ended March 31, 2017 | | | | | | | | Operating Results: | | | | | | | | Sales and other operating revenues | $ | 295,475 |
| | $ | 456,942 |
| | $ | 668,771 |
| | $ | 650,030 |
| Gross profit | 52,197 |
| | 87,844 |
| | 135,453 |
| | 119,185 |
| Net income (loss) | (7,504 | ) | | 26,498 |
| | 57,062 |
| | 36,450 |
| Net income (loss) attributable to Universal Corporation | (5,476 | ) | | 25,264 |
| | 53,647 |
| | 32,869 |
| Earnings (loss) available to Universal Corporation common shareholders after dividends on convertible perpetual preferred stock | (9,163 | ) | | 21,577 |
| | 49,960 |
| | (41,484 | ) | Earnings (loss) per share attributable to Universal Corporation common shareholders: | | | | | | | | Basic | (0.40 | ) | | 0.95 |
| | 2.17 |
| | (1.64 | ) | Diluted | (0.40 | ) | | 0.90 |
| | 1.92 |
| | (1.64 | ) | Cash Dividends Declared: | | | | | | | | Per share of convertible perpetual preferred stock | 16.88 |
| | 16.87 |
| | 16.88 |
| | — |
| Per share of common stock | 0.53 |
| | 0.53 |
| | 0.54 |
| | 0.54 |
| Market Price Range of Common Stock: | | | | | | | | High | 57.75 |
| | 61.69 |
| | 64.20 |
| | 83.35 |
| Low | 52.26 |
| | 55.29 |
| | 52.40 |
| | 63.30 |
|
| | Note: | Earnings (loss) per share amounts for each fiscal year may not equal the total of the four quarterly amounts due to differences in weighted-average outstanding shares for the respective periods and to the fact that the Company’s convertible perpetual preferred stock was antidilutive for some periods in fiscal year 2017. |
Significant items included in the quarterly results were as follows: Fiscal Year Ended March 31, 2018 | | • | Third Quarter – Net income attributable to Universal Corporation included a $10.5 million reduction of income tax expense from the initial provisional accounting for the enactment of the Tax Cuts and Jobs Act in December 2017, which increased diluted earnings per share for the quarter by $0.41. |
| | • | Fourth Quarter – Net income attributable to Universal Corporation included a $6.0 million adjustment to the initial provisional accounting for the enactment of the Tax Cuts and Jobs Act, which lowered the net reduction in income tax expense recorded in the third quarter from $10.5 million to $4.5 million and reduced diluted earnings per share for the quarter by $0.24. |
Fiscal Year Ended March 31, 2017 | | • | Second Quarter – Results included restructuring and impairment costs totaling $3.7 million, primarily related to the Company's decision to close its tobacco processing facility in Hungary. The Company is now processing tobaccos sourced from Hungary in its factories in Italy. The costs incurred for the change in operations in Hungary included statutory employee termination benefits and impairment charges related to certain property and equipment. Those costs reduced net income attributable to Universal Corporation by $2.4 million and diluted earnings per share by $0.09. |
| | • | Fourth Quarter – The conversion of 107,418 shares of the Company's Series B 6.75% Convertible Perpetual Preferred Stock for cash resulted in a one-time reduction of retained earnings of approximately $74.4 million during the quarter ending March 31, 2018, representing the excess of the conversion cost over the carrying value of those preferred shares. The reduction in retained earnings resulted in a corresponding one-time reduction of earnings available to common shareholders for purposes of determining the amounts reported for basic and diluted earnings per share for those periods. The reduction in earnings available to common shareholders decreased diluted earnings per share for the quarter by $2.90. |
|