Unaudited Quarterly Financial Data

12 Months Ended

Mar. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

UNAUDITED QUARTERLY FINANCIAL DATA

Unaudited quarterly financial data for the fiscal years ended March 31, 2020 and 2019 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, 2020
Operating Results:
Sales and other operating revenues	$	296,915	$	475,921	$	505,049	$	632,094
Gross profit	58,650		96,029		92,973		109,160
Net income	895		29,747		29,318		18,043
Net income attributable to Universal Corporation	2,072		28,077		25,966		15,565
Earnings per common share:
Basic	0.08		1.12		1.04		0.63
Diluted	0.08		1.11		1.04		0.63
Cash Dividends Declared:
Per share of common stock	0.76		0.76		0.76		0.76
Market Price Range of Common Stock:
High	60.94		62.70		57.06		58.14
Low	51.02		49.39		50.27		38.58

Fiscal Year Ended March 31, 2019
Operating Results:
Sales and other operating revenues	$	379,719	$	539,604	$	636,107	$	671,723
Gross profit	72,221		99,460		115,430		119,480
Net income	11,060		34,293		31,089		33,692
Net income attributable to Universal Corporation	13,179		31,446		28,135		31,361
Earnings per common share:
Basic	0.53		1.25		1.12		1.25
Diluted	0.52		1.24		1.11		1.24
Cash Dividends Declared:
Per share of common stock	0.75		0.75		0.75		0.75
Market Price Range of Common Stock:
High	68.25		71.60		76.98		60.67
Low	46.40		55.66		53.03		52.60


Note:	Earnings 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.

Significant items included in the quarterly results were as follows:

Fiscal Year Ended March 31, 2020


•	First Quarter – Net income attributable to Universal Corporation included $2.8 million of additional income tax expense for the settlement of an income tax matter at a foreign subsidiary. The increase in income tax expense reduced diluted earnings per share for the quarter by $0.11.


•	Second Quarter – Net income attributable to Universal Corporation included $0.9 million in non-tax deductible transaction costs associated with the acquisition of FruitSmart, which was completed during the fourth quarter of fiscal year 2020. These costs were primarily related to due diligence fees. These costs reduced diluted earnings per share for the quarter by $0.04.


•	Third Quarter – Net income attributable to Universal Corporation included additional non-tax deductible transaction costs of $1 million associated with the acquisition of FruitSmart. These costs reduced diluted earnings per share for the quarter by $0.04.

•

Fourth Quarter – Results included $7.5 million in restructuring and impairment costs, primarily related to voluntary workforce reductions at operations in North America (see Note 4). The restructuring and impairment costs included employee termination benefits, as well as impairment charges related to certain property, plant, and equipment, and other noncurrent assets. The restructuring and impairment costs reduced net income attributable to Universal Corporation by $6.3 million and diluted earnings per share by $0.25. Net income attributable to Universal Corporation was reduced by $2.1 million of costs relating to the expensing of a fair value adjustment to inventory associated with the initial acquisition accounting for FruitSmart. These costs reduced diluted earnings per share by $0.08. Additionally, net income attributable to Universal Corporation was reduced by $2.8 million of additional non-tax deductible transaction costs associated with the acquisition of FruitSmart. These costs reduced diluted earnings per share for the quarter $0.11.

Fiscal Year Ended March 31, 2019

•

First Quarter – Net income attributable to Universal Corporation included a $6.9 million reduction of income tax expense for the reversal of amounts previously recorded for dividend withholding taxes on distributed and undistributed retained earnings of a foreign subsidiary following the resolution of uncertainties with the local country taxing authorities with respect to the inclusion of the tax under a tax holiday applicable to the subsidiary. The reduction of income tax expense increased diluted earnings per share for the quarter by $0.27.

•

Second Quarter – Net income attributable to Universal Corporation included a $0.9 million additional reduction of income tax expense for amounts previously recorded for dividend withholding taxes on distributed and undistributed retained earnings of a foreign subsidiary due to the above-mentioned tax holiday. The reduction of income tax expense increased diluted earnings per share for the quarter by $0.03.

•

Third Quarter – Results included restructuring and impairment costs totaling $19.4 million, related to the Company's operations in Tanzania (see Note 4). The restructuring and impairment costs included employee termination benefits, as well as impairment charges related to certain property, plant, equipment, and goodwill. Those costs reduced net income attributable to Universal Corporation by $15.8 million and diluted earnings per share by $0.62.

•

Fourth Quarter – Results included restructuring costs of approximately $0.9 million related to smaller operations, which reduced net income attributable to Universal Corporation by approximately $0.6 million and diluted earnings per share by $0.02.