-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OWhYtllFxRxVoRBwKmkwgUtay06cPINGstjqGvnIA5CQ0momS6yGhPsR5L4yFbkT EZFxwJyrLCTaQwXgzkflVQ== 0000916641-98-000878.txt : 19980812 0000916641-98-000878.hdr.sgml : 19980812 ACCESSION NUMBER: 0000916641-98-000878 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980805 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980810 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNIVERSAL CORP /VA/ CENTRAL INDEX KEY: 0000102037 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-FARM PRODUCT RAW MATERIALS [5150] IRS NUMBER: 540414210 STATE OF INCORPORATION: VA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-00652 FILM NUMBER: 98680712 BUSINESS ADDRESS: STREET 1: P O BOX 25099 STREET 2: 1501 N HAMILTON ST CITY: RICHMOND STATE: VA ZIP: 23230 BUSINESS PHONE: 8043599311 MAIL ADDRESS: STREET 1: PO BOX 25099 CITY: RICHMOND STATE: VA ZIP: 23260 FORMER COMPANY: FORMER CONFORMED NAME: UNIVERSAL LEAF TOBACCO CO INC DATE OF NAME CHANGE: 19880314 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ----------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: August 5, 1998 (Date of earliest event reported) UNIVERSAL CORPORATION (Exact Name of Registrant as Specified in its Charter) Virginia 1-652 54-0414210 (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 1501 North Hamilton Street 23230 Richmond, Virginia (Zip Code) (Address of Principal Executive Offices) Registrant's telephone number, including area code: (804) 359-9311 Item 5. Other Events. The Company issued a press release announcing its earnings for the 1998 fiscal year and the fourth quarter. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibits. 99 Press release issued by the Registrant on August 5, 1998. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. UNIVERSAL CORPORATION (Registrant) Date: August 10, 1998 By: /s/ William J. Coronado ------------------------------- William J. Coronado Controller Exhibit Index Number Document - - ------ -------- 99 Press release issued by the Registrant on August 5, 1998. EX-99 2 PRESS RELEASE KAREN M.L. WHELAN AUGUST 5, 1998 Phone: (804) 359-9311 6:30 P.M. EDT Fax: (804) 254-3594 UNIVERSAL CORPORATION POSTS RECORD EARNINGS RICHMOND, VA, August 5, 1998 / PRNEWSWIRE Henry H. Harrell, Chairman and Chief Executive Officer of Universal Corporation, announced today that for the fiscal year that ended on June 30, 1998, the company earned $141.3 million or $3.99 per share on a diluted basis. This represents an increase of about 40% over net income reported last year. Gross revenues for the year increased by 4.2% to $4.3 billion. Fourth quarter results were also sharply higher than last year's fourth quarter. Net income for the quarter was $38.9 million or $1.10 per diluted share compared to $21.8 million or $.62 per share last year, an increase of approximately 77%. Fourth quarter results included an after tax gain of about $11 million or $.31 per diluted share on the sale of Universal's minority interest in a Dutch joint venture in spices. Excluding the gain, earnings for the year would have been $130.4 million or $3.68 per share on a diluted basis for an increase of more than 29%. For the fiscal year, international tobacco results were well above those of last year, with particularly strong improvement in Brazil, Africa, and Europe, as well as in the company's oriental tobacco business. International sales continued to be strong, and margins improved due to higher volumes. Domestic earnings were up significantly during the year, reflecting the large crops in the United States. Dark tobacco results also improved substantially. Although supplies of filler and binder are now adequate to meet demand, cigar wrapper continues to be in short supply. For the quarter, revenues were down, reflecting differences in shipment timing and lower auction prices in Africa, but earnings improved based on a favorable business mix. Lumber and building products earnings were down substantially for the year due to the impact of the stronger U.S dollar as well as difficult market conditions. The prices of hardwood, softwood, and plywood declined during the year causing customers to delay purchases. In addition, cost of sales reflected the sale of older, higher cost inventory. Earnings for the agri-products business were up strongly based on record performance from tea operations and a strong showing from rubber trading and dried fruit and nut imports. During the fourth quarter, the company completed the formation of its oriental tobacco joint venture, Socotab, L.L.C., to create the world's leading oriental tobacco leaf merchant. In May, Universal also announced the approval of a $100 million share repurchase. By July 31, 1998, the approved repurchase program was about 32% complete. -- M O R E -- Universal Corporation Page 1 Mr. Harrell said, " Universal's strong performance this year is the result of hard work and a sound strategy. The company's strategy, which emphasizes strategic alliances with its customers as well as `right-sizing' its tobacco inventory levels, is working. Despite some oversupply in certain tobacco markets, the well-known uncertainties in the United States political and legal arenas, and the continuing problems in Asia, we are optimistic about fiscal year 1999 as well." He continued, "Our optimism for fiscal year 1999 is based on our faith in our strategy, our strong customer relationships, and the continued efforts of our employees around the world. We expect more pronounced quarterly variability in earnings in fiscal year 1999 due to changes in the relative earnings contributions of our operating territories. Although the year has just begun, and market conditions can be strongly affected by outside factors, we are confident at this writing that Universal can achieve further earnings growth from on-going operations in fiscal year 1999. " The company cautions readers that the statements contained herein regarding expected earnings are forward-looking statements based upon management's current knowledge and assumptions about future events, including anticipated levels of demand for the company's products and services, costs incurred in providing these products and services, and timing of shipments to customers. Lumber earnings could also be affected by unusual weather conditions in the Netherlands. Actual results, therefore, could vary from those expected. For more details on factors that could affect expectations, see the company's Annual Report on Form 10-K for the year ended June 30, 1997, as filed with the Securities and Exchange Commission. Universal Corporation is a diversified company with operations in leaf tobacco, lumber products distribution, and agri-products. -- M O R E -- Universal Corporation Page 2 UNIVERSAL CORPORATION UNAUDITED STATEMENTS OF INCOME FOR THE QUARTERS ENDED JUNE 30, 1998 AND 1997 (Dollars in thousands, except per-share amounts)
Three Months 1998 1997 ----- ---- Sales and other operating revenues $846,195 $940,899 Costs and expenses Cost of goods sold 692,198 802,369 Selling, general and administrative 90,379 84,543 -------- -------- Operating income 63,618 53,987 Equity in pretax earnings of unconsolidated affiliates 6,045 5,477 Gain on sale of investment 16,718 Interest expense (17,708) (15,388) -------- -------- Income before income taxes and other items 68,673 44,076 Income taxes 27,470 18,897 Minority interests 2,349 3,344 -------- -------- Net income $ 38,854 $ 21,835 ======== ======== Earnings per share $1.10 $.62 Diluted earnings per share $1.10 $.62 Notes: 1. Amounts in the prior year's statement have been reclassified to be reported on a consistent basis with the current year's presentation. 2. In the final quarter of fiscal year 1998, the company recorded charges for normal year-end inventory adjustments totaling approximately $7 million after taxes. -- M O R E -- Universal Corporation Page 3 UNIVERSAL CORPORATION UNAUDITED STATEMENTS OF INCOME FOR THE YEAR ENDED JUNE 30, 1998 AND 1997 (Dollars in thousands, except per-share amounts) Year ---- 1998 1997 ---- ---- Sales and other operating revenues $4,287,204 $4,112,675 Costs and expenses Cost of goods sold 3,673,600 3,559,647 Selling, general and administrative 335,210 316,201 ---------- ---------- Operating income 278,394 236,827 Equity in pretax earnings of unconsolidated affiliates 16,901 11,864 Gain on sale of investment 16,718 Interest expense (63,974) (64,886) ---------- ---------- Income before income taxes and other items 248,039 183,805 Income taxes 98,659 73,945 Minority interests 8,122 8,987 ---------- ---------- Net income $ 141,258 $ 100,873 ========== ========== Earnings per share $4.01 $2.88 Diluted earnings per share $3.99 $2.87
Amounts in the prior year's statement have been reclassified to be reported on a consistent basis with the current year's presentation. # # # Universal Corporation Page 4 -----END PRIVACY-ENHANCED MESSAGE-----