Universal Corporation (NYSE:UVV) Q3 2016 Earnings Conference Call - Final Transcript
Feb 03, 2016 • 05:00 pm ET
in detail. Net income for the nine months ended December 31, 2015 was $61.1 million or $2.80 per diluted share compared with $68.8 million, $2.43 per diluted share for the same period last year reflecting that shift in shipping patterns. Those results included non-recurring items detailed in today's earnings release that totaled $0.03 and $0.18 per share for the nine month period ended December 31, 2015 and 2014 respectively.
For the quarter ended December 31, 2015 net income was $44.5 million or $1.60 per diluted share compared with $53 million or $1.87 per diluted share for the prior year which included strong volumes from shipments delayed from the first half of that fiscal year. Those results also included non-recurring items which totaled $0.08 and negative $0.03 per diluted share for the third quarters of fiscal 2016 and 2015 respectively.
Consolidated revenues decreased by 12% to $1.3 billion for the nine month period reflecting lower green prices, a modest decline in sales volumes and lower processing revenue. Turning now to the segment detail. The other regions segment operating income decreased by $2.4 million to $87.7 million for the nine months ended December 31, 2015 compared to the same period of the prior year. Lower sales volumes mainly in South America and lower green leaf prices reduced overall revenues for the segment, but segment gross margins improved on a percentage basis. The later timing of some current crop shipments delayed into the fourth fiscal quarter reduced sales volumes in the current year's nine month period despite higher carryover crop sales in some origins.
Reduced selling, general and administrative expenses buoyed results significantly for this segment. For the third fiscal quarter, operating income for the other regions segment was down $17.6 million to $61.3 million compared with the previous year's third quarter. Sales volume decreases in nearly all of this segments region was the primary factor in the decline in comparison with the unusually large volumes shipped in the third quarter of last year. A combination of lower inventory write-downs, lower green leaf cost and lower local currency factory overheads contributed to an improved margin percentage for the segment in both periods.
North America segment operating income of $12.9 million for the nine months and $5.8 million for the third quarter of fiscal 2016 decreased by $8.9 million and $10.1 million respectively compared to the same period last year. Volumes were higher for the nine month period in part due to old crop sales in the first fiscal quarter, but decreased in the three month period and the product mix was less favorable in both periods compared with the prior fiscal year. Significantly lower processing revenues also impacted both periods in the current fiscal year, due largely to the previously announced changes in business with Philip Morris International in the United States from a toll processing model to sales of processed tobacco. These changes impact the timing of earnings recognition, as sales under the new model are recorded when the product ships. The