Universal Corporation (NYSE:UVV) Q2 2019 Earnings Conference Call Transcript

Nov 08, 2018 • 05:00 pm ET

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Universal Corporation (NYSE:UVV) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Hi. My name is Luz and I will be your conference operator today. At this time, I would like to welcome everyone to the Universal Corporation Second Quarter Fiscal Year 2019 Earnings Conference Call. All lines have been placed in mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)

Ms. Candace Formacek, you may begin your conference.

Executive
Candace Formacek

Great. Thank you, Luz and thank you all for joining us. George Freeman, our Chairman, President and CEO; Airton Hentschke, our COO; and Johan Kroner, our CFO are here with me today and will join in answering questions after these brief remarks. This call is being webcast live and will be available on our website and on telephone-taped replay. It will remain on our website through February 5th, 2019. Other than the replay, we have not authorized and disclaim responsibility for any recording, replay or distribution of any transcription of this call. This call is copyrighted and may not be used without our permission.

(Forward-Looking Cautionary Statements)

Finally, some of the information I have for you today is based on unaudited allocations and is subject to reclassification. In an effort to provide useful information to investors, our comments today may include non-GAAP financial measures. For details on these measures, including reconciliations to the most comparable GAAP measures, please refer to our current earnings press release.

Now turning to the quarter. Net income for the first half of fiscal year 2019 ended September 30, 2018 of $44.6 million, $1.76 per diluted share, improved compared with net income of $29.7 million, $1.16 per diluted share, for the same period of the prior fiscal year. The first half of fiscal year 2019 included non-recurring tax benefits from the reversal of a previously recorded foreign dividend withholding tax liability that reduced income taxes and increased net income by $7.8 million or $0.30 per diluted share. For the quarter ended September 30, 2018, net income was $31.4 million, $1.24 per diluted share, compared with net income of $26.2 million, $1.02 per diluted share, for the prior year's second fiscal quarter.

Segment operating income was $62.7 million for the first half of fiscal year 2019, an increase of $11.3 million, about 22% and for the quarter ended September 30, 2018, was $53.8 million, an increase of $8.3 million or about 18% as compared to the same period last fiscal year. Results reflected earnings improvements in all segments for the first half of fiscal year 2019 and improvements in the North America and Other Regions segments for the second fiscal quarter.

Consolidated revenues increased by $146.5 million to $919.3 million for the first half of fiscal year 2019 and by $51.4 million to $539.6 million for the three months ended September 30, 2018, compared to the prior fiscal year. Those increases were primarily due to higher sales volumes for both the quarter and six month period as well as higher processing volumes and sales prices in the six months ended September 30,