Universal Corporation (NYSE:UVV) Q3 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 05:00 pm ET

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Universal Corporation (NYSE:UVV) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

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

Thank you Ms. Candace Formacek, Vice President and Treasurer, you may begin your conference.

Executive
Candace C. Formacek

Thank you Raffy. Good afternoon and thank you for joining us. George Freeman, our Chairman, President and CEO; Airton Hentschke, our Chief Operating Officer, and Johan Kroner, our Chief Financial Officer are here with me today and will join me 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 May 7, 2019. Other than the replay, we have not authorized and disclaimed 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.

Before I begin to discuss our results, I caution you that we will be making forward-looking statements that are based on our current knowledge and some assumptions about the future and are representative as of today only. Actual results could differ materially from projected or estimated results and we assume no obligation to update any forward-looking statements. For information on some of the factors that can affect our estimates, I urge you to read our 10-K for the year ended March 31, 2018 as well as our Form 10-Q for the quarter ended December 31, 2018 which was filed with the SEC today. Such factors include but are not limited to customer-mandated timing of shipments, weather conditions, political and economic environment, government regulation and taxation, changes in currency, industry consolidation and evolution and changes in market structure or sources.

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.

As we have moved into the seasonally stronger back half of our fiscal year, we have continued to perform well. In the nine months ended December 31, 2018, we have increased our volumes and revenues and expanded services to our customers. And we forecast that our volumes for this fiscal year will be higher than the prior year. Our balance sheet also remains strong. And we successfully refinanced our $800 million bank credit agreement in December, which we believe positions us to meet the future financial needs of our business. As the leading global leaf supplier, we remain committed to strengthening our market share and investing for growth in our core tobacco business.

As we announced yesterday, we are expanding our leaf purchasing, processing