Universal Corporation (NYSE:UVV) Q2 2020 Earnings Conference Call - Final Transcript

Nov 12, 2019 • 08:30 am ET


Universal Corporation (NYSE:UVV) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Universal Corporation Second Quarter Fiscal Year 2020 Earnings Call. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Thank you.

I would now like to hand the call over to your speaker today Candace Formacek, Vice President and Treasurer. Ma'am, please go ahead.

Candace C. Formacek

Thanks, Jorgen, and thank you for joining us. George Freeman, our Chairman, President and CEO; Airton Hentschke, our Chief Operating Officer, are here with me today; and Johan Kroner, our Chief Financial Officer, participating by telephone, 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 February 12, 2020. 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.

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, 2019, and the Form 10-Q for the most recently ended fiscal quarter. Such risks and uncertainties include, but are not limited to, customer mandated timing of shipments, weather conditions, political and economic environment, government regulation and taxation, changes in exchange rates and interest rates, 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.

Net income for the six months ended September 30, 2019, was $30.1 million or $1.19 per diluted share compared with $44.6 million or $1.76 per diluted share for the same period of the prior fiscal year. Included in the results for both periods were certain nonrecurring income tax items, detailed in today's earnings press release, which reduced earnings per share by $0.11 for the first half of the current fiscal year and increased earnings per share by $0.30 for the same period in the prior fiscal year. Excluding those nonrecurring items, net income declined by $3.9 million or $0.16 per share for the first half of fiscal year 2020 compared to the first half of fiscal year 2019.

For the second fiscal quarter ended September 30, 2019, net income was $28.1 million or $1.11 per diluted share