Universal Corporation, a tobacco merchant and processor, announced that net income for the fiscal year ended March 31, 2016, was $109 million, or $3.92 per diluted share.
Article continues below
This compared with last year's net income of $114.6 million, or $4.06 per diluted share. Those results included certain non-recurring items, detailed in Other Items below, which increased diluted earnings per share by $0.02 and $0.46 for the years ended March 31, 2016 and 2015, respectively.
Excluding those items in both years, net income for the fiscal year increased $6.8 million ($0.30 per diluted share) compared to the same period last year. Segment operating income, which excludes those items, was $186.1 million for fiscal year 2016, an increase of $18.8 million, or 11%, from the prior year.
That improvement was primarily attributable to a reduction in selling, general, and administrative costs, as well as improved gross margins on this year's modestly higher sales volumes.
Universal Corporation revenues of $2.1 billion for fiscal year 2016 declined 7% compared with the previous year, driven mainly by lower green leaf costs and lower processing revenues, partly mitigated by the increase in volumes.
Net income for the fourth quarter ended March 31, 2016, was $48.0 million, or $1.72 per diluted share, compared with net income for the prior year's fourth fiscal quarter of $45.8 million, or $1.64 per diluted share.
The fiscal year 2015 fourth quarter results also included certain non-recurring items, detailed in Other Items below, which increased diluted earnings per share by $0.29.
Excluding those items, net income for the quarter ended March 31, 2016 increased $10.2 million ($0.37 per diluted share) compared to the same period last year.
Universal Corporation segment operating income for the period of $83.3 million was up by $30.5 million, compared with the previous fiscal year, on improved results in every segment as stronger sales volumes and lower selling, general, and administrative costs led to overall higher earnings for the quarter.
Consolidated revenues for the fourth fiscal quarter increased by 3% to $804.0 million, as higher sales volumes, reflecting this year's later shipping patterns, were partially offset by lower green leaf costs. ■