UNAUDITED QUARTERLY FINANCIAL DATA

Unaudited quarterly financial data for the fiscal years ended March 31, 2016 and 2015 is provided in the table below. Due to the seasonal nature of the Company's business, management believes it is generally more meaningful to focus on cumulative rather than quarterly results.



	First Quarter			Second Quarter		Third Quarter		Fourth Quarter
Fiscal Year Ended March 31, 2016
Operating Results:
Sales and other operating revenues	$	275,419		$	456,382	$	584,592	$	803,980
Gross profit	48,389			98,094		119,906		140,942
Net income (loss)	(6,125		)	25,064		46,615		52,594
Net income (loss) attributable to Universal Corporation	(5,947		)	22,465		44,534		47,964
Earnings (loss) available to Universal Corporation common shareholders after dividends on convertible perpetual preferred stock	(9,634		)	18,778		40,847		44,277
Earnings (loss) per share attributable to Universal Corporation common shareholders:
Basic	(0.43		)	0.83		1.80		1.95
Diluted	(0.43		)	0.81		1.60		1.72
Cash Dividends Declared:
Per share of convertible perpetual preferred stock	16.88			16.87		16.88		16.87
Per share of common stock	0.52			0.52		0.53		0.53
Market Price Range of Common Stock:
High	57.76			58.41		57.72		57.27
Low	46.80			46.98		49.70		51.49

Fiscal Year Ended March 31, 2015
Operating Results:
Sales and other operating revenues	$	271,472		$	464,116	$	758,054	$	778,159
Gross profit	55,540			85,071		147,572		122,091
Net income	525			15,484		58,077		46,375
Net income attributable to Universal Corporation	717			15,025		53,039		45,827
Earnings (loss) available to Universal Corporation common shareholders after dividends on convertible perpetual preferred stock	(2,995		)	11,312		49,309		42,122
Earnings (loss) per share attributable to Universal Corporation common shareholders:
Basic	(0.13		)	0.49		2.13		1.86
Diluted	(0.13		)	0.48		1.87		1.64
Cash Dividends Declared:
Per share of convertible perpetual preferred stock	16.88			16.87		16.88		16.87
Per share of common stock	0.51			0.51		0.52		0.52
Market Price Range of Common Stock:
High	56.82			56.35		45.63		48.10
Low	52.16			44.39		38.53		39.27


Note:	Earnings per share amounts for each fiscal year may not equal the total of the four quarterly amounts due to differences in weighted-average outstanding shares for the respective periods and to the fact that the Company’s convertible perpetual preferred stock may be antidilutive for some periods.

Significant items included in the quarterly results were as follows:

Fiscal Year Ended March 31, 2016

•

First Quarter – restructuring and impairment costs totaling $2.4 million related to a decision to significantly scale back the Company's operations in Zambia. The costs included statutory employee termination benefits, impairment charges related to outstanding balances on loans to farmers whose contracts were terminated as a result of the decision, and impairment charges on certain property and equipment. The restructuring and impairment costs reduced net income attributable to Universal Corporation by $1.6 million and diluted earnings per share by $0.06.

•

Third Quarter – a $3.4 million pretax gain arising from the acquisition of a joint venture partner's 50% ownership interest in a tobacco processing entity in Guatemala. The transaction increased the Company's ownership interest in the entity to 100%, requiring consolidation of the financial statements of the entity and remeasurement of the Company's original 50% ownership interest to fair value, resulting in the gain. The gain increased net income attributable to Universal Corporation by $2.2 million and diluted earnings per share by $0.08.

Fiscal Year Ended March 31, 2015

•

First Quarter – an income tax benefit of $8.0 million resulting from the ability of the Company's subsidiary, Deltafina S.p.A, to pay a significant portion of a fine and related interest charges settled during the quarter following the unsuccessful appeal of a case brought by the European Commission related to tobacco buying practices in Italy. The tax benefit reduced the diluted loss per share after dividends on the Company's convertible perpetual preferred stock by $0.34.


•	Second Quarter – restructuring costs of approximately $3.4 million, primarily related to workforce reductions in the Company's operations in Brazil, as well as the suspension of operations in Argentina. The restructuring costs reduced net income attributable to Universal Corporation by $2.2 million and diluted earnings per share by $0.09.


•	Third Quarter – additional restructuring costs of approximately $1.1 million, primarily related to additional workforce reductions in Brazil, as well the suspension of operations in Argentina. The restructuring costs reduced net income attributable to Universal Corporation by $0.7 million and diluted earnings per share by $0.03.

•

Fourth Quarter – a gain of $12.7 million from the reversal of a valuation allowance on the remaining unused balance of IPI excise tax credits in Brazil. The gain increased net income attributable to Universal Corporation by $8.2 million and diluted earnings per share by $0.30. The Company also recorded additional restructuring costs of approximately $0.4 million, which reduced net income attributable to Universal Corporation by approximately $0.3 million and diluted earnings per share by $0.01.