UNAUDITED QUARTERLY FINANCIAL DATA

Unaudited quarterly financial data for the fiscal years ended March 31, 2017 and 2016 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, 2017
Operating Results:
Sales and other operating revenues	$	295,475		$	456,942	$	668,771	$	650,030
Gross profit	52,197			87,844		135,453		119,185
Net income (loss)	(7,504		)	26,498		57,062		36,450
Net income (loss) attributable to Universal Corporation	(5,476		)	25,264		53,647		32,869
Earnings (loss) available to Universal Corporation common shareholders after dividends on convertible perpetual preferred stock	(9,163		)	21,577		49,960		(41,484		)
Earnings (loss) per share attributable to Universal Corporation common shareholders:
Basic	(0.40		)	0.95		2.17		(1.64		)
Diluted	(0.40		)	0.90		1.92		(1.64		)
Cash Dividends Declared:
Per share of convertible perpetual preferred stock	16.88			16.87		16.88		—
Per share of common stock	0.53			0.53		0.54		0.54
Market Price Range of Common Stock:
High	57.75			61.69		64.20		83.35
Low	52.26			55.29		52.40		63.30

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


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, 2017

•

Second Quarter – Restructuring and impairment costs totaling $3.7 million, primarily related to the Company's decision to close its tobacco processing facility in Hungary. The Company is now processing tobaccos sourced from Hungary in its factories in Italy. The costs incurred for the change in operations in Hungary included statutory employee termination benefits and impairment charges related to certain property and equipment. Those costs reduced net income attributable to Universal Corporation by $2.4 million and diluted earnings per share by $0.09.

•

Fourth Quarter – The conversion of 107,418 shares of the Company's Series B 6.75% Convertible Perpetual Preferred Stock for cash resulted in a one-time reduction of retained earnings of approximately $74.4 million during the quarter ending March 31, 2017, representing the excess of the conversion cost over the carrying value of those preferred shares. The reduction in retained earnings resulted in a corresponding one-time reduction of earnings available to common shareholders for purposes of determining the amounts reported for basic and diluted earnings per share for those periods. The reduction in earnings available to common shareholders decreased diluted earnings per share for the quarter by $2.90.

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.