Universal Corporation (UVV) has reported 12.46 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $25.26 million, or $0.90 a share in the quarter, compared with $22.46 million, or $0.81 a share for the same period last year.
Revenue during the quarter went up marginally by 0.12 percent to $456.94 million from $456.38 million in the previous year period. Gross margin for the quarter contracted 227 basis points over the previous year period to 19.22 percent. Total expenses were 90.52 percent of quarterly revenues, down from 91.83 percent for the same period last year. This has led to an improvement of 131 basis points in operating margin to 9.48 percent.
Operating income for the quarter was $43.33 million, compared with $37.28 million in the previous year period.
George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation (NYSE:UVV), reported that net income for the first half of fiscal year 2017, which ended on September 30, 2016, was $19.8 million, or $0.54 per diluted share, compared with $16.5 million, or $0.40 per diluted share for the same period last year. Operating income for the six months ended September 30, 2016, of $35.3 million increased by $3.3 million compared to the first half of the prior year. For the second fiscal quarter ended September 30, 2016, net income was $25.3 million, or $0.90 per diluted share, compared with net income for the prior year’s second quarter of $22.5 million, or $0.81 per diluted share. Operating income for the quarter ended September 30, 2016, increased by $6.0 million to $43.3 million from $37.3 million for the three months ended September 30, 2015. Segment operating income for the first half of fiscal year 2017 was $40.1 million, an increase of $5.5 million, and for the quarter ended September 30, 2016, was $48.3 million, an increase of $10.1 million, both compared to the same periods last fiscal year. Those increases resulted primarily from earnings improvements in the North America and the Other Tobacco Operations segments, offset in part by declines in the Other Regions segment. Consolidated revenues increased by $20.6 million to $752.4 million for the first half of fiscal year 2017, and by $0.6 million to $456.9 million for the three months ended September 30, 2016, compared to the same periods in the prior year, mostly as a result of modestly higher volumes, partly offset by lower revenues on the timing of receipt of dividend income from unconsolidated subsidiaries.
Operating cash flow turns positive
Universal Corporation has generated cash of $22.42 million from operating activities during the first half as against cash outgo of $141.77 million in the last year period. The company has spent $17.12 million cash to meet investing activities during the first six months as against cash outgo of $27.30 million in the last year period. It has incurred net capital expenditure of $17.12 million on net basis during the first six months, down 37.29 percent or $10.18 million from year ago period.
The company has spent $29.78 million cash to carry out financing activities during the first six months as against cash outgo of $10.38 million in the last year period.
Cash and cash equivalents stood at $294.89 million as on Sep. 30, 2016, up 327.57 percent or $225.92 million from $68.97 million on Sep. 30, 2015.
Working capital increases marginally
Universal Corporation has recorded an increase in the working capital over the last year. It stood at $1,379.39 million as at Sep. 30, 2016, up 2.12 percent or $28.68 million from $1,350.70 million on Sep. 30, 2015. Current ratio was at 6.27 as on Sep. 30, 2016, up from 5.05 on Sep. 30, 2015.
Days sales outstanding went down to 68 days for the quarter compared with 73 days for the same period last year.
Days inventory outstanding has decreased to 114 days for the quarter compared with 267 days for the previous year period.
Debt comes down marginally
Universal Corporation has recorded a decline in total debt over the last one year. It stood at $439.56 million as on Sep. 30, 2016, down 3.24 percent or $14.74 million from $454.30 million on Sep. 30, 2015. Total debt was 19.81 percent of total assets as on Sep. 30, 2016, compared with 20.16 percent on Sep. 30, 2015. Debt to equity ratio was at 0.31 as on Sep. 30, 2016, down from 0.33 as on Sep. 30, 2015. Interest coverage ratio improved to 9.99 for the quarter from 9.53 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
