Good afternoon. My name is Matthew, and I will be your conference operator today. At this time, I would like to welcome everyone to the Universal Corporation First Quarter Fiscal Year 2013 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. I would now like to turn the call over to your host Ms. Candace Formacek, Ms. Formacek, you may begin?

Thank you, Matthew. Thank you for joining us. George Freeman, our Chairman, President and CEO; and David Moore, our Chief Financial Officer are here with me today. They 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 taped telephone replay. It will remain on our website through November 6, 2012. If you are listening to this call after that date or if you’re reading a transcription, we have not authorized such recording or transcription. It has been made available to you without our permission, review, or approval. We take no responsibility for such presentation. Any transcription inaccuracies or omissions or failure to present available updates are the responsibility of the party who is providing it to you. 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. For information on some other factors that can affect our estimates, I urge you to read our 10-K for the year ended March 31, 2012, as well as the 10-Q for the first fiscal quarter of 2013 which was filed today. The factors that can affect our estimates include such things as customer mandated timing of shipments, weather conditions, political and economic environment, changes in currency, 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. Net income for the first quarter of fiscal year 2013 which ended on June 30 2012 was $23.1 million that is $0.81 per diluted share; last year’s first quarter net income was $15.9 million or $0.52 per diluted share. Last…

[Operator Instructions] And your first question comes from the line of Ann Gurkin.

What a great start to your fiscal year. I wanted to start with a couple of questions about the tobacco crop. If you look at what in referencing your comments about the crop size coming down, what is the risk that crop comes in too small and results in increased fixed-cost absorption?

Where are you talking about Ann, in terms of South America or it is in general for the…

Particularly in South America.

I think that the expectations that we’ve had for the crop or that it was going to be smaller, we try to adjust for those factors as we can.

That’s great.

Significant surprise would be the Malawi burley crops.

That’s right. That’s really I mean the really the only one I see in this fiscal year.

Okay. I mean as you look out towards next year, I’m getting this question, so what is the risk that farmers who switch to grow other crops as you -- as we’ve seen prices first like corn and soybean go up and that gap between tobacco and other crops is narrowing?

I think you will see, Ann, kind of off-hand, think of any crops in any of our markets that are forecasted to come down next year. I think you’ll see expansion next year.

Okay. And then on the…

No, just to add on to that, we are seeing some improvements in the grain prices at some of these levels, which may have enough effect on that as well.

Okay, great. And then, in terms of the U.S. crop, is there a delay in harvesting that crop?

No. I think there was some damage in Georgia, which is not earlier this summer, but that’s not a big volume down there, I think in general.

Our crop estimates are showing that level coming back to the pre-hurricane levels that we had predicted before.

And it was hot and dry, but they got some good rains throughout the summer in North Carolina.

In terms of harvesting, it’s not delayed at this point, thanks.

Yes. Not to my knowledge.

Okay. I mean, I see the nice build in cash on the balance sheet, can you comment at all what the priorities, use for that cash?

Well, we are always look first for opportunities in our own business, and we’ll look at return to the shareholder to the extent we have funds. We don’t think we can redeploy. But we typically take a harder look at that in the fall.

All right. And then SG&A came down nicely in the first quarter, can you help me as to how I should I think about SG&A for the full year?

Well, we really don’t give guidance on that. Ann, I think when you look at some of the items that are in there, some of them are things that you may see in the future or may not. We do have currency re-measurement exchange effects that are in there those are really not predictable per se, there are also some lower provisions on receivables from suppliers and lower compensation expenses, in part some of the lower compensation expense is connected to some of our cost saving work in the past year.

Some of it’s variable selling type expenses; it will swing around a bit based on what shipped in the fourth quarter versus what carried into the first.

I shouldn’t take the first quarter number and annualize it?

It’s really hard to comment on, but I don’t know that I would do that.

Okay, and then what tax rate should we use for the year?

Ann, at this point, I would think it would fall somewhere between 33%, 34%, little bit below the statutory, but nothing dramatic.

Okay. And then my last question, you can’t achieve a worldwide uncommitted lease number, not in just Universal, but for the whole industry?

I don’t know.

I don’t think we can, Ann.

I don’t think, but I would think it’s down.

We had 85 million kilos, so it’s probably dropped below that now, is that fair, sort of flue-cured and burley inventory?

Yes, I don’t have the absolute numbers. I think the fact that it would be trending downward would certainly be logically correct.

Okay. And then one more thing, I’m sorry. We had a pretty modest expectation built in for the oriental business this year, is that still a fair assessment or things maybe a little bit better in that business?

I think Ann, that business as we’ve said is going to take a little bit longer to recover, because of the 2 [ph] cycle.

It’s moving in the right direction, but it will take a while.

[Operator Instructions] And there are no further audio questions at this time.

Very good. Thank you, Matthew. Thank you, everyone for joining us today.

Have a nice afternoon.

This concludes today’s teleconference. You may now disconnect.