Good evening. My name is Jessica and I will be your Conference Operator for today. At this time I’d like to welcome everyone to the Universal Corporation’s Fiscal 2013 Results Conference Call. (Operator instructions.) Thank you. I would now like to turn the call over to your host Candace Formacek, Vice President and Treasurer. Ma’am, you may begin your conference.

Thank you, Jessica, and thank you for joining us today. 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 telephone taped replay. It will remain on our website through August 5, 2013. If you are listening to this call after that date or if you are 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 failures 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 of the 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-K for the year ended March 31, 2013, which will be filed later this week. 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 fiscal year ended March 31, 2013, was $132.8 million or $4.66 per diluted share and includes restructuring charges of $0.06 per share. Last year’s net income for the same period…

(Operator instructions.) And your first question comes from the line of Ann Gurkin.

Hello everyone. I wanted to start with the outperformance in North America. You did better than our forecasts and I was just curious if there’s anything else in those numbers – timing of shipments, new business wins, efficiency capability in processing? I don’t know, can you comment at all on North America?

Well I think, Ann, what we’ve stated for the quarter is that North America does have better volumes from the larger US crops so you have to take that into consideration. There were higher processing volumes. There was an additional [lift] [ph] from completion of delayed shipments in Central America that were a part of that, too, but there were better results compared with last year.

So the increased processing volume, did you win some new business? Were those some new customers you were adding to your processing in North America?

I’m not sure I can say precisely with that. I mean a lot of our customers are always our customers so it’s difficult to say if there’s particularly a new piece in that.

Okay, great. And then also the Oriental business was a little bit better than we were looking for as well. Was that recovery running a little bit ahead of expectations? Can you comment on that and then on how we should think about the Oriental business for F2014?

Well the Oriental business did see some better margins. They’ve had some lower operating expenses in part due to a lower US Dollar but as well as a part of overhead cost reductions. And there have been some recoveries in the Oriental leaf production as well.

And outlook for F2014?

We’re not providing any specifics on that.

Continued margin improvement given some of the improvements we saw this quarter, is that fair to assume?

I think it’s fair to say things are improving.

We always have that as a goal.

But it didn’t look like the crop size expectations changed in your leaf outlook report, so I was just curious there.

No, because that’s a long lag.

Okay. And then I always ask about cash flow so can you give us any update as to your expected working capital needs for F2013 versus F2014 and expectations for use of cash on the balance sheet, and your strong cash flow generation?

Well, I’ll start, Ann – this is David. A lot of the African crops were smaller and they were completed much earlier than normal, and so with increased crop sizes around the world March 31, 2013, just was sort of an unusually low period for the use of working capital. So we accumulated quite a bit of cash. A lot of that will disappear with the larger crops and the more normal timing this year.

Okay. How about a tax rate we should use for F2014?

Well do bear in mind, we don’t have any permanently reinvested earnings from our [foreign]. Our philosophy is that we’re providing full additional US taxes under the assumption that all of our (inaudible) and profits abroad will be distributed to the United States. So year-in, year-out that tax rate’s going to be somewhere around 35% unless something really unusual happens.

Great. And then I get asked this so I’m just curious, your insight and opinions both on any change in timing of customer orders given the weak volumes continuing in Europe and challenges in Russia and the Philippines and other markets? And then second, any comments on the rapid growth of e-cigarettes and how you might adjust your business for the growth of that segment – any comments on those topics?

Well two things. One, I would say that if anything we’ve seen sort of an increase in the period in which customers are shipping, primarily because I think markets are tightening up. And then on e-cigarettes to date that is really primarily a US phenomenon. We’ll see if it really makes traction. There’s a lot of, there’s some smoke there but I’m not sure there’s fire.

We still feel it’s really too early, Ann, to really make a prediction for us about that. We do, to the extent that there’s any new alternative product using nicotine, tobacco’s the likely source and we do continually evaluate changes in the tobacco industry.

That’s great, I just get asked that so I was just curious. Back to the customer orders, do you think there’s some pull forward of orders into F2013 and F2014 could slow down with some of these market volume challenges?

I don’t know. You know, you see some of our customers have operations in areas where it’s growing so increasingly Europe is becoming less important in the world market.

Okay. And then my last question is can you give us numbers for uncommitted inventories for the industry, Candace?

Yes, our worldwide estimate for the unsold is $29 million, very low.

Wow, okay. That’s the industry?

Yes, it’s very low and we’ve been saying that for a while.

And that may offset that decline in Europe. Things are really tight now.

And in general, Ann, we go into the New Year with low levels of uncommitted stock that we own and carryover shipments from prior crops. Because Africa ended early it’s much, much smaller but we will be dealing with larger crops from the current year. So there probably is a variation in timing from one quarter to the next, it’s just this year versus next year.

Great, congratulations. Thank you all very much.

You’re welcome.

Have a nice evening.

(Operator instructions.) And there are no further questions at this time.

Thank you very much. We appreciate your time today.

This does conclude today’s conference call.