Good afternoon. My name is Kim and I will be conference operator today. At this time I would like to welcome everyone to the Universal Corporation Third Quarter Fiscal Year 2013 Results Conference Call. [Operator Instructions]. Thank you. I would now like to introduce our host, Candace Formacek, Vice President and Treasurer. You may begin your conference.

Thank you, Kim, and thank you for joining us on our call 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 May 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 to such presentations. 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 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-Q for the third 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 nine months ended December 31, 2012, was $106.6 million or $3.75 per diluted share and includes restructuring charges of $0.05 per share. Last year's net income for the same…

[Operator Instructions]. Your first question comes from Ann Gurkin.

Good afternoon.

Hello.

Hi, Ann.

Hi, Ann.

I want to start with volume, a discussion on volume. Not surprising it's weaker this quarter given the timing year-to-date and the tough comp of last year. But is the volume tracking in line with your internal expectations? And as you look into the fourth quarter, how does that volume seem to be tracking versus internal expectations?

Yes, Ann. I think based on what we had said previously, this was not an unexpected result for the quarter.

And as we look into the fourth quarter, how does that volume look?

It's not what we expected -- I suspect -- I mean, so far we're seeing as we expect.

And as we said, we expect our volumes to be down for the fourth quarter.

Sure. So it's not a loss of market share or a loss of business? It's reflecting more --

No.

Kind of comps and timing and -- I'm sorry?

That's right.

Timing and crop size.

Okay. Perfect. And then I guess I was surprised with the loss in the other tobacco segment. Can you comment at all on that? And how should we think about that business in the fourth quarter?

I'm sorry, do you mean the other tobacco operations?

Yes.

Okay. That was actually up for the nine month period.

Yes, but for the quarter it was down.

Yes, for the quarter that's down. Part of that is on timing of shipments that are delayed into the fourth quarter from our Oriental tobacco business.

So, likely to turn a profit then in the fourth quarter?

I don't think we're going to give sort of forward guidance on that, but there was a timing factor that affected this quarter.

Okay. And then tax rate for the year, David? Any help there?

It's pretty much going to be the same as it is for the nine months.

Okay.

We picked up a few benefits on currency effects, on deferred foreign income taxes. So it's a little bit lower than it typically would be.

Okay, great. And then use of your cash build on the balance sheet, I ask this I think every quarter. What is your outlook for share repurchase? Any likelihood you'd increase your pace of share repurchase as we look out the next six to nine months?

Well, Ann, I would say that our cash usage is kind of comparable in terms of our strategy for keeping our balance sheet strong. Also looking at investment opportunities for our business as well as returning to shareholders through share repurchase and dividends. As a reminder, we do see some larger crops and possibly larger pricing in the coming years. So we will continue to use the cash that we have on hand to put back into our working capital in the next year.

Okay. And then --

I mean, cash is a lot higher than it would have been had these crops not been a bit short, and at the time it hadn't come off so quickly in terms of process and shipment.

And then how does the crop look in Brazil right now?

It's early days, but it's sort of looking good to average, better than last year, but it's still a bit early.

But yeah, so far, so good.

Great. Thank you.

Thank you, Ann.

[Operator Instructions]. Your next question comes from Bryan Hunt.

Good afternoon.

Hello.

Hi, Bryan.

Could you, you know, you mentioned you expect the crop size to be bigger next year. Is there any way you can characterize plantings on burley and flue-cured and maybe the growth you expect for the upcoming crop year?

Yes, Bryan, we actually have posted this on our website as well this afternoon, if you want to look there for a bit more detail. In total, our estimates are showing the upcoming crop for flue-cured, this is excluding China, to be up about 6%, and on the burley side, the number is a bit higher because of the particularly low levels last year, up about 28% worldwide.

Okay. And do you believe that brings the industry back into balance or is that -- or are those crop sizes get us in an over-supplied situation again?

No. It's not an over-supply. I mean I think burley is still tight. I think flue-cured quality, flue-cured's tight. I think at least in regards to Africa, it's been very rainy, and again, these are projections but they could come down a little bit. So I think it's sort of trending towards balance but not an over-supply.

And you all mentioned that larger crop and you expect pricing to be up next year as well. With the larger crop, what's the drivers behind that in your opinion? Why would pricing be up with a 6% and a 28% increase in flue and burley?

I don't recall us saying that we thought pricing was up. I think we were saying pricing improved --

Improved in the third quarter relative to last year.

Nine months visa vie fiscal 2012.

Is there any way we can get the court reporter to go back to the transcript? Come on, I was joking. I thought I heard you say larger crop anticipated for the upcoming year and higher pricing. But do you have any understanding or anticipation where pricing is going to be in the upcoming year or is that just too far out in the future at this point?

I think that's probably too far out in the future. I mean, a lot's going to depend on the level of farmer pricing, and we typically pass that through to the customer as opposed to changing the ultimate selling prices.

Got you. And with the tight supplies both on burley and flue-cured, do you anticipate that or do you believe that inventories at the cigarette companies are below average for what they usually try to manage to?

I think that we can state that our uncommitted inventories are generally lower, and those are sort of the inventory levels that are at risk. And of course, a smaller crop this year means that our inventory values are going to be lower for that reason as well.

Okay. And then my last question you are sitting on a lot of cash and it looks like you have some sizable maturities in the next 12 months. What are your plans for refinancing those maturities and/or permanently reducing them?

Well, we're not ready to disclose that right now, but obviously that's something that we're taking a look at and weighing our various options.

I appreciate your time and best of luck.

Thank you.

Thank you, Bryan.

[Operator Instructions]. There are no further questions at this time.

Thank you very much, Kim, and we appreciate everyone joining us.

This concludes today's conference call. You may now disconnect.