Alliance One International Reports Improved Fiscal Year 2016 and Fourth Quarter Earnings

"As we have indicated previously, our plan is to continue reducing long-term debt with surplus cash. During the year we were precluded from purchasing our 9.875% Senior Secured Second Lien Notes due to the challenges in Kenya, with $720.0 million of face value outstanding at year end. Additionally, our liquidity at fiscal yearend remained in line with our internal expectations with available credit lines and cash of $626.3 million, comprised of $199.7 million in cash and $426.6 million of credit lines, excluding $13.1 million exclusively for letters of credit.

"Internal forecasts anticipate improved sales and adjusted EBITDA for fiscal year 2017 when compared to 2016. Consistent with trends over the last several years, we are forecasting increased sales and adjusted EBITDA in the second half of fiscal year 2017 versus the first half of the year. Additionally, during fiscal year 2017 we are targeting approximately $15.0 million of capital expenditures for maintenance and roughly $8.0 million related to rebuilding a warehouse damaged by fire in Zimbabwe that is covered by insurance. 

"Global crop production will decrease further this next year in line with the market tightening in various origins and qualities. We will continue to monitor our customers' evolving requirements and supply chain simplification strategies, while we further strengthen our operations, leverage our improved global footprint and step further up the supply chain. Some manufacturers' partial vertical integration strategies continue to reverse as they seek to gain efficiency benefits and costs savings, while further leveraging compliant leaf merchants' capabilities. These changes present opportunities for growth. We will continue to focus on enhancing best agricultural practices globally and further improve sustainability programs essential to our Company, our customers and the local communities in which we operate. 

Mr. Sikkel, concluded, "Our employees' dedication, professionalism and perseverance through the recent global oversupply conditions and our restructuring initiatives have further positioned our company for success. We believe new growth opportunities are present and we are taking steps required to enhance our position as a preferred supplier to our global, well-positioned customers. Addressing challenges and customer requirements proactively, while executing on our well-measured strategy, is anticipated to increase shareholder value."  

Performance Summary for the Fiscal Year Ended March 31, 2016 

As a result of changes in our results for this year versus last year, operating income increased 107.4% to $201.8 million. Factors that helped to drive improvement included SG&A that improved 9.8% to $123.5 million mainly due to the non-recurrence of reserves for customer receivables in the prior year, decreased compensation costs, lower travel costs and the favorable impact of currency movements that were partially offset by increased legal and professional fees related to the Kenya matter this year. During the fourth quarter this year, we determined that the uncertainty of our ability to maintain a controlling financial interest in our Zimbabwe subsidiary was eliminated and we reconsolidated it as of March 31, 2016.  As a result, we recorded a gain of $106.2 million in other operating income.   

Restructuring and asset impairment charges were $5.9 million in the current year and primarily attributable to impairment of advances to tobacco suppliers and real property in Africa and to changes in certain defined benefit plans as a result of our restructuring initiative that began in the prior fiscal year.  Charges of $9.1 million in the prior year are primarily employee separation charges. 

Total sales and other operating revenues decreased by 7.9% to $1,904.6 million. Certain customers in North America changed their requirements during the current year from processing services to purchases of full service tobaccos.  This shift in requirements resulted in increased volumes, tobacco revenues and tobacco costs which were partially offset by decreased processing revenues and processing costs related to the change in sales terms and weather-related reduced crop sizes when compared with the previous year. However, full service volumes remained consistent with the prior year from reduced requirements in some markets and the timing of shipments in North America and Europe.   Tobacco revenues decreased 6.2% and average sales prices decreased 7.2% due to changes in product mix, the negative impact on pricing resulting from an oversupply of tobacco in the market and lower prices paid to tobacco suppliers in most regions due to a stronger U.S. dollar. 

Gross profit decreased 7.3% to $225.8 million however, gross margin as a percentage of sales remained consistent with the prior year at 11.9%.  Changes in product mix and lower prices paid to tobacco suppliers across all regions partially offset by currency movements reduced tobacco costs overall as well as lowered average tobacco costs on a per kilo basis. 

Interest expense increased 3.5% to $117.2 million from the prior year primarily due to higher amortization of debt costs and higher average borrowings. 

Cash taxes paid increased 25.8% to $20.4 million this year and income tax expense increased 47.0% to $32.2 million, while our effective tax rate was 35.1% this year compared to (245.2)% last year.

Performance Summary for the Fourth Fiscal Quarter Ended March 31, 2016   

Due to changes in our results for the quarter this year when compared to last year's quarter, operating income increased from $36.0 million to $139.7 million. Drivers include reduced restructuring and asset impairment charges of $1.8 million this year primarily attributable to the impairment of equipment in Brazil, while charges of $8.6 million last year were mainly employee separation charges. Additionally, we reconsolidated our Zimbabwe operations as of March 31, 2016 and recorded an associated gain of $106.2 million in other operating income.

Total sales and other operating revenues increased marginally to $732.3 million as increases due to customer requirement changes from processing to full service revenues in North America were partially offset by lower revenues in South America due to lower costs paid to suppliers and the impact of a stronger U.S. dollar. 

Gross profit decreased 5.2% to $72.8 million and gross profit as a percentage of sales declined to 9.9% this year compared to 10.5% last year due primarily to the negative impact of a stronger U.S. dollar. 

SG&A increased 18.7% to $36.6 million primarily as a result of $6.8 million of legal and professional costs related to Kenya. 

Interest expense increased 2.4% to $30.3 million from the prior year primarily due to higher amortization of debt costs and higher average borrowings. 

Income tax expense increased 41.8% to $10.6 million, while our effective tax rate was 9.5% this year compared to 85.8% last year.

Earnings Per Share

Fiscal Year

For the fiscal year ended March 31, 2016, net income was $65.5 million, or $7.38 per basic share, compared to net loss of $27.9 million or $3.16 per basic share for the prior year period. Included in net income this year was $8.6 million of legal and professional costs for the Kenya matter, $106.2 million related to the Zimbabwe reconsolidation and $17.2 million of loss related to Kenya green leaf sourcing, and $5.9 million of restructuring and asset impairment charges. The net loss last year included $12.4 million expense related to reserves for doubtful customer accounts, $9.1 million of restructuring and asset impairment charges and $14.9 million of loss related to Kenyan green leaf sourcing. After adjusting for tax, the net impact of these items positively impacted earnings per basic share by $8.72 this year.

Fourth Quarter

For the fourth quarter ended March 31, 2016, net income was $100.8 million, or $11.33 per basic share, compared to net income of $2.4 million, or $0.27 per basic share, last year. Included in net income for the quarter ended March 31, 2016 was $6.8 million of legal and professional costs for the Kenya matter, $106.2 million related to the Zimbabwe reconsolidation and $5.1 million of loss related to Kenya green leaf sourcing, and $1.8 million of restructuring and asset impairment charges. Net income last year included $8.6 million of restructuring, asset impairment charges and $4.2 million of loss related to Kenyan green leaf sourcing. After adjusting for tax, the net impact of these items positively impacted earnings per basic share by $10.52 this year

Liquidity and Capital Resources

As of March 31, 2016, available credit lines and cash were $626.3 million, comprised of $199.7 million in cash and $426.6 million of credit lines, of which $10.3 million was available under the U.S. revolving credit facility for general corporate purposes and $416.3 million of foreign seasonal credit lines excluding $13.1 million exclusively for letters of credit.

Additionally, in the future, the Company may elect to redeem, repay, make open market purchases, retire or cancel indebtedness prior to stated maturity under its various global bank facilities and outstanding public notes, as they may permit.

Fiscal Year 2016 Financial Results Investor Call

The Company will hold a conference call to report financial results for its fiscal year ended March 31, 2016, on Tuesday, July 12, 2016 at 5:00 P.M. EDT. The dial in number for the call is (877) 591-4951 or outside the U.S. (719) 325-4817 and conference ID 1546616. Those seeking to listen to the call may access a live broadcast on the Alliance One website. Please visit www.aointl.com 15 minutes in advance to register.

For those who are unable to listen to the live event, a replay will be available by telephone from 8:00 P.M. EDT, July 12 through 8:00 P.M. EDT July 17. To access the replay, dial (888) 203-1112 within the U.S., or (719) 457-0820 outside the U.S., and enter access code 1546616. Any replay, rebroadcast, transcript or other reproduction of this conference call, other than the replay accessible by calling the number above, has not been authorized by Alliance One and is strictly prohibited.  Investors should be aware that any unauthorized reproduction of this conference call may not be an accurate reflection of its contents.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. Such statements include, but are not limited to, statements about future financial and operating results, plans, objectives, expectations and intentions and other statements that are not historical facts.  Such statements are based on the current beliefs and expectations of management and are subject to significant risks and uncertainties.  If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results may differ materially from those currently anticipated expected or projected. The following factors, among others, could cause actual results to differ from those expressed or implied by the forward-looking statements:  changes in the timing of anticipated shipments, changes in anticipated geographic product sourcing, political instability, currency and interest rate fluctuations, shifts in the global supply and demand position for tobacco products, changes in or the interpretation of tax laws and regulations, resolution of tax matters, adverse weather conditions, changes in costs incurred in supplying tobacco and related services and the impact of regulation and litigation. Additional factors that could cause AOI's results to differ materially from those expressed or implied by forward-looking statements can be found in AOI's most recent Annual Report on Form 10-K and the other filings with the Securities and Exchange Commission (the "SEC") which are available at the SEC's Internet site (http://www.sec.gov).

About Alliance One International, Inc.

Alliance One is a leading global independent leaf merchant. For more information on Alliance One, visit the Company's website at www.aointl.com.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	Three Months Ended March 31,			Twelve Months Ended March 31,
(in thousands, except per share data)	2016	2015		2016	2015(1)
Sales and other operating revenues	$   732,318	$   731,524		$ 1,904,592	$ 2,066,865
Cost of goods and services sold	659,532	654,752		1,678,798	1,823,366
Gross profit	72,786	76,772		225,794	243,499
Selling, general and administrative expenses	36,561	30,813		123,546	137,020
Other income (expense)	105,302	(1,339)		105,427	(66)
Restructuring and asset impairment charges	1,801	8,618		5,888	9,118
Operating income	139,727	36,001		201,787	97,295
Debt retirement expense (income)	-	(433)		-	(771)
Interest expense	30,279	29,579		117,190	113.273
Interest income	1,685	1,857		7,077 Werbung Mehr Nachrichten zur Alliance One International Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 09:56 - PR Newswire Datang Intnl Pwr Gen - CONNECTED TRANSACTION ANNOUNCEMENT 09:54 - PR Newswire Datang Intnl Pwr Gen - First Quarterly Report of 2024 07:13 - PR Newswire Stellar Asset Management Ltd - Form 8.3 - Equals Group Plc Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59