Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Alliance One International Reports Improved Fiscal Year 2013 Results



     Alliance One International Reports Improved Fiscal Year 2013 Results

PR Newswire

MORRISVILLE, N.C., June 17, 2013

MORRISVILLE, N.C., June 17, 2013 /PRNewswire/ -- Alliance One International,
Inc. (NYSE: AOI) today announced improved operating results for its fiscal
year ended March 31, 2013 driven by revenue and operating income growth.

Fiscal Year Results

For the year ended March 31, 2013, the Company reported net income of $24.0
million, or $0.27 per basic share, compared to net income of $29.5 million, or
$0.34 per basic share last year.

Sales and other operating revenues improved versus last year $93.0 million to
$2,243.8 million consistent with the plan of leveraging the Company's lower
cost position in the markets that it operates. This year cost of goods sold
included $14.3 million of foreign exchange hedging expense primarily due to
significant Brazilian Real depreciation versus the U.S. dollar during the
first quarter, while last year we recognized $6.0 million of income. The $20.3
million cost increase versus last year directly impacted gross profit.
Additionally, monitor expense remained similar to last year and should no
longer impact results after the second quarter next fiscal year and is also
not part of recurring core operating costs.  A portion of cost and efficiency
improvements are evident with an additional $1.8 million decrease in selling,
general and administrative expense to $145.8 million, when compared to last
fiscal year and reduced by $12.2 million since 2011, driven by head count
reduction. Finally, operating income of $160.3 million this year, included
$24.1 million pursuant to a Brazilian excise tax case ruling, compared to
$13.7 million of gains last year, on a Brazilian real property exchange.

Mr. Pieter Sikkel, Chief Executive Officer and President said, "We are
encouraged by our sales improvements this year, however there remain
significant opportunities to improve our performance and we have further
objectives to meet as part of reaching our goals. With South America returning
to a more normal purchasing cycle and delayed shipments from some regions,
inventory at year end was higher than anticipated, but well positioned. Our
global team has pushed hard the last 28 months to deliver our restructuring
plan laid out in December 2010. Our cost structure has improved substantially
and has strengthened our market position, which is clear with sales that have
improved from fiscal year 2011 by $149.7 million. We have evaluated our
financial performance this year compared to last year, focusing on core
operating results versus non-core expense and income.  Understanding that we
have now completed the second crop cycle since we began repositioning our
business, we continue to progress in line with our internal plan and expect
continued improvements as we move forward."

Mr. Sikkel concluded, "Strategic investment remains a primary focus and this
year we deployed $39.9 million to further improve factory efficiencies and
enhance our supply chain. Investment in farmer agronomy programs, which
support secure compliant sustainable supply as embraced by our customers,
continues to be a key component of our plans. Total demand for tobacco, while
shifting, is stable and supply remains tight in burley and higher quality
flavor tobaccos. Our balance sheet is well positioned with inventories at
year-end of $903.9 million and uncommitted inventory well within our stated
range of $50-$150 million.  We are now executing on the next level of our
longer term plan that should further increase volume, revenue and profit
dollars, ultimately delivering enhanced shareholder value."

Performance Summary for Fiscal Year 2013

The following is a brief overview of the Company's financial results for the
year ended March 31, 2013.  For additional information and a more detailed
discussion of these results, please refer to the Annual Report on Form 10-K
filed on June 17, 2013.

Total sales and other operating revenues increased 4.3% to $2,243.8 million
compared to the prior year. Tobacco sales increased $94.1 million primarily
due to higher green costs from smaller crop sizes in Africa and Brazil for the
fiscal 2013 crop, which were passed on to the customer. Processing and other
revenues decreased 1.1% to $95.1 million due to the smaller crop size in
Brazil.

Gross profit decreased slightly 0.9% to $285.2 million and gross profit as a
percentage of sales decreased from 13.4% to 12.7% mainly due to higher
processing costs on a per kilos basis from smaller African crop sizes that
were not fully passed on to the customer. Also impacting gross profit and core
operating results was $14.3 million of foreign exchange hedge expense versus
$6.0 million of income last year, a $20.3 million increase versus the prior
year.

Selling, general and administrative expenses decreased 1.2% to $145.8 million
when compared to the prior year, driven by reduced building rent and
professional fees.

Other income was $20.7 million this year primarily related to a non-cash
benefit of $24.1 million for Brazilian excise taxes based on a court ruling on
March 7, 2013, and $15.7 million of income last year mainly from Brazilian
asset gains related to a real property exchange.

Interest costs increased 7.3% from the prior year related to higher average
borrowings and higher average rates, which reduced pretax results for the year
5.7% to $51.1 million.

Cash taxes paid increased $3.6 million to $20.8 million, while the effective
tax rate increased from 46.2% in 2012 to 54.8% in 2013. Effective rates in
both years vary significantly from the statutory tax rate, due to foreign
income tax rates that are lower than the U.S. rate, exchange rates, changes to
valuation allowance on deferred tax assets and changes in unrecognized tax
benefits.

Liquidity and Capital Resources

As of March 31, 2013, available credit lines and cash were $554.8 million
comprised of $92.0 million in cash and $462.8 million of credit lines
including $10.6 million exclusively for letters of credit, all consistent with
internal expectations.

Fiscal Year 2013 Financial Results Investor Call

The Company will hold a conference call to report financial results for its
fiscal year ended March 31, 2013, on June 18, 2013 at 8:00 A.M. ET. Those
seeking to listen to the call may access a live broadcast on the Alliance One
website. Please visit www.aointl.com fifteen minutes in advance to register.

For those who are unable to listen to the live event, a replay will be
available by telephone from 11:00 A.M. ET Tuesday, June 18 through 11:00 A.M.
ET Sunday, June 23. To access the replay, dial (888) 203-1112 within the U.S.
or (719) 457-0820 outside the U.S., and enter access code 3583583.  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.

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 unknown risks or
uncertainties materialize, actual results may differ materially from current
expectations and projections. The following factors, among others, could cause
actual results to differ from those set forth in the forward-looking
statements:  changes in the timing of anticipated shipments, changes in
anticipated geographic product sourcing, political instability in sourcing
locations, currency and interest rate fluctuations, shifts in the global
supply and demand position for tobacco products, and the impact of regulation
and litigation on customers.  Additional factors that could cause AOI's
results to differ materially from those described in forward-looking
statements can be found in AOI's Annual Reports on Form 10-K and other filings
with the Securities and Exchange Commission (the "SEC") which are available at
the SEC's Internet site (http://www.sec.gov).

STATEMENTS OF CONSOLIDATED OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)        2013             2012
Sales and other operating revenues           $  2,243,816     $  2,150,767
Cost of goods and services sold              1,958,570        1,863,115
Gross profit                                 285,246          287,652
Selling, general and administrative expenses 145,750          147,558
Other income                                 20,721           15,725
Restructuring and asset impairment charges   (55)             1,006
(recoveries)
  Operating income                           160,272          154,813
Debt retirement expense                      1,195            -
Interest expense                             114,557          106,804
Interest income                              6,547            6,149
Income before income taxes and other items   51,067           54,158
Income tax expense                           27,992           25,039
Equity in net income of investee companies   1,637            72
Net income                                   24,712           29,191
  Less:  Net income (loss) attributable to   699              (260)
  noncontrolling interests
Net income attributable to Alliance One      $      24,013    $      29,451
International, Inc.
Other comprehensive income (loss), net of
tax:
  Net income                                 $      24,712    $     29,191
  Currency translation adjustment            (2,802)          (1,546)
  Defined benefit pension amounts,
  reclassified to income net of tax of       (13,717)         (15,324)

  $1,229  in 2013 and $420 in 2012
Total other comprehensive income (loss), net (16,519)         (16,870)
of tax
Total comprehensive income                   8,193            12,321
Comprehensive income (loss) attributable to  699              (260)
noncontrolling interests
Total comprehensive income attributable to   $      7,494     $  12,581
     Alliance One International, Inc.
Earnings Per Share
     Basic                                   $           0.27 $           0.34
     Diluted                                 $           0.25 $           0.30

 

SOURCE Alliance One International, Inc.

Website: http://www.aointl.com
Contact: Joel L. Thomas, (919) 379-4300
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement