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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Alliance One International, Inc. | NYSE:AOI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 23.95 | 0 | 01:00:00 |
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FORM 10-Q
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Virginia
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001-13684
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54-1746567
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________________
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_____________________________
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____________________
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer
Identification No.) |
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Alliance One International, Inc. and Subsidiaries
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Table of Contents
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Page No.
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Part I.
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Item 1.
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Financial Statements (Unaudited)
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Three and Nine Months Ended December 31, 2017 and 2016
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Three and Nine Months Ended December 31, 2017 and 2016
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December 31, 2017 and 2016 and March 31, 2017
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Nine Months Ended December 31, 2017 and 2016
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Nine Months Ended December 31, 2017 and 2016
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Item 2.
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of Financial Condition and Results of Operations
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Item 3.
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Item 4.
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Part II.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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|||
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December 31, 2017
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December 31, 2016
|
March 31, 2017
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||||||
Amounts guaranteed (not to exceed)
|
$
|
165,333
|
|
$
|
184,096
|
|
$
|
194,656
|
|
Amounts outstanding under guarantee
|
96,154
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|
86,218
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|
106,465
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|
|||
Fair value of guarantees
|
2,913
|
|
4,759
|
|
7,126
|
|
|
December 31, 2017
|
|
March 31, 2017
|
|||||||||||||||||||||||
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Weighted Average Remaining Useful Life
|
Gross Carrying Amount
|
Additions
|
Accumulated Amortization
|
Intangible Assets, Net
|
|
Gross Carrying Amount
|
Additions
|
Accumulated Amortization
|
Intangible Assets, Net
|
||||||||||||||||
Intangibles subject to amortization:
|
|
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|
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|
||||||||||||||||
Customer relationship intangible
|
11.08 years
|
$
|
58,530
|
|
$
|
—
|
|
$
|
(24,170
|
)
|
$
|
34,360
|
|
|
$
|
58,530
|
|
$
|
—
|
|
$
|
(21,664
|
)
|
$
|
36,866
|
|
Production and supply contract intangibles
|
3.91 years
|
14,893
|
|
—
|
|
(8,343
|
)
|
6,550
|
|
|
14,893
|
|
—
|
|
(7,043
|
)
|
7,850
|
|
||||||||
Internally developed software intangible
|
1.97 years
|
18,581
|
|
—
|
|
(17,654
|
)
|
927
|
|
|
18,502
|
|
79
|
|
(17,161
|
)
|
1,420
|
|
||||||||
Intangibles not subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Goodwill
(1)
|
|
16,463
|
|
—
|
|
—
|
|
16,463
|
|
|
16,463
|
|
—
|
|
—
|
|
16,463
|
|
||||||||
Total
|
|
$
|
108,467
|
|
$
|
—
|
|
$
|
(50,167
|
)
|
$
|
58,300
|
|
|
$
|
108,388
|
|
$
|
79
|
|
$
|
(45,868
|
)
|
$
|
62,599
|
|
For Fiscal
Years Ended |
Customer
Relationship Intangible |
Production
and Supply Contract Intangible |
Internally
Developed Software Intangible* |
Total
|
||||||||
January 1, 2018 through March 31, 2018
|
$
|
835
|
|
$
|
191
|
|
$
|
154
|
|
$
|
1,180
|
|
2019
|
3,340
|
|
1,467
|
|
427
|
|
5,234
|
|
||||
2020
|
3,340
|
|
1,401
|
|
247
|
|
4,988
|
|
||||
2021
|
3,340
|
|
1,397
|
|
86
|
|
4,823
|
|
||||
2022
|
3,340
|
|
1,397
|
|
13
|
|
4,750
|
|
||||
Later
|
20,165
|
|
697
|
|
—
|
|
20,862
|
|
||||
|
$
|
34,360
|
|
$
|
6,550
|
|
$
|
927
|
|
$
|
41,837
|
|
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
||||||||||
|
2017
|
2016
|
2017
|
2016
|
||||||||
Sales and other operating revenues:
|
|
|
|
|
||||||||
North America
|
$
|
120,689
|
|
$
|
108,869
|
|
$
|
245,307
|
|
$
|
217,629
|
|
Other regions
|
357,094
|
|
345,666
|
|
956,808
|
|
887,431
|
|
||||
Total revenue
|
$
|
477,783
|
|
$
|
454,535
|
|
$
|
1,202,115
|
|
$
|
1,105,060
|
|
|
|
|
|
|
||||||||
Operating income:
|
|
|
|
|
||||||||
North America
|
$
|
7,340
|
|
$
|
5,685
|
|
$
|
13,463
|
|
$
|
8,366
|
|
Other regions
|
32,555
|
|
32,969
|
|
64,639
|
|
43,457
|
|
||||
Total operating income
|
39,895
|
|
38,654
|
|
78,102
|
|
51,823
|
|
||||
Debt retirement expense (benefit)
|
—
|
|
2,339
|
|
(2,975
|
)
|
2,339
|
|
||||
Interest expense
|
33,222
|
|
35,129
|
|
100,079
|
|
97,635
|
|
||||
Interest income
|
601
|
|
1,845
|
|
2,295
|
|
5,888
|
|
||||
Income (loss) before income taxes and other items
|
$
|
7,274
|
|
$
|
3,031
|
|
$
|
(16,707
|
)
|
$
|
(42,263
|
)
|
|
December 31, 2017
|
December 31, 2016
|
March 31, 2017
|
||||||
Segment assets:
|
|
|
|
||||||
North America
|
$
|
495,950
|
|
$
|
465,925
|
|
$
|
375,782
|
|
Other regions
|
1,558,238
|
|
1,570,390
|
|
1,596,090
|
|
|||
Total assets
|
$
|
2,054,188
|
|
$
|
2,036,315
|
|
$
|
1,971,872
|
|
|
Three Months Ended December 31,
|
|
Nine Months Ended December 31,
|
|||||||||||||
(in thousands, except per share data)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
Basic Earnings (Loss)
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Alliance One International, Inc.
|
$
|
88,456
|
|
|
$
|
(15,457
|
)
|
|
$
|
56,936
|
|
|
$
|
(62,620
|
)
|
|
Shares
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares outstanding
|
9,001
|
|
|
8,941
|
|
|
8,982
|
|
|
8,923
|
|
|
||||
Basic Earnings (Loss) Per Share
|
$
|
9.83
|
|
|
$
|
(1.73
|
)
|
|
$
|
6.34
|
|
|
$
|
(7.02
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted Earnings (Loss)
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Alliance One International, Inc.
|
$
|
88,456
|
|
|
$
|
(15,457
|
)
|
|
$
|
56,936
|
|
|
$
|
(62,620
|
)
|
|
Shares
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding
|
9,001
|
|
|
8,941
|
|
|
8,982
|
|
|
8,923
|
|
|
||||
Plus: Restricted shares issued and shares applicable to stock options and restricted stock units, net of shares assumed to be purchased from proceeds at average market price
|
28
|
|
|
—
|
|
*
|
27
|
|
|
—
|
|
*
|
||||
Adjusted weighted average number of common shares outstanding
|
9,029
|
|
|
8,941
|
|
|
9,009
|
|
|
8,923
|
|
|
||||
Diluted Earnings (Loss) Per Share
|
$
|
9.80
|
|
|
$
|
(1.73
|
)
|
|
$
|
6.32
|
|
|
$
|
(7.02
|
)
|
|
* All outstanding restricted shares and shares applicable to stock options and restricted stock units are excluded because their inclusion would have an antidilutive effect on the loss per share.
|
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
||||||||||
(in thousands, except grant date fair value)
|
2017
|
2016
|
2017
|
2016
|
||||||||
Restricted Stock
|
|
|
|
|
||||||||
Number Granted
|
7
|
|
8
|
|
22
|
|
21
|
|
||||
Grant Date Fair Value
|
$
|
13.25
|
|
$
|
19.20
|
|
$
|
12.85
|
|
$
|
18.15
|
|
Restricted Stock Units
|
|
|
|
|
||||||||
Number Granted
|
—
|
|
—
|
|
57
|
|
56
|
|
||||
Grant Date Fair Value
|
$
|
—
|
|
$
|
—
|
|
$
|
11.75
|
|
$
|
17.76
|
|
Performance-Based Stock Units
|
|
|
|
|
||||||||
Number Granted
|
—
|
|
—
|
|
29
|
|
28
|
|
||||
Grant Date Fair Value
|
$
|
—
|
|
$
|
—
|
|
$
|
11.75
|
|
$
|
17.76
|
|
|
Pension Benefits
|
|||||||||||
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
||||||||||
|
2017
|
2016
|
2017
|
2016
|
||||||||
Service cost
|
$
|
116
|
|
$
|
120
|
|
$
|
349
|
|
$
|
360
|
|
Interest expense
|
1,063
|
|
1,176
|
|
3,189
|
|
3,528
|
|
||||
Expected return on plan assets
|
(1,264
|
)
|
(1,403
|
)
|
(3,793
|
)
|
(4,209
|
)
|
||||
Amortization of prior service cost
|
10
|
|
10
|
|
31
|
|
30
|
|
||||
Actuarial loss
|
511
|
|
524
|
|
1,533
|
|
1,572
|
|
||||
Settlement loss
|
—
|
|
1,120
|
|
—
|
|
1,120
|
|
||||
Net periodic pension cost
|
$
|
436
|
|
$
|
1,547
|
|
$
|
1,309
|
|
$
|
2,401
|
|
|
Other Postretirement Benefits
|
|||||||||||
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
||||||||||
|
2017
|
2016
|
2017
|
2016
|
||||||||
Service cost
|
$
|
3
|
|
$
|
3
|
|
$
|
10
|
|
$
|
9
|
|
Interest expense
|
85
|
|
67
|
|
254
|
|
201
|
|
||||
Amortization of prior service cost
|
(178
|
)
|
(177
|
)
|
(533
|
)
|
(531
|
)
|
||||
Actuarial loss
|
115
|
|
104
|
|
345
|
|
312
|
|
||||
Net periodic pension cost (benefit)
|
$
|
25
|
|
$
|
(3
|
)
|
$
|
76
|
|
$
|
(9
|
)
|
|
December 31, 2017
|
|
December 31, 2016
|
|
March 31, 2017
|
||||||
Processed tobacco
|
$
|
786,227
|
|
|
$
|
716,743
|
|
|
$
|
424,984
|
|
Unprocessed tobacco
|
98,800
|
|
|
102,668
|
|
|
220,625
|
|
|||
Other
|
20,653
|
|
|
25,722
|
|
|
32,716
|
|
|||
Total inventory
|
$
|
905,680
|
|
|
$
|
845,133
|
|
|
$
|
678,325
|
|
|
December 31,
|
December 31,
|
March 31,
|
||||||
|
2017
|
2016
|
2017
|
||||||
Currency translation adjustments
|
$
|
(15,476
|
)
|
$
|
(21,434
|
)
|
$
|
(22,293
|
)
|
Pensions, net of tax
|
(35,278
|
)
|
(37,300
|
)
|
(36,654
|
)
|
|||
Derivatives, net of tax
|
(999
|
)
|
—
|
|
(1,100
|
)
|
|||
Total accumulated other comprehensive losses
|
$
|
(51,753
|
)
|
$
|
(58,734
|
)
|
$
|
(60,047
|
)
|
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
||||||||||
|
2017
|
2016
|
2017
|
2016
|
||||||||
Pension and postretirement plans
*
:
|
|
|
|
|
||||||||
Actuarial loss
|
$
|
626
|
|
$
|
628
|
|
$
|
1,878
|
|
$
|
1,883
|
|
Amortization of prior service cost
|
(167
|
)
|
(167
|
)
|
(502
|
)
|
(501
|
)
|
||||
Settlement loss
|
—
|
|
1,120
|
|
—
|
|
1,120
|
|
||||
Amounts reclassified from accumulated other comprehensive losses to net income
|
$
|
459
|
|
$
|
1,581
|
|
$
|
1,376
|
|
$
|
2,502
|
|
|
December 31,
|
March 31,
|
|||||||
|
2017
|
2016
|
2017
|
||||||
Receivables outstanding in facility
|
$
|
125,581
|
|
$
|
108,464
|
|
$
|
200,084
|
|
Beneficial interest
|
26,272
|
|
21,081
|
|
38,206
|
|
|||
Servicing liability
|
55
|
|
45
|
|
101
|
|
|||
|
|
|
|
||||||
Cash proceeds for the nine months ended December 31:
|
|
|
|
||||||
Cash purchase price
|
$
|
402,402
|
|
$
|
416,754
|
|
$
|
648,730
|
|
Deferred purchase price
|
183,610
|
|
180,879
|
|
231,658
|
|
|||
Service fees
|
359
|
|
400
|
|
492
|
|
|||
Total
|
$
|
586,371
|
|
$
|
598,033
|
|
$
|
880,880
|
|
•
|
Level 1 - Quoted prices for identical assets or liabilities in active markets.
|
•
|
Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
|
•
|
Level 3 - Significant inputs to the valuation model are unobservable.
|
|
December 31, 2017
|
|
December 31, 2016
|
|
March 31, 2017
|
||||||||||||||||||||||||
|
|
Total Assets /
|
|
|
|
Total Assets /
|
|
|
|
Total Assets /
|
|||||||||||||||||||
|
|
Liabilities
|
|
|
|
Liabilities
|
|
|
|
Liabilities
|
|||||||||||||||||||
|
Level 2
|
Level 3
|
at Fair Value
|
|
Level 2
|
Level 3
|
at Fair Value
|
|
Level 2
|
Level 3
|
at Fair Value
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Derivative financial instruments
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
943
|
|
$
|
—
|
|
$
|
943
|
|
Securitized beneficial interests
|
—
|
|
26,272
|
|
26,272
|
|
|
—
|
|
21,081
|
|
21,081
|
|
|
—
|
|
38,206
|
|
38,206
|
|
|||||||||
Total assets
|
$
|
—
|
|
$
|
26,272
|
|
$
|
26,272
|
|
|
$
|
—
|
|
$
|
21,081
|
|
$
|
21,081
|
|
|
$
|
943
|
|
$
|
38,206
|
|
$
|
39,149
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Long-term debt
|
$
|
877,647
|
|
$
|
—
|
|
$
|
877,647
|
|
|
$
|
901,076
|
|
$
|
—
|
|
$
|
901,076
|
|
|
$
|
867,825
|
|
$
|
—
|
|
$
|
867,825
|
|
Guarantees
|
—
|
|
2,913
|
|
2,913
|
|
|
—
|
|
4,759
|
|
4,759
|
|
|
—
|
|
7,126
|
|
7,126
|
|
|||||||||
Total liabilities
|
$
|
877,647
|
|
$
|
2,913
|
|
$
|
880,560
|
|
|
$
|
901,076
|
|
$
|
4,759
|
|
$
|
905,835
|
|
|
$
|
867,825
|
|
$
|
7,126
|
|
$
|
874,951
|
|
•
|
Debt: The fair value of debt is based on the market price for similar financial instruments or model-derived valuations whose inputs are observable. The primary inputs to the valuation include market expectations, the Company's credit risk, and the contractual terms of the debt instrument.
|
•
|
Derivatives: The fair value of derivatives is based on the discounted cash flow analysis of the expected future cash flows. The primary inputs to the valuation include forward yield curves, implied volatilities, LIBOR rates, and credit valuation adjustments.
|
•
|
Guarantees: The fair value of guarantees is based on the discounted cash flow analysis of the expected future cash flows or historical loss rates. The primary inputs to the discounted cash flow analysis include market interest rates ranging between
15.0%
and
35.0%
and the Company’s historical loss rates ranging between
2.6%
and
8.9%
as of
December 31, 2017
.
|
•
|
Securitized beneficial interests: The fair value of securitized beneficial interests is based on the present value of future expected cash flows. The primary inputs to this valuation include payment speeds of
67 to 85 days
and discount rates of
3.2% to 4.0%
as of
December 31, 2017
.
|
|
Three Months Ended December 31, 2017
|
Nine Months Ended December 31, 2017
|
||||||||||
|
Securitized Beneficial Interests
|
Guarantees
|
Securitized Beneficial Interests
|
Guarantees
|
||||||||
Beginning balance
|
$
|
23,668
|
|
$
|
2,770
|
|
$
|
38,206
|
|
$
|
7,126
|
|
Issuances of guarantees/sales of receivables
|
66,496
|
|
1,128
|
|
177,259
|
|
3,193
|
|
||||
Settlements
|
(62,407
|
)
|
(993
|
)
|
(186,582
|
)
|
(6,946
|
)
|
||||
(Losses) gains recognized in earnings
|
(1,485
|
)
|
8
|
|
(2,611
|
)
|
(460
|
)
|
||||
Ending balance, December 31, 2017
|
$
|
26,272
|
|
$
|
2,913
|
|
$
|
26,272
|
|
$
|
2,913
|
|
|
Three Months Ended December 31, 2016
|
Nine Months Ended December 31, 2016
|
||||||||||
|
Securitized Beneficial Interest
|
Guarantees
|
Securitized Beneficial Interest
|
Guarantees
|
||||||||
Beginning balance
|
$
|
29,371
|
|
$
|
4,467
|
|
$
|
40,368
|
|
$
|
7,350
|
|
Issuances of guarantees/sales of receivables
|
61,371
|
|
1,272
|
|
164,228
|
|
5,397
|
|
||||
Settlements
|
(68,503
|
)
|
(980
|
)
|
(181,230
|
)
|
(7,960
|
)
|
||||
Losses recognized in earnings
|
(1,158
|
)
|
—
|
|
(2,285
|
)
|
(28
|
)
|
||||
Ending balance, December 31, 2016
|
$
|
21,081
|
|
$
|
4,759
|
|
$
|
21,081
|
|
$
|
4,759
|
|
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
||||||||||
|
2017
|
2016
|
2017
|
2016
|
||||||||
Sales
|
$
|
447
|
|
$
|
383
|
|
$
|
23,503
|
|
$
|
39,303
|
|
Purchases
|
35,563
|
|
11,687
|
|
73,500
|
|
39,231
|
|
Condensed Consolidated Statement of Operations and Supplemental Information
|
||||||||||||||||||||||||||||||
|
Three Months Ended December 31,
|
|
Nine Months Ended December 31,
|
|
||||||||||||||||||||||||||
(in millions, except per kilo amounts)
|
|
|
Change
|
|
|
|
|
Change
|
|
|
|
|||||||||||||||||||
(percentage change is calculated based on thousands
)
|
2017
|
|
|
$
|
|
|
%
|
|
|
2016
|
|
|
2017
|
|
|
$
|
|
|
%
|
|
|
2016
|
|
|
||||||
Kilos sold
|
102.5
|
|
|
0.9
|
|
|
0.9
|
|
|
101.6
|
|
|
255.8
|
|
|
4.2
|
|
|
1.7
|
|
|
251.6
|
|
|
||||||
Tobacco sales and other operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales and other operating revenues
|
$
|
459.1
|
|
|
$
|
25.0
|
|
|
5.8
|
|
|
$
|
434.1
|
|
|
$
|
1,129.5
|
|
|
$
|
95.5
|
|
|
9.2
|
|
|
$
|
1,034.0
|
|
|
Average price per kilo
|
4.48
|
|
|
0.21
|
|
|
4.9
|
|
|
4.27
|
|
|
4.42
|
|
|
0.31
|
|
|
7.5
|
|
|
4.11
|
|
|
||||||
Processing and other revenues
|
18.7
|
|
|
(1.7
|
)
|
|
(8.3
|
)
|
|
20.4
|
|
|
72.6
|
|
|
1.5
|
|
|
2.1
|
|
|
71.1
|
|
|
||||||
Total sales and other operating revenues
|
477.8
|
|
|
23.3
|
|
|
5.1
|
|
|
454.5
|
|
|
1,202.1
|
|
|
97.0
|
|
|
8.8
|
|
|
1,105.1
|
|
|
||||||
Tobacco cost of goods sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Tobacco costs
|
365.6
|
|
|
2.2
|
|
|
0.6
|
|
|
363.4
|
|
|
918.4
|
|
|
60.4
|
|
|
7.0
|
|
|
858.0
|
|
|
||||||
Transportation, storage and other period costs
|
24.9
|
|
|
7.3
|
|
|
41.5
|
|
|
17.6
|
|
|
60.3
|
|
|
6.6
|
|
|
12.3
|
|
|
53.7
|
|
|
||||||
Derivative financial instrument and exchange losses (gains)
|
(0.2
|
)
|
|
6.3
|
|
|
96.9
|
|
|
(6.5
|
)
|
|
4.6
|
|
|
13.3
|
|
|
152.9
|
|
|
(8.7
|
)
|
|
||||||
Total tobacco cost of goods sold
|
390.3
|
|
|
15.8
|
|
|
4.2
|
|
|
374.5
|
|
|
983.3
|
|
|
80.3
|
|
|
8.9
|
|
|
903.0
|
|
|
||||||
Average cost per kilo
|
3.81
|
|
|
0.12
|
|
|
3.3
|
|
|
3.69
|
|
|
3.84
|
|
|
0.25
|
|
|
7.0
|
|
|
3.59
|
|
|
||||||
Processing and other revenues cost of services sold
|
14.0
|
|
|
(0.8
|
)
|
|
(5.4
|
)
|
|
14.8
|
|
|
47.3
|
|
|
(5.3
|
)
|
|
(10.1
|
)
|
|
52.6
|
|
|
||||||
Total cost of goods and services sold
|
404.3
|
|
|
15.0
|
|
|
3.9
|
|
|
389.3
|
|
|
1,030.6
|
|
|
75.0
|
|
|
7.9
|
|
|
955.6
|
|
|
||||||
Gross profit
|
73.5
|
|
|
8.3
|
|
|
12.8
|
|
|
65.2
|
|
|
171.5
|
|
|
22.0
|
|
|
14.7
|
|
|
149.5
|
|
|
||||||
Selling, general and administrative expenses
|
34.6
|
|
|
5.9
|
|
|
20.5
|
|
|
28.7
|
|
|
103.3
|
|
|
2.4
|
|
|
2.3
|
|
|
100.9
|
|
|
||||||
Other income, net
|
1.0
|
|
|
(1.7
|
)
|
|
(62.1
|
)
|
|
2.7
|
|
|
9.9
|
|
|
5.6
|
|
|
129.9
|
|
|
4.3
|
|
|
||||||
Restructuring and asset impairment charges
|
—
|
|
|
(0.5
|
)
|
|
(100.0
|
)
|
|
0.5
|
|
|
—
|
|
|
(1.1
|
)
|
|
(100.0
|
)
|
|
1.1
|
|
|
||||||
Operating income
|
39.9
|
|
|
1.2
|
|
|
3.2
|
|
|
38.7
|
|
|
78.1
|
|
|
26.3
|
|
|
50.7
|
|
|
51.8
|
|
|
||||||
Debt retirement expense (income)
|
—
|
|
|
(2.3
|
)
|
|
(100.0
|
)
|
|
2.3
|
|
|
(3.0
|
)
|
|
(5.3
|
)
|
|
(227.2
|
)
|
|
2.3
|
|
|
||||||
Interest expense
|
33.2
|
|
|
(1.9
|
)
|
|
(5.4
|
)
|
|
35.1
|
|
|
100.1
|
|
|
2.5
|
|
|
2.5
|
|
|
97.6
|
|
|
||||||
Interest income
|
0.6
|
|
|
(1.2
|
)
|
|
(67.4
|
)
|
|
1.8
|
|
|
2.3
|
|
|
(3.6
|
)
|
|
(61.0
|
)
|
|
5.9
|
|
|
||||||
Income tax expense (benefit)
|
(73.3
|
)
|
|
(94.3
|
)
|
|
(449.3
|
)
|
|
21.0
|
|
|
(66.2
|
)
|
|
(87.0
|
)
|
|
(418.8
|
)
|
|
20.8
|
|
|
||||||
Equity in net income (loss) of investee companies
|
7.8
|
|
|
5.4
|
|
|
230.5
|
|
|
2.4
|
|
|
7.1
|
|
|
6.8
|
|
|
2,355.5
|
|
|
0.3
|
|
|
||||||
Loss attributable to noncontrolling interests
|
(0.1
|
)
|
|
—
|
|
|
(5.8
|
)
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|
(127.6
|
)
|
|
(0.1
|
)
|
|
||||||
Income (loss) attributable to Alliance One International, Inc.
|
$
|
88.5
|
|
|
$
|
104.0
|
|
*
|
672.3
|
|
|
$
|
(15.5
|
)
|
*
|
$
|
56.9
|
|
|
$
|
119.5
|
|
|
190.9
|
|
|
$
|
(62.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
* Amounts do not equal column totals due to rounding
|
|
|
|
|
|
|
|
|
|
North America Region Supplemental Information
|
||||||||||||||
|
Three Months Ended December 31,
|
|||||||||||||
(in millions, except per kilo amounts)
|
|
|
Change
|
|
|
|||||||||
(percentage change is calculated based on thousands)
|
2017
|
|
|
$
|
|
|
%
|
|
|
2016
|
|
|||
Kilos sold
|
16.2
|
|
|
1.1
|
|
|
7.3
|
|
|
15.1
|
|
|||
Tobacco sales and other operating revenues:
|
|
|
|
|
|
|
|
|||||||
Sales and other operating revenues
|
$
|
102.9
|
|
|
$
|
10.5
|
|
|
11.4
|
|
|
$
|
92.4
|
|
Average price per kilo
|
6.35
|
|
|
0.23
|
|
|
3.8
|
|
|
6.12
|
|
|||
Processing and other revenues
|
17.8
|
|
|
1.4
|
|
|
8.5
|
|
|
16.4
|
|
|||
Total sales and other operating revenues
|
120.7
|
|
|
11.9
|
|
|
10.9
|
|
|
108.8
|
|
|||
Tobacco cost of goods sold:
|
|
|
|
|
|
|
|
|||||||
Tobacco costs
|
90.9
|
|
|
8.8
|
|
|
10.7
|
|
|
82.1
|
|
|||
Transportation, storage and other period costs
|
4.1
|
|
|
(1.0
|
)
|
|
(19.6
|
)
|
|
5.1
|
|
|||
Derivative financial instrument and exchange (gains) losses
|
(0.7
|
)
|
|
(0.3
|
)
|
|
(75.0
|
)
|
|
(0.4
|
)
|
|||
Total tobacco cost of goods sold
|
94.3
|
|
|
7.5
|
|
|
8.6
|
|
|
86.8
|
|
|||
Average cost per kilo
|
5.82
|
|
|
0.07
|
|
|
1.3
|
|
|
5.75
|
|
|||
Processing and other revenues cost of services sold
|
13.6
|
|
|
(0.1
|
)
|
|
(0.7
|
)
|
|
13.7
|
|
|||
Total cost of goods and services sold
|
107.9
|
|
|
7.4
|
|
|
7.4
|
|
|
100.5
|
|
|||
Gross profit
|
12.8
|
|
|
4.5
|
|
|
54.2
|
|
|
8.3
|
|
|||
Selling, general and administrative expenses
|
5.4
|
|
|
2.8
|
|
|
107.7
|
|
|
2.6
|
|
|||
Other income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Restructuring and asset impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Operating income
|
$
|
7.4
|
|
|
$
|
1.7
|
|
|
29.8
|
|
|
$
|
5.7
|
|
Other Regions Supplemental Information
|
||||||||||||||
|
Three Months Ended December 31,
|
|||||||||||||
(in millions, except per kilo amounts)
|
|
|
Change
|
|
|
|||||||||
(percentage change is calculated based on thousands)
|
2017
|
|
|
$
|
|
|
%
|
|
|
2016
|
|
|||
Kilos sold
|
86.3
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
86.5
|
|
|||
Tobacco sales and other operating revenues:
|
|
|
|
|
|
|
|
|||||||
Sales and other operating revenues
|
$
|
356.2
|
|
|
$
|
14.5
|
|
|
4.2
|
|
|
$
|
341.7
|
|
Average price per kilo
|
4.13
|
|
|
0.18
|
|
|
4.6
|
|
|
3.95
|
|
|||
Processing and other revenues
|
0.9
|
|
|
(3.1
|
)
|
|
(77.5
|
)
|
|
4.0
|
|
|||
Total sales and other operating revenues
|
357.1
|
|
|
11.4
|
|
|
3.3
|
|
|
345.7
|
|
|||
Tobacco cost of goods sold:
|
|
|
|
|
|
|
|
|||||||
Tobacco costs
|
274.7
|
|
|
(6.6
|
)
|
|
(2.3
|
)
|
|
281.3
|
|
|||
Transportation, storage and other period costs
|
20.8
|
|
|
8.3
|
|
|
66.4
|
|
|
12.5
|
|
|||
Derivative financial instrument and exchange (gains) losses
|
0.5
|
|
|
6.6
|
|
|
108.2
|
|
|
(6.1
|
)
|
|||
Total tobacco cost of goods sold
|
296.0
|
|
|
8.3
|
|
|
2.9
|
|
|
287.7
|
|
|||
Average cost per kilo
|
3.43
|
|
|
0.10
|
|
|
3.1
|
|
|
3.33
|
|
|||
Processing and other revenues cost of services sold
|
0.4
|
|
|
(0.7
|
)
|
|
(63.6
|
)
|
|
1.1
|
|
|||
Total cost of goods and services sold
|
296.4
|
|
|
7.6
|
|
|
2.6
|
|
|
288.8
|
|
|||
Gross profit
|
60.7
|
|
|
3.8
|
|
|
6.7
|
|
|
56.9
|
|
|||
Selling, general and administrative expenses
|
29.2
|
|
|
3.1
|
|
|
11.9
|
|
|
26.1
|
|
|||
Other income, net
|
1.0
|
|
|
(1.7
|
)
|
|
(63.0
|
)
|
|
2.7
|
|
|||
Restructuring and asset impairment charges
|
—
|
|
|
(0.5
|
)
|
|
(100.0
|
)
|
|
0.5
|
|
|||
Operating income
|
$
|
32.5
|
|
|
$
|
(0.5
|
)
|
|
(1.5
|
)
|
|
$
|
33.0
|
|
North America Region Supplemental Information
|
||||||||||||||
|
Nine Months Ended December 31,
|
|||||||||||||
|
|
|
Change
|
|
|
|||||||||
|
2017
|
|
|
$
|
|
|
%
|
|
|
2016
|
|
|||
Kilos sold
|
36.3
|
|
|
0.4
|
|
|
1.1
|
|
|
35.9
|
|
|||
Tobacco sales and other operating revenues:
|
|
|
|
|
|
|
|
|||||||
Sales and other operating revenues
|
$
|
215.4
|
|
|
$
|
27.2
|
|
|
14.5
|
|
|
$
|
188.2
|
|
Average price per kilo
|
5.93
|
|
|
0.69
|
|
|
13.2
|
|
|
5.24
|
|
|||
Processing and other revenues
|
29.9
|
|
|
0.4
|
|
|
1.4
|
|
|
29.5
|
|
|||
Total sales and other operating revenues
|
245.3
|
|
|
27.6
|
|
|
12.7
|
|
|
217.7
|
|
|||
Tobacco cost of goods sold:
|
|
|
|
|
|
|
|
|||||||
Tobacco costs
|
184.3
|
|
|
25.0
|
|
|
15.7
|
|
|
159.3
|
|
|||
Transportation, storage and other period costs
|
10.1
|
|
|
(0.6
|
)
|
|
(5.6
|
)
|
|
10.7
|
|
|||
Derivative financial instrument and exchange losses
|
(0.7
|
)
|
|
(0.3
|
)
|
|
(75.0
|
)
|
|
(0.4
|
)
|
|||
Total tobacco cost of goods sold
|
193.7
|
|
|
24.1
|
|
|
14.2
|
|
|
169.6
|
|
|||
Average cost per kilo
|
5.34
|
|
|
0.62
|
|
|
13.1
|
|
|
4.72
|
|
|||
Processing and other revenues cost of services sold
|
21.2
|
|
|
(0.4
|
)
|
|
(1.9
|
)
|
|
21.6
|
|
|||
Total cost of goods and services sold
|
214.9
|
|
|
23.7
|
|
|
12.4
|
|
|
191.2
|
|
|||
Gross profit
|
30.4
|
|
|
3.9
|
|
|
14.7
|
|
|
26.5
|
|
|||
Selling, general and administrative expenses
|
17.1
|
|
|
(0.5
|
)
|
|
(2.8
|
)
|
|
17.6
|
|
|||
Other income, net
|
0.1
|
|
|
0.1
|
|
|
100.0
|
|
|
—
|
|
|||
Restructuring and asset impairment charges
|
—
|
|
|
(0.5
|
)
|
|
(100.0
|
)
|
|
0.5
|
|
|||
Operating income
|
$
|
13.4
|
|
|
$
|
5.0
|
|
|
59.5
|
|
|
$
|
8.4
|
|
Other Regions Supplemental Information
|
||||||||||||||
|
Nine Months Ended December 31,
|
|||||||||||||
|
|
|
Change
|
|
|
|||||||||
|
2017
|
|
|
$
|
|
|
%
|
|
|
2016
|
|
|||
Kilos sold
|
219.5
|
|
|
3.8
|
|
|
1.8
|
|
|
215.7
|
|
|||
Tobacco sales and other operating revenues:
|
|
|
|
|
|
|
|
|||||||
Sales and other operating revenues
|
$
|
914.1
|
|
|
$
|
68.3
|
|
|
8.1
|
|
|
$
|
845.8
|
|
Average price per kilo
|
4.16
|
|
|
0.24
|
|
|
6.1
|
|
|
3.92
|
|
|||
Processing and other revenues
|
42.7
|
|
|
1.1
|
|
|
2.6
|
|
|
41.6
|
|
|||
Total sales and other operating revenues
|
956.8
|
|
|
69.4
|
|
|
7.8
|
|
|
887.4
|
|
|||
Tobacco cost of goods sold:
|
|
|
|
|
|
|
|
|||||||
Tobacco costs
|
734.1
|
|
|
35.4
|
|
|
5.1
|
|
|
698.7
|
|
|||
Transportation, storage and other period costs
|
50.2
|
|
|
7.2
|
|
|
16.7
|
|
|
43.0
|
|
|||
Derivative financial instrument and exchange gains
|
5.3
|
|
|
13.6
|
|
|
163.9
|
|
|
(8.3
|
)
|
|||
Total tobacco cost of goods sold
|
789.6
|
|
|
56.2
|
|
|
7.7
|
|
|
733.4
|
|
|||
Average cost per kilo
|
3.60
|
|
|
0.20
|
|
|
5.9
|
|
|
3.40
|
|
|||
Processing and other revenues cost of services sold
|
26.1
|
|
|
(4.9
|
)
|
|
(15.8
|
)
|
|
31.0
|
|
|||
Total cost of goods and services sold
|
815.7
|
|
|
51.3
|
|
|
6.7
|
|
|
764.4
|
|
|||
Gross profit
|
141.1
|
|
|
18.1
|
|
|
14.7
|
|
|
123.0
|
|
|||
Selling, general and administrative expenses
|
86.2
|
|
|
2.9
|
|
|
3.5
|
|
|
83.3
|
|
|||
Other income, net
|
9.8
|
|
|
5.5
|
|
|
127.9
|
|
|
4.3
|
|
|||
Restructuring and asset impairment charges
|
—
|
|
|
(0.6
|
)
|
|
(100.0
|
)
|
|
0.6
|
|
|||
Operating income
|
$
|
64.7
|
|
|
$
|
21.3
|
|
|
49.1
|
|
|
$
|
43.4
|
|
|
|
December 31,
|
|
March 31,
|
||||||||
(in millions except for current ratio)
|
|
2017
|
|
2016
|
|
2017
|
||||||
Cash and cash equivalents
|
|
$
|
209.5
|
|
|
$
|
296.5
|
|
|
$
|
473.1
|
|
Trade and other receivables, net
|
|
240.8
|
|
|
270.2
|
|
|
254.2
|
|
|||
Inventories and advances to tobacco suppliers
|
|
975.6
|
|
|
942.2
|
|
|
733.0
|
|
|||
Total current assets
|
|
1,491.4
|
|
|
1,570.5
|
|
|
1,510.1
|
|
|||
Notes payable to banks
|
|
536.2
|
|
|
558.1
|
|
|
475.9
|
|
|||
Accounts payable
|
|
46.7
|
|
|
50.4
|
|
|
89.4
|
|
|||
Advances from customers
|
|
31.6
|
|
|
17.5
|
|
|
30.9
|
|
|||
Total current liabilities
|
|
744.9
|
|
|
744.5
|
|
|
712.8
|
|
|||
Current ratio
|
|
2.0 to 1
|
|
|
2.1 to 1
|
|
|
2.1 to 1
|
|
|||
Working capital
|
|
746.5
|
|
|
826.0
|
|
|
797.3
|
|
|||
Long-term debt
|
|
918.8
|
|
|
969.3
|
|
|
943.0
|
|
|||
Stockholders’ equity attributable to Alliance One International, Inc.
|
|
269.6
|
|
|
204.8
|
|
|
203.5
|
|
|||
Net cash provided (used) by:
|
|
|
|
|
|
|
||||||
Operating activities
|
|
(246.6
|
)
|
|
(42.3
|
)
|
|
247.2
|
|
|||
Investing activities
|
|
(26.1
|
)
|
|
(8.6
|
)
|
|
(11.5
|
)
|
|||
Financing activities
|
|
8.1
|
|
|
148.0
|
|
|
38.2
|
|
•
|
Developing regulatory framework
. In Canada, the cultivation and sale of cannabis (also known as marijuana) has been legal for medical use since 2001, subject to certain restrictions and compliance with applicable regulations. CIG currently cultivates and sells cannabis in Canada for this limited purpose pursuant to licenses and permits issued by applicable regulatory authorities, and Goldleaf proposes to do the same upon receipt of requisite licenses and permits. The Canadian federal government has announced an intention to enact legislation to legalize and regulate the cultivation, sale and use of cannabis for recreational use and a bill to that effect was passed by the federal House of Commons in November 2017. That bill has not yet been passed by the federal Senate. The bill provides that each Canadian province will have the power to determine the method of distribution and sale, taxation and other matters pertaining to cannabis. While certain provinces, including Ontario and British Columbia, have taken actions in anticipation of enactment of the federal bill, additional required provincial regulations have yet to be adopted. In the event that federal and applicable provincial legislation and regulation are not enacted or adopted or are materially delayed, the growth opportunities of Goldleaf and CIG will be curtailed from levels anticipated in expectation of such legalization of cannabis for recreational use. In addition, in the event that such legislation and regulations are enacted and adopted, it is uncertain whether Goldleaf and CIG will be able to obtain all licenses, permits and other regulatory approvals required to allow them to cultivate and supply cannabis in Canada for recreational use.
|
•
|
Necessity of rigorous compliance measures
. The failure of one of these businesses to comply with regulatory requirements, including the implementation and effectiveness of rigorous controls over inventory, could result in fines, penalties, and the loss of necessary licenses and permits which could have a material adverse effect of the continued viability of such business and our investment in such business.
|
•
|
Success may attract better funded competitors
. Even if the businesses in which we have invested are initially successful, such success, or the general maturing of the industry, may attract additional competition from larger competitors with greater capital resources which could adversely affect these businesses and our investment in these businesses.
|
•
|
Illicit competition
. To the extent that an illicit market continues with respect to the products produced by these businesses, the costs incurred by these businesses to comply with regulatory requirements, as well as applicable excise and sales taxes, may make it difficult to compete with the illicit market or may dampen growth opportunities.
|
|
||
SIGNATURE
|
||
|
||
|
||
|
||
|
||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
||
|
||
|
||
|
Alliance One International, Inc.
|
|
|
||
|
||
|
||
|
||
|
/s/ Todd B. Compton
|
|
Date: February 8, 2018
|
|
Todd B. Compton
Vice President - Controller
(Principal Accounting Officer)
|
1 Year Alliance One Chart |
1 Month Alliance One Chart |
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