Exhibit 99.1

Alliance One International, Inc.           Tel:      919 379 4300

8001 Aerial Center Parkway                   Fax:     919 379 4346

Post Office Box 2009                               www.aointl.com

Morrisville, NC  27560-2009

USA

[ex99001.gif]

NEWS RELEASE                      

Contact: 

Joel L. Thomas

 

 

(919) 379-4300


June 14, 2010


Alliance One International Reports Record Revenue, Gross Profit, and Operating Income for Fiscal Year 2010


Morrisville, NC – June 14, 2010 – Alliance One International, Inc. (NYSE: AOI) today announced results for its fiscal year ended March 31, 2010.


Fiscal Year Results


For the year ended March 31, 2010, the Company reported net income of $79.2 million, or $0.89 per basic share, compared to net income of $132.6 million, or $1.50 per basic share, for the prior fiscal year.  


Robert E. Harrison, Chief Executive Officer, said “Alliance One has delivered another strong year with continued improvement in our operating performance, resulting in not only a record top line and gross profit, but operating income as well. At the same time, while pre-tax income decreased $35.1 million to $74.2 million this year, after one time costs of $59.9 million associated with our debt refinancing and previously disclosed legacy FCPA matter, improvement in our core underlying pre-tax operating results are clear. Key drivers include our security of supply focused planning and talented employee base, which continue to differentiate and define our value added business model.


“Japan Tobacco International’s (“JTI”) partial vertical integration has changed industry dynamics some and will impact AOI, but also creates new opportunities with JTI and other customers that were displaced from the facilities they purchased. Additionally, JTI remains an important customer in each locale where they have purchased a capability, but at reduced volume levels. Further, we embrace change and recognize these actions as a catalyst which is driving further initiatives with our key customers including JTI, which may provide enhanced opportunities in the future.


Mr. Harrison concluded, “Through the financial crisis we maintained our liquidity sources and refinanced our debt, well positioning our Company today. Looking to the future, we will recommence long term debt reduction, although should the US dollar begin weakening again our working capital requirements could increase. Uncommitted inventories held by leaf merchants remain at lower levels, although global flue cured and burley tobacco supplies appear to be increasing. Recent weather conditions in Malawi and Brazil have impacted crop size and provide some level of counter balance to global supply for fiscal year 2011. We will continue monitoring crops throughout the world and at the same time analyzing our customer’s dynamic requirements. The global industry outlook remains solid despite some volume declines due to the financial crisis and a series of excise tax increases. As we analyze the changing operating environment we believe that our various initiatives are well placed and designed to deliver enhanced shareholder returns as we move forward.”


Performance Summary for Fiscal Year 2010


The following is a brief overview of our financial results for the year ended March 31, 2010.  For additional information and a more detailed discussion of these results, please refer to our Annual Report on Form 10-K filed on June 14, 2010.


Sales and other operating revenues and gross profit both increased 2.2% and 9.9% respectively to $2,308.3 million and $396.5 million in 2010.  Sales increases were driven by improved average selling prices partially offset by decreased kilos sold and reduced processing and other revenues.  


Gross profit as a percentage of sales increased from 16.0% to 17.2% in 2010.  While selling, administrative and general expenses remained fairly constant, other operating income (expense) was impacted by a $19.5 million cost related to the previously disclosed alleged Foreign Corrupt Practices Act violations. Despite the additional one-time expense our operating income still increased $19.4 million compared to the prior year.  


One-time debt refinancing costs were $40.4 million this year and interest costs increased 16.2% to $113.8 million as a result of higher debt levels, following the refinancing.  Consequently, our pretax income decreased from $109.3 million last year to $74.2 million in the current year after giving effect to $59.9 million in one time costs associated with our refinance and the previously disclosed FCPA matter.


Our effective tax rate changed from a benefit of 20.1% in 2009 to a benefit of 5.1% in 2010. Effective rates in both 2010 and 2009 varied from statutory rates due to reductions in liabilities for unrecognized tax benefits and other factors.




Alliance One International, Inc.

Page 2



South America Region


Tobacco revenues decreased $36.3 million or 4.2% primarily due to a decrease in quantities sold partially offset by increased average sales prices. The decrease in volume is mainly attributable to carryover sales last year that did not occur in 2010 and smaller crop sizes this year. The increase in average sales prices is mainly due to increased higher priced lamina sales this year compared to the prior year and customer pricing.

          

Although revenues decreased, gross profit increased $6.5 million driven by favorable variances related to supplier advances. While average sales prices improved due to product mix and customer pricing, the increase was not sufficient to offset the impact of decreased volumes, increased prices paid to tobacco suppliers and the exchange rate impact on purchase and processing costs which are denominated in local currency. In addition, increased gains from derivative financial instruments were offset by increased exchange losses this year compared to the prior year due to the volatility of the Brazilian real.     





Other Regions


Tobacco revenues increased $101.7 million or 7.8% primarily as a result of increased average sales prices and quantities sold. Processing and other revenues decreased mainly due to reduced processing in Africa and Europe. The net revenue and cost impact resulted in a $29.2 million gross profit increase in 2010 compared to 2009.  

          

Increased revenues and gross profits were primarily from the Africa, North America and Asia regions.  In the Africa region, Malawi had a record crop this year which was the primary driver in increasing revenues and gross profits compared to the prior year. In addition, Tanzania prices increased compared to the prior year as a result of higher costs that were passed through, while margins improved primarily due to the impact of favorable exchange rates. Kenya and Zambia operating results also improved which contributed to increased revenues and gross profits in the Africa region.

          

In the North America region, revenues and gross profit increases were primarily due to better yields in the United States which further offset costs and the increased demand for our cut rag operations as consumers turn to lower priced U.S. products in response to tax increases on tobacco products.  Our Canadian operations increased revenue and gross profit as a result of a fundamental change in the Canadian marketing system which began with this year’s crop.  

          

The primary driver in increased revenues and gross profits in the Asia region was increased sales from China of by-products at higher average sales prices as well as higher prices for lamina due to cost increases and product mix. Partially offsetting these gains were less opportunistic sales from Vietnam and the Philippines. Increased revenues and gross profits from Indonesia were offset by decreased volumes sold in India and Thailand.


Liquidity and Capital Resources


As of March 31, 2010, available credit lines and cash increased 68.4% over the prior year to $824.6 million comprised of $129.7 million in cash and $694.9 million of credit lines including $8.8 million exclusively for letters of credit, all in line with internal expectations.


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


Fiscal Year 2010 Financial Results Investor Call


The Company will hold a conference call to report financial results for its fiscal year ended March 31, 2010, on June 14, 2010 at 5:00 P.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 8:00 P.M. ET Monday, June 14 through 8:00 P.M. ET Saturday, June 19. To access the replay, dial (888) 203-1112 within the U.S., or (719) 457-0820 outside the U.S., and enter access code 2049566.  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).







—MORE—



Alliance One International, Inc.

Page 3



STATEMENTS OF CONSOLIDATED OPERATIONS AND COMPREHENSIVE INCOME


(in thousands, except per share data)


2010


2009

Sales and other operating revenues

$2,308,299   

$2,258,219   

Cost of goods and services sold

1,911,849   

1,897,380   

Gross profit

396,450   

360,839   

Selling, administrative and general expenses

155,376   

156,000   

Other income (expense)

(17,260)   

214   

Restructuring and asset impairment charges

-   

591   

 

Operating income

223,814   

204,462   

Debt retirement expense

40,353   

954   

Interest expense

113,819   

97,984   

Interest income

4,550   

3,808   

Income before income taxes and other items

74,192   

109,332   

Income tax expense (benefit)

(3,791)  

(22,020)  

Equity in net income of investee companies

1,963   

1,478   

Income from continuing operations

79,946   

132,830   

Income from discontinued operations, net of tax

-   

407   

Net income

79,946   

133,237   

 

Less:  Net income attributable to noncontrolling interests

779   

679   

Net income attributable to Alliance One International, Inc.

$     79,167   

$   132,558   

Other comprehensive income:

 

 

 

Net income

$     79,946   

$   133,237   

 

Currency translation adjustment

(1,837)  

(7,207)  

 

Pension adjustment, net of tax $(5,109) in 2010,
     $(3,378) in 2009 and $(3,450) in 2008

(6,383)  

(13,165)  

Total comprehensive income

71,726   

112,865   

Comprehensive income attributable to noncontrolling interests

763   

496   

Total comprehensive income attributable to
           Alliance One International, Inc.

$     70,963   

$   112,369   

 

 

 

Amounts attributable to Alliance One International, Inc.

 

 

     Income from continuing operations

$     79,167   

$   132,151   

     Income from discontinued operations

-   

407   

     Net income attributable to Alliance One International, Inc.

$     79,167   

$   132,558   

 

 

 

Basic Earnings Per Share

 

 

     Income from continuing operations

$0.89   

$1.50   

     Income from discontinued operations

-   

-   

     Net income

$0.89   

$1.50   

 

 

 

Diluted Earnings Per Share

 

 

     Income from continuing operations

$0.78   

$1.49   

     Income from discontinued operations

-   

-   

     Net income

$0.78   

$1.49   





The following information was filed by Alliance One International, Inc. (AOI) on Monday, June 14, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Alliance One International, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Alliance One International, Inc..

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account