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Alliance One International, Inc.
8001 Aerial Center Parkway
Post Office Box 2009
Morrisville, NC 27560-2009
Tel: 919 379 4300
Fax: 919 379 4346
|NEWS RELEASE||Contact:||Joel Thomas|
Alliance One International Reports Improved Sales Volumes and Improved Gross Profit as a Percentage
of Sales for the Nine Months Ended December 31, 2016
Morrisville, NC February 6, 2017 Alliance One International, Inc. (NYSE: AOI) today announced results for its third fiscal quarter and nine months ended December 31, 2016.
Nine Months Year-to-Date (1)
|➣||Volumes sold increased 3.6% to 251.6 million kilos this year versus last year, primarily due to prior crop inventory sales and the timing of shipments in North America and Africa.|
|➣||Sales decreased 5.7% to $1,105.1 million this year driven by product mix with an increased percentage of byproduct sales versus lamina and the El Niño weather impact of smaller crops in Brazil, the U.S. and Tanzania, as well as the impact of the stronger U.S. dollar.|
|➣||Gross profit decreased 2.3% to $149.5 million due to weather related smaller crops in certain origins and differences in product mix, while gross profit as a percentage of sales improved to 13.5% from 13.1% driven by differences in product mix and favorable currency impacts this year offset by lower of cost or market adjustments.|
|➣||Accounts receivable and inventory reductions generated $144.8 million of cash at December 31, 2016 when compared to the same period end of the prior year.|
Third Quarter (1)
|➣||Volumes decreased 0.7% to 101.6 million kilos versus last year due to the impact of weather related smaller crops in the U.S. and Tanzania.|
|➣||Sales decreased 7.5% to $454.5 million this year driven by product mix with an increased percentage of byproduct sales versus lamina and the El Niño weather impact of smaller crops in the U.S. and Tanzania, as well as the impact of the stronger U.S. dollar.|
|➣||Gross profit decreased 5.1% to $65.2 million due to weather related smaller crops in certain origins and differences in product mix, while gross profit as a percentage of sales improved to 14.3% versus 14.0% last year, driven by differences in product mix and favorable currency impacts this year.|
|➣||Operating income was consistent at $38.7 million with improvement in operating income as a percentage of sales to 8.5% from 7.9% last year driven by improvements in selling, general and administrative expense (SG&A), other income and restructuring charges.|
|(1)||Due to the reconsolidation of our Zimbabwe subsidiary at March 31, 2016 its performance is included in consolidated financial results this year, however was not included in the prior year except for the March 31, 2016 balance sheet. Adjusted EBITDA and Adjusted Net Debt include Zimbabwe in all periods.|
Pieter Sikkel, Chief Executive Officer and President, said Our results for the nine months ended December 31, 2016 include increased full service volumes and prior crop inventory sales. Improved performance throughout much of our global operations offset a considerable portion of the impact created by adverse El Niño weather, the stronger U.S. dollar and product mix that more heavily favored byproducts this year. Unfortunately, our operations in Brazil, the U.S., and Tanzania were more heavily affected by these factors and overshadowed operations with improvement.
The following information was filed by Alliance One International, Inc. (AOI) on Monday, February 6, 2017 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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