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Alliance One International, Inc.
8001 Aerial Center Parkway
Post Office Box 2009
Morrisville, NC 27560-2009
Tel: 919379 4300
Fax: 919 379 4346
Alliance One International Reports Fiscal Year 2018 First Quarter Results
Morrisville, NC August 3, 2017 Alliance One International, Inc. (NYSE: AOI) today announced results for its fiscal quarter ended June 30, 2017.
|||Revenue for the quarter increased 6.1% to $277.0 million versus last year mainly due to increased lamina sales and improved average selling price per kilo.|
|||Selling, general and administrative expense (SG&A) decreased 12.8% to $33.8 million driven by reduced legal and professional costs and decreased incentive compensation.|
|||In April 2017, as previously reported, the Company purchased and cancelled $28.6 million of its senior secured second lien notes leaving face value of $662.9 million outstanding.|
|||The Company reaffirms fiscal year 2018 revenue and Adjusted EBITDA guidance.|
Pieter Sikkel, President and Chief Executive Officer, said Fiscal year 2018 is progressing favorably and in line with our expectations. Excluding Malawi that has a much smaller crop this year, global market conditions are positive and weather patterns are good, supporting better growing conditions with crop sizes that have returned to more normal levels in key markets where we are currently buying. Our sales typically build through the year, with the first fiscal quarter at lower levels in comparison to later quarters based on a number of factors including the timing of crops from the growing regions where we source tobacco. This years first quarter was consistent with past experience and sales are planned to be more heavily weighted toward the back half of the year.
Total kilos sold this quarter were similar to last year at 61.2 million; although South American shipments were noticeably reduced from the prior year due to minimal carryover of smaller El Niño affected 2016 crops. Other regions focused mainly on shipments of prior year crops. Revenue for the quarter improved 6.1% or $15.9 million to $277.0 million versus last year due to a 4.8% increase in average sales price, driven by higher lamina sales this year versus byproducts when compared to last years quarter. Additionally, at quarter end, our uncommitted inventory reached a seven year low just inside the mid-point of our stated target range of $50.0 to $150.0 million.
Due to selling mainly prior year crops during the quarter that were impacted by currency and smaller crops sizes last year, gross profit decreased $5.4 million to $28.6 million. Excluding the impact of currency movement in Other Regions, gross profit would have been consistent with the prior year. Offsetting these increased costs, SG&A decreased 12.8% or $5.0 million to $33.8 million, as a result of reduced professional fees and reduced incentive compensation. Additionally, other income improved $4.8 million mainly related to increased sales of intrastate trade tax credits in South America.
As previously reported and consistent with our plan, in April we purchased and cancelled $28.6 million of our senior secured second lien notes, leaving face value of $662.9 million outstanding. Our liquidity at quarter end was strong with available credit lines and cash of $573.3 million including available lines for letters of credit.
The following information was filed by Alliance One International, Inc. (AOI) on Thursday, August 3, 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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