Tag: Pyxus

  • Pyxus First Quarter Revenue Up Nearly 40 Percent

    Pyxus First Quarter Revenue Up Nearly 40 Percent

    Pyxus International, parent to Purilum e-liquids, announced results for its fiscal quarter ended June 30, 2023.

    Sales and other operating revenues were $477.1 million, up 38.7 percent compared to 2022. Operating income increased $29.4 million to $36.4 million. Net income was $0.8 million, improving $15.5 million. Adjusted EBITDA increased $27.5 million to $43.5 million.

    For the full 2024 fiscal year, Pyxus continues to expect sales to be between $1.9 billion and $2.1 billion and adjusted EBITDA to be between $155 million and $180 million.

    “Fiscal 2024 is off to a strong start with higher tobacco prices, accelerated timing of shipments and a favorable shift in customer mix fueling a 39 percent increase in revenue and improved profitability compared to the prior year,” said Pyxus President and CEO Pieter Sikkel in a statement.

    “In the first quarter of fiscal 2024, we believe we reached the peak of our fiscal 2024 tobacco purchases as we significantly accelerated our buying, using our geographic footprint to acquire tobacco inventory from multiple markets to meet higher current crop supply requirements and customer demand for fiscal 2024. Customer shipments in fiscal 2024 will utilize a higher percentage of tobacco purchased during the current fiscal year to fulfill orders compared to the prior year given our uncommitted inventory continues to be historically low.

    “Our continued focus on aggressively managing our working capital provided sufficient liquidity through short-term borrowings under our foreign seasonal lines of credit, availability under the ABL Credit Facility, cash generated from operations and cash collections from our securitized receivables to purchase larger volumes of more expensive tobacco compared to the prior year. In the first quarter of fiscal 2024, we increased our purchases of inventory by more than $100 million compared to the prior year using $40 million of incremental foreign seasonal lines of credit and our improved cash conversion cycle.

    “We anticipate ongoing strong demand as undersupply conditions are expected to persist through fiscal 2024. We believe our positive first-quarter results position the company to achieve our previously announced fiscal 2024 guidance for sales between $1.9 billion and $2.1 billion and adjusted EBITDA between $155 million and $180 million. We are proud of the progress our global teams have made thus far and thank them for their unwavering commitment to our customers and their focus on achieving the company’s objectives so that together we can grow a better world.”

    The company held a conference call to report financial results for the period ended June 30, 2023, on Aug. 10, 2023, at 9:00 a.m. Eastern Time. For those who were unable to listen to the live event, a telephonic replay of the conference call will be available by dialing (647) 362-9199 or (800) 770-2030 and entering the access code 2624736.

  • Pyxus Releases Fourth Quarter, Year End Results

    Pyxus Releases Fourth Quarter, Year End Results

    Photo: snowing12

    Pyxus International announced results for its quarter and fiscal year ended March 31, 2021.

    Combined sales and other operating revenues were $1.33 billion, down 12.8 percent from the prior fiscal year. Combined gross profit as a percent of sales was 12.1 percent, which decreased 2.6 percent from the prior fiscal year.

    Combined selling, general and administrative expenses were $197.9 million, which decreased $1.1 million or 0.6 percent from the prior fiscal year.

    Combined net loss attributable to Pyxus International was $117.7 million, which decreased $147 million, or 55.5 percent, from the prior fiscal year.

    Combined adjusted EBITDA was $93.5 million. Total long-term debt was substantially reduced when compared to the prior fiscal year. Year-end uncommitted inventory was the lowest it has been since fiscal 2016.

    “In what was an unprecedented and challenging year, our company adapted to constant change as we navigated the Covid-19 pandemic,” said Pieter Sikkel, Pyxus’ president and CEO, in a statement. “During fiscal 2021, we implemented a series of restructurings and process changes that allowed our business to continue to operate through the Covid-19 pandemic while also positioning us for success in fiscal 2022 and beyond. Through these actions, we substantially reduced our debt and costs throughout our supply chain. We also made the strategic decision to exit our cash flow negative Canadian cannabis businesses, which further supports our SG&A cost containment efforts.

    Based on expected first quarter results, we are optimistic about fiscal 2022

    Pieter Sikkel, president and CEO, Pyxus International

    “Although our production facilities continued to operate through the pandemic, certain facilities experienced lower production levels than planned due to smaller crop sizes in Africa and the implementation of social distancing requirements and safety practices to reduce the spread of Covid-19 and protect our employees. In addition, the Covid-19 pandemic-related shipping delays of leaf tobacco for certain customer orders resulted in a shift of between $170 million and $180 million of expected revenue and $30 million and $34 million of expected EBITDA from fiscal 2021 into fiscal 2022. However, the impact of Covid-19 on our business yielded innovative changes that will enable us to be more flexible in the future and accelerate certain activities in the crop cycle. Covid-19 has also pushed the tobacco industry to continue to look for ways to reduce supply chain complexity in a responsible manner.

    “For the full year, we are expecting fiscal 2022 sales to be between $1.65 billion and $1.8 billion, SG&A expense to be between $140 million and $145 million (excluding nonrecurring items and potential changes in foreign currency exchange rates) and adjusted EBITDA to be between $150 million and $170 million. Based on expected first quarter results, we are optimistic about fiscal 2022. Lastly, we are also excited about sharing more information about our enhanced global environmental, social and governance strategy, which supports our ability to deliver on our expected results for fiscal 2022.”

  • Pyxus Readies to Divest Cannabis Business Interests

    Pyxus Readies to Divest Cannabis Business Interests

    Photo: Pyxus International

    Pyxus International intends to divest its cannabis business in order to focus on its more profitable tobacco and e-liquid businesses. In addition, the company has taken action to restructure its industrial hemp and CBD operations to minimize financial investment in that business.

    “Our strategic decision to exit cash-flow negative cannabinoid operations will allow us to reduce corporate SG&A [Selling, general and administrative expense] and sharpen our focus on growing our more profitable tobacco and e-liquid businesses such that these complementary businesses can fully leverage Pyxus’ 145-year heritage and existing relationships,” said Pieter Sikkel, president and CEO of Pyxus International, in a statement.

    “We maintain our belief that there is value in FIGR and its growth can be accelerated with the right capital structure and partner. The completion of our financial restructuring, global operations efficiency program, and continued investment in agronomy, traceability and sustainability are proving to be of significant value to our tobacco customers as we have started to work together on long-term strategic partnerships that support our objective of growing our market share.”

    In connection with the plan, the company’s three Canadian cannabis subsidiaries, FIGR Brands, Canada’s Island Garden (FIGR East) and FIGR Norfolk filed for and received protection from their creditors under the Companies’ Creditors Arrangement Act (Canada).

     

  • Pyxus Appoints New Board Members

    Pyxus Appoints New Board Members

    Pyxus International has appointed Robert George, Carl Hausmann, Cynthia Moehring and Richard Topping to its board of directors effective Oct. 12, 2020. These individuals join previously announced board members Holly Kim, Patrick Fallonand Pieter Sikkel. 

    “The addition of the new members to Pyxus’ board of directors is a key milestone in its transformation strategy,” said Sikkel, who also serves as president and CEO of Pyxus, in a statement. “We believe this mix of directors brings proven financial and operational track records and diverse perspectives that will contribute to Pyxus’ future success, and we look forward to working with this group of proven leaders to accelerate the company’s growth.”

    George brings extensive financial and operational experience in public, private and private equity-backed diversified industrial businesses. Most recently, he served as executive vice president, chief financial officer and corporate development for Esterline Technologies. Prior to joining Esterline, George held various leadership positions with Zurn Industries and Elgin Electronics. He is a member of the board of directors of Advanced Integration Technology.

    Hausmann brings more than 35 years of experience in the agribusiness and food industries. He retired in June 2012 as managing director of global government and corporate affairs of Bunge Limited, having spent a decade serving in executive roles with Bunge affiliates in North America and Europe. Prior to joining Bunge, Hausmann served as chair and CEO of Cereol and  held various leadership positions with Continental Grain Co. in Europe, South America, Africa and the United States. Following his retirement from Bunge, Hausmann served as a member of the board of directors of Pyxus International’s predecessor, Alliance One International, from June 2013 to August 2018.

    Moehring is the founder and executive chair of the Business Integrity Leadership Initiative at the University of Arkansas Sam M. Walton College of Business. She brings more than 25 years of experience as a strategic senior executive, including 20 years at Walmart where she served as senior vice president, U.S. chief ethics and compliance officer and senior vice president, global chief ethics officer, among other leadership positions. She has broad experience in many areas, including enterprise risk management, effective global governance practices, mergers and acquisitions, IPOs, diversity and inclusion and sustainability.

    Topping has four decades of experience in the tobacco industry. He has held a variety of global leadership positions throughout the supply chain, working with both tobacco leaf merchants and cigarette manufacturers. He most recently worked with Japan Tobacco International and its predecessor companies and served as vice president of global leaf sourcing prior to retiring in June 2018. Topping has wide-ranging global expertise, from both the merchant and cigarette manufacturer perspective, in leaf sourcing and procurement strategies, logistics, operations and sales throughout North and South America, Europe, Asia and Africa.

  • Pyxus Emerges Healthy After Filing Chapter 11

    Pyxus Emerges Healthy After Filing Chapter 11

    Pieter Sikkel
    Photo: Pyxus International

    Pyxus International has successfully completed its financial restructuring and emerged from Chapter 11 with its debt reduced by more than $400 million and maturities extended. The company announced that the Amended Joint Prepackaged Chapter 11 Plan of Reorganization of Pyxus International and its Affiliated Debtors confirmed by the U.S. Bankruptcy Court for the District of Delaware on Aug. 21, 2020, has become effective.

    “Over the last two months, we have been keenly focused on enhancing the company’s financial flexibility, and the completion of our financial restructuring process is a significant step forward,” said Pieter Sikkel, Pyxus’ president and CEO. “We are now a stronger and more competitive company with a foundation that bolsters our position in targeted markets and enables us to drive long-term value for all of our stakeholders. I want to thank our exceptional team at Pyxus for their commitment and continued focus through this process. We are also grateful for the support of our vendors, suppliers, customers and partners, and we look forward to working together for years to come.”

    Under the terms of the plan, Pyxus has completed a comprehensive balance sheet restructuring that includes but is not limited to extending the maturity of its existing first lien debt, eliminating $635 million in principal amount of existing second lien debt, while adding a $213 million exit term loan, which replaced the debtor-in-possession financing incurred in connection with the Chapter 11 cases, and a $75 million exit asset based revolving facility. The elimination of the second lien debt and access to new working capital lines of credit, including foreign credit facilities, substantially strengthens the company’s balance sheet.

    A series of corporate transactions resulted in the company being a new corporation renamed Pyxus International, which through its subsidiaries continues to operate the company’s businesses, while the corporation formerly known as Pyxus International has changed its name to Old Holdco All outstanding shares of Old Holdco were canceled.

  • Pyxus Receives Major Support From Creditors for Plan

    Pyxus Receives Major Support From Creditors for Plan

    Pyxus International, a global value-added agricultural company, announced that its Prepackaged Plan of Reorganization of Pyxus International and its Affiliated Debtors was overwhelmingly approved by each class of creditors entitled to vote.

    Of those that submitted ballots, holders of 100 percent of first lien notes (holding over $266 million of principal) and over 99 percent of the second lien notes (holding over $524 million of principal) voted in favor of the Prepackaged Plan.

    In addition, on July 22, 2020, the Bankruptcy Court presiding over the company’s Chapter 11 cases approved the company’s entry into a commitment letter for a $75 million revolving credit facility to be provided by Sound Point Capital upon the effective date of the Prepackaged Plan, subject to satisfaction or waiver of certain conditions.

    “The level of support from our first lien and second lien noteholders in favor of the Prepackaged Plan, and the commitment from Sound Point to finance the company’s go-forward working capital needs, reflects their collective confidence in our proposed restructuring transaction and future business strategy,” said Pieter Sikkel, Pyxus’ president and CEO. “The Company looks forward to working with its creditors and its other constituents to complete its restructuring process and emerge from the Chapter 11 in the near term.”

    The hearing to consider approval of the Prepackaged Plan is scheduled for August 18, 2020 at 9:30 a.m. ET.

  • Pyxus to Delist From New York Stock Exchange

    Pyxus to Delist From New York Stock Exchange

    Photo: skeeze from Pixabay

    The New York Stock Exchange (NYSE) has commenced proceedings to delist Pyxus International. Trading in Pyxus’ common stock has been suspended.

    The NYSE determined that Pyxus is no longer suitable for listing under after the company filed for relief under Chapter 11 of the United States bankruptcy code. Pyxus does not intend to appeal the NYSE’s determination.

    Pyxus’ common stock began to be quoted on the OTC Pink marketplace on June 17, 2020, under the symbol PYXSQ. Investors can find quotes for the company’s common stock on. 

    Pyxus does not expect a transition to the OTC Pink marketplace to affect the company’s operations. 

    “The company can provide no assurance that its common stock will continue to trade on this market, whether broker-dealers will continue to provide public quotes of the company’s common stock on this market, whether the trading volume of the company’s common stock will be sufficient to provide for an efficient trading market or whether quotes for the company’s common stock may be blocked by OTC Markets Group in the future,” Pyxus wrote in a statement.

  • Pyxus Files For Chapter 11

    Pyxus Files For Chapter 11

    Photo: Darren4155 | Dreamstime.com

    Pyxus International announced today that it and its subsidiaries, Alliance One International, Alliance One North America, Alliance One Specialty Products and GSP Properties, have filed voluntary petitions for relief under Chapter 11 of the U.S. bankruptcy code in the U.S. Bankruptcy Court for the District of Delaware as part of a “prepackaged” Chapter 11 Case.

    In connection with the filing, the company entered into a restructuring support agreement (RSA) with noteholders holding more than 92 percent in principal amount of the company’s first lien notes and more than 67 percent in principal amount of its second lien notes. In addition, the company’s receivables financing lenders and certain key foreign lenders have granted waivers and amendments under their respective facilities, demonstrating significant global financial support for the company.

    Under the terms of the RSA, Pyxus’ second lien noteholders will convert approximately $635 million of the company’s debt into equity or cash, and its first lien noteholders will, among other things, extend the maturity date of their existing notes by four years. To implement the financial restructuring contemplated under the RSA, the company commenced solicitation of a prepackaged Chapter 11 plan of reorganization and thereafter filed for Chapter 11 to restructure its debt and delever its balance sheet.

    The prepack plan contemplates that all outstanding shares of Pyxus common stock and rights to acquire Pyxus common stock will be cancelled and each holder of outstanding Pyxus common stock will be entitled to receive its ratable share of $1 million in cash provided that such holder does not opt out of the third-party releases contained in the prepack plan or object to the prepack plan.

    The Chapter 11 process does not include the company’s international subsidiaries or affiliates and Pyxus anticipates continuing to operate its worldwide operations in the ordinary course during the proceeding as it restructures its balance sheet. The terms of the restructuring contemplate paying, among others, all vendors and foreign lenders, in full.

    In addition, Pyxus has secured commitments for a $206.7 million debtor-in-possession financing facility (DIP facility) from certain existing noteholders. Proceeds from the DIP facility will be used to refinance the company’s existing asset-based revolver, for working capital and general corporate purposes, and to pay expenses incurred in connection with the Chapter 11 cases. Subject to court approval, the DIP facility, combined with the company’s projected cash flows, are expected to provide liquidity to support its operations during the restructuring process, allowing the company to emerge with a strengthened balance sheet to complement its operations and future growth plans.

    “This agreement with our noteholders represents a significant milestone in the ongoing process to transform our business as we continue to focus on driving long-term, sustainable growth and greater efficiency,” said Pieter Sikkel, Pyxus’ president and CEO. “We will continue to provide our customers with the quality products and services they are accustomed to without interruption and work with our business partners throughout the Court-supervised process. We also expect there will be no impact to vendors. As we look to quickly re-emerge from this process, we expect to be a stronger company, better able to execute on our long-term strategy and positioned for long-term growth and success.”

    Simpson Thacher & Bartlett is serving as legal counsel, and Lazard and RPA Advisors are serving as financial advisors to Pyxus.

  • Pyxus Reportedly in Talks About Bankruptcy

    Pyxus Reportedly in Talks About Bankruptcy

    Photo: Pyxus International

    Pyxus International has reportedly begun talks with creditors regarding a possible bankruptcy filing, according to an article in the Wall Street Journal.

    The filing is potentially related to declining cigarette consumption and the Covid-19 pandemic following the company’s struggle to make headway in the cannabis and vapor sectors.

  • Figr Introduced in British Columbia

    Figr Introduced in British Columbia

    Pyxus International’s wholly owned indirect subsidiary Figr Brands has introduced its legal recreational cannabis products into British Columbia, Canada, marking Figr’s first western provincial entry in its planned expansion across the country.

    Figr’s cannabis products, including the brand’s two newest strains, are now available for purchase through BC Cannabis.

    “Figr’s entrance into British Columbia is an exciting step for Figr as the company continues to expand across Canada,” said Pieter Sikkel, Pyxus president and CEO. “We are proud of Figr’s dedication and commitment to providing Canadians new and continued access to high-quality, fully traceable cannabis products, particularly as Canada navigates the unprecedented challenges of the Covid-19 crisis. Cannabis is considered an essential business in British Columbia, and Figr is committed to meeting the demand of consumers while protecting the health and well-being of its employees.”

    Within the last nine months, Figr has expanded into three new markets across Canada as well as introduced its initial suite of Figr 2.0 products. Figr’s products are now available in five Canadian provinces through retail locations and online stores, including Prince Edward Island, Nova Scotia, New Brunswick, Ontario and British Columbia.

    All of Figr’s cannabis products are tracked from seed-to-sale by SENTRI, Pyxus’ proprietary track-and-trace platform.