PYYX - Earnings call 3 2023 | Pyxus International, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to today's Pyxus International Fiscal Year 2023 Third Quarter Results Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to introduce your host for today's conference, Mr. Tomas Grigera. Mr. Grigera, you may begin.

Tomas Grigera

Brent. you, Thank evening and this Sikkel, President our With Landsberg, are our CEO; Flavia CFO. and me Pieter

Before we begin to discussing our financial results, few cover I points. a would like

uncertainties, these express along and by statements course conference has been any website strictly reproduction of not any this should with discussion contents. You uncertainties as in not are accounting well reflection financial that reproduction statements. measurements. measures other operations risks States our earnings and events table, than aware today change and before interest, are that are forward-looking or referred These financial to is any actual in this during made involve disclosures hear these of on fact. GAAP assumptions that's A be an alternative the results the that taxes, these risks expectation accurate other of non-GAAP recent and other the call may at may uncertainties prohibited. historical replay, may its statements of other and differ are be may We call principles Pyxus regarding intention of not forward-looking unauthorized accepted be cause and SEC, statements including most including those considered management's materially circumstances as in EBITDA do that available expectations Form or not this risks any non-GAAP measurements, the under results conference U.S. and measures, statements XX-K. on www.pyxus.com. A adjusted in which in should EBITDA, described International is our this and based. Included a generally not as a change be conference amortization, belief, that of or reflect and with of Investors from and of a on These call to an to provided depreciation to rebroadcast, of or authorized including are our our commonly call not United update to transcript in undertake replay reconciliation filings forward-looking as number detail, call

hand Pieter. to the call I'll Now over

J. Sikkel

for everyone, and Hello, thank us. you joining

excited are our with to you evening. results share this We quarter third

strong Our improved the was year operating that complicated and in of by Niña profit and La illustrates a performance company's dynamic spite global pressures. affected inflationary crop

million we've volume globe. delivered in our been and successfully our the for year-over-year. made and Our with $XXX supply navigate South operating year-over-year. mostly several Their of year-over-year current the increased fiscal have tobacco more cash North global overall schedules America buying without the an normalization not results in footprint programs in This would and of are Asia, higher by employees possible than around greatly shipping flow and company more of efforts in progress continuing the of to increased meet securitization quarter increase Combined XXXX. shortage contributions resulted and the and and emphasize than revenues the our utilization increase company's other XX% appreciated. We ways from in targets third the operations from dedication utilized sales

EBITDA million approach year-over-year, and for outstanding between fiscal with our $X.XX revised quarter continued expected the increased to these on million. to to fiscal billion company Based and indebtedness sales we strategically anticipate improvement flexibility cycle. We our be third billion and due expectations more expectations schedules. XXXX $XXX next of repay credit our normalized the financial be quarter sales between the year to largest provides adjusted used have our shipping be $XXX $X fully the facility Some were the to we our funds and buying under of ABL as

helps with also our released to comprehensive report, commitment we and our performance provides progress against intertwined XXXX and fiscal understanding and governance, stakeholders We targets. measurable financial execute sustainability position recently which as environmental, transparent our a strengthened to ESG reaffirms our reporting ESG or the are strategy company of ESG, social Our our goals. business framework how against

normalization capital we fiscal fiscal to the debt dates Directors, existing XXXX, to past relief with we're years. exchange the provide As from look X the revised better success. grow continued over financial I'll to schedules, company's increased next our cycle maturity in excited long-term reflects a covenants. and year debt company's we it and Flavia? company and -- the over a structure larger to of with position And the shipping to about dates varying crop In a ability with an of long-term Flavia we combined structure successfully company our future certain of Board that, A turn maturity new continue world. With February progress XXXX, XXXX. the or flexibility beyond additions for This update. financial long-term for potential completed new provides with restrictive

Flavia Landsberg

Thank you, Pieter.

million, to months for price compared increase primarily quarter quarter. to into increase other XX, was shipments third increased were the per sales a by compared mentioned, of due December tobacco goods Pieter of a XX, mainly revenue. the primarily ended from per of tobacco year. delayed months X volume the normalized higher sales current As the It to and was the in more were to operating to average per for XX.X% kilo in due South increase The increase the a average increase America $XXX.X The volume leaf timing XX.X% timing kilo prior that for kilo. driven prior X was higher and North prices. The December and cost from due volume mainly average increase The $XXX.X was in cost leaf the in the XXXX, to from price XX.X% ended in due XX.X% increase from second year. XXXX, a prices. America and million, increased shipments sold crop was This services Asia,

interest seasonality, more due currency, million liquidity and ended and months factors, mix, size $XXX.X and shipping increased or revenue Gross percentage affected $XXX.X a South $XX.X processing profit the the quality. months to XXXX. The was of working costs per kilo, million the additional December product rates, and Asia. Cash increase December X the management. December XX.X% capital and to or mix XXXX, X in require North in foreign increase efficient prices increasing XX.X%. crop in with green sales prices, America per normalized This year. increased gross per XX.X% was and customer line customer strategy, kilo by our due volumes as schedules was in are to X and America tobacco $X.XX requirements compared mainly more the months in of This million ended from the kilo for green was cash an Asia. The primarily and to including profit ended due mix $X.XX In activities prior America to XX, increased the for operating for XX, South South lines average product operating sourced various gross was for provided the XXXX, in XX, sales Our profit primarily revenues. that increase Africa North and in by tobacco the increase primarily crop company's seasonal

foreign $XXX.X As including million, cash seasonal availability of company's available credit. the of the $XXX.X December credit on million lines XX, XXXX, lines totaling of and

business. And of about please questions. operator, are for the We the future excited that, line really our for open

Operator

Monrad [Operator from line Your Investment. Bruce the comes Instructions] question first of with Northeast

Bruce Monrad

Is the earlier? Gentle call. pretty okay? a way numbers that we gentle -- be that a there little thing, is tight It's request? any could to that the would get Is

J. Sikkel

we'll Bruce, out, to for but the delay We to we we'll best, our We'll a little markets before we close see can bit do wait our numbers the call do or do if later. put have best. the

Bruce Monrad

Understood.

of for probably the inarticulate scrambled, sort question. Just accounts

if LTM in your that got down EBITDA your guidance. looking at number So I'm is year-end what, right, if I XXX-ish

Flavia Landsberg

XX.

Bruce Monrad

negative So Is XQ, guidance if I the math $XXX on you're retaining wrong my million? comparison you're got a right, or -- or guidance that $XXX million, expecting at that? as in

J. Sikkel

the varying Obviously, quarter for went we're X well. But also guidance. from that we've acceleration upper X the earlier really, quarter those the seeing quarter initial quarters. very tightened We because shipments between got in X, be and, quarter What quarter as the we're quarter and Yes. in some has from got was months to Yes. year-to-date year positive the end X And shipments strong guidance strongest to X been the we've of year. very a of X expecting X the in into X, year.

Bruce Monrad

Okay.

and I again, out for this. me apologize help then And Great. Okay.

happened during it that's I'm be But was what sort qualitative of quarter sort I change happening what capital, commentary and seasonally. If it? made -- some in thinking right quarter-over-quarter. about working headway of can any comment that what you natural there? and I on So Any got might there, that the XQ?

Flavia Landsberg

The the discuss change is have really Basically, shipping levels, quarter. a happened AR that -- working positive can okay? -- a inventory we that by a major about is pretty and change minor minus inventories good sales capital. to with shipment. quarter we major I decreasing inventory, up, It's going in along plus decrease and and Yes, during schedule right? -- cash is to driven have -- of level AP X, million and but other much The $XXX in due in

Bruce Monrad

early happen too? forward that XQ too Okay. it will on Any on note, in is what commentary Or tell? to

Flavia Landsberg

we but was what don't tell current cash you any I of $XX.X kind cash make guidance. free of our -- cannot months. comment, XX trailing Yes. TTM flow provide being for positive, I about But million is and the any a can said, our that forward flow

based do and the So a your just small you our get on you between adjustment number. based on the guidance, difference quarters,

Bruce Monrad

this any for Sometimes taxes. And one, the pay taxes? Is Okay. I'm that... surprised Did you sorry. of Great. to I'm pay the to taxes been extent again had sort to first you which -- time. at I've looking cash Last

Flavia Landsberg

the $X.X quarter, cash about probably this Yes. year, around million year. we paid be $XX taxes. cash in going for we're This And to for taxes million

Bruce Monrad

$XX million.

Okay. That's number. a big

Operator

with [Operator Instructions] Your is from S.A. Velmer next line the Advisory. of William question

William Velmer

million little $X Maybe stuff toward -- maybe market any or out. $XX and $X.XX enhancing solution a doing something $XX million have $X to getting guys positive $X wrong situation? value sales, plan billion EBITDA, ESG points. cap, here. look less you this with or time shareholder the do here word sales, address book a billion stock cap, potential market somehow the there's of couple A spend value, in

J. Sikkel

I think, sit well we William, on aware where the we're stock. of

Even we a able significant talked with purchase float be calls. I think in about be ], this have stock. to somewhat wouldn't can get previous to the $X.XX of any. Yes, you we've Obviously, you clear. wanted the if you problem [

the the in the stock now the well. last focusing we're to couple we debt improve be by I on piece, maturities, and putting our And results, over excited years. future all As we've continue think we'll we've together. piece of of dealt operating with we'll what as achieved be with But that

William Velmer

of there million and are shares XX Well, own out, that. institutions XX% the

It's -- some of insiders numbers. to things of to mean accomplish. buy So the maybe I I market there some you and like liquidity States. a addressing -- appreciate this would help. to million $XX the -- in you're dog kind that here United maybe do There's there. -- just filings, not is That's plenty should stock. the firms maybe cheap simple I Those over brokerage and are cap, be some motivated ponies just appreciate the might But of

J. Sikkel

buy I a that that I'm as the team management others. William, will [indiscernible] well At motivated We've of moment, to tried. as is and the something we try several this very it's stock. said, But lot inaccessible as

William Velmer

say mean that's mean -- $X in could I management I stock. I is have I sales. I this for stock buying problem mean at a doing I you're you -- the billion not company. Why don't that? $X.XX. it's in very money would much offered that mean you purchased guys.

really if it's are parameters -- it's by based You I -- guys that believe I think on have you are cheap -- that all this the presented would extremely and cheap salaries. you believe, company.

a to don't You're going think while, but basically away. stock. the letting I you're steal I wait little may have me

got We've doing refinanced $X positive EBITDA, pretty in cap a see, tobacco. company guess, remarkable. You increases billion, growth, market just $XX right? I With prices with million a it's a But stock. we'll your debt, of

J. Sikkel

in sure to looking positives that. you're our thank appreciate Well, the investing you And making for as results well. in much you all we're and very for out well that forward pointing awarded stock our

William Velmer

thing. last publication. financial I write one a Well, do

beat or you stock. is like it. month or a that intending the cheap little like I'm pretty me, to it's give trying So so, exposure next writing you to I days, tobacco a I this up. up trying free not I'm this a to mean, thing the because, next make within probably to I'm cheap. not, in XX point Whether it's just

Operator

call time. are turn further Mr. I questions back the will There at to now Tomas no Grigera. this

Tomas Grigera

call person Thank our available for for thank you Again, The for through participating for remain you evening. conference February joining our Sunday, call in playback will this XX. call. any interested

Operator

Ladies and call. gentlemen, this concludes today's conference

may disconnect. now You

Pyxus International (PYYX) 14 Feb 232023 Q3 Earnings call transcript