Pyxus International, Inc 10-Q for FY2021 Q1

Pyxus International, Inc. (PYYX)

10-Q 2020-08-24 For: 2020-06-30

Added on April 06, 2026

About this 10-Q

Pyxus International, Inc filed this 10-Q on August 24, 2020, covering the quarter ended June 30, 2020 (FY2021 Q1).

Headline figures

Quarter ended June 30, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $262.81M; down 5.0% from $276.67M a year earlier
Net loss: $92.16M; compared with a net loss of $61.8M a year earlier
Diluted EPS: -$9.24; compared with -$6.79 a year earlier

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Title of Each Class	Trading Symbol	Name of Exchange On Which Registered
Common Stock (no par value)	(1)	(1)


Old Holdco, Inc. (formerly Pyxus International, Inc.) and Subsidiaries
(Debtor-in-Possession)
Condensed Consolidated Statements of Operations
(Unaudited)

	Three Months Ended June 30,
(in thousands, except per share data)	2020		2019
Sales and other operating revenues	$	262,809	$	276,670
Cost of goods and services sold	243,183		236,958
Gross profit	19,626		39,712
Selling, general, and administrative expenses	60,757		49,377
Other (expense) income, net	(2,392)		2,948
Restructuring and asset impairment charges	73		212
Operating loss	(43,596)		(6,929)
Debt retirement expense	828		—
Interest expense (includes debt amortization of $2,760 and $2,208 for 2020 and 2019, respectively)	31,262		33,812
Interest income	755		1,154
Reorganization items:
Professional fees	(2,573)		—
United States trustee fees	(518)		—
Write-off of unamortized debt issuance costs and discount	(4,020)		—
DIP financing fees	(19,755)		—
Loss before income taxes and other items	(101,797)		(39,587)
Income tax (benefit) expense	(8,168)		23,453
Income from unconsolidated affiliates	820		877
Net loss	(92,809)		(62,163)
Net loss attributable to noncontrolling interests	(648)		(366)
Net loss attributable to Pyxus International, Inc.	$	(92,161)	$	(61,797)

Loss per share:
Basic	$	(9.24)	$	(6.79)
Diluted	$	(9.24)	$	(6.79)

Weighted average number of shares outstanding:
Basic	9,976		9,100
Diluted	9,976		9,100

See "Notes to Condensed Consolidated Financial Statements"


Old Holdco, Inc. (formerly Pyxus International, Inc.) and Subsidiaries
(Debtor-in-Possession)
Condensed Consolidated Statements of Comprehensive Loss
(Unaudited)

	Three Months Ended June 30,
(in thousands)	2020		2019
Net loss	$	(92,809)	$	(62,163)

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment	(140)		(400)
Pension and other postretirement benefit plans	494		311

Cash flow hedges	(531)		369
Total other comprehensive (loss) income, net of tax	(177)		280
Total comprehensive loss	(92,986)		(61,883)
Comprehensive loss attributable to noncontrolling interests	(724)		(336)
Comprehensive loss attributable to Pyxus International, Inc.	$	(92,262)	$	(61,547)

See "Notes to Condensed Consolidated Financial Statements"


Old Holdco, Inc. (formerly Pyxus International, Inc.) and Subsidiaries (Debtor-in-Possession) Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)				June 30, 2020		June 30, 2019		March 31, 2020
Assets
Current assets
Cash and cash equivalents				$	172,795	$	164,135	$	170,208
Restricted cash				2,649		3,137		2,486
Trade receivables, net				159,392		193,076		226,742
Other receivables				10,788		10,522		12,997
Accounts receivable, related parties				4,589		17,239		5,030
Notes receivable, related parties				400		150		406
Inventories, net				832,223		817,663		730,019
Advances to tobacco suppliers, net				32,535		41,264		38,877
Recoverable income taxes				16,873		8,182		7,562
Prepaid expenses				30,836		20,448		23,383
Other current assets				14,170		15,006		14,658
Total current assets				1,277,250		1,290,822		1,232,368
Restricted cash				389		389		389
Long-term notes receivable, related parties				—		—		7,450
Investments in unconsolidated affiliates				57,479		64,535		67,967
Goodwill				6,120		34,547		—
Other intangible assets, net				64,957		70,778		65,948
Deferred income taxes, net				—		113,666		2
Long-term recoverable income taxes				2,628		2,638		3,038

Other noncurrent assets				46,089		53,845		48,434
Right-of-use assets	39,602	45,969	41,471
Property, plant, and equipment, net				298,154		288,386		295,996
Total assets				$	1,792,668	$	1,965,575	$	1,763,063
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable to banks				$	524,266	$	520,828	$	540,157
DIP financing	131,700	—	—
Accounts payable				84,078		85,060		67,094
Accounts payable, related parties				19,775		20,773		11,820
Advances from customers				22,100		18,779		18,810
Advances from related parties				4,030		—		—
Accrued expenses and other current liabilities				91,989		104,392		89,928
Income taxes payable				2,735		18,314		5,049
Operating leases payable				10,978		15,275		11,160
Current portion of long-term debt				273,524		334		45,048
Total current liabilities				1,165,175		783,755		789,066
Long-term taxes payable				7,623		8,660		8,543
Long-term debt				3,238		899,672		904,316
Deferred income taxes				25,603		33,668		22,903
Liability for unrecognized tax benefits				12,229		8,544		12,311
Long-term leases				25,121		28,876		27,843
Pension, postretirement, and other long-term liabilities				73,869		71,835		74,389
Total liabilities not subject to compromise				1,312,858		1,835,010		1,839,371
Liabilities subject to compromise
Debt subject to compromise				635,686		—		—
Accrued interest on debt subject to compromise				13,421		—		—
Total liabilities subject to compromise				649,107		—		—
Total liabilities				1,961,965		1,835,010		1,839,371
Commitments and contingencies


(in thousands)							June 30, 2020		June 30, 2019		March 31, 2020
Stockholders’ equity	June 30, 2020	June 30, 2019	March 31, 2020
Common Stock—no par value:
Authorized shares	250,000	250,000	250,000
Issued shares	9,976	9,917	9,976	469,794	469,365	469,677
Retained deficit							(580,706)		(285,681)		(488,545)
Accumulated other comprehensive loss							(59,233)		(61,092)		(59,132)
Total stockholders’ equity of Pyxus International, Inc.							(170,145)		122,592		(78,000)
Noncontrolling interests							848		7,973		1,692
Total stockholders’ equity							(169,297)		130,565		(76,308)
Total liabilities and stockholders’ equity							$	1,792,668	$	1,965,575	$	1,763,063

See "Notes to Condensed Consolidated Financial Statements"


Old Holdco, Inc. (formerly Pyxus International, Inc.) and Subsidiaries
(Debtor-in-Possession)
Condensed Statements of Consolidated Stockholders' Equity
(Unaudited)

	Attributable to Pyxus International, Inc.
					Accumulated Other Comprehensive Loss
(in thousands)	Common Stock		Retained Deficit		Currency Translation Adjustment		Pensions, Net of Tax		Derivatives, Net of Tax		Noncontrolling Interests		Total Stockholders' Equity
Balance, March 31, 2020	$	469,677	$	(488,545)	$	(22,509)	$	(37,154)	$	531	$	1,692	$	(76,308)
Net loss attributable to Pyxus International, Inc.	—		(92,161)		—		—		—		(648)		(92,809)
Stock-based compensation	117		—		—		—		—		—		117
Dividends paid	—		—		—		—		—		(120)		(120)
Other comprehensive (loss) income, net of tax	—		—		(64)		494		(531)		(76)		(177)
Balance, June 30, 2020	$	469,794	$	(580,706)	$	(22,573)	$	(36,660)	$	—	$	848	$	(169,297)









Balance, March 31, 2019	$	468,936	$	(223,884)	$	(21,979)	$	(36,749)	$	(2,614)	$	8,309	$	192,019
Net loss attributable to Pyxus International, Inc.	—		(61,797)		—		—		—		(366)		(62,163)
Stock-based compensation	429		—		—		—		—		—		429

Other comprehensive (loss) income, net of tax	—		—		(430)		311		369		30		280
Balance, June 30, 2019	$	469,365	$	(285,681)	$	(22,409)	$	(36,438)	$	(2,245)	$	7,973	$	130,565















See "Notes to Condensed Consolidated Financial Statements"


Cash and cash equivalents	$	195
Accounts receivable	1,528
Advances to suppliers	1,043
Inventories	3,823
Other current assets	181
Property, plant, and equipment	5,060
Goodwill	6,120

Total assets acquired	17,950
Accounts payable	1,654
Notes payable	7,450
Other current liabilities	513

Total liabilities	9,617
Fair value of equity interest	$	8,333


Entity Name	Location	Primary Purpose	The Company's Ownership Percentage		Basis Difference
Adams International Ltd.	Thailand	purchase and process tobacco	49	%	—
Alliance One Industries India Private Ltd.	India	purchase and process tobacco	49	%	—
China Brasil Tobacos Exportadora SA	Brazil	purchase and process tobacco	49	%	5,189
Nicotine River, LLC	U.S.	produce consumable e-liquids	40	%	1,778
Oryantal Tütün Paketleme Sanayi ve Ticaret A.Ş.	Turkey	process tobacco	50	%	—
Purilum, LLC	U.S.	produce flavor formulations and consumable e-liquids	50	%	—
Siam Tobacco Export Company	Thailand	purchase and process tobacco	49	%	—


	June 30,
	2020		2019		March 31, 2020
Balance sheet:
Current assets	$	232,176	$	236,389	$	145,207
Property, plant, and equipment and other assets	50,679		55,023		56,481
Current liabilities	174,367		184,526		82,377
Long-term obligations and other liabilities	6,107		3,354		6,296


	Three Months Ended June 30, 2020
	Weighted Average Remaining Useful Life	Beginning Gross Carrying Amount		Additions		Accumulated Amortization ⁽¹⁾		Impact of Foreign Currency Translation		Ending Intangible Assets, Net
Intangibles subject to amortization:
Customer relationships	8.45 years	$	63,980	$	—	$	(34,054)	$	—	$	29,926
Production and supply contracts ⁽²⁾	2.75 years	7,000		—		(3,354)		—		3,646
Internally developed software	3.60 years	22,385		—		(19,427)		17		2,975
Licenses ⁽³⁾	16.75 years	30,886		—		(3,754)		919		28,051
Trade names	5.75 years	500		—		(141)		—		359
Intangibles not subject to amortization:
Goodwill ⁽⁴⁾		—		6,120		—		—		6,120
Total		$	124,751	$	6,120	$	(60,730)	$	936	$	71,077


	Year Ended March 31, 2020
	Weighted Average Remaining Useful Life	Beginning Gross Carrying Amount		Additions		Accumulated Amortization ⁽¹⁾		Impact of Foreign Currency Translation		Ending Intangible Assets, Net
Intangibles subject to amortization:
Customer relationships	8.66 years	$	63,980	$	—	$	(33,049)	$	—	$	30,931
Production and supply contracts	3.00 years	14,893		—		(11,217)		—		3,676
Internally developed software	3.96 years	19,917		2,468		(19,082)		—		3,303
Licenses ⁽²⁾	16.95 years	33,330		195		(3,310)		(2,551)		27,664
Trade names	6.00 years	500		—		(126)		—		374


Total		$	132,620	$	2,663	$	(66,784)	$	(2,551)	$	65,948


For Fiscal Years Ended	Customer Relationships		Production and Supply Contracts		Internally Developed Software⁽¹⁾		Licenses		Trade Names		Total
2021 (excluding the three months ended June 30, 2020)	$	3,016	$	841	$	579	$	1,347	$	47	$	5,830
2022	4,022		1,397		851		1,793		63		8,126
2023	4,022		1,397		768		1,790		63		8,040
2024	4,022		11		520		1,790		63		6,406
2025	4,022		—		257		1,735		63		6,077
Thereafter	10,822		—		—		19,596		60		30,478
	$	29,926	$	3,646	$	2,975	$	28,051	$	359	$	64,957


							June 30, 2020
	Outstanding						Lines and
	March 31,		June 30,		Letters		Interest
(in thousands)	2020		2020		Available		Rate
Senior secured credit facility:
ABL facility	$	44,900	$	—	$	—	4.1	%	(1)
Senior notes:
8.5% senior secured first lien notes ⁽²⁾	272,871		273,377		—		8.5	%
9.875% senior secured second lien notes ⁽³⁾	630,737		635,686		—		9.9	%
Other long-term debt	856		3,385		387		8.0	%	(1)
Notes payable to banks ⁽⁴⁾	540,157		524,266		234,953		6.6	%	(1)
DIP Financing	—		131,700		75,000		11.9	%
Total debt	$	1,489,521	$	1,568,414	$	310,340
Short-term	540,157		655,966
Long-term:
Current portion of long-term debt	$	45,048	$	273,524
Long-term debt	904,316		3,238
	$	949,364	$	276,762
Debt subject to compromise:
9.875% senior secured second lien notes ⁽³⁾	$	—	$	635,686

Letters of credit	7,027		5,880		2,765
Total credit available					$	313,105

(1) Weighted average rate for the trailing twelve months ended June 30, 2020.
(2) Repayment of $273,377 is net of original issue discount of $517 and unamortized debt issuance costs of $1,106. Total repayment will be $275,000.
(3) Upon commencement of the Chapter 11 Cases on June 15, 2020, the carrying amount of the Second Lien Notes was adjusted to write-off the original issue discount of $2,305 and the unamortized debt issuance costs of $1,715 to reorganization items. The Second Lien Notes are classified as liabilities subject to compromise within the condensed consolidated balance sheets as of June 30, 2020.
(4) Primarily foreign seasonal lines of credit.


	Three Months Ended June 30, 2020										Three Months Ended June 30, 2019
	Securitized Beneficial Interests		Long-Term Debt		Guarantees		Securitized Beneficial Interests		Long-Term Debt		Guarantees
Beginning balance	$	27,021	$	848	$	2,791	$	40,332	$	703	$	3,714
Issuances of sales of receivables/guarantees	47,120		—		647		46,882		—		293
Settlements	(57,902)		(100)		(117)		(71,623)		(83)		(879)
Additions	—		3,056		—		—		3		—
(Losses) gains recognized in earnings	(1,290)		—		(9)		(943)		—		8
Ending balance	$	14,949	$	3,804	$	3,312	$	14,648	$	623	$	3,136


001-13684
(Commission File Number)


	Three Months Ended June 30,
	2020		2019
Antidilutive stock options and other awards	427		427
Antidilutive stock options and other awards under stock-based compensation programs excluded based on reporting a net loss for the period	24		—
Total common stock equivalents excluded from diluted loss per share	451		427
Weighted average exercise price	$	56.86	$	60.00


	June 30, 2020		June 30, 2019		March 31, 2020
Investments in variable interest entities	$	51,509	$	57,541	$	62,407
Receivables with variable interest entities	2,039		14,500		10,099
Guaranteed amounts to variable interest entities (not to exceed)	60,937		63,584		59,792


	June 30, 2020		June 30, 2019		March 31, 2020
Amounts guaranteed (not to exceed)	$	110,712	$	127,738	$	138,953
Amounts outstanding under guarantee⁽¹⁾	48,339		90,535		48,565
Fair value of guarantees	3,312		3,136		2,791
Amounts due to local banks on behalf of suppliers and included in accounts payable	14,206		24,131		6,849


	Defined Benefit Plans
	Three Months Ended June 30,
	2020		2019
Operating expenses:
Service cost	$	106	$	117
Interest expense:
Interest expense	957		1,029
Expected return on plan assets	(740)		(1,121)
Amortization of prior service cost	10		10

Actuarial loss	521		456
Net periodic pension cost	$	854	$	491


	Other Postretirement Benefits
	Three Months Ended June 30,
	2020		2019
Operating expenses:
Service cost	$	2	$	2
Interest expense:
Interest expense	69		82
Amortization of prior service cost	(176)		(177)
Actuarial loss	94		109
Net periodic pension cost	$	(11)	$	16


	Three Months Ended June 30,					Affected Line Item in the Condensed Consolidated
	2020		2019		Statements of Operations
Pension and other postretirement benefits⁽¹⁾:
Actuarial loss	$	605	$	560
Amortization of prior service cost	(165)		(165)
Amounts reclassified from accumulated other comprehensive loss to net income, gross	440		395
Tax effects of amounts reclassified from accumulated other comprehensive loss to net income	—		(84)
Amounts reclassified from accumulated other comprehensive loss to net income, net	$	440	$	311	Interest expense

	Three Months Ended June 30,					Affected Line Item in the Condensed Consolidated
	2020		2019		Statements of Operations
Derivatives:
Losses reclassified to cost of goods sold	$	164	$	651
Amounts reclassified from accumulated other comprehensive loss to net income, gross	164		651
Tax effects of amounts reclassified from accumulated other comprehensive loss to net income	(694)		(137)
Amounts reclassified from accumulated other comprehensive loss to net income, net	$	(530)	$	514	Cost of goods and services sold


Debtors Condensed Combined Statement of Operations
(Unaudited)

	Three Months Ended
(in thousands)		June 30, 2020
Sales and other operating revenues		$	190,806
Cost of goods and services sold		167,534
Gross profit		23,272
Selling, general, and administrative expenses		43,151
Other expense, net		(2,536)
Operating loss		(22,415)
Debt retirement expense		828
Interest expense		21,403
Interest income		1,514
Reorganization items:
Professional fees		(2,573)
United States trustee fees		(518)
Write-off of unamortized debt issuance costs and discount		(4,020)
DIP financing fees		(19,755)
Loss before income taxes and other items		(69,998)
Income tax benefit		(160)
Equity in earnings of subsidiaries		(34,859)
Net loss		(104,697)
Net loss attributable to noncontrolling interests		—
Net loss attributable to Pyxus International, Inc.		$	(104,697)


Debtors Condensed Consolidated Balance Sheet (Unaudited)
(in thousands)	June 30, 2020
Assets
Current assets
Cash and cash equivalents	$	66,063
Trade receivables, net	84,327
Accounts receivable, related parties	60,648
Notes receivable, related parties	57,803
Inventories, net	184,469
Advances to tobacco suppliers, net	84,275
Prepaid expenses	8,334
Other current assets	5,399
Total current assets	551,318
Investment in subsidiaries	1,431,249
Other intangible assets, net	13,146
Property, plant, and equipment, net	51,843
Total assets	$	2,047,556
Liabilities and Stockholders’ Equity
Current liabilities
DIP Financing	$	131,700
Notes payable, related parties	30,000
Accounts payable	18,951
Accounts payable, related parties	195,591
Advances from customers	14,611
Accrued expenses	43,051
Other current liabilities	3,402
Current portion of long-term debt	273,377
Total current liabilities	710,683
Long-term taxes payable	7,623
Liability for unrecognized tax benefits	9,015
Deferred tax liabilities	6,755
Pension and postretirement liabilities	84,162
Other long-term liabilities	5,004
Total liabilities not subject to compromise	823,242
Debt subject to compromise	635,686
Accrued interest on debt subject to compromise	13,421
Total liabilities subject to compromise	649,107
Total liabilities	1,472,349
Stockholders’ equity	575,207
Total liabilities and stockholders’ equity	$	2,047,556


Debtors Condensed Consolidated Statement of Cash Flows (Unaudited)
	Three Months Ended
(in thousands)	June 30, 2020
Operating Activities:
Net loss	$	(104,697)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	2,745
Debt amortization/interest	1,738
Debt retirement expense	657
Reorganization items	15,703







Changes in operating assets and liabilities, net	(107,138)
Other, net	20,206
Net cash used by operating activities	(170,786)

Investing Activities:
Purchases of property, plant, and equipment	(396)

Collections on beneficial interests on securitized trade receivables	51,533




Net cash provided by investing activities	51,137

Financing Activities:

Repayment of revolving loans facilities	(44,900)
Proceeds from DIP facility	131,700



DIP financing fees	(9,085)
Other, net	(171)


Net cash provided by financing activities	77,544

Effect of exchange rate changes on cash	(164)

Decrease in cash, cash equivalents, and restricted cash	(42,269)
Cash and cash equivalents at beginning of period	108,332
Restricted cash at beginning of period	—
Cash, cash equivalents, and restricted cash at end of period	66,063

Other information:
Cash paid for income taxes, net	52
Cash paid for interest	11,881
Cash received from interest	1,514
Cash paid for reorganization items	2,078

Noncash investing activities:

Non-cash amounts obtained as a beneficial interest in exchange for transferring trade receivables in a securitization transaction	47,120


Period	Percentage
From August 24, 2022 to August 23, 2023	105.0	%
From August 24, 2023 to August 23, 2024	102.5	%
On or after February 24, 2024	100.0	%


Three Months Ended June 30, 2020 and 2019
	Three Months Ended June 30,
					Change
(in millions)	2020		2019		$		%
Sales and other operating revenues	$	262.8	$	276.7	$	(13.9)	(5.0)
Cost of goods and services sold	243.2		237.0		6.2		2.6
Gross profit	19.6		39.7		(20.1)		(50.6)
Selling, general, and administrative expenses	60.8		49.4		11.4		23.1
Other (expense) income, net	(2.4)		2.9		(5.3)		(182.8)
Restructuring and asset impairment charges	0.1		0.2		(0.1)		(50.0)
Operating loss*	(43.6)		(6.9)		(36.7)		(531.9)
Debt retirement expense	0.8		—		0.8		100.0
Interest expense	31.3		33.8		(2.5)		(7.4)
Interest income	0.8		1.2		(0.4)		(33.3)
Reorganization items	(26.9)		—		(26.9)		(100.0)
Income tax (benefit) expense	(8.2)		23.5		(31.7)		(134.9)
Income from unconsolidated affiliates	0.8		0.9		(0.1)		(11.1)
Net (loss) income attributable to noncontrolling interests	(0.6)		(0.4)		(0.2)		(50.0)
Net loss attributable to Pyxus International, Inc.*	$	(92.2)	$	(61.8)	$	(30.4)	(49.2)

* Amounts may not equal column totals due to rounding


Leaf - North America Supplemental Information
	Three Months Ended June 30,
					Change
(in millions, except per kilo amounts)	2020		2019		$		%
Kilos sold	5.1		6.6		(1.5)		(22.7)
Tobacco sales and other operating revenues:
Sales and other operating revenues	$	25.9	$	31.1	$	(5.2)	(16.7)
Average price per kilo	5.08		4.71		0.37		7.9
Processing and other revenues	4.0		3.8		0.2		5.3
Total sales and other operating revenues	29.9		34.9		(5.0)		(14.3)
Tobacco cost of goods sold:
Tobacco costs	20.0		24.4		(4.4)		(18.0)
Transportation, storage, and other period costs	2.7		3.2		(0.5)		(15.6)
Derivative financial instrument and exchange losses (gains)	0.2		(0.1)		0.3		300.0
Total tobacco cost of goods sold	22.9		27.5		(4.6)		(16.7)
Average cost per kilo	4.49		4.17		0.32		7.7
Processing and other revenues cost of services sold	2.6		2.2		0.4		18.2
Total cost of goods and services sold	25.5		29.7		(4.2)		(14.1)
Gross profit	4.4		5.2		(0.8)		(15.4)
Selling, general, and administrative expenses	4.9		4.2		0.7		16.7
Other expense, net	(0.3)		(0.2)		(0.1)		(50.0)

Operating (loss) income	$	(0.8)	$	0.8	(1.6)		(200.0)


Leaf - Other Regions Supplemental Information
	Three Months Ended June 30,
					Change
(in millions, except per kilo amounts)	2020		2019		$		%
Kilos sold	58.5		54.9		3.6		6.6
Tobacco sales and other operating revenues:
Sales and other operating revenues	$	218.3	$	225.2	$	(6.9)	(3.1)
Average price per kilo	3.73		4.10		(0.37)		(9.0)
Processing and other revenues	9.4		10.6		(1.2)		(11.3)
Total sales and other operating revenues	227.7		235.8		(8.1)		(3.4)
Tobacco cost of goods sold:
Tobacco costs	182.8		183.2		(0.4)		(0.2)
Transportation, storage, and other period costs	8.5		12.8		(4.3)		(33.6)
Derivative financial instrument and exchange (gains) losses	(1.5)		(0.9)		(0.6)		(66.7)
Total tobacco cost of goods sold	189.8		195.1		(5.3)		(2.7)
Average cost per kilo	3.24		3.55		(0.31)		(8.7)
Processing and other revenues cost of services sold	7.4		8.5		(1.1)		(12.9)
Total cost of goods and services sold	197.2		203.6		(6.4)		(3.1)
Gross profit	30.5		32.2		(1.7)		(5.3)
Selling, general, and administrative expenses	37.1		28.2		8.9		31.6
Other income, net	0.4		3.2		(2.8)		(86.6)
Restructuring and asset impairment charges	0.1		0.2		(0.2)		(75.0)
Operating (loss) income*	$	(6.2)	$	7.0	$	(13.2)	(188.9)
* Amounts may not equal column totals due to rounding


Other Products and Services Supplemental Information
	Three Months Ended June 30,
					Change
(in millions)	2020		2019		$		%
Sales and other operating revenues	$	5.2	$	6.0	$	(0.8)	(13.3)
Cost of goods and services sold	20.5		3.7		16.8		454.1
Gross (loss) profit	(15.3)		2.3		(17.6)		(765.2)
Selling, general, and administrative expenses	18.7		17.0		1.7		10.0
Other expense, net	(2.5)		—		(2.5)		(100.0)

Operating loss	$	(36.5)	$	(14.7)	$	(21.8)	(148.5)


	June 30,						March 31,
(in millions except for current ratio)	2020		2019		2020
Cash and cash equivalents	$	172.8	$	164.1	$	170.2
Trade and other receivables, net	170.2		203.6		239.7
Inventories and advances to tobacco suppliers	864.8		858.9		768.9
Total current assets	1,277.3		1,290.8		1,232.4
Notes payable to banks	524.3		520.8		540.2
Accounts payable	84.1		85.1		67.1
Advances from customers	22.1		18.8		18.8
Total current liabilities	1,165.2		783.8		789.1
Current ratio	1.1 to 1		1.6 to 1		1.6 to 1
Working capital	112.1		507.0		443.3
Long-term debt	3.2		899.7		904.3
Stockholders’ equity attributable to Pyxus International, Inc.	(170.1)		122.6		(78.0)


2 .01						Order dated August 24, 2020 issued by the United States Bankruptcy Court for the District of Delaware in the case captioned In re Pyxus International, Inc., et al. (Case No. 20-11570 (LLS)), incorporated by reference to Exhibit 2.1 of the Current Report on Form 8-K, filed August 24, 2020 (SEC File No. 001-13684).
2 .02						Amended Joint Prepackaged Chapter 11 Plan of Reorganization filed by the Debtors in the case before the United States Bankruptcy Court for the District of Delaware captioned In re Pyxus International, Inc., et al. (Case No. 20-11570 (LLS)), incorporated by reference to Exhibit 2.2 of the Current Report on Form 8-K, filed August 24, 2020 (SEC File No. 001-13684).
10.01						Executive Officer Retention Plan (filed herewith)
10.02						Restructuring Support Agreement, dated June 14, 2020, by and among Pyxus International, Inc. and certain of its creditors party thereto incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K, filed June 15, 2020 (SEC File No. 001-13684).
10.03						Superpriority Secured Debtor-In-Possession Credit Agreement, dated as of June 17, 2020, by and among Pyxus International, Inc., as borrower, the guarantor parties thereto, the lenders parties thereto, and Cortland Capital Market Services LLC, as administrative agent and collateral agent incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K, filed June 19, 2020 (SEC File No. 001-13684).
31.01						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.02						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32						Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
101.INS						XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH						Inline XBRL Taxonomy Extension Schema (filed herewith)
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase (filed herewith)
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase (filed herewith)
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase (filed herewith)
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase (filed herewith)
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in the Interactive Data Files submitted as Exhibits 101.*)