Earnings Per Share

3 Months Ended

Jun. 30, 2011

Earnings Per Share

Earnings Per Share [Text Block]

8.  EARNINGS PER SHARE

The weighted average number of common shares outstanding is reported as the weighted average of the total shares of common stock outstanding net of shares of common stock held by a wholly owned subsidiary.  Shares of common stock owned by the subsidiary were 7,853 at June 30, 2011 and 2010.  This subsidiary waives its right to receive dividends and it does not have the right to vote.

          Certain potentially dilutive options were not included in the computation of earnings per diluted share because their exercise prices were greater than the average market price of the shares of common stock during the period and their effect would be antidilutive.  These shares totaled 4,413 at a weighted average exercise price of $6.06 per share at June 30, 2011 and 1,559 at a weighted average exercise price of $7.01 per share at June 30, 2010.

          In connection with the offering of the Company’s 5 ½% Convertible Senior Subordinated Notes due 2014, issued on July 2, 2009 (the “Convertible Notes”), the Company entered into privately negotiated convertible note hedge transactions (the “convertible note hedge transactions”) equal to the number of shares that underlie the Company’s Convertible Notes.  These convertible note hedge transactions are expected to reduce the potential dilution of the Company’s common stock upon conversion of the Convertible Notes in the event that the value per share of common stock exceeds the initial conversion price of $5.0280 per share.  These shares were not included in the computation of earnings per diluted share because their inclusion would be antidilutive.

          On July 28, 2010, the Company’s board of directors authorized the purchase up to $40,000 of its common stock through June 30, 2012.  As of June 30, 2011, the Company had purchased 2,380 shares of its common stock at a weighted average price paid per share of $3.78.  At June 30, 2011, the Company did not achieve the necessary fixed charge coverage ratio under the indenture governing the Company’s 10% Senior Notes due 2016 to access the restricted payments basket for the purchase of common stock.

          The following table summarizes the computation of earnings per share for the three months ended June 30, 2011 and 2010, respectively.

	Three Months Ended
	June 30,
(in thousands, except per share data)	2011	2010
BASIC EARNINGS
Net income attributable to Alliance One International, Inc.	$ 1,321	$ 13,822
SHARES
Weighted average number of shares outstanding	86,812	88,961
BASIC EARNINGS PER SHARE	$  .02	$  .16
DILUTED EARNINGS
Net income attributable to Alliance One International, Inc.	$ 1,321	$ 13,822
Plus interest expense on 5 1/2% convertible notes, net of tax	1,028	1,028
Net income attributable to Alliance One International, Inc. as adjusted	$ 2,349	$ 14,850
SHARES
Weighted average number of common shares outstanding	86,812	88,961
Plus:  Restricted shares issued and shares applicable to stock                options and restricted stock units, net of shares assumed                to be purchased from proceeds at average market price	398	459
Assuming conversion of 5 1/2% convertible notes at the time of issuance	22,872	22,872
Shares applicable to stock warrants	-*	-*
Adjusted weighted average number of common shares outstanding	110,082	112,292
DILUTED EARNINGS PER SHARE	$  .02	$  .13
* For the three months ended June 30, 2011 and 2010, the warrants were not assumed exercised because the exercise price    was more than the average price for the periods presented.