Earnings Per Share

3 Months Ended

Dec. 31, 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 December 31, 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 4,222 at a weighted average exercise price of $7.02 per share at December 31, 2011 and 1,222 at a weighted average exercise price of $7.02 per share at December 31, 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 December 31, 2011, the Company had purchased 2,380 shares of its common stock at a weighted average price paid per share of $3.78.  At December 31, 2011, the Company did not achieve the fixed charge coverage ratio under the indenture governing the Company’s 10% Senior Notes due 2016 necessary 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 and nine months ended December 31, 2011 and 2010, respectively.

	Three Months Ended		Nine Months Ended
	December 31,		December 31,
(in thousands, except per share data)	2011	2010	2011	2010
BASIC EARNINGS (LOSS)
Net income (loss) attributable to Alliance One International, Inc.	$ 11,754	$ (1,989)	$   9,354	$  32,112
SHARES
Weighted average number of shares outstanding	87,146	86,803	86,976	88,125
BASIC EARNINGS (LOSS) PER SHARE	$       .13	$     (.02)	$       .11	$        .36
DILUTED EARNINGS (LOSS)
Net income (loss) attributable to Alliance One International, Inc.	$ 11,754	$ (1,989)	$   9,354	$  32,112
Plus interest expense on 5 1/2% convertible notes, net of tax	1,028	-*	3,083	3,083
Net income (loss) attributable to Alliance One International, Inc.              as adjusted	$ 12,782	$ (1,989)	$ 12,437	$  35,195
SHARES
Weighted average number of common shares outstanding	87,146	86,803	86,976	88,125
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	168	-*	282	340
Assuming conversion of 5 1/2% convertible notes at the             time of issuance	22,872	-*	22,872	22,872
Shares applicable to stock warrants	-**	-**	-**	-**
Adjusted weighted average number of common shares outstanding	110,186	86,803	110,130	111,337
DILUTED EARNINGS (LOSS) PER SHARE	$       .12	$     (.02)	$       .11	$        .32
*   Assumed conversion of convertible notes at the beginning of the period has an antidilutive effect on earnings (loss) per share.  For the three months ended December 31, 2010, all outstanding restricted shares and shares applicable to stock options and restricted stock units are excluded because their inclusion would have an antidilutive effect on the loss per share.
** For the three months and nine months ended December 31, 2011 and 2010, the warrants were not assumed exercised because the exercise price was more than the average price for the periods presented.