Condensed Combined Debtor-In-Possession Financial Information

3 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Condensed Combined Debtor-In-Possession Financial Information

Condensed Combined Debtor-In-Possession Financial Information

The financial statements below represent the unaudited condensed combined financial statements of the Debtors as of and for the three months ended June 30, 2020. These condensed combined financial statements do not include the results of the Company's subsidiaries that are not part of the Chapter 11 Cases. Intercompany transactions among the Debtors have been eliminated in the combined financial statements. Intercompany transactions among the Debtors and the subsidiaries that are not part of the Chapter 11 Cases have not been eliminated in the Debtors' combined financial statements.

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