PYXUS INTERNATIONAL, INC. Forward-Looking Statements Readers are cautioned that the statements contained in this report regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements, which are based on current expectations of future events, may be identified by the use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets," and other words of similar meaning. These statements also may be identified by the fact that they do not relate strictly to historical or current facts. If underlying assumptions prove inaccurate, or if known or unknown risks or uncertainties materialize, actual results could vary materially from those anticipated, estimated, or projected. These risks and uncertainties include those discussed in this Quarterly Report on Form 10-Q, in our Annual Report on Form 10-K for the year endedMarch 31, 2022 and in our other filings with theSecurities and Exchange Commission . These risks and uncertainties include: our reliance on a small number of significant customers; continued vertical integration by our customers; global shifts in sourcing customer requirements; shifts in the global supply and demand position for tobacco products; variation in our financial results due to growing conditions, customer indications and other factors; loss of confidence in us by our customers, farmers and other suppliers; migration of suppliers who have historically grown tobacco and from whom we have purchased tobacco toward growing other crops; risks related to our advancement of inputs to tobacco suppliers to be settled upon the suppliers delivering us unprocessed tobacco at the end of the growing season; risks that the tobacco we purchase directly from suppliers will not meet our customers' quality and quantity requirements; weather and other environmental conditions that can affect the marketability of our inventory; international business risks, including unsettled political conditions, uncertainty in the enforcement of legal obligations, including the collection of accounts receivable, fraud risks, expropriation, import and export restrictions, exchange controls, inflationary economies, currency risks and risks related to the restrictions on repatriation of earnings or proceeds from liquidated assets of foreign subsidiaries; many of our operations are located in jurisdictions that pose a high risk of potential violations of the Foreign Corrupt Practices Act; impacts of international sanctions on our ability to sell or source tobacco in certain regions; exposure to foreign tax regimes in which the rules are not clear, are not consistently applied and are subject to sudden change; fluctuations in foreign currency exchange and interest rates; competition with the other primary global independent leaf tobacco merchant and independent leaf merchants; disruption, failure or security breaches of our information technology systems; continued high inflation; we have identified material weaknesses related to our internal controls in certain prior years, and there can be no assurance that material weaknesses will not be identified in the future; regulations regarding environmental matters; risks related to our capital structure, including risks related to our significant debt and our ability to continue to finance our non-U.S. local operations with uncommitted short-term operating credit lines at the local level; our ability to continue to access capital markets to obtain long-term and short-term financing; potential failure of foreign banks in which our subsidiaries maintain deposits or the failure by such banks to transfer funds or honor withdrawals; the risk that, because our ability to generate cash depends on many factors beyond our control, we may be unable to generate the significant amount of cash required to service our indebtedness; our ability to refinance our current credit facilities at the same availability or at similar interest rates; failure to achieve our stated goals, which may adversely affect our liquidity; developments with respect to our liquidity needs and sources of liquidity; the volatility and disruption of global credit markets; failure by counterparties to derivative transactions to perform their obligations; increasing scrutiny and changing expectations from governments, as well as other stakeholders such as investors and customers, with respect to our environmental, social and governance policies, including sustainability policies; inherent risk of exposure to product liability claims, regulatory action and litigation facing our e-liquids business if its products are alleged to have caused significant loss, injury, or death; certain shareholders have the ability to exercise controlling influence on various corporate matters; reductions in demand for consumer tobacco products; risks and uncertainties related to the COVID-19 pandemic and its related shipping constraints, labor shortages and supply-chain impacts; legislative and regulatory initiatives that may reduce consumption of consumer tobacco products and demand for our services and increase regulatory burdens on us or our customers; government actions that significantly affect the sourcing of tobacco, including governmental actions to identify and assess crop diversification initiatives and alternatives to leaf tobacco growing in countries whose economies depend upon tobacco production; governmental investigations into, and litigation concerning, leaf tobacco industry buying and other payment practices; and impact of potential regulations to prohibit the sale of cigarettes inthe United States other than low-nicotine cigarettes.
We do not undertake to update any forward-looking statements that we may make from time to time.
Executive Summary During the nine months endedDecember 31, 2023 , we successfully utilized our global footprint to navigate the current tobacco supply shortage to meet our buying targets for fiscal 2023 in most markets. Combined with continuing normalization of shipping schedules inNorth and South America and increasing demand fromAsia , the Company delivered an increase of more than 50% in sales and other operating revenues year-over-year in spite of a complicated crop year that was exacerbated by La Nina and inflationary pressures. This increase in sales and other operating revenues and higher utilization of the Company's 27 -------------------------------------------------------------------------------- securitization programs resulted in increased cash flow from operations year-over-year. Some of these funds were strategically utilized to fully repay the Company's outstanding indebtedness under the ABL Credit Facility and provides the Company with increased financial flexibility as we approach the next buying cycle. InFebruary 2023 , the Company successfully completed an exchange of its existing long-term debt with varying maturity dates for new long-term debt with maturity dates in 2027. Our new capital structure addresses approaching maturity dates, provides the Company with increased financial flexibility, and relief from certain restrictive covenants.
Overview
The Company is a global agricultural company with 150 years of experience delivering value-added products and services to businesses and customers. The Company is a trusted provider of responsibly sourced, independently verified, sustainable, and traceable products and ingredients. Historically, the Company had nine operating segments that were organized by product category and geographic area and were aggregated into three reportable segments for financial reporting purposes: Leaf -North America , Leaf - Other Regions, and Other Products and Services. During year endedMarch 31, 2022 , the Company reevaluated its operating and reportable segments under ASC Topic 280 - Segment Reporting. As a result of this reevaluation, effective during the fourth quarter of the year endedMarch 31, 2022 , the Company has eight operating segments organized by geographic area and product category that are aggregated into one reportable segment for financial reporting purposes: Leaf. An All Other category is included for purposes of reconciliation of the results of the Leaf reportable segment to the consolidated results. See " Note 1. Basis of Presentation and Summary of Significant Accounting Policies " for additional information. 28 -------------------------------------------------------------------------------- Results of Operations Three Months EndedDecember 31, 2022 and 2021
Three Months Ended
Change
(in millions, except per kilo amounts) 2022 2021 $ %
Sales and other operating revenues $ 655.6 $ 428.9 226.7 52.9
Cost of goods and services sold 567.8 363.7 204.1 56.1
Gross profit 87.8 65.2 22.6 34.7
Gross profit as a percent of sales 13.4 % 15.2 %
Selling, general, and administrative expenses $ 37.1 $ 34.2 2.9 8.5
Other expense (income), net 9.0 (0.2) 9.2 4,600.0
Restructuring and asset impairment charges - 0.6 (0.6) (100.0)
Goodwill impairment - 0.4 (0.4) (100.0)
Operating income 41.6 30.2 11.4 37.7
Loss on deconsolidation/disposition of subsidiaries - 7.1 (7.1) (100.0)
Interest expense, net 31.4 27.5 3.9 14.2
Income tax expense 17.9 31.8 (13.9) (43.7)
Income from unconsolidated affiliates 5.4 6.1 (0.7) (11.5)
Net income attributable to noncontrolling interests 0.1 - 0.1 100.0
Net loss attributable to
27.8 92.4
Leaf:
Sales and other operating revenues$ 625.1 $ 394.8 230.3 58.3 Tobacco costs 510.2 313.6 196.6 62.7 Transportation, storage, and other period costs 32.8 23.2 9.6 41.5 Total cost of goods sold 543.0 336.8 206.2 61.2 Product revenue gross profit 82.1 58.0 24.1 41.5 Product revenue gross profit as a percent of sales 13.1 % 14.7 % Kilos sold 129.4 106.2 23.3 21.9 Average price per kilo $ 4.83 $ 3.72 1.11 29.8 Average cost per kilo 4.19 3.17 1.02 32.2 Average gross profit per kilo 0.64 0.55 0.09 16.4 Processing and other revenues $ 27.1 $ 31.3 (4.2) (13.3) Processing and other revenues costs of services sold 20.5 22.3 (1.7) (7.8) Processing and other gross profit 6.6 9.0 (2.4) (26.9) Processing and other gross profit as a percent of sales 24.3 %
28.9 %
All Other: Sales and other operating revenues $ 3.3 $ 2.8 0.5 17.0 Cost of goods and services sold 4.2 4.6 (0.4) (9.3) Gross loss (0.9) (1.8) 0.9 50.2 Gross loss as a percent of sales (27.4) %
(64.4) %
Note: dollar and percentage changes may not calculate exactly due to rounding
29
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Sales and other operating revenues were $428.9 million for the three months
ended December 31, 2021 and $655.6 million for the three months ended December
31, 2022 , an increase of $226.7 million , or 52.9%. This increase was primarily
due to a 21.9% increase in leaf volume and a 29.8% increase in average price per
kilo. The increase in leaf volume was driven by increased volume from Asia , more
normalized timing of shipments from South America from the current crop, and the
timing of shipments from North America that were delayed from the three months
ended September 30, 2022 into the three months ended December 31, 2022 . The
increase in average price per kilo was mainly due to higher tobacco prices.
Cost of goods and services sold were $363.7 million for the three months ended
December 31, 2021 and $567.8 million for the three months ended December 31,
2022 , an increase of $204.1 million , or 56.1%. This increase was mainly due to
the increase in sales and other operating revenues. Average cost per kilo
increased primarily due to higher tobacco prices.
Gross profit was $65.2 million for the three months ended December 31, 2021 and
$87.8 million for the three months ended December 31, 2022 , an increase of $22.6
million , or 34.7%. This increase was mainly due to the increase in sales and
other operating revenues. Gross profit as a percent of sales went from 15.2% for
the three months ended December 31, 2021 to 13.4% for the three months ended
December 31, 2022 . This decrease was primarily due to the impact of short-crops
in certain markets in Africa and product mix in North America .
Average gross profit per kilo for product revenue was $0.55 for the three months
ended December 31, 2021 and $0.64 for the three months ended December 31, 2022 ,
an increase of $0.09 per kilo or 16.4%. This increase was primarily due to
customer mix in North and South America and product mix in Africa and Asia .
Other expense, net was
Operating income was$30.2 million for the three months endedDecember 31, 2021 and$41.6 million for the three months endedDecember 31, 2022 , an increase of$11.4 million , or 37.7%. This increase was mainly due to higher leaf sales and other operating revenues from increased volume and average price per kilo and was partially offset by higher other expense, net, which was primarily due to higher utilization of securitization facilities. Income tax expense was$31.8 million for the three months endedDecember 31, 2021 and$17.9 million for the three months endedDecember 31, 2022 , a decrease of$13.9 million , or 43.7%. The decrease was driven by the Company utilizing a different method for estimating tax expense for the period endedDecember 31, 2022 . Using the discrete method for the period endedDecember 31, 2022 , the Company determined current and deferred income tax expense as if the nine-month interim period of the current fiscal year were an annual period, which resulted in the recognition of the fiscal 2023 year-to-date expense in the quarter. Refer to See " Note 5. Income Taxes " to the "Notes to Condensed Consolidated Financial Statements" for additional information. 30 --------------------------------------------------------------------------------
Nine Months Ended
Nine Months Ended
Change
(in millions, except per kilo amounts) 2022 2021 $ %
Sales and other operating revenues $ 1,507.7 $ 1,156.4 351.3 30.4
Cost of goods and services sold 1,311.9 997.0 314.9 31.6
Gross profit 195.9 159.4 36.5 22.9
Gross profit as a percent of sales 13.0 % 13.8 %
Selling, general, and administrative expenses $ 106.7 $ 106.0 0.7 0.7
Other expense, net 9.1 1.5 7.6 506.7
Restructuring and asset impairment charges 4.4 7.7 (3.3) (42.9)
Goodwill impairment - 0.4 (0.4) (100.0)
Operating income 75.7 43.9 31.8 72.4
Loss on deconsolidation/disposition of subsidiaries 0.6 9.5 (8.9) (93.7)
Loss on pension settlement 2.6 - 2.6 100.0
Interest expense, net 85.6 82.8 2.8 3.4
Income tax expense 15.8 9.2 6.6 71.7
Income from unconsolidated affiliates 10.7 6.0 4.7 78.3
Net income (loss) attributable to noncontrolling
interests 0.2 (0.4) 0.6 150.0
Net loss attributable to
$ (51.3) 32.8 63.9
Leaf:
Sales and other operating revenues$ 1,423.6 $ 1,064.3 359.3 33.8 Tobacco costs 1,164.8 858.3 306.5 35.7 Transportation, storage, and other period costs 77.8 63.5 14.4 22.6 Total cost of goods sold 1,242.7 921.8 320.9 34.8 Product revenue gross profit 181.0 142.5 38.4 27.0 Product revenue gross profit as a percent of sales 12.7 % 13.4 % Kilos sold 302.9 261.6 41.3 15.8 Average price per kilo $ 4.70 $ 4.07 0.63 15.5 Average cost per kilo 4.10 3.52 0.58 16.5 Average gross profit per kilo 0.60 0.55 0.05 9.1 Processing and other revenues $ 75.2 $ 82.7 (7.4) (9.0) Processing and other revenues costs of services sold 56.1 59.2 (3.2) (5.3) Processing and other gross profit 19.1 23.4 (4.3) (18.3) Processing and other gross profit as a percent of sales 25.4 % 28.4 % All Other: Sales and other operating revenues $ 8.9 $ 9.5 (0.6) (6.1) Cost of goods and services sold 13.1 16.1 (2.9) (18.2) Gross loss (4.2) (6.6) 2.3 35.7 Gross loss as a percent of sales (47.3)
% (69.0) %
Note: dollar and percentage changes may not calculate exactly due to rounding
31
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Sales and other operating revenues were $1,156.4 million for the nine months
ended December 31, 2021 and $1,507.7 million for the nine months ended December
31, 2022 , an increase of $351.3 million , or 30.4%. This increase was primarily
due to a 15.8% increase in leaf volume and a 15.5% increase in average price per
kilo. The increase in leaf volume was driven by increased volume from Asia and
North America , more normalized timing of shipments from South America , and the
timing of shipments from Asia . The increase in average price per kilo was mainly
due to higher tobacco prices.
Cost of goods and services sold were $997.0 million for the nine months ended
December 31, 2021 and $1,311.9 million for the nine months ended December 31,
2022 , an increase of $314.9 million , or 31.6%. This increase was mainly due to
the increase in sales and other operating revenues. Average cost per kilo
increased primarily due to higher tobacco prices.
Gross profit was $159.4 million for the nine months ended December 31, 2021 and
$195.9 million for the nine months ended December 31, 2022 , an increase of $36.5
million , or 22.9%. This increase was mainly due to the increase in sales and
other operating revenues. Gross profit as a percent of sales went from 13.8% for
the nine months ended December 31, 2021 to 13.0% for the nine months ended
December 31, 2022 . This decrease was primarily due to customer mix in South
America and the impact of short-crops in certain markets in Africa .
Average gross profit per kilo for product revenue was $0.55 for the nine months
ended December 31, 2021 and $0.60 for the nine months ended December 31, 2022 ,
an increase of $0.05 per kilo or 9.1%. This increase was primarily due to
customer mix in North America and South America , product mix in Africa , and
geographic mix in Asia .
Other expense, net was $1.5 million for the nine months ended December 31, 2021
and $9.1 million for the nine months ended December 31, 2022 , an increase of
$7.6 million , or 506.7%. This increase was primarily due to higher utilization
of securitization facilities.
Operating income was $43.9 million for the nine months ended December 31, 2021
and $75.7 million for the nine months ended December 31, 2022 , an increase of
$31.8 million , or 72.4%. This increase was mainly due to higher leaf sales and
other operating revenues from increased volume and average price per kilo.
Income tax expense was $9.2 million for the nine months ended December 31, 2021
and $15.8 million for the nine months ended December 31, 2022 , an increase of
$6.6 million , or 71.7%. This increase was driven by the Company utilizing a
different method for estimating tax expense for the period ended December 31,
2022 . Using the discrete method for the period ended December 31, 2022 , the
Company determined current and deferred income tax expense as if the nine-month
interim period of the current fiscal year were an annual period, which resulted
in the recognition of the fiscal 2023 year-to-date expense in the quarter. Refer
to See " Note 5. Income Taxes " to the "Notes to Condensed Consolidated
Financial Statements" for additional information.
Liquidity and Capital Resources
Overview
Our primary sources of liquidity are cash generated from operations, short-term
borrowings under our foreign seasonal lines of credit, availability under ABL
Credit Facility, and cash collections from our securitized receivables. Our
liquidity requirements are affected by various factors from our core tobacco
leaf business, including crop seasonality, foreign currency and interest rates,
green tobacco prices, customer mix, crop size, and quality. Our leaf tobacco
business is seasonal, and purchasing, processing, and selling activities have
several associated peaks where cash on-hand and outstanding indebtedness may
vary significantly compared to year end. The first three quarters of our fiscal
year generally represent the peak of our working capital requirements.
We believe our sources of liquidity will be sufficient to fund our anticipated
operating needs for the next twelve months. During such time our liquidity needs
for operations may approach the levels of our anticipated available cash and
permitted borrowings under our credit facilities. Unanticipated developments
affecting our liquidity needs, including with respect to the foregoing factors,
and sources of liquidity, including impacts affecting our cash flows from
operations and the availability of capital resources (including an inability to
renew or refinance seasonal lines of credit), may result in a deficiency in
liquidity. To address a potential liquidity deficiency, we may undertake plans
to minimize cash outflows, which could include exiting operations that do not
generate positive cash flow. It is possible that, depending on the occurrence of
events affecting our liquidity needs and sources of liquidity, such plans may
not be sufficient to adequately or timely address a liquidity deficiency.
32
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Debt Financing
We continue to finance our business with a combination of short-term and
long-term credit lines, the long-term debt securities, advances from customers,
and cash from operations when available. See " Note 12. Debt Arrangements "
and " Note 21. Subsequent Events " to the "Notes to Condensed Consolidated
Financial Statements" for a summary of our short-term and long-term debt.
We continuously monitor and, as available, adjust funding sources as needed to
enhance and drive various business opportunities. From time to time we may take
steps to reduce our debt or otherwise improve our financial position. Such
actions could include prepayments, open market debt repurchases, negotiated
repurchases, other redemptions or retirements of outstanding debt, and
refinancing of debt. The amount of prepayments or the amount of debt that may be
repurchased, refinanced, or otherwise retired, if any, will depend on market
conditions, trading levels of our debt, our cash position, compliance with debt
covenants, and other considerations.
The following summarizes our total borrowing capacity at December 31, 2022 and
2021 under our short-term and long-term credit lines and letter of credit
facilities and the remaining available amount after the reduction for
outstanding borrowings and amounts reserved for outstanding letters of credit:
December 31, 2022
Remaining Amount
(in millions) Total Borrowing Capacity Available
ABL Credit Facility $ 100.0 $ 100.0
Foreign seasonal lines of credit 711.2 218.9
Other long-term debt 0.6 0.1
Letters of credit 18.4 4.1
Total $ 830.2 $ 323.1
December 31, 2021
Remaining Amount
(in millions) Total Borrowing Capacity Available
ABL Credit Facility $ 75.0 $ 22.5
Foreign seasonal lines of credit 619.5 235.2
Other long-term debt 2.5 0.6
Letters of credit 12.9 3.4
Total $ 709.9 $ 261.7
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Net Debt
We refer to "Net debt," a non-GAAP measure, as total debt liabilities less cash
and cash equivalents. We believe this non-GAAP financial measure is useful to
monitor leverage and to evaluate changes to the Company's capital structure. A
limitation associated with using net debt is that it subtracts cash and cash
equivalents, and therefore, may imply that management intends to use cash and
cash equivalents to reduce outstanding debt and that cash held in certain
jurisdictions can be applied to repay obligations owing in other jurisdictions
and without reduction for applicable taxes. In addition, net debt suggests that
our debt obligations are less than the most comparable GAAP measure indicates.
December 31,
(in millions) 2022 December 31, 2021 March 31, 2022
Notes payable to banks(1) $ 492.3 $ 384.2 $ 378.6
Current portion of long-term debt 97.3 107.7 107.9
Long-term debt(2) 496.6 541.1 580.5
Total debt liabilities* $ 1,086.2 $ 1,033.0 $ 1,066.9
Less: Cash and cash equivalents 216.4 146.1 198.8
Net debt* $ 869.8 $ 886.9 $ 868.2
* Amounts may not equal column totals due to
rounding
(1) The increase from December 31, 2021 to December 31, 2022 is due to higher borrowings under the
Company's foreign seasonal lines of credit used to finance higher green tobacco prices and processing
costs in Africa and South America as well as increased borrowing capacity in certain markets. The
increase from March 31, 2022 to December 31, 2022 is due to seasonality of the business, with higher
working capital requirements in the first half of the fiscal year.
(2) The decrease in long-term debt from December 31, 2021 and March 31, 2022 is due to the full
repayment of outstanding indebtedness under the ABL Credit Facility in December 2022 . Weighted average
borrowings outstanding under the ABL Credit Facility during the three months ended December 31, 2022
was $71.6 million .
Working Capital
The following summarizes our working capital:
(in millions except for current ratio)
218.4 $ 149.9 $ 200.9
Trade and other receivables, net 222.3 206.7 260.2
Inventories and advances to tobacco suppliers 776.3 802.0 798.4
Recoverable income taxes 7.1 5.3 7.9
Prepaid expenses and other current assets 47.1 47.3 60.3
Total current assets* $ 1,271.2 $ 1,211.2 $ 1,327.6
Notes payable to banks $ 492.3 $ 384.2 $ 378.6
Accounts payable 135.1 90.0 179.0
Advances from customers 30.8 63.2 53.0
Accrued expenses and other current
liabilities 95.3 79.6 82.2
Current portion of long-term debt 97.3 107.7 107.9
Other current liabilities 15.8 14.5 13.7
Total current liabilities $ 866.6 $ 739.2 $ 814.4
Current ratio 1.5 to 1 1.6 to 1 1.6 to 1
Working capital $ 404.6 $ 472.0 $ 513.2
* Amounts may not equal column totals due to
rounding
Working capital decreased from December 31, 2021 to December 31, 2022 by $67.4
million , or 14.3%, primarily due to increased foreign seasonal lines of credit
used to finance higher green tobacco prices and processing costs in Africa and
South America and increased borrowing capacity in certain markets as well as the
utilization of cash from higher sales of tobacco inventories to repay the
outstanding indebtedness under the ABL Credit Facility in December 2022 , which
was classified as long-term debt.
34
--------------------------------------------------------------------------------Inventories
The following summarizes inventory committed to a customer and uncommitted inventory balances for processed tobacco:
(in millions) December 31, 2022 December 31, 2021 March 31, 2022 Committed $ 543.2 $ 590.4$ 471.9 Uncommitted 28.7 60.0 45.7 Total processed tobacco $ 571.9 $ 650.4$ 517.6
Total processed tobacco decreased from
Sources and Uses of Cash We typically finance our non-U.S. tobacco operations with short-term foreign seasonal lines of credit. These foreign lines of credit are generally seasonal in nature, normally extending for a term of 180 to 365 days, corresponding to the tobacco crop cycle in that market. These short-term foreign seasonal lines of credit are typically uncommitted and provide lenders the right to cease making loans and demand repayment of loans. These short-term foreign seasonal lines of credit are generally renewed at the outset of each tobacco season. We maintain various other financing arrangements to meet the cash requirements of our businesses. See " Note 12. Debt Arrangements " to the "Notes to Condensed Consolidated Financial Statements" for additional information. We utilize capital in excess of cash flow from operations to finance accounts receivable, inventory, and advances to tobacco suppliers in foreign countries. In addition, we may periodically elect to purchase, redeem, repay, retire, or cancel indebtedness prior to stated maturity under our various foreign credit lines. As ofDecember 31, 2022 , our cash, cash equivalents, and restricted cash was$218.4 million of which approximately$95.8 million was held in foreign jurisdictions, certain of which are subject to exchange controls and tax consequences that could limit our ability to fully repatriate these funds. Fluctuation of theU.S. dollar versus many of the currencies in which we have costs may have an impact on our working capital requirements. We will continue to monitor and hedge foreign currency costs, as needed. 35 --------------------------------------------------------------------------------
The following summarizes the sources and uses of our cash flows:
Nine Months Ended
December 31,
(in millions) 2022 2021
Trade and other receivables $ (91.2) $ (171.7)
Inventories and advances to tobacco suppliers 18.5 (34.1)
Payables and accrued expenses (29.8) (28.1)
Advances from customers (22.2) 51.4
Other 14.1 (2.3)
Net cash used by operating activities $
(110.6)
122.6 155.2
Other (5.2) (7.4)
Net cash provided by investing activities $ 117.4 $ 147.8
Net proceeds from short-term borrowings 116.5 11.9
Proceeds from DDTL facility - 117.6
Net repayment of revolving loan facilities (90.0) (15.0)
Other (20.0) (22.3)
Net cash provided by financing activities $ 6.5 $ 92.2
Effect of exchange rate changes on cash 3.8 (2.6)
Increase in cash, cash equivalents, and restricted cash*
* Amounts may not equal column totals due to rounding
The change in cash, cash equivalents, and restricted cash decreased by$35.4 million for the nine months endedDecember 31, 2022 compared to the nine months endedDecember 31, 2021 . The decrease was primarily due to the full repayment of the outstanding indebtedness under the ABL Credit Facility during the period endedDecember 31, 2022 and the issuance of the DDTL Facility during the period endedDecember 31, 2021 . These decreases were partially offset by higher sales and higher utilization of securitization facilities, which resulted in less cash used by operating activities. Planned Capital Expenditures Capital investments in our leaf operations have been made primarily for routine replacement of machinery and equipment, as well as investments in assets that will add value for our customers and increase our efficiency. We have incurred approximately$9.9 million in capital expenditures for the nine months endedDecember 31, 2022 , and are expecting to incur an additional$11.1 million for the remainder of the fiscal year endingMarch 31, 2023 .
Nine Months Ended
(in millions) December 31, 2022
Contributions made during the period (1) $ 9.6
Contributions expected for the remainder of the fiscal year 0.3
Total $ 9.9
(1) Includes $5.3 million paid in the three months ended September 30, 2022 to fully fund the
U.S. Pension Plan's liabilities in preparation to purchase a group annuity contract to
administer future payments to the remaining U.S. Pension Plan participants.
No cash dividends were paid to shareholders during the nine months ended
36--------------------------------------------------------------------------------
Critical Accounting Policies and Estimates As of the date of this report, there are no material changes to the critical accounting policies and estimates previously disclosed in Part I, Item 7 "Critical Accounting Policies and Estimates" in the Company's Annual Report on Form 10-K for the fiscal year endedMarch 31, 2022 .
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