COMPANY FILES ANNUAL REPORT ON FORM 10-K FOR FISCAL YEAR 2007 KANSAS CITY, Mo., June 27
KANSAS CITY, Mo., June 27 /PRNewswire-FirstCall/ -- American Italian Pasta
Company (Pink Sheets: AITP), the largest producer of dry pasta in North
America, today announced results for the fiscal year ended September 28, 2007.
With this filing, the Company is current with its annual SEC reporting
requirements.
RESTATEMENT PROCESS COMPLETE
"We are pleased to now be current on all of our annual filings and to have
the entire restatement process behind us as we continue to lead the company in
an exciting and positive direction," said Jack Kelly, CEO of AIPC. "More
importantly, we are excited to share that the execution of our business plan
is bearing fruit. Our operational performance and financial results reported
for fiscal 2007 show significant improvement in operating profit and net
income over the prior year."
FISCAL 2007 FINANCIAL RESULTS
Revenues for the year increased $31.1 million, or 8.5%, to $398.1 million,
led by a 13.4% increase in revenue growth in the retail market which was
partially offset by a 4.9% decrease in the institutional market. Net income
for fiscal 2007 increased $35.7 million to $5.3 million, or $.28 per diluted
share, versus a net loss of $30.4 million, or $1.65 loss per share, in fiscal
2006.
Operational Highlights
* Retail Revenues: The Company's retail revenues increased $35.9 million,
or 13.4%, to $304.4 million for the fiscal year ended September 28, 2007, from
$268.5 million for the fiscal year ended September 29, 2006. Revenues
increased $15.4 million, or 5.7%, due to volume increase and increased
$20.2 million, or 7.5%, due to higher average selling prices. Revenues
increased by $0.3 million due to an increase in payments received from the
U.S. Government under the Continued Dumping and Subsidy Offset Act of 2000.
* Institutional Revenues: The Company's institutional revenues (which
include the food service channel) decreased $4.8 million, or 4.9%, to
$93.7 million for fiscal year ended September 28, 2007 from $98.5 million for
the fiscal year ended September 29, 2006. Revenues decreased $5.9 million, or
6.0%, due to volume losses and increased $1.1 million, or 1.1%, due to higher
average selling prices and changes in sales mix.
* Cost of Goods Sold: Raw materials and other production costs were
unfavorable to the prior year, but the effect of the increase was offset by
higher selling prices, allowing the Company to maintain its gross margin at
22.4% for fiscal year 2007. Cost of goods sold in 2007 includes $0.8 million
provision of inventory obsolescence, which was a reduction of $0.6 million
from $1.4 million in fiscal year 2006.
* Loss on disposition of brands and trademarks: During fiscal 2006, the
Company sold its Mrs. Leeper's and Eddie's Spaghetti brands and recorded a
loss on disposition of brands and trademarks of $4.7 million. There was no
such loss in fiscal 2007.
* Loss on long lived assets: During fiscal 2006, the Company permanently
closed and sold its Kenosha, Wisconsin facility. The plant and certain
equipment was sold and a pre-tax loss of $15.6 million was recorded. In
addition, certain pasta lines and packaging equipment considered unnecessary
for production planning were taken out of service. These assets were disposed
or written down to their fair market value. In fiscal 2007, the Company
recorded a $0.1 million gain.
As a result of minor year-end adjustments, the audited financial results
described in this release differ slightly from those unaudited results
previously reported for fiscal 2007.
Liquidity and Capital Resources
The Company stated that it is currently in compliance with the covenants
of its credit facility. Projected future borrowing levels do not exceed the
facility's available commitment. Absent any significant increases in historic
levels of professional fees or indemnification obligations, the Company
believes cash available through future operations and its existing credit
facility will be sufficient to meet expected capital and liquidity needs in
the foreseeable future.
CEO COMMENTS
"Through the efforts of our outstanding employees and with the support and
confidence of our customers, AIPC has made significant progress and, indeed,
is entering a new chapter with optimism and anticipation," Mr. Kelly
continued. "We have significantly strengthened our operations, grown
revenues, increased volume, and increased profitability -- even in the face of
significant challenges -- and made financial integrity and strong corporate
governance top priorities.
"As we look ahead, we will continue to focus on building upon these
successes, capitalizing on our strengths and identifying growth areas and
opportunities to deliver even more value to our customers," he added.
ABOUT AIPC
Founded in 1988 and based in Kansas City, Missouri, American Italian Pasta
Company is the largest producer of dry pasta in North America. The Company
has four plants that are located in Excelsior Springs, Missouri; Columbia,
South Carolina; Tolleson, Arizona and Verolanuova, Italy. The Company has
approximately 600 employees located in the United States and Italy.
When used in this release, the words "anticipate," "projected," "believe,"
"estimate," and "expect" and similar expressions are intended to identify
forward-looking statements, but are not the exclusive means of identifying
these statements. The statements by the Company regarding liquidity and
capital resources are forward looking. If any of the Company's assumptions
prove incorrect or should unanticipated circumstances arise, the Company's
actual results could materially differ from those anticipated by such
forward-looking statements. The Company will not update any forward-looking
statements in this press release to reflect future events.
AMERICAN ITALIAN PASTA COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Year Ended Year Ended
September 28, 2007 September 29, 2006 Change
Revenues $398,122$367,023$31,099
Cost of goods sold 308,819 284,777 24,042
Gross profit89,303 82,246 7,057
Gross profit as a percent
of revenues 22.4% 22.4%
Selling and marketing expense 21,503 22,871 (1,368)
General and administrative
expense33,548 35,459 (1,911)
Impairment charges to brands
and trademarks - 998 (998)
Loss on disposition of brands
and trademarks - 4,708 (4,708)
(Gains) losses related to long-
lived assets (109) 22,268(22,377)
Operating profit (loss) 34,361 (4,058)38,419
Operating profit (loss)as a
percent of revenues 8.6% (1.1)%
Interest expense, net 29,421 29,509(88)
Other (income) expense, net (245) (913) 668
Income (loss) before income
taxes 5,185 (32,654)37,839
Income tax (benefit) (163) (2,241) 2,078
Net income (loss) $5,348$(30,413) $35,761
EARNINGS PER COMMON SHARE
Net income (loss) per common
share $0.29 ($1.65)
Weighted-average common shares
outstanding18,673 18,386
EARNINGS PER COMMON SHARE -
ASSUMING DILUTION
Net income (loss) per common
share $0.28 $(1.65)
Weighted-average common shares
outstanding
(including dilutive securities) 18,951 18,386
AMERICAN ITALIAN PASTA COMPANY
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
September 28, 2007 September 29, 2006
ASSETS
Current assets:
Cash and temporary investments $16,635 $22,805
Trade and other receivables, net 38,279 32,706
Inventories 44,443 40,638
Prepaid expenses and other current
assets 7,6296,389
Deferred income taxes 2,3811,156
Total current assets 109,367 103,694
Property, plant and equipment, net316,109 324,464
Brands and trademarks 83,282 82,772
Other assets 19,205 21,039
Total assets $527,963 $531,969
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$19,195 $18,555
Accrued expenses 31,523 28,258
Current portion of deferred revenues 99 99
Income taxes payable 1,082 715
Current maturities of long-term debt 1,9631,782
Total current liabilities 53,862 49,409
Long-term debt, less current maturities 240,000 260,500
Deferred income taxes 35,286 34,728
Litigation settlement 26,500 26,500
Deferred revenue, less current portion397 496
Total liabilities 356,045 371,633
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.001 par value:
Authorized shares - 10,000,000 --
Issued and outstanding shares - none
Class A common stock, $.001 par value:
Authorized shares - 75,000,000 21 21
Issued and outstanding shares -
20,832,627 and 18,674,628, respectively,
at September 28, 2007; 20,779,204 and
18,640,660, respectively, at
September 29, 2006
Class B common stock, par value $.001
Authorized shares - 25,000,000 --
Issued and outstanding - none
Additional paid-in capital 247,492 245,623
Treasury stock, 2,157,999 shares in
2007 and 2,138,544 shares in 2006, at
cost (52,029) (51,857)
Accumulated other comprehensive income 15,352 10,815
Accumulated deficit (38,918) (44,266)
Total stockholders' equity171,918 160,336
Total liabilities and stockholders'
equity $527,963 $531,969
SOURCE American Italian Pasta Company
