American Italian Pasta Company (AIPC), the largest producer and marketer of dry pasta in North America, has provided an update on the progress of the restatement of its historical financial statements and its compliance with New York Stock Exchange requirements.
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In June the company was granted an additional trading period of up to six months by the New York Stock Exchange (NYSE), to allow the pasta company to complete and file its Annual Report on Form 10-K for the 2005 financial year with the Securities and Exchange Commission (SEC).
However, the company has notified the NYSE that it will not meet the extended date of 31 December 2006. In return, the NYSE has notified the company that it will suspend trading in the company’s shares prior to the opening of trading on Wednesday, 20 December 2006, and that under NYSE rules it will move forward with the initiation of suspension and delisting procedures.
AIPC said it will appeal that decision through the process provided under the NYSE rules. The company has been advised that its shares are immediately eligible for quotation on the Pink Sheets, an electronic quotation service for securities traded over-the-counter.
“As a result, we expect no interruption of trading in our shares. The NYSE procedures will have no impact on the company’s US$295m, five-year credit facility or covenants attendant thereto,” AIPC said.
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By GlobalDataThe company now anticipates it will file its annual report on Form 10-K for the fiscal year ended 30 September 2005 by the end of January 2007.
The company said it filed with the SEC stating that the company’s annual report on Form 10-K for the fiscal year ended 29 September 2006, was not filed by its due date of 31 December 2006. The company continues to believe that its 2006 Form 10-K will be completed and filed by the end of March 2007.
“AIPC has been working diligently with our independent auditors to thoroughly review all of the company’s financial statements for certain periods,” said Jim Fogarty, AIPC’s CEO. “We have made substantial progress toward concluding this intensive review process and are doing everything possible to ensure both a prompt completion and the accuracy and credibility of the historical balance sheet we will move forward with. As to changes in our stock trading venue, we will continue to pursue appropriate alternatives for the trading of our common shares, but more importantly we are focused on returning to timely filing status and continuing to improve our business.”
In addition AIPC said that the price of durum, which constitutes approximately one-third of the company’s cost of goods sold, has risen approximately 34% since December 2005.
“To address these substantial cost increases, the company has been implementing price increases in its non-branded business and recently has advised its branded customers that it will implement price increases in its retail branded products effective February 2007, consistent with the competitive market in which the company operates,” the company said.
However, the company believes price increases will not fully offset the negative impact of increased durum costs on the company’s cost of goods sold during the fiscal year 2007, but believes it will achieve that goal on a longer term basis.
“AIPC has made significant strides over the past year,” Fogarty added. “We have been executing our strategic business plan, improving our operations and continuing to provide outstanding service to our customers. We obtained a new credit facility, stabilised our revenue base, reduced our net debt, strengthened our liquidity, produced strong cash flow and have been able to respond to durum inflation by beginning to introduce price increases in line with the competitive market. With the support of our leadership team, dedicated employees, lenders, customers and suppliers, we are looking to the future.”
