Pasta producer American Italian Pasta Company (AIPC) has issued a report on its liquidity and sales.
The company, which missed a quarterly financial filing with the Securities and Exchange Commission (SEC) last year and also announced it would be restating its financial results going back to 2000 by the end of 2006, said that as of the fiscal year to 29 September 2006, it had total liquidity resources of US$51.4m, consisting of cash on hand of $22.9m and $28.5m available under the company’s $30.0m revolving credit facility.
Total debt outstanding on 29 September was $262.3m, the company said, while total debt, net of cash, was $239.3m, compared to $267.5m as of 30 September, 2005, reflecting a reduction in net debt of $28.2m.
AIPC also said that on 20 October, 2006, it used a portion of its excess liquidity to retire $8.0m of debt. With this payment, gross debt was reduced from $262.3m to $254.3m.
As part of the ongoing financial restatement process, AIPC has announced a change to its reporting policy for revenues, which will see certain promotional expenses classified as a reduction in revenues. This reclassification will result in an approximate reduction of $26m in revenue for the fiscal year to 29 September, 2006, and $26m for the fiscal year to 30 September, 2005.
According to the new reporting process, revenues for the fiscal year to 29 September, 2006, were $365.9m, up by 0.8% from $363.0m in the fiscal year to 30 September, 2005. Overall volume increased 0.6% during that same period, the company said.
AIPC said its Audit Committee’s legal advisors had completed their fact-finding investigation and are continuing to review the information with the forensic accountants and the company’s auditors. At the direction of the Audit Committee, the advisors are working with the company to assist in identifying the appropriate treatment of certain items in the company’s restatement, the company said, adding that it anticipates that upon completion of that process, the committee will be in a position to conclude its investigation.
“Through the efforts of the talented and dedicated team at AIPC, we continue to make important progress executing on our business plan,” said AIPC’s chief executive Jim Fogarty. “We are pleased with our full-year and fourth-quarter revenue performance and the strong cash flow we have generated this year, and we remain focused on implementing our business initiatives and preparing the company for the future.”