American Italian Pasta Company finally today provided revenue information for fiscal year 2005 and the first two quarters of fiscal year 2006. It also gave an update on previously announced asset divestitures.
The company had been unable to file financial reports due to a continuing internal audit that it undertook last summer.
In a statement, the company said that total revenues were US$388.7m in the 2005 fiscal year ended 30 September 2005, decreasing by 6.9% from US$417.4m in the 2004 fiscal year. Overall volumes decreased by 9.1% during the fiscal year, as compared to the previous fiscal year.
The company’s retail revenues decreased by $12.8m, or 4.2%, as compared to the 2004 fiscal year. Retail volumes decreased during the year by 3.6% as compared to the prior fiscal year.
The company’s institutional revenues decreased by $15.9m, or 14.0%, as compared to the 2004 fiscal year. Institutional volume declined during the year by 19.0%.
In the six-month 2006 fiscal period total revenues were $197.0m, decreasing 1.1% from $199.2m in the comparable six-month period in the 2005 fiscal year. Overall volume decreased 1.6% during the six-month period, as compared to the previous fiscal year’s period.
The company’s retail revenues decreased by $1.2m, or 0.8%, as compared to the same six-month period in the 2005 fiscal year. Retail volume decreased during the period by 0.7% as compared to the prior fiscal year period.
The company’s institutional revenues decreased by $1.0m, or 2.1%, as compared to the same six-month period in the 2005 fiscal year. Institutional volume declined during the period by 3.6%.
In the statement, the company noted that sales volumes over these periods generally decreased more than total revenues, thereby revenue per pound sold increased. It also said that all historical revenue amounts outlined are unaudited and are subject to possible adjustments resulting from the continuing, previously announced Audit Committee investigation.
In February 2006, the company announced that efforts had commenced to divest certain assets. The company said it has recently received an offer to buy the specialty pasta brands for approximately $0.9m and anticipates closing on the sale in July 2006. As a result, impairment charges are now expected to be approximately $4.3m.
The company’s efforts to divest the Kenosha, Wis. facility have also progressed, the statement said, while efforts to divest certain other identified assets have resulted in the completion of the sale of the company’s fractional aircraft interest and a parcel of undeveloped land in the second fiscal quarter of 2006. These sales generated approximately $1.7m of net cash proceeds.
The company is continuing its efforts to divest certain manufacturing equipment no longer used in its operations. These other asset divestments are now expected to result in total asset impairment charges of approximately $3.5m.