Kansas City-based American Italian Pasta Company announced today [Wednesday] a series of record results for the fiscal Q1 2002, ended 28 December 2001.
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Revenues for the quarter increased 39% to US$92m and diluted earnings per share increased 30% to US$0.48, up from US$0.37 in reported pro forma earnings for the Q1 of 2001, and up 60% from the US$0.30 in GAAP EPS for the first quarter of 2001. The Company also said that revenues were increased US$1.9m and EPS was increased by approximately US$0.03 per share for the quarter by a payment from the US government under the “Continued Dumping and Subsidy Offset Act of 2000”.
Timothy S. Webster, President and CEO, commented: “The first quarter results represent an excellent start to fiscal 2002.
“Institutional revenues, which primarily consist of our food service and ingredient businesses, were up 19% on unit volume growth of 19%. Retail revenues, which consist of our private label, branded, branded outsourcing and club businesses were up 46% on unit volume growth of 41%, versus the year ago quarter.
“The quarter’s volume growth was once again driven by strong performances in our private label business, with volumes up 38%, and our ingredient business, with volumes up 27%. If we exclude the impact of the recently acquired brands from Borden Foods, core revenues for the Company were up 17% on 20% unit volume growth.
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By GlobalData“Shipments and retail consumption of our Mueller’s pasta brand were less than we expected during the quarter. The repositioning and stabilization of Mueller’s is taking longer than expected, primarily due to the continued strong performance of private label with AIPC customers. We significantly expanded our organizational resources as part of the Borden acquisition, bringing depth of experience in managing and building a portfolio of brands, and remain optimistic that those resources will lead to improved branded business in the months ahead. Furthermore, the government payment we received will allow us to increase our investments in special marketing and business building initiatives behind our brands, and increase EPS guidance for the year.
“During the quarter, AIPC received US$7.6m (of an industry-wide total of approximately US$20m) from the government payment mentioned above. This is approximately 2% of expected full-year revenues. Consistent with the intent of the Act and accounting standards, we expect to recognize US$1.9m of the payment as retail revenue in each quarter of fiscal 2002. We expect to invest approximately US$5m of the US$7.6m in incremental brand building activities.
“The impact on EPS was US$0.03 per share in the first quarter and is expected to be approximately US$0.02 per share in the remaining quarters, as the special marketing programs are implemented over the remainder of fiscal 2002. Had we not received the government payment, EPS would have been US$0.45 for the quarter, up 22% over last year’s pro forma EPS of US$0.37. We are increasing our fiscal EPS guidance to a range of US$2.19 to US$2.24, representing 27% to 29% growth over EPS of US$1.73 (excluding acquisition-related expenses) for fiscal 2001. We currently expect the government payments to continue in future years, although the amounts cannot be reasonably estimated.”
