AIPC restates earnings back to 2000
June 19, 2008
by Eric Schroeder
KANSAS CITY — American Italian Pasta Co. on June 16 filed its first financial report in more than three years by restating previously filed financials for the period of 2000 to 2005. The announcement follows a three-year internal investigation into accounting problems that led the Kansas City-based pasta maker to reduce earnings for fiscal years 2004, 2003 and earlier years by a combined $63.2 million. The company previously has said it expects to incur a one-time non-cash charge of between $125 million and $141 million related to the restatements.
"We are pleased to have this important filing behind us and to be in a position to devote our energies toward continuing to build on our progress and to continue to move the company forward in a positive direction," said Jack Kelly, chief executive officer of AIPC. "Over the past nearly three years, AIPC has charted a successful course, under strong leadership, through the support of our outstanding board and with financial integrity as a cornerstone.
"We have improved our operations, strengthened our financial position, executed on our plans and built a strong foundation for the future."
According to its June 16 filing with the Securities and Exchange Commission, AIPC said investigators found many problems with how the company handled its financials during the period in question. The restatement, AIPC said, "corrects errors arising from poor record keeping, recording transactions without economic substance, recording unsupported journal entries to the general ledger, not maintaining a proper tone as to internal controls and failure to adjust accounts for required amounts."
The full, 130-page S.E.C. filing is available at www.sec.gov.