American Italian Pasta Company Reports Fiscal 1997 Earnings of $5 Million, 42 Cents Per Share.EXCELSIOR SPRINGS, Mo.--(BUSINESS WIRE)--Nov. 3, 1997-- Subsequent Initial Public Offering and Credit Restructuring Successfully Completed Company Achieves Record Net Income, Revenues and Operating Profits American Italian Pasta Company (NYSE NYSE See: New York Stock Exchange :PLB (Picture Level Benchmark) A benchmark for measuring graphics performance on workstations. The Benchmark Interface Format (BIF) defines the format, the Benchmark Timing Methodology (BTM) performs the test, and the Benchmark Reporting Format (BRF) generates results in ) today reported that it has successfully completed its IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. and bank debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: . The company also reported record net income, revenues and operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for its fiscal year ended Oct. 3, 1997. On Oct. 9, 1997, the company completed an initial public offering of 5.31 million primary shares at $18 per share, generating $87 million of net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). . Additionally, on Oct. 17, 1997, the company, with a syndicate led by Bankers Trust The Bankers Trust is a historic American banking organisation that was acquired by Deutsche Bank in 1998. It was originally set up when banks could not perform trust company services. , completed a restructuring of its primary bank credit facility. The restructured facility initially provides American Italian Pasta Company with $150 million in credit on an unsecured, revolving basis at interest rates which are 250 basis points lower than the previous agreement. As a result of the restructuring, the company anticipates a first quarter extraordinary charge of approximately $2.3 million, net of tax, related to the write off of current and deferred debt issuance costs. Tim Webster For the pharmacist, see R. Tim Webster. Tim Webster (born 1954) is an Australian television personality. He currently works for Network Ten, both as a news co-anchor on the Perth edition of "Ten News at Five", and the sports presenter on the Sydney edition of the programme. , president and chief executive officer, said, "1997 was a very important year strategically for AIPC AIPC Androgen-Independent Prostate Cancer AIPC American Italian Pasta Company (Kansas City, MO) AIPC Aquidneck Island Planning Commission (Rhode Island) . I am pleased to report that we achieved several of our strategic initiatives and have delivered or exceeded the financial results we had targeted." Webster explained, "Our 1997 strategic initiatives were fundamentally focused on preparing AIPC for the IPO and future growth. The successful IPO and subsequent bank credit restructuring have provided AIPC with the financial capability to support our accelerated growth plans. Completing the CPC (1) (Central Processing Complex) An IBM mainframe that has two or more central processors (CPs) that share memory. It is the collection of processors, memory and I/O subsystems manufactured with a single serial number, typically all contained in one cabinet. Supply Agreement and launching the 1998 capital expansion program are also initiatives which will bear long-term benefits. Further, recognizing that our high utilization of existing capacities would limit revenue growth in 1997, we were committed to improving our profitability. I am pleased to report that the company achieved those plans with solid improvements in both absolute and marginal profitability. I am also particularly pleased with our customer service levels and manufacturing and distribution efficiencies in this period of very high capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. ." "Our $86 million fiscal 1998 capital expansion programs remain within budget and on schedule. We look forward to the availability of this incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. production capacity as we prepare to assume full-scale production of Mueller s brand pasta under our supply agreement with CPC and pursue growth opportunities in our target markets," said Webster. Chairman Horst Schroeder added, "Our 1997 results validate the business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point that were the basis of our recent successful IPO. As a result we believe our long-term strategies are well aligned with our financial resources. We look forward to profitable growth that provides long-term appreciation for our shareholders," Schroeder said. Revenues for fiscal 1997 totaled $129.1 million, a 7 percent increase over the comparable period in 1996, primarily due to volume gains. Gross profit for fiscal 1997 was $35.7 million, an increase of 19 percent over the comparable period in 1996, reflecting increases in volumes and lower production costs. Gross profit as a percentage of revenues improved to 27% as a result of lower material costs and improved production efficiencies. Operating profit for fiscal 1997 was $18.2 million, an increase of 133 percent over the comparable period in 1996. Excluding product introduction costs, operating profit as a percentage of revenues improved to 16% in 1997. These improvements reflect a reduction in the product introduction costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the company s retail introduction of its Pasta LaBellab flavored pasta products and continued leveraging of general and administrative expenses. For the 53 weeks ended Oct. 3, 1997, net income was $5.1 million, or $0.42 per share. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, giving effect to the initial public offering proceeds and additional shares outstanding and the related reduction in debt as if it had occurred at the beginning of the 1997 fiscal period, net income would have been $10.0 million, or $0.57 per share for 1997. American Italian Pasta Company is based in Excelsior Springs, Mo., near Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). . Founded in 1988, the company is the third largest and one of the fastest-growing producers and marketers of pasta in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . American Italian Pasta Company has rapidly established a significant market presence in North America by developing strategic customer relationships with food industry leaders that have substantial pasta requirements. The company s approximately 350 employees produce more than 80 dry pasta shapes in two vertically integrated production A farming system that produces high quality food and other products by using natural resources and regulating mechanisms to replace polluting inputs and to secure sustainable farming. and distribution facilities, strategically located in Excelsior Springs, Mo., and Columbia, S.C. The above release includes forward-looking statements. Actual future results could differ materially from those anticipated by such forward- looking statements. The differences could be caused by a number of factors, including, but not limited to, those factors identified in a current report Dated Oct. 31, 1997, filed by the company with the Securities and Exchange Commission (Commission file No. 001-13403). The company will not update any forward-looking statements in this press release to reflect future events. -0-
AMERICAN ITALIAN PASTA COMPANY
1997 Fiscal Year and Pro Forma Effect of the Company's Subsequent IPO
Statements of Earnings
(Unaudited)
(in thousands, except per share amounts)
1997 Pro Forma 1997
Actual Adjustments Pro Forma
Revenues
Retail $73,259 $- $73,259
Institutional 55,884 - 55,884
Total Revenue 129,143 - 129,143
Cost of goods sold 93,467 - 93,467
Gross profit 35,676 - 35,676
Selling and marketing expense 13,664 - 13,664
General and administrative expense 3,766 - 3,766
Operating profit 18,246 - 18,246
Interest expense, net 10,119 (7,986) (1) 2,133
Income tax provision 3,070 3,035 (1) 6,105
Net income $5,057 $4,951 $10,008
Pro Forma net income (loss)
per common share $.42 $.57
Pro Forma weighted average
common shares outstanding 12,161 5,310 (2) 17,471
(1) Pro Forma adjustment of interest expense and related income taxes, as if the $87 million of net IPO proceeds had occurred at the beginning of the period presented. (2) Pro Forma adjustment of weighted average common shares outstanding as if the primary shares sold in the Oct. 9, 1997 IPO had been outstanding since the beginning of the period presented. CONTACT: Investors: American Italian Pasta Company Dennis Krause, 816/502-6211 or Media: For American Italian Pasta Company Sherry Tilly, 816/512-2317 |
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