American Italian Pasta: Reports Fiscal 2008 Results

Kansas City / MO. (aipc) American Italian Pasta Company (AIPC), the largest producer of dry pasta in North America, announced results for the fiscal year ended September 26, 2008 and the filing of its Annual Report on Form 10-K for fiscal 2008 with the Securities and Exchange Commission.

Fiscal 2008 Financial Results

Revenues for the year increased 171,1 million USD or 43,0 percent to 569,2 million USD, led by a 39,7 percent increase in revenue growth in the retail market and a 53,4 percent increase in the institutional market. Net income for fiscal 2008 increased 13,8 million USD, or 260 percent, to 19,1 million USD, or 0,99 USD per diluted share, versus net income of 5,3 million USD, or 0,28 USD per diluted share, in fiscal 2007. Revenues for the fourth quarter increased 52,0 million USD or 47,2 percent to 162,1 million USD, led by a 46,4 percent increase in the retail market and a 49,8 percent increase in the institutional market. Net income for the fourth quarter increased 5,4 million USD or 284 percent to 7,3 million USD or 0,36 USD per diluted share, versus a net income of 1,9 million USD or 0,10 USD per diluted share, in the fourth quarter of fiscal 2007.

«The strong results illustrate the expertise and hard work of our employees, coupled with AIPC´s strategic focus on the fast-growing customer brand pasta markets», said Jack Kelly, president and CEO. «While we are proud of our financial performance in fiscal 2008, much work remains to be done to profitably grow our business in light of the economy and ongoing fluctuations in the cost of raw materials that impact high-quality pasta manufacturing, adequate supply and great customer service».

Operational Highlights

Retail Revenues: Retail revenues increased 121,1 million USD or 39,7 percent to 425,5 million USD for fiscal year 2008 – from 304,4 million USD for fiscal year 2007. The revenue increase is primarily the result of higher average selling prices, increase in volume and an increase in payments received from the U.S. government under the Continued Dumping and Subsidy Offset Act of 2000.

Institutional Revenues: Institutional revenues increased 50,0 million USD or 53,4 percent to 143,7 million USD for fiscal year 2008 – from 93,7 million USD for fiscal year 2007. The revenue increase is primarily the result of an increase due to higher average selling prices, partly offset by a decrease due to lower volume.

Operating profit: Operating profit for fiscal year 2008 was 43,1 million USD, an increase of 8,7 million USD as compared to 34,4 million USD reported for fiscal year 2007. Operating profit decreased as a percentage of revenues to 7,6 percent for fiscal year 2008 – from 8,6 percent for fiscal year 2007.

Walt George promoted to Chief Operating Officer

The Company announced that Walt George has been named Chief Operating Officer. George, who joined the Company in 2001, will continue his responsibility for all manufacturing operations and will also manage the Company´s institutional business, including its food service and ingredient sales. «We are very pleased to promote Walt into this position. He has and continues to lead improvements in our supply chain and we are confident that his experience translates well to our institutional business as we remain focused on delivering the highest level of quality and service to our valued customers», added CEO Kelly (source).