Charges lead to loss at Diamond Foods
SAN FRANCISCO — Various charges caused Diamond Foods, Inc. to swing to a loss during the fourth quarter and full-year 2012.
For the year ended July 31, the company suffered a loss of $86,336,000, which compared with net income of $26,567,000, equal to $1.21 per share on the common stock, during the previous year. Sales for the year were $981,418,000, up 2% from $966,688,000 during fiscal 2011.
During the year, the company faced $30.6 million in selling, general and administrative costs related to audit committee investigation, restatement and related charges. In addition, the company faced a $10.4 million charge related to a change in the fair value of the Oaktree warrant liability and a $10.1 million charge related to asset impairment at the Fishers, Indiana plant.
“Diamond continues to make progress toward implementing our recently announced cost savings and operational effectiveness initiatives,” said Brian J. Driscoll, chief executive officer. “The 2012 financial results do not reflect our recent change in strategic direction with a focus on sustainable growth of our brands based on innovation and differentiation, improving our cost structuring and rebuilding our walnut supply. Diamond is moving aggressively to execute against our objectives as we seek to better position the company for long-term success.”
For the fourth quarter ended July 31, the company had a loss of $32,936,000, which compared with income of $2,834,000, or 13c per share, during the same quarter of the previous year. Sales for the quarter were $223,989,000, down 5% from $234,716,000.