* Removes profit of $39.5 mln in 2011, $17 mln in 2010
* Reports net loss of $2.46/shr for first 3 quarters
* Shares down more than 17 percent in after-hours trade
By Martinne Geller
Nov 14 Diamond Foods Inc on Wednesday
restated financial results for fiscal years 2010 and 2011
erasing $56.5 million in profit, and it posted a net loss for
the first three quarters of 2012, after an accounting scandal
hurt its ability to do business.
Shares of the maker of Emerald snack nuts, Kettle Chips and
Pop Secret popcorn fell more than 17 percent in after-hours
trading following the long-awaited report.
Diamond had missed its deadline for restating its results
and has been fighting for months to stay listed on the Nasdaq
after its shares tumbled more than 80 percent following an
accounting scandal that claimed the jobs of top executives and
ruined its plan to buy Pringles potato chips.
That purchase, for more than $2 billion, would have made
Diamond the world's second-biggest snack food maker, behind
"The company regrets the extended time investors had to wait
for financial reports during the restatement process," said
Diamond Chief Executive Brian Driscoll. "The company has emerged
from this process with strengthened financial discipline and
rigorous commitment to enhancing internal controls and
remediating material weaknesses."
Diamond also reported a net loss of $2.46 per share for the
first three quarters - through April 30 - of fiscal 2012, versus
a profit of $1.05 per share in the prior-year period.
Net sales totaled $757.4 million for that period, hurt by a
36.2 percent decrease in non-retail sales following a
significant drop in walnut crop deliveries to Diamond in the
fall of 2011, around the time that reports of possible improper
accounting for walnut payments first surfaced.
"Clearly the results for the first three quarters of 2012
demonstrate that Diamond faced challenges," Driscoll said.
Diamond also said two members of its board of directors were
stepping down and that only one was being replaced, reducing the
size of its board to 11 from 12.
Diamond's restatement erased $39.5 million of income before
taxes in 2011, reducing total earnings to $29.7 million. It
erased $17 million of income in 2010, bringing the restated
figure to $23.2 million.
For full-year 2012, Diamond said it expects net sales of
$975 million to $980 million with adjusted operating earnings of
$78 million to $81 million.
Diamond shares fell to $16.06 in after-hours trade from
their close at $19.50.