Diamond Foods: audit committee investigation announces findings – will restate 2010 and 2011 financial statements; announces appointment of new CEO and CFO (36.66 -1.00)
Co announced that the Audit Committee of its Board of Directors has substantially completed its investigation of the Company’s accounting for certain crop payments to walnut growers. The Audit Committee has concluded that the Company’s financial statements for the fiscal years 2010 and 2011 will need to be restated. Over the course of the last three months, the Audit Committee has carefully reviewed the accounting treatment of certain payments to walnut growers. The Audit Committee has concluded that a “continuity” payment made to growers in August 2010 of approximately $20 million and a “momentum” payment made to growers in September 2011 of approximately $60 million were not accounted for in the correct periods, and the Audit Committee identified material weaknesses in the Company’s internal control over financial reporting.
The Board of Directors is taking a number of corrective actions including the appointment of a new Chief Executive Officer and Chief Financial Officer. Effective immediately, the Board has appointed Director Rick Wolford to serve as Acting President and Chief Executive Officer and Michael Murphy, of Alix Partners, LLP, to serve as Acting Chief Financial Officer. The Company is commencing searches for permanent replacements for the CEO and CFO positions. The Board has also appointed Robert J. Zollars, who previously served as Lead Independent Director, to the position of Chairman of the Board. Michael J. Mendes and Steven M. Neil have been placed on administrative leave from the Company.
Diamond is working diligently to complete financial restatements for the affected periods and will file all required reports with the U.S. Securities and Exchange Commission as soon as possible. While the timing of the restatement is difficult to predict at this time, the Company will endeavor to provide updates on timing and other material developments.
Rick Wolford previously served as Chief Executive Officer, President and Chairman of Del Monte Foods. Michael Murphy is currently a Managing Director at Alix Partners, a leading financial consulting firm.
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Sounds like its only a timing issue. Not a hit to P&L. Buy the weakness.
Auditing discrepencies = sell regardless
fuck no.the some a bitches just put out their 10k fucking cocksuckers didnt say shit accept they made more fucking money yoy for the last 3.wtf. this shit aint over yet.
And trading reopens at $24. Ouch. (No position.)
Auditing discrepencies? WTF? You’re an idiot. The DMND issue has nothing to do with “auditing”.
Sell without question when the books are cooked. At least so far, this problem is not a “Cooked Books” problem. Burning sugar maybe, but not “Cooked Books”.
It reads as if its only a timing issue. Overall, the P&L, cash flow, cash balance does not change in timing problems. The only change is in the period in which transactions get reported. Effing timing problems are like a gnat on an elephant’s ass. They happen all the ‘effing time. But 9999 times out of 10000, they get tucked in a drawer and you go on down the road. This is one of those times where a big effing drawer should have been used.
Buy the stupidity of sellers who don’t know shit about accounting. IF there’s no P&L or cash flow impact, this forking stock bounces back in a flash.
Hilarious… This stock is done.
Listen you mindless dolt, productivity gets fucked up when the chimps stink up your offices with their ‘questions’
But yeah, you’re right. Investor sentiment won’t shift to the 1000s of other companies that don’t have auditors flying up their ass for the next few quarters.
hey cpa, i agree,some folks dont know how to separate the wheat from the chafe. this is not like the ipsu bullshit. something is fishy in denmark, real fishy.