Penford finds accounting errors, restates sales

Penford finds accounting errors in financial statements back to fiscal 2010, restates sales

Associated Press

CENTENNIAL, Colo. (AP) -- Penford Corp. said Wednesday that it found accounting errors in its financial statements for the first two fiscal quarters of 2013 and the past three fiscal years, leading to a restatement of its results for those periods.

The company, which makes specialty ingredients used in food and other products, said the restatements will not affect its previously reported earnings or losses, cash flows or stockholders' equity.

Penford said its management and audit committee discovered the errors and that it worked with the Securities and Exchange Commission to correct it.

It has now determined that proceeds for the sale of by-products in its industrial ingredients segment were misclassified as a reduction of the cost of sales rather than as sales.

The restatements will increase its consolidated and industrial ingredients segment sales and cost of sales by $71.8 million, $58.3 million and $40.2 million for the years ending Aug. 31, 2012, 2011 and 2010, respectively; $23.2 million and $17.4 million for the quarters ending Nov. 30, 2012 and 2011, respectively; $21 million and $44.2 million for the three- and six-month periods ending Feb. 28, 2013, respectively; and $17.3 million and $34.7 million for the three- and six-month periods ending Feb. 29, 2012.

Penford shares slipped 2 cents to $12.33 in morning trading Wednesday.

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