This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Penford Announces Accounting Corrections

Stocks in this article: PENX

Penford Corporation (Nasdaq: PENX), a leader in ingredient systems for industrial and food applications, announced today that its management and Audit Committee had determined that the Company’s financial statements for fiscal years 2012, 2011 and 2010 and for the first two fiscal quarters of 2013 should be restated to make necessary accounting corrections.

Additional details concerning this determination appear in a Current Report on Form 8-K filed today by the Company with the Securities and Exchange Commission.

These restatements will reflect the correction in the accounting treatment for proceeds received from the sale of certain by-products generated by the Company’s industrial starch processing operations based in Cedar Rapids, IA. Such by-products include corn gluten meal, corn germ that is sold to a third party to be refined into corn oil, as well as materials that are primarily sold as or used in animal feed.

In prior reporting periods, the Company recorded the proceeds from the sale of these by-products as a reduction of the cost of sales. The Company had previously disclosed the amounts of its by-products sales in prior reporting periods, including fiscal years 2012, 2011 and 2010, as well as its accounting treatment for such sales. After several months of consultation and review with the staff of the Securities and Exchange Commission, the Company concluded that the proceeds from the sale of by-products should be classified as sales rather than as a reduction of cost of sales in its consolidated statements of operations.

The restatements affect the amounts previously reported for the Company’s consolidated sales and cost of sales and the sales of the Company’s Industrial Ingredients segment. The impact of the restatements will be to increase the Company’s consolidated and Industrial Ingredients segment sales and cost of sales by $71.8 million, $58.3 million and $40.2 million for the years ended August 31, 2012, 2011 and 2010, respectively; $23.2 million and $17.4 million for the quarters ended November 30, 2012 and 2011, respectively; $21.0 million and $44.2 million for the three- and six-month periods ended February 28, 2013, respectively; and $17.3 million and $34.7 million for the three- and six-month periods ended February 29, 2012.

The restatements do not affect the Company’s previously reported consolidated gross margin, income (loss) from operations, net income (loss) or earnings (loss) per share or any items reported in the consolidated balance sheets or the consolidated statements of comprehensive income (loss), cash flows or stockholders’ equity.

About Penford Corporation

Penford Corporation (NASDAQ: PENX – www.penford.com) develops, manufactures and markets a broad range of specialty ingredients derived from natural sources that are used in food and industrial applications. Products include food ingredients, pet and animal products, sustainable bioproducts to replace petroleum-based chemicals, starches for paper and packaging products, and biofuels. Penford has seven manufacturing and/or research locations in the United States.

Copyright Business Wire 2010

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,634.20 +19.39 0.12%
S&P 500 1,942.77 +1.49 0.08%
NASDAQ 4,421.6630 +2.1850 0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs