Diamond Foods Q1 Loss Widens

(RTTNews) - Diamond Foods Inc. (DMND) posted a wider first-quarter net loss of $42.2 million, or $1.92 per share, compared with last year's loss of 10.73 million, or $0.49 per share.

During the quarter, the firm said it incurred $23.5 million in expenses for the mark to market adjustments related to shares issuable in connection with the settlement of the securities class action lawsuit, a $5.0 million expense associated with the company's estimated future impact from a potential resolution of the Securities and Exchange Commission investigation and a $17.0 million charge related to a change in the fair value of the Oaktree warrant liability. Excluding these charges, non-GAAP net income amounted to $5.04 million, or $0.18 per share for the period.

Quarterly net sales fell 9.2% to $234.7 million, from $258.5 million in the prior-year period, while gross profit as a percent of net sales was 24.7% compared with 22.7% last year.

Looking forward, Diamond Foods expects year-over-year improvement in fiscal 2014 adjusted EBITDA, as it continues to benefit from the execution of its multi-year turnaround strategy.