Hain stock soars as filing reveals long-overdue financials coming this month
- More than a year has passed since Hain Celestial reported financial results
- Company stopped reporting financials after revealing accounting issues
Shares of Hain Celestial Group rose as much as 8 percent after hours following the company's disclosure late Thursday its internal accounting probe is almost over.
At the same time, Hain said it expects to file its financial results by the end of this month. It has been more than a year since the company reported financial results.
"At this time, the company believes its internal accounting review is nearing completion," Hain said in a regulatory filing Thursday.
In August 2016, Hain — a maker of organic and natural products — stunned investors with the announcement it had potential accounting concerns. The company also disclosed at that time it had delayed the release of its fiscal 2016 financial results and missed guidance.
In after-hours trading Thursday, Hain shares rose immediately following the filing's disclosure. The stock has since given up some of the gains but remains up nearly 5 percent.
Even with Thursday's rise, Hain's stock has yet to fully recover from the pounding it took after the August bombshell. Shares changed hands above $55 before the probe was revealed and still remain under $40.
Uncertainty about the company's financial performance and outlook have weighed on the stock but management still has gone forward with acquisitions. Last month, Hain announced it completed the purchase of a food business through its U.K. frozen foods subsidiary.
Hain's founder and CEO, Irwin Simon, has built the company into a powerhouse in the organic and natural products business, with everything from grocery products, snacks and tea to personal care products. Founded in 1993, the company's major brands include Terra Chips and Garden of Eatin, Celestial Seasonings, as well as personal care products from Alba, Jason and Live Clean.
In announcing the probe last year, Hain said it involved certain distributor concessions and revenue recognition associated with those concessions. The probe was to determine whether the concessions were accounted for in the correct period, according to the company.
"Previously, the company has recognized revenue pertaining to the sale of products to certain distributors at the time the products are shipped to such distributors," Hain said in August.
Also, Hain's announcement last year disclosed the company was "evaluating its internal control over financial reporting."
In February, Hain first revealed the Securities and Exchange Commission was investigating its accounting practices.
An audit committee of the company's board of directors also was asked to do an independent review of the accounting issue. In November, however, the company announced the review was completed and "found no evidence of intentional wrongdoing in connection with the company's' financial statements."
The last time Hain reported financial results was May 4, 2016 when it announced results for its fiscal third quarter ended March 31, 2016. The company has missed several deadlines on reporting its financials and also received delisting notices from the Nasdaq Stock Market.
Hain indicated in March it planed to present to the Nasdaq a plan for regaining compliance with a listing rule.
Hain's filing Thursday indicated "it will be a position to file" quarterly reports for the fiscal year ended June 30, 2016 as well as for three other quarterly periods in fiscal 2017 "by the end of May 2017."