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West 49 Inc to reiterate Year-End Balance Sheet
29 May '06
2 min read
West 49 Inc Canada's leading action sport retailer, announced that it will amend and restate its audited consolidated balance sheet for its fiscal year ended January 28, 2006 to correct an inadvertent accounting error.
The correction does not affect the Company's consolidated statements of operations or cash flows for the fiscal year ended January 28, 2006, and does not impact earnings
per share or shareholders' equity.
At year-end, as part of the fair value assessment related to the purchase of West 49 Inc., the Company reclassified approximately $8.9 million of trademarks/tradenames that were originally included in goodwill.
Subsequent to year-end, the Company identified that this reclassification has a tax effect resulting in an increase in goodwill of $3.2 million and an offsetting increase in long-term future tax liability in the same amount. Given the nature of the adjustment, the Company does not consider the error to be material.
The Company is currently in the process of revising its audited financial statements, which are expected to be filed with the securities regulators in the near future.
West 49 Inc is a multi-banner specialty retailer of apparel, footwear and accessories related to skateboarding, snowboarding, and surfing, as well as the music industry, and fashion-forward young women. The Company targets "Generation Y" customers (ages 10 through 18).
West 49 Inc operates over 100 stores in nine provinces, under the banners West 49, Billabong, Off The Wall, Arsenic, Amnesia, D-Tox, and Duke's Northshore, as well as online under the domain name www.boardzone.com. West 49 Inc.'s common shares are listed on the Toronto Stock Exchange under the symbol WXX. The Company has approximately 63 million shares outstanding.
The correction does not affect the Company's consolidated statements of operations or cash flows for the fiscal year ended January 28, 2006, and does not impact earnings
per share or shareholders' equity.
At year-end, as part of the fair value assessment related to the purchase of West 49 Inc., the Company reclassified approximately $8.9 million of trademarks/tradenames that were originally included in goodwill.
Subsequent to year-end, the Company identified that this reclassification has a tax effect resulting in an increase in goodwill of $3.2 million and an offsetting increase in long-term future tax liability in the same amount. Given the nature of the adjustment, the Company does not consider the error to be material.
The Company is currently in the process of revising its audited financial statements, which are expected to be filed with the securities regulators in the near future.
West 49 Inc is a multi-banner specialty retailer of apparel, footwear and accessories related to skateboarding, snowboarding, and surfing, as well as the music industry, and fashion-forward young women. The Company targets "Generation Y" customers (ages 10 through 18).
West 49 Inc operates over 100 stores in nine provinces, under the banners West 49, Billabong, Off The Wall, Arsenic, Amnesia, D-Tox, and Duke's Northshore, as well as online under the domain name www.boardzone.com. West 49 Inc.'s common shares are listed on the Toronto Stock Exchange under the symbol WXX. The Company has approximately 63 million shares outstanding.
West 49 Inc
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