Sporting goods retailer Big 5 files Qtly reports on 10-Q Form
01 Oct '05
4 min read
First quarter fiscal 2005 results included charges totaling $0.8 million (pretax), or $0.02 per diluted share, associated with legal and audit fees related to the Company's restatement and a flood loss at one of the Company's store locations. These charges were not reflected in the preliminary net income previously announced by the Company.
Additionally, first quarter fiscal 2005 results were impacted by the establishment of new allowances relating to inventory as part of the Company's restatement of prior period financial statements. The Company previously recognized losses associated with returned products after these products were processed through the returned goods department at its distribution center. As part of the restatement, the Company changed its methodology for accounting for returned products and has established valuation allowances for all products in its inventory.
Net income comparisons for the first quarter also were impacted by the application of revised inventory cost capitalization methodologies adopted as part of the restatement. This added $0.4 million (pretax), or $0.01 per diluted share, to fiscal 2005 first quarter results, and added $0.8 million (pretax), or $0.02 per diluted share, to fiscal 2004 first quarter results.
New Distribution Center
Construction has been substantially completed on the Company's new distribution center located in Riverside, California, and the Company's transition to this facility has been proceeding positively.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
