Posted on 04/20/2005 3:55:33 AM PDT by TaxRelief
CHARLOTTE, N.C. -- Financially strapped Krispy Kreme Doughnuts Inc. told federal regulators Monday that the filing of its 2005 annual report has been delayed because of an ongoing review of its accounting practices.
The Winston-Salem-based firm said in a filing with the U.S. Securities and Exchange Commission that the ongoing analysis included accounting practices from 2004 and "earlier years as well as in fiscal 2005."
Krispy Kreme said it might have to make further revisions to past earnings reports. Last fall, the company formed a special committee of independent directors to look into whether earnings should be restated.
Shares of Krispy Kreme closed Monday at $7.14, off 42 cents, or 5.56 percent.
The company told the SEC it was unable to meet the April 15 deadline to file the annual report, and it does not expect to be able to file it before April 30.
"The company is not at this time able to predict when the Form 10K will be filed, but intends to file the report at the earliest practicable date," the company said.
In the SEC filing, Krispy Kreme said the failure to file its quarterly report in a timely manner "may constitute failure to comply with the continued listing requirements of the New York Stock Exchange."
Earlier this month, investment banker Credit Suisse First Boston and other new lenders offered Krispy Kreme $225 million in credit. That came after Krispy Kreme's lenders had twice agreed to postpone a deadline by which the company would be in default on its credit line.
Krispy Kreme has been hit with several lawsuits, including one that alleges workers lost millions of dollars in retirement savings because executives at the company hid evidence of declining sales and profits.
Krispy Kreme faces a criminal inquiry by a U.S. attorney in New York and an investigation by the SEC into financial irregularities.
I sold at $35.00. :)
Why, what time are the fillings supposed to be put in the donuts, anyway?
I read the report but my eyes just glazed over.
Mmmmm.....donuts....
If I had some extra money, I'd do the same. But aren't you supposed to buy before the news?
I wish I had a Krispy Kreme right now with my coffee!
When the news comes out you can bet they will try to sugar coat the earnings.... what a sticky situation....
I read the report also and it has lots of holes in it.
Sounds like there is a hole in that story
The local Wal-Mart had a Krispy Kreme shop. It closed a few weeks ago. Lack of sales I supppose.
So did most of the board, but then they "sweetened" the SEC filings.
They were rushing to get it out, hot off the racks...
Something tells me that stock is going to sit there at the bottom of the chart, like a chocolate iced cake donut with sprinkles sits on your stomach. Some stocks never come back.
Basically, they have a lot of dough but not a lot of money.
All these puns are making me hungry!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.