Poore Brothers Form 10-Q Filing Update
November 21 2005 - 4:12PM
Business Wire
Poore Brothers, Inc. (Nasdaq: SNAK) today provided an update on the
status of its Form 10-Q filing for the quarter ended October 1,
2005 and announced results from the Company's previously disclosed
review of internal controls over financial reporting and accounting
policies and estimates, principally with respect to trade spending.
The review performed by the Company, with the assistance of an
independent consultant engaged by the Company's audit committee,
identified accounting errors related to product promotion
obligations that were incurred in the second quarter of 2005 but
not recorded in the Company's financial statements until the third
quarter of 2005. In addition, subsequent to the issuance of the
Company's third quarter earnings press release the Company became
aware of a potential sales return related to product shipped in the
third quarter of 2005. Also in the second and third quarters of
2005, the Company incorrectly accrued for employee sick pay
benefits that had not been earned by employees. The Company
believes that the estimated impact of (i) the accounting errors
mentioned above on the second quarter ended June 25, 2005 is a
decrease of approximately $100,000 in net income, or approximately
$0.01 per diluted share, and (ii) the accounting errors and the
adjustment discussed above on the third quarter ended October 1,
2005 is a decrease of approximately $100,000 in the net loss, or
approximately $0.01 per diluted share. For the nine months ended
October 1, 2005 the aggregate impact of these items substantially
offset and thus has no significant impact on net income or earnings
per diluted share. The Company plans to restate its previously
issued financial statements for the quarter ended June 25, 2005 to
more accurately reflect the results for that period. The Company
expects to file an amended Quarterly Report on Form 10-Q for the
quarter ended June 25, 2005 and its Quarterly Report on Form 10-Q
for the quarter ended October 1, 2005. The Company has prepared the
necessary information pursuant to the requirements of the
Securities and Exchange Commission and provided those Reports for
review by its independent registered public accountants, with whom
the Company has discussed the review and results. Investors should
look to the restated financial statements for June 25, 2005
included in the amended Quarterly Report on Form 10-Q, and the
Quarterly Report on Form 10-Q for the quarter ended October 1,
2005, when they become available. The review also identified a
material weakness in the Company's internal controls over trade
spending as of June 25, 2005 that continued into the third quarter
ended October 1, 2005. The Company took steps during the third
quarter and additional steps since then to improve its internal
control structure to remediate this material weakness. The Company
has also filed a Current Report on Form 8-K with the SEC with
respect to this release. This press release contains forward
looking statements related to (i) the Company's intention to
restate its financial statements for the quarter ended June 25,
2005 and file its report on Form 10-Q for the quarter ended October
1, 2005 and (ii) the nature and amounts of the anticipated
financial statement adjustments for such periods. A number of
important factors could cause actual results to differ materially
from those anticipated in such forward-looking statements,
including the fact that the anticipated adjustments to the
financial statements for such periods, the filing of the amendment
of the Company's report on Form 10-Q for the quarter ended June 25,
2005 and the filing of the Company's report on Form 10-Q for the
quarter ended October 1, 2005, are subject to ongoing preparation
and review by the Company, the audit committee and the Company's
independent registered public accountants, and accordingly are
subject to change. About Poore Brothers, Inc. With facilities in
Indiana and Arizona, Poore Brothers is a marketer and manufacturer
of Intensely Different(TM) snack foods under a variety of owned or
licensed brand names, including T.G.I. Friday's(R), Cinnabon(R),
Tato Skins(R), Poore Brothers(R), Bob's Texas Style(R), and Boulder
Canyon Natural Foods(TM). For further information about Poore
Brothers or this release, please contact Richard M. Finkbeiner,
Senior Vice President and Chief Financial Officer, at (623)
932-6255, or logon to http://www.poorebrothers.com.
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