Kellwood Company reported that the Company completed the financial restatement process announced in its press release of December 1, 2005.
The Company has filed an amended Form 10-K/A with the Securities Exchange Commission, covering the fiscal years ended January 29, 2005 and January 31, 2004 and amended Forms 10-Q/A for the periods ended April 30, 2005 and July 30, 2005.
The Company has also filed its quarterly report on Form 10-Q for the period ended October 29, 2005.
The restated financial statements were filed to correct for an accounting error related to the recording of freight, duty and agents' commission costs that resulted in the understatement of cost of products sold and a cumulative overstatement of earnings before income taxes of $8.2 million ($5.2 million after tax).
In addition, the restatements reflect the effect of the correction of the underaccrual of liabilities (previously deemed immaterial) related to a Death Benefits Program that had resulted in the understatement of selling, general and administrative expenses and a cumulative overstatement of earnings before income taxes of $3.9 million ($2.5 million after tax).
The restatement reduced earnings before income taxes in the 2004 fiscal year ended January 29, 2005 by $6.0 million ($3.8 million after tax) and in the 2003 fiscal year ended January 31, 2004 by $5.9 million ($3.7 million after tax).
The restatement reduced earnings before income taxes for the fiscal 2005 first quarter ended April 30, 2005 by $1.0 million ($0.7 million after tax) and increased earnings before income taxes for the second quarter ended July 30, 2005 by $0.7 million ($0.5 million after tax).
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