The Company believes that the cumulative, net impact on the Company's net income of the additional corrections that the Company is aware of at this time, as well as the adjustments relating to the previously announced lease accounting changes and sales return reserve, for fiscal years 2002 through 2004 will be less than 3 percent of aggregate net income as preliminarily reported on February 9, 2005 for such fiscal year periods, which reflected the preliminary adjustments to address the error in an account within accounts payable. These matters will also reduce net income for prior periods, which the Company anticipates will be reflected in an opening balance sheet adjustment for fiscal 2002.
Steven G. Miller, Big 5's Chairman, President and Chief Executive Officer, said, " The restatement process has been frustrating for shareholders, company is hopeful that this process is drawing to a close. Although significant time and attention has been devoted to the restatement process, they have remained focused on their business and are pleased to have maintained their consistent same store sales performance and to have achieved 38th consecutive quarter of comp store sales increases. They are also pleased to report that the transition to their new distribution center in Riverside, California is proceeding smoothly in accordance with their plans."
Big 5 is a leading sporting goods retailer in the United States, operating 312 stores in 10 states under the "Big 5Sporting Goods" name. Big 5 provides a full-line product offering in a traditional sporting goods store format that averages 11,000 square feet. Big 5's product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, snowboarding and in-line skating.
Big 5 Sporting Goods Corporation
marketing@alchempro.com
