RSTO restates...again.
Restoration Hardware restates results
CORTE MADERA, Calif., Dec 18 (Reuters) - Upscale home furnishings retailer Restoration Hardware Inc. <RSTO.O> said on Wednesday it is seeking an extension for the filing of its quarterly report because it believes it has overstated accounts payable and inventory balances.
Correcting the identified accounting errors would reduce the net loss for the fiscal year ended Feb. 2, 2002, by about 2 cents to 5 cents per share.
The company seeks the delayed filing with the U.S. Securities and Exchange Commission because it has identified accounting errors in its accounts payable and inventory balances.
Due to the errors, it believes its accounts payable liabilities for the fiscal year ended Feb. 2, 2002, originally reported as $34.9 million, have been overstated by up to 3 percent. As a result of the accounting errors, merchandise inventories for the fiscal year, originally reported as $62.1 million, are believed to have been understated by up to 1 percent.
Due to the errors, the accounts payable and accrued expenses as of Nov. 2, 2002 previously announced at about $56.6 million were overstated by up to 2 percent and that the accounts payable and accrued expenses as of Nov. 3, 2001 of about $54.7 million were overstated by up to 1 percent.
In addition, the company previously announced merchandise inventories of about $127.5 million as of Nov. 2, 2002 as compared to $105.9 million as of Nov. 3, 2001. Restoration Hardware now believes merchandise inventories as of Nov. 2, 2002 were understated by up to 1 percent, while the merchandise inventories as of Nov. 3, 2001 remain unchanged.
Correcting the errors would cut its loss for the fiscal third quarter ended Nov. 2, 2002, by nil to 1 cent per share. It would also cut the loss for the year-earlier quarter by nil to 1 cent per share.
The correction has no impact on its current or past cash balances or liquidity, Restoration Hardware said.
In May, the company restated its earnings for 2000 and part of 2001 to account for a change in the way some sales were recorded.
Shares of Restoration Hardware fell 62 cents, or almost 12 percent, to $4.70 on the Nasdaq on Wednesday.
12/18/02 20:05 ET
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