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Buffets to restate financial statements for 2006, 2007 to reflect higher net losses
By Jennifer Lanning Drey
Portland, Ore., March 28 - Buffets Holdings, Inc. has determined that its consolidated financial statements for the years ended June 27, 2007 and June 28, 2006 as well as the consolidated financial statements for the 12 weeks ended Sept. 19, 2007 should be restated, according to a form 8-K filed with the Securities and Exchange Commission.
Buffets said the adjustments increased the company's net loss by $500,000 for the 12 weeks ended Sept. 19, 2007, bringing the net loss for the period to $5.8 million from $5.3 million.
For the year ended June 27, 2007, the adjustments increased the company's net loss by $11.2 million to $116.7 million, as opposed to the previously reported $105.5 million.
The adjustments increased the company's net loss by $1.2 million for the year ended June 28, 2006, bringing the total to $6.0 million from the originally reported $4.8 million.
The adjustments have no impact on cash flows and did not result in changes in EBITDA.
The determination to restate the financial statements was made after Buffets' management identified tax accounting errors surrounding the company's merger with Ryan's Restaurant Group, Inc. Additionally, management determined errors related to the accounting for the company's deferred tax balances and related valuation allowances.
The company expects to file amended financial statements with the SEC by March 31.
Buffets Holdings, a steak-buffet restaurant company based in Eagan, Minn., operates restaurants under the names Old Country Buffet, HomeTown Buffet, Ryan's and Fire Mountain. The company filed for bankruptcy on Jan. 22, and its Chapter 11 case number is 08-10141.
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