KKD ,,, Krispy Kreme May Report 4Q Earns in Aug. Thursday May 12, 6:17 pm ET By Paul Nowell, AP Business Writer Krispy Kreme Posts Aug. 30 Date for Overdue 4Q Earnings Report on Web Site, Then Removes It
CHARLOTTE, N.C. (AP) -- Financially troubled Krispy Kreme Doughnuts Inc. said Thursday it expects to release its overdue earnings report for the fourth quarter by the end of August. In a terse statement that was posted on the company's Web site Thursday, the company listed Aug. 30 as the date by which it would release its financial report for the quarter that ended Feb. 1.
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The statement was abruptly removed from the Winston-Salem-based company's Web site late Thursday afternoon. The company's spokeswoman for investor relations, Robbin Moore, said she could not comment on why it was taken down or whether it was posted in error.
In a statement, Moore said, "We understand our key stakeholders desire for more information about Krispy Kreme and specifically our plans to move the business forward. ... However, there are a number of things that need to be completed, such as the work of the Special Committee and restatements. Until this work is finished and we are able to provide a more complete picture, we are not going to comment."
The company has been in a financial tailspin for nearly a year, since reporting its first-ever quarterly loss last spring.
That was followed by allegations of sales padding and other financial improprieties, the closing of stores and the January ouster of former chief executive officer Scott Livengood. The company is now being run by a corporate turnaround specialist.
Since last fall, a special committee of independent directors has been examining whether Krispy Kreme needs to restate past earnings reports.
The once-trendy doughnut maker is also under criminal inquiry by a federal prosecutor in New York and is being investigated by the SEC into financial irregularities.
And the chain faces several lawsuits, including one that alleges workers lost millions of dollars in retirement savings because executives at the company hid evidence of declining sales and profits.
In last month's statement, Krispy Kreme said it will miss key deadlines for regulatory filings and show mounting losses when it eventually files earnings. The company said it also anticipates reducing net income for fiscal 2004 by between $5.2 million and $6.2 million, or between 9 cents and 10 cents a share.
In the April 18 filing with the U.S. Securities and Exchange Commission, Krispy Kreme said fourth-quarter sales dropped 16 percent, to $153 million, compared with the same period a year ago.
Shares of Krispy Kreme closed Thursday at $7.08, down 12 cents, or 1.7 percent, on the New York Stock Exchange.
The company had to bring in new lenders last month, including investment banker Credit Suisse First Boston, after nearly defaulting on its original credit line.
Krispy Kreme also has said its failure to file financial reports on time could affect its listing status on the NYSE.
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