Gander Mountain announced revisions to the fiscal 2004 financial results reported on March 11, 2005, and to the restated fiscal 2003 results reported on that date. Net income for fiscal 2004 increased to $1.6 million from $0.8 million as previously reported, and net income for fiscal 2003 increased to $1.5 million from $0.7 million as previously reported.
As a result of a clarification issued by the SEC on February 7, 2005, affecting many retail companies, Gander Mountain announced on March 9, 2005, that it would restate previously issued financial statements to adjust its method of accounting for leases. On March 11, 2005, the company announced its preliminary financial results for the fourth quarter of fiscal 2004 and the full year.
Since the March 11 announcement, the SEC has provided further guidance regarding the accounting for construction period and pre-opening lease expenses. As a result of this guidance, Gander Mountain has adopted an accounting policy to capitalize rent expense during the construction period into the cost of leasehold improvements and has adjusted the fiscal 2004 financial results disclosed in its March 11, 2005, press release, as well as the restated fiscal 2003 results reported in that release.
As previously announced, Gander Mountain will file the restated historical financial statements and related auditor's report required for the adjustments in its lease accounting in connection with the filing of its Annual Report on Form 10-K for the year ended January 29, 2005.
