Huffy Corporation announced late Friday that $3.5 to $5.0 million in accounting entries, related primarily to customer deductions, credits and reserves for inventory valuation and doubtful account receivables for the former Gen-X Sports business, should have been reflected in the 2003 fourth quarter rather than Q1 2004.
The company will file a restatement of its 2003 results, which showed a loss of $7.5 million for the year. It will also further delay the release of its 2004 first and second quarter results. Huffy delayed its Q1 filing after the company determined that it was necessary to record both a write-off of certain intangible assets and a full valuation allowance for deferred tax assets, estimated at $53.0 million, related to the Gen-X deal.
Based on current estimates, Huffy expects to report a Q1 loss in the range of $70.0 to $72.0 million, which includes the $53.0 million non-cash charge.
In other news, the HUF Board of Directors has elected John A. “Jay” Muskovich as COO of the company. Mr. Muskovich was most recently the president and CEO of DoubleSights Displays, LLC until its sale this year.
On Monday, Huffy announced that the NYSE had ceased trading of HUF shares and would take steps to de-list the company immediately because the company's market cap fell below the big board's requirements.
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