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 first quarter of 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 the companys 2004 first and second quarter results.
Huffy has 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 elected John A. “Jay” Muskovich as Chief Operating Officer of the company. Mr. Muskovich was most recently the president and CEO of DoubleSights Displays, LLC until its sale this year.
