Ruger to restate ‘04 earnings
Sturm, Ruger & Company has put off filing its annual report for 2005 because it says it needs to restate financial statements for the 2004 fiscal year.
In a press release, the company said it would delay filing its report to address an error in the calculation of the company’s LIFO index for 2004. The LIFO index is an accounting computation that is used by companies with growing inventory costs to reduce income taxes and keep more cash in the business.
The company said that as result of the restatement, previously reported 2004 net income is expected to increase by approximately 2 cents per share.
The company was scheduled to submit its annual report to the U.S. Securities and Exchange Commission by March 16.
The firm said an amended annual report for the year ended 2004 will be filed when the restatement is completed.
According to the firm, the “inadequate review” of the data used in the calculation of the LIFO index has been identified as an “internal control deficiency” that constitutes a “material weakness,” as defined by the Public Company Accounting Oversight Board. A material weakness is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. – JEFF FEINGOLD