PALM BEACH GARDENS, Fla. (July 26, 2005) — TBC Corp. will restate some of its previous financial statements following an analysis of its lease-related accounting policies.
The company said the restatements will not have an impact on previously reported cash flows, cash balances, sales or comparable sales, among other items. The adjustments primarily will affect TBC's balance sheet accounts for goodwill and non-current liabilities as well as rent expense for prior periods.
The company determined this month that its financial statements from 2000 to 2004 and the first quarter of 2005 were unreliable and that certain prior periods should be restated.
TBC added that it expects an increase in same-store sales of 4.1 percent when it reports second quarter results. Its earnings are anticipated to be in line with its 49- to 53-cent per share guidance.
TBC operates wholesale and private brand divisions as well as retail stores under the Tire Kingdom, Merchant's, National Tire & Battery and franchised Big O Tires store names.