AFC Enterprises, Inc. (Nasdaq: AFCE) today announced that the release of its results for the third quarter 2002 will be delayed pending the final determination of certain adjustments to be recorded in the third quarter 2002 or prior periods. The adjustments are limited to the Seattle Coffee Company and relate to a write-down of its inventory and an impairment of its leasehold improvements at its former headquarters in Seattle. The total amount is expected to range from $1.2 million to $2.1 million after tax.
Frank Belatti, Chairman and CEO, commented, “In the spirit of full disclosure and absolute transparency, we want to be completely certain that these adjustments are recorded appropriately. With that said, we remain focused on our business and sharing our future plans with our investors at the upcoming conference which will be webcast live on Thursday morning, November 7, 2002.”
As soon as the adjustments are finalized, AFC will reschedule the earnings release and conference call. AFC provided guidance for the third quarter 2002 earnings from continuing operations of $0.39 per share, excluding adjustments.