IRVING, Texas, June 8 /PRNewswire-FirstCall/ -- Michaels Stores, Inc.
(NYSE: MIK) today filed a Rule 12b-25 filing related to its April 29, 2006
Form 10-Q filing. Based on recent media reports regarding historical stock
option practices at other publicly traded companies, the Company's Audit
Committee has initiated an internal review on a proactive basis into the
Company's historical stock option grant practices. The Audit Committee's
internal review is being conducted with the assistance of independent legal
counsel and outside accounting experts. The Audit Committee has not reached
any final conclusions as the internal review is not complete and is
continuing.
Due to the volume of data subject to this review, the Company has been
unable to complete and file by the prescribed due date its Quarterly Report
on Form 10-Q for the fiscal quarter ended April 29, 2006. The Company is
working diligently to file its Quarterly Report on Form 10-Q by the fifth
calendar day following the required filing date as permitted by Rule
12b-25. At this time, the Company is unable to determine whether any
accounting adjustment might be required, the final amount of any accounting
adjustment, if required, or whether such an adjustment will require a
restatement of prior period financial statements or will be reflected in
its fiscal 2006 results of operations. The Company is also evaluating
whether previously deducted compensation expense related to exercised stock
options might not be deductible under Section 162(m) of the Internal
Revenue Code, which could result in additional taxes and interest due
related to prior deductions and the loss of future deductions. However, the
Company has not completed its assessment of these tax matters.
The internal review is focused principally on the time period from 1990
to 2001. Since October 2001, the Company has utilized pre-determined
effective grant dates and generally pre-determined grant levels for its
stock option program. Stock option grants from October 2001 to the present
have consistently followed these processes.
The Company's independent accounting firm has been informed about the
internal review and the Company has also voluntarily reported the
commencement of this review to the Securities and Exchange Commission.
The Company's Board continues to actively pursue the previously
announced process to explore strategic alternatives to enhance shareholder
value including, but not limited to, a potential sale of the Company.
Michaels Stores, Inc. is the world's largest specialty retailer of
arts, crafts, framing, floral, wall decor, and seasonal merchandise for the
hobbyist and do-it-yourself home decorator. As of June 8, 2006, the Company
owns and operates 900 Michaels stores in 48 states and Canada, 165 Aaron
Brothers stores, 11 Recollections stores, and four Star Decorators
Wholesale operations.
This document may contain forward-looking statements that reflect our
plans, estimates, and beliefs. Any statements contained herein (including,
but not limited to, statements to the effect that Michaels or its
management "anticipates," "plans," "estimates," "expects," "believes," and
other similar expressions) that are not statements of historical fact
should be considered forward-looking statements and should be read in
conjunction with our consolidated financial statements and related notes in
our Annual Report on Form 10-K for the fiscal year ended January 28, 2006.
Specific examples of forward-looking statements include, but are not
limited to, forecasts of same- store sales growth, operating income, and
diluted earnings per share. Our actual results could differ materially from
those discussed in these forward- looking statements. Factors that could
cause or contribute to such differences include, but are not limited to:
the results of the internal review described in this press release; and
other factors as set forth in our Annual Report on Form 10-K for the fiscal
year ended January 28, 2006, particularly in "Critical Accounting Policies
and Estimates" and "Risk Factors," and in our other Securities and Exchange
Commission filings. We intend these forward-looking statements to speak
only as of the time of this release and do not undertake to update or
revise them as more information becomes available.
This press release is also available on the Michaels Stores, Inc.
website (http://www.michaels.com ).
SOURCE Michaels Stores, Inc.
 back to top
Related links:
http://www.michaels.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20040804/DAMICHAELSLOGO
AP Archive: http://photoarchive.ap.org PRN Photo Desk
photodesk@prnewswire.com
http://www.prnewswire.com/comp/115769.html /
CONTACT:
Michael Gross, President of Robinson Lerer &
Montgomery, +1-646-805-2003, or mgross@rlmnet.com , for Michaels
Stores, Inc.
|
