Kmart Corporation (NYSE: KM) announced that it intends to file later today with the Securities and Exchange Commission pursuant to Rule 12b-25, to extend the filing date of its Annual Report on Form 10-K to Wednesday, May 15, 2002.
The filing of its Annual Report on Form 10-K is being delayed to provide additional time for Kmart's new management team to complete its review of Kmart's accounting policies and methods. The delay will provide additional time to complete the assessment of a possible restatement of the Company's quarterly financial statements for 2001 in connection with its consideration of a possible change in accounting methodology; and, in addition, a possible restatement to reflect certain aspects of its previously announced investigation concerning various accounting matters. The Company's assessment and review relates to vendor allowances and rebates and general liability reserves. Kmart expects to complete its assessment and review shortly. Lastly, the delay will provide additional time for the completion of the 2001 fiscal year audit by the Company's independent accountants.
Form 12b-25 requires that the Company disclose any anticipated change in results of operations from the corresponding period for the last fiscal year. In accordance with this requirement, Kmart announced that it will report in its Form 12b-25 that the results of operation for the fiscal year ended January 30, 2002 to be included in its Annual Report on Form 10-K are expected to include a loss significantly higher than the $244 million loss reported for the Company's fiscal year ended January 31, 2001. However, until Kmart management completes its review and assessment, the Company is unable to quantify the change in reported results of operations for the comparable periods.
Kmart Corporation is a $37 billion company that serves America with more than 2,100 Kmart and Kmart SuperCenter retail outlets and through its e-commerce shopping site, http://www.bluelight.com/ (http://www.bluelight.com/ ).
Safe Harbor Statement
The foregoing, as well as other statements made by Kmart, may contain forward-looking statements that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to operate pursuant to the terms of the DIP facility; the Company's ability to obtain court approval with respect to motions in the Chapter 11 proceeding prosecuted by it from time to time; the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the chapter 11 cases; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; the ability of the Company to obtain and maintain normal terms with vendors and service providers; the Company's ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 cases on the Company's liquidity or results of operations; the ability of the Company to fund and execute its business plan; the ability of the Company to attract, motivate and/or retain key executives and associates; and the ability of the Company to attract and retain customers. Other risk factors are listed from time to time in the Company's SEC reports, including, but not limited to the quarterly report on Form 10-Q for the quarter ended November 27, 2001. Kmart disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company's various pre-petition liabilities, common stock and/or other equity securities. No assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. Accordingly, the Company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities.
SOURCE: Kmart Corporation
Contact: Kmart Media Relations, +1-248-463-1021