Foamex International restates results for first three quarters of '03
Foamex International Inc., a manufacturer of flexible polyurethane and advanced polymer foam products in North America, announced that it would restate results for each of the first three quarters of 2003, due primarily to a calculation error in the carrying value of certain in-transit raw materials that overstated inventories at Sept. 28, 2003 by $2.4 million. In addition, the company has reclassified $83.4 million of revolving credit borrowings at Sept. 28, 2003 under Foamex L.P.'s Senior Secured Credit Facility from long-term to current to comply with an applicable accounting rule. There has been no change in the maturity of the credit facility, which remains April 30, 2007.
The company has instituted procedures intended to ensure that the value of the in-transit raw material inventory is more effectively monitored. When discovered, Foamex reported the inventory related error to its external auditors and its audit committee, and has restated its financial statements for each of the first three quarters of 2003 for this error and other adjustments that were not individually or in the aggregate material to the respective periods.