BONITA SPRINGS, Fla., April 15 /PRNewswire-FirstCall/ -- Source Interlink Companies, Inc. announced today that it intends to file a Form 12b-25 with the U.S. Securities and Exchange Commission requesting an extension to file its Annual Report on Form 10-K for the fiscal year ended January 31, 2007. The extension is required in order to afford the Company the necessary time to complete its assessment of a potential goodwill impairment in the In-Store Services segment as required by Financial Accounting Standards Board Statement No. 142, "Goodwill and Other Intangible Assets" (SFAS 142).
Form 12b-25 provides the Company an extension of up to 15 days after the original due date, April 16, 2007, to file its Annual Report on Form 10-K for the fiscal year ended January 31, 2007. If the Company files the complete Annual Report with the Securities and Exchange Commission within the 15-day extension, the Annual Report will be deemed as timely filed. Source Interlink expects to file the Annual Report within the allotted 15-day extension period.
As a result of the request for an extension, the Company expects to hold its fiscal 2007 fourth quarter and full-year earnings conference call on April 25, 2007. The Company expects to report consolidated net revenue on GAAP basis of approximately $1.9 billion for the fiscal year. This figure represents an increase of 21.4% over results for the prior-year period.
About Source Interlink Companies, Inc.
Source Interlink Companies is a leading marketing, merchandising and fulfillment company of entertainment products including DVDs, music CDs, magazines, books and related items. The Company's fully integrated businesses include:
-- Distribution and fulfillment of entertainment products to major retail
chains throughout North America and directly to consumers of
entertainment products ordered through the Internet
-- Import and export of periodicals sold in more than 100 markets
worldwide
-- Coordination of product selection and placement of impulse items sold
at checkout counters
-- Processing and collection of rebate claims as well as management of
sales data obtained at the point-of-purchase
-- Design, manufacture and installation of wire fixtures and custom wood
displays in major retail chains
-- Licensing of children's and family-friendly home entertainment products
Source Interlink serves approximately 110,000 retail store locations throughout North America. Supply chain relationships include movie studios, record labels, magazine and newspaper publishers, confectionary companies and manufacturers of general merchandise. For more information, please visit the company's website at http://www.sourceinterlink.com/.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995, including statements relating to, among other things, future business plans, strategies, growth opportunities, statements of belief and statements of assumptions underlying any of the foregoing.
These forward-looking statements reflect Source Interlink's current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause future events, achievements or results to differ materially from those expressed by the forward-looking statements. Factors that could cause actual results to differ include: (i) market acceptance of and continuing retail demand for magazines, books, DVDs, CDs and other home entertainment products; (ii) our ability to realize operating efficiencies, cost savings and other synergistic benefits, (iii) adverse changes in general economic or market conditions; (iv) the ability to attract and retain employees; and (v) other events and other important factors disclosed previously and from time to time in Source Interlink's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 17, 2006.
Source Interlink does not intend to, and disclaims any duty or obligation to, update or revise any forward-looking statements or industry information set forth in this press release to reflect new information, future events or otherwise.
