Emeryville, Calif. —Peet's Coffee & Tea Inc. reported that the company's net income fell by 30 percent in the fourth quarter ended Dec. 31 and by 27 percent for the year, partly due to an increase in general and administrative expenses.
The increase in those expenses result in large part from a review of the company's stock option practices, which will result in the company restating earnings for the past several years. According to a regulatory filing, the restatements will "correct the accounting errors that resulted from the misapplication of stock option measurement dates and other stock option-related corrections".
Peet's said in the filing that the effect of the restatement is estimated to be $1.7 million for the fiscal years 1998 through 2005 and $33,000 in 2006.
Revenue for the quarter was $60.2 million, up 19 percent from $50.6 million in the fourth quarter of 2005. Revenue for the year was $210.5 million, up 20 percent from revenue of $175.2 million in 2005.
Net income for the quarter was $2.4 million, down from net income of $3.4 million in the 2005 fourth quarter. Net income for the year was $7.8 million, down from net income of $10.7 million in 2005.
