Lieutenant Spiceys
This is a company that has developed a great sauce for just about anything you want it on.
Lieutenant Spicey's Hot Sauce is a product that has been around since the 1994. It originally began in the kitchen of Chad Brick's house one day in the fall of 1994. Chad and Matt were not able to make it to their favorite restaurant to get wings, so they decided to make their own hot sauce. The result turned out so well, they decided from that day on to keep it a secret and only make it for family and friends. That was the day Lieutenant Spicey's Hot Sauce officially was born.
From that cool fall day until June of 2005, Lieutenant Spicey's Hot Sauce of was only available one special occasions to family and friends. As with most great recipes, stories grew about the sauce and at many events both Chad and Matt were asked to make their hot sauce.
One hot June evening, the idea was decided on to turn Lieutenant Spicey's Hot Sauce into a product that people throughout the world could enjoy. Chad and Matt quickly made the decision that their recipe should not be kept to a select few individuals any more.
On June 7th, 2005, Chad and Matt officially formed Preston-Brick International, LLC to make this dream of sharing our product with the world come true.
Visit them at: http://www.ltspiceys.com
Wednesday, August 17, 2005
Wednesday, August 10, 2005
Krispey Kreme on a Downward Spiral
Krispy Kreme Told to Restate Past Earnings
By THE ASSOCIATED PRESS
Published: August 10, 2005
CHARLOTTE, N.C. (AP) -- Krispy Kreme Doughnuts Inc. needs to restate its past earnings downward by $25.6 million over the past several years, according to a report issued Wednesday by a special committee examining the finances of the troubled snack maker.
Former Chief Executive Scott Livengood and his aide, John Tate, bear most of the responsibility for the once high-flying company's problems, said the report from independent directors who have been examining the company's finances since last fall.
''The Krispy Kreme story is one of a newly public company, experiencing rapid growth, that failed to meet its accounting and financial reporting obligations to its shareholders and the public,'' according to the report. ''While some may see the accounting errors discussed in our summary as relatively small in magnitude, they were critical in a corporate culture driven by a narrowly focused goal of exceeding projected earnings by a penny (per share) each quarter.''
No one interviewed by committee members acknowledged such manipulation, but the committee remained cautious.
''The number, nature and timing of the accounting errors strongly suggest that they resulted from an intent to manage earnings,'' the report said. ''But we never received credible explanations for transactions that appear to have been structured or timed to allow for the improper recognition of revenue or improper reduction of expense.''
The doughnut maker based in Winston-Salem, N.C., is under criminal inquiry by a federal prosecutor in New York and is the target of a Securities and Exchange Commission probe into financial irregularities.
Several lawsuits have been filed against Krispy Kreme, including one that alleges workers lost millions of dollars in retirement savings because executives at the company hid evidence of declining sales and profits.
The report recommended restating earnings downward by $22.2 million for 2001-2004 and by $3.4 million for previous years.
The special investigative committee was co-chaired by Michael Sutton, formerly chief accountant of the SEC, and Lizanne Thomas of the Jones Day law firm.
''The completion of the special committee report represents an important step forward for Krispy Kreme, both in understanding what occurred and in providing the framework for our upcoming restatement of our financial statements,'' Krispy Kreme Chairman James Morgan said in a prepared statement.
''Krispy Kreme is a powerful brand, and we believe we are making progress every day in getting the company back on track to realizing its full potential.''
The report said company executives made key errors that led to its problems, including significant losses to its shareholders. The company's stock, which sold for as much as $105 in November 2000 before a pair of two-for-one stock splits, was up 41 cents Wednesday to $7.56 on the New York Stock Exchange in late-morning trading.
Krispy Kreme officers and other employees who had substantial involvement in the accounting errors have left the company, according to the report. The committee also concluded that the company should not sue any current or former directors or executives.
In January, Krispy Kreme forced out Livengood, turning to turnaround specialists Stephen Cooper and Steven Paganos to try to overcome sinking profits.
Cooper previously led the turnaround at Boston Chicken, which declared bankruptcy in 1998. That was just five years after the restaurant chain went public with fanfare similar to that surrounding Krispy Kreme's initial public offering in 2000.
''While the company still faces serious challenges, we believe we are addressing the critical issues,'' Cooper said in a statement issued Wednesday.
By THE ASSOCIATED PRESS
Published: August 10, 2005
CHARLOTTE, N.C. (AP) -- Krispy Kreme Doughnuts Inc. needs to restate its past earnings downward by $25.6 million over the past several years, according to a report issued Wednesday by a special committee examining the finances of the troubled snack maker.
Former Chief Executive Scott Livengood and his aide, John Tate, bear most of the responsibility for the once high-flying company's problems, said the report from independent directors who have been examining the company's finances since last fall.
''The Krispy Kreme story is one of a newly public company, experiencing rapid growth, that failed to meet its accounting and financial reporting obligations to its shareholders and the public,'' according to the report. ''While some may see the accounting errors discussed in our summary as relatively small in magnitude, they were critical in a corporate culture driven by a narrowly focused goal of exceeding projected earnings by a penny (per share) each quarter.''
No one interviewed by committee members acknowledged such manipulation, but the committee remained cautious.
''The number, nature and timing of the accounting errors strongly suggest that they resulted from an intent to manage earnings,'' the report said. ''But we never received credible explanations for transactions that appear to have been structured or timed to allow for the improper recognition of revenue or improper reduction of expense.''
The doughnut maker based in Winston-Salem, N.C., is under criminal inquiry by a federal prosecutor in New York and is the target of a Securities and Exchange Commission probe into financial irregularities.
Several lawsuits have been filed against Krispy Kreme, including one that alleges workers lost millions of dollars in retirement savings because executives at the company hid evidence of declining sales and profits.
The report recommended restating earnings downward by $22.2 million for 2001-2004 and by $3.4 million for previous years.
The special investigative committee was co-chaired by Michael Sutton, formerly chief accountant of the SEC, and Lizanne Thomas of the Jones Day law firm.
''The completion of the special committee report represents an important step forward for Krispy Kreme, both in understanding what occurred and in providing the framework for our upcoming restatement of our financial statements,'' Krispy Kreme Chairman James Morgan said in a prepared statement.
''Krispy Kreme is a powerful brand, and we believe we are making progress every day in getting the company back on track to realizing its full potential.''
The report said company executives made key errors that led to its problems, including significant losses to its shareholders. The company's stock, which sold for as much as $105 in November 2000 before a pair of two-for-one stock splits, was up 41 cents Wednesday to $7.56 on the New York Stock Exchange in late-morning trading.
Krispy Kreme officers and other employees who had substantial involvement in the accounting errors have left the company, according to the report. The committee also concluded that the company should not sue any current or former directors or executives.
In January, Krispy Kreme forced out Livengood, turning to turnaround specialists Stephen Cooper and Steven Paganos to try to overcome sinking profits.
Cooper previously led the turnaround at Boston Chicken, which declared bankruptcy in 1998. That was just five years after the restaurant chain went public with fanfare similar to that surrounding Krispy Kreme's initial public offering in 2000.
''While the company still faces serious challenges, we believe we are addressing the critical issues,'' Cooper said in a statement issued Wednesday.
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