Message #26 From:
Stock News Bot Date: November 9, 2005 10:08:00 AM
SBUX News Company Adopts Stock Compensation Accounting Rule in Fiscal 2006; Starbucks Updates Fiscal 2006 EPS Target for Stock Compensation Expense
SEATTLE--(BUSINESS WIRE)--Nov. 9, 2005--Starbucks Corporation (Nasdaq: SBUX) announced today that its planned adoption of Statement of Financial Accounting Standards No. 123R, "Share-Based Payment" (SFAS 123R), is currently expected to reduce full year fiscal 2006 diluted earnings per share by approximately $0.09. The Company estimates that it will record stock compensation expense of approximately $0.02 per share on a quarterly basis in fiscal 2006. The projected impact is comparable to the amounts previously disclosed in the notes to the consolidated financial statements under the prior accounting method.
SFAS 123R will require Starbucks to estimate the cost of stock-based compensation using a fair value method and record the expense in the Company's consolidated financial statements. As previously announced, Starbucks will adopt this new accounting requirement using the modified prospective method beginning in its first fiscal quarter in 2006, which ends January 1, 2006.
To include the estimated impact of SFAS 123R, Starbucks has updated its fiscal 2006 earnings per share target range to $0.63 to $0.65. The Company previously targeted fiscal 2006 earnings per share in the range of $0.72 to $0.74, excluding stock compensation expense.
Starbucks plans to release its fourth quarter and fiscal year end 2005 financial results on Thursday, November 17, 2005, and will hold a conference call at 1:30 p.m. Pacific time on that date to discuss these results. The conference call will be broadcast live over the Internet and can be accessed at: http://www.starbucks.com/aboutus/investor.asp.
Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with more than 10,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business. In addition to its retail operations, the Company produces and sells bottled Frappuccino(R) coffee drinks, Starbucks DoubleShot(R) espresso drink, and a line of superpremium ice creams through its joint venture partnerships. The Company's brand portfolio provides a wide variety of consumer products -- innovative superpremium Tazo(R) teas and exceptional compact discs from Starbucks Hear Music(TM) enhance the Starbucks Experience through best-of-class products. The Seattle's Best Coffee(R) and Torrefazione Italia(R) coffee brands enable Starbucks to appeal to a broader consumer base by offering an alternative variety of coffee flavor profiles.
This release includes forward-looking statements regarding estimated stock-based compensation expense and earnings per share targets. These forward-looking statements are based on currently available operating, financial, and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors including, but not limited to, the Company's stock price on the dates stock options are granted, the number of options granted, the impact of stock-based compensation on the Company's tax provision, coffee, dairy and other raw material prices and availability, successful execution of internal performance and expansion plans, fluctuations in U.S. and international economies and currencies, the impact of initiatives by competitors, the effect of legal proceedings, and other risks detailed in the Company's filings with the Securities and Exchange Commission, including the "Certain Additional Risks and Uncertainties" section of Starbucks Annual Report on Form 10-K/A for the fiscal year ended October 3, 2004. The Company assumes no obligation to update any of these forward-looking statements.
(C) 2005 Starbucks Coffee Company. All rights reserved.
