Cheesecake Factory Files Restated Results

Restaurant operator Cheesecake Factory Inc. said it filed its 2004 annual report Monday, averting a delisting on the Nasdaq Stock Market, after restating some results because of new lease accounting.

The company restated results for the first three quarters of 2004, but the adjustments had no effect on previously reported earnings per share, revenue, comparable-store sales or net cash flow, its annual filing to the Securities and Exchange Commission said.

Earlier Monday, Cheesecake Factory said it had received a notice from Nasdaq on Friday, threatening it with possible delisting of its shares if it took longer to file its annual report. A company spokeswoman said the filing of the annual report meant the company was now in compliance with its listing requirements.

Cheesecake Factory announced its intention to restate previous results early last month.

The restatements increased first-quarter income from operations by about $6,000 to $24.5 million.

For the second quarter, income from operations was restated to $26.5 million from $26.6 million, the Calabasas Hills-based company said.

For the third quarter, Cheesecake Factory adjusted income from operations to $18.5 million from a previously reported $19 million.

Cheesecake Factory said the restatement reduced 2004 net income by $1.2 million, 2003 net income by $600,000, and 2002 net income by $300,000.

Cheesecake Factory shares closed down 20 cents, or less than 1%, at $34.77 on Nasdaq.