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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): DECEMBER 20, 2002
FRIEDMAN'S INC.
(Exact name of registrant as specified in its charter)
Delaware 0-22356 58-20583
(State or other jurisdiction (Commission File Number) (IRS Employer Identification No.)
of incorporation)
4 WEST STATE STREET
SAVANNAH, GEORGIA 31401
(Address of principal executive offices)
(912) 233-9333
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS AND REQUIRED FD DISCLOSURE.
It has come to the attention of management that several lines of type
were inadvertently omitted from Note 7 of the Notes to Consolidated Financial
Statements contained in Friedman's Annual Report on Form 10-K for the fiscal
year ended September 28, 2002, as filed with the SEC on December 20, 2002. The
excluded portion specified the quantitative effect of the recognition of
compensation cost based on the fair value of the stock options. Set forth below
is that portion of Note 7 regarding Accounting for Stock Issued to Employees,
including the omitted type.
7. STOCK PLANS
STOCK OPTION PLAN
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The Company has elected to follow Accounting Principles Board
Opinion No. 25, Accounting for Stock Issued to Employees, ("APB 25") and related
interpretations which measures compensation cost using the intrinsic value
method of accounting for its stock options. Accordingly, the Company does not
recognize compensation cost based upon the fair value method of accounting as
provided for under Statement of Financial Accounting Standards No. 123,
Accounting for Stock-Based Compensation, ("FAS No. 123"). If the Company had
elected to recognize compensation cost based on the fair value of the options
granted beginning in fiscal year 1996, as prescribed by SFAS No. 123, net income
would have been reduced to the pro forma amounts indicated in the table below:
2002 2001 2000
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Net income - as reported ............. $ 23,167 $ 12,229 $ 19,704
Net income - pro forma ............... 22,106 11,281 17,755
Basic earnings per share - as reported $ 1.35 $ 0.84 $ 1.36
Basic earnings per share - pro forma . $ 1.29 $ 0.78 $ 1.23
The fair value of each option grant is estimated on the date of
grant using the Black-Scholes option valuation method with the following
assumptions:
2002 2001 2000
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Expected dividend yield ....... 0.90% 1.00% 0.60%
Risk-free interest rate ....... 4.51% 5.68% 5.92%
Expected life of options ...... 10 years 10 years 10 years
Expected stock price volatility 0.629 0.645 0.582
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: April 11, 2003
FRIEDMAN'S INC.
(Registrant)
By: /s/ Victor M. Suglia
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Victor M. Suglia
Senior Vice President,
Chief Financial Officer,
Treasurer and Secretary
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