Offshore Logistics, Inc. Announces Decision to Restate Previously Issued Financial Statements; Previously Issued Financial State
23 Noviembre 2005 - 3:18PM
Business Wire
Offshore Logistics, Inc. (NYSE: OLG) announced today it has made
the determination that it is necessary to restate the Company's
consolidated financial statements to accrue for payroll taxes,
penalties and interest attributable to underreported employee
payroll amounts and to report customer reimbursements as revenue
and direct costs. Therefore, the Company has concluded that its
historical consolidated financial statements for fiscal years 2000,
2001, 2002, 2003 and 2004 and for quarterly periods in fiscal year
2005, and its results for fiscal year 2005 reported in its press
release dated June 8, 2005, should no longer be relied upon in
light of this restatement. The determination that the historical
consolidated financial statements should no longer be relied upon
was made by the Audit Committee of the Company's Board of Directors
on November 23, 2005 following the recommendation of the Company's
senior management. The restatement will be reflected in the
Company's annual report on Form 10-K for the fiscal year ended
March 31, 2005, which the Company currently expects to be filed
with the Securities and Exchange Commission (the "SEC") by December
16, 2005. The Company's historical consolidated financial
statements should not be relied upon until the restatement is filed
and the information disclosed in the restatement is considered. As
previously disclosed, in February 2005, the Company voluntarily
advised the staff of the SEC that the Audit Committee of its Board
of Directors had engaged special outside counsel to undertake a
review of certain payments made by two of the Company's affiliated
entities in a foreign country. The review of these payments, which
initially focused on the Foreign Corrupt Practices Act, was
subsequently expanded to cover operations in other countries and
other issues (the "Internal Review"). The SEC initially notified
the Company that it had initiated an informal inquiry and requested
that the Company provide certain documents on a voluntary basis.
Subsequently, the SEC advised the Company that the inquiry had
become an investigation. The Company has responded to the SEC's
requests for documents and intends to continue to respond to the
SEC's inquiries. As a result of the findings to date from the
Internal Review, the Company currently expects to adjust its
historical financial statements to accrue for payroll taxes,
penalties and interest attributable to underreported employee
payroll. This adjustment is currently expected to result in
reductions in operating income from previously reported amounts in
the range of approximately $2 million to $5 million for each of the
fiscal years ended March 31, 2005, 2004 and 2003, and approximately
$4 million to $6 million in the aggregate for earlier fiscal years.
The Company's management has separately determined that the Company
was not reporting reimbursements for costs received from the
Company's customers in accordance with United States generally
accepted accounting principles ("GAAP"). The Company's customers
reimburse it for certain costs incurred on their behalf, which have
historically been recorded as receivables. In accordance with GAAP,
the Company will adjust its historical financial statements to
reflect such reimbursement as an increase in revenue and a
corresponding increase in expense. This adjustment is currently
expected to result in increases in operating revenues and direct
costs in the range of approximately $40 million to $60 million for
each of the fiscal years ended March 31, 2005, 2004, 2003, 2002 and
2001, respectively, from previously reported amounts, with no
impact on income from operations or net income. The SEC
investigation and the Internal Review remain ongoing. While the
information in this press release describes all of the items for
which the Audit Committee and the Company's management have
determined a restatement is appropriate at this time, there can be
no assurance that the ongoing investigation, review and inquiry
will not identify additional items. In addition, as the Internal
Review continues, new issues may surface that could impact the
Company's issued financial statements and the scope of the
restatement described in this press release. The impact of the
restatement described above, as well as additional restatements, if
any, then determined to be appropriate, will be included in the
Company's annual report on Form 10-K for the fiscal year ended
March 31, 2005 when it is filed with the SEC. While the Company is
continuing in its efforts to respond to the SEC's investigation and
the Internal Review and provide all information required, the
Company cannot predict their outcome. The outcome of the SEC
investigation and any related legal and administrative proceedings
could include the institution of administrative, civil injunctive
or criminal proceedings involving the Company as well as current or
former employees of the Company and the imposition of fines and
other penalties, remedies and sanctions. Also, it is possible that
third party litigation will result and one lawsuit has been filed
against two of the Company's subsidiaries in a foreign jurisdiction
as a result of actions taken by the Company in connection with the
Internal Review. In addition, in view of the findings of the
Internal Review, the Company expects to encounter difficulties in
the future conducting business in certain foreign jurisdictions and
with certain customers. Such payments, fines, penalties, litigation
and related expenses and/or difficulties may be materially
disruptive to the Company's operations and could have a material
adverse effect on the Company's business, financial condition
and/or results of operations. Preparation and completion of the
Company's financial statements in connection with its annual report
on Form 10-K for the fiscal year ended March 31, 2005 are ongoing,
and the financial information presented in this press release,
including the cumulative effects of the restatement described
above, is preliminary and subject to adjustment. The Company plans
to complete its evaluation of these matters prior to the filing of
its annual report on Form 10-K for the fiscal year ended March 31,
2005. Investors are cautioned not to rely on the Company's
historical financial statements for fiscal years 2000, 2001, 2002,
2003 and 2004 and for quarterly periods in fiscal year 2005, or on
the Company's results for fiscal year 2005 reported in its press
release dated June 8, 2005, until the restatement is filed and the
information disclosed in the restatement is considered. The Company
is currently evaluating the impact of the matters described above
on its internal control over financial reporting and its disclosure
controls and procedures, and expects to disclose its conclusions
and remedial actions in its annual report on Form 10-K for the
fiscal year ended March 31, 2005. The Company's Audit Committee and
management have discussed the matters disclosed in this press
release with KPMG LLP, the Company's independent registered public
accounting firm. Statements contained in this press release that
state the Company's or management's intentions, hopes, beliefs,
expectations or predictions of the future, including its expected
adjustments to previously reported financial results, are
forward-looking statements. It is important to note that the
Company's actual results could differ materially from those
projected in such forward-looking statements. The actual restated
amounts will depend on a number of factors, including the ongoing
Internal Review. Additional information concerning factors that
could cause actual results to differ materially from those in the
forward-looking statements is contained from time to time in the
Company's SEC filings, including but not limited to the Company's
annual report on Form 10-K for the year ended March 31, 2004 and
the Company's reports on Form 10-Q for the quarters ended June 30,
2004, September 30, 2004, and December 31, 2004. Offshore
Logistics, Inc. disclaims any intention or obligation to revise any
forward-looking statements, including financial estimates, whether
as a result of new information, future events or otherwise.
Offshore Logistics, Inc. is a major provider of helicopter
transportation services to the oil and gas industry worldwide.
Through its subsidiaries, affiliates and joint ventures, the
Company provides transportation services in most oil and gas
producing regions including the United States Gulf of Mexico and
Alaska, the North Sea, Africa, Mexico, South America, Australia,
Russia, Egypt and the Far East. The Company's Common Stock is
traded on the New York Stock Exchange under the symbol OLG.
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