Just out: Charter to Restate Results to Add $2.6 Billion in Liabilities
The Associated Press ~~Nov 19, 2002
NEW YORK (Dow Jones/AP) - Charter Communications Inc., the nation's third-largest cable company, said Tuesday it will restate its 2000 and 2001 results to add an additional $2.6 billion in expenses and liabilities.
The restatement comes a few days after the St. Louis-based company filed for a five-day extension to complete its third-quarter report.
Charter Communications, which is controlled by Microsoft Corp. co-founder Paul Allen, said an additional $1.4 billion of franchise costs and $1.2 billion of deferred income tax liability should have been booked in connection with its acquisition of 18 cable companies in 1999 and 2000.
The restatement will increase the company's 2001 third-quarter net loss by $8.9 million, or 3 cents a share, while its combined net loss for the first quarter of 2001 will increase by $25 million, or 9 cents a share, Charter said.
On Nov. 5, Charter reported third-quarter revenue of $1.18 billion, but left out bottom-line figures. Analysts largely shrugged off the missing balance sheet, saying they were more focused on revenue and operating cash flow results.
For others, however, the missing balance sheet was seen as a red flag, given the company's recent troubles.
Charter, with revenue of $3.95 billion last year, was subpoenaed in August by a federal grand jury in a criminal probe focusing on the company's accounting for capital expenses and costs of disconnecting customers.
Charter also placed its chief operating officer, David G. Barford, on paid leave last month in a move related to a grand jury probe into some of its accounting procedures. The company said it would review Barford's employment status once the investigation was completed.
In afternoon trading Tuesday, shares of Charter rose 1 cent, or less than 1 percent, to $1.19 on the Nasdaq Stock Market.
AP-ES-11-19-02 1458EST
This story can be found at: ap.tbo.com |
