Dynacq Healthcare Announces Restatement of 2001 and 2002 Financial Statements.Business Editors/Health/Medical Writers HOUSTON--(BUSINESS WIRE)--April 6, 2004 Dynacq Healthcare, Inc. (Nasdaq NM:DYIIE) (the "Company") announced today that in connection with an ongoing review by the Securities and Exchange Commission of the Company's periodic reports, the Company will restate its financial statements for the fiscal years ended August 31, 2001 and 2002 in order to (i) reclassify Verb 1. reclassify - classify anew, change the previous classification; "The zoologists had to reclassify the mollusks after they found new species" class, classify, sort out, assort, sort, separate - arrange or order by classes or categories; "How would you certain accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying to long-term status to the extent that cash collections are expected more than twelve months after such dates, which reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. will have no effect on net revenues, net income, retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. or earnings per share, and (ii) correct an error in the application of an accounting principle related to the income tax effect of the exercise of stock options, where the income tax benefit of $794,000 from the exercise of stock options was treated as a tax benefit rather than as an increase in stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. , during fiscal year ended August 31, 2001. This error was corrected in fiscal year ended August 31, 2002, whereby the tax provision was increased by $794,000, with a corresponding increase to stockholders' equity. The restatement will increase the income tax provision for fiscal year ended August 31, 2001 by $794,000 (thus reducing 2001 net income) and reduce the income tax provision for fiscal year ended August 31, 2002 by the same amount (thus increasing 2002 net income), and there will be no cumulative effect on retained earnings as of August 31, 2002. In connection with the restatement, Killman, Murrell & Co., P.C., the Company's recently appointed independent accountants, will re-audit the restated financial statements for the fiscal year ended August 31, 2002. Due to the pending restatement and re-audit, investors should not rely on the Company's previously issued financial statements for the fiscal years ended August 31, 2001 and 2002. Dynacq Healthcare, Inc. (www.dynacq.com) is a holding company. Its subsidiaries provide surgical healthcare services and related ancillary services through hospital facilities and outpatient surgical centers. Statements in this press release concerning the beliefs, expectations, intentions, future events, future performance, and business prospects may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and and are based on a number of risks and uncertainties. If any of these risks and uncertainties materialize, actual results could differ materially from those indicated in the forward-looking statements. The risks and uncertainties that may cause these forward-looking statements to prove to be incorrect include, without limitation, the outcome of discussions with the Securities and Exchange Commission regarding the accounting policies applied in preparation of the Company's financial statements, the outcome of the hearing with regard to delisting Delisting When the stock of a company is removed from a stock exchange. Notes: Reasons for delisting include violating regulations and/or failure to meet financial specifications set out by the stock exchange. of our securities from the Nasdaq National Market, adverse effects of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , including shareholder derivative and class actions or regulatory actions arising in connection with pending inquiries, the protraction protraction /pro·trac·tion/ (pro-trak´shun) 1. drawing out or lengthening. 2. extension or protrusion. 3. of our new audit firm's review and audit of the Company's financial statements, and our dependence upon completion of required audits and favorable regulatory determinations for availability of financing options and other transactions. |
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