KCS Announces Delay in Filing of Form 10-K and Adjustment for Pre-2003 Deferred Tax Balance Error; No Effect on Earnings in Intervening Years.
The Company expects that management's assessment of the effectiveness of internal controls over financial reporting as of December 31, 2005, to be included in the Company's annual report on Form 10-K, will indicate the existence of a material weakness in the Company's internal controls relating to its corporate tax function. The Company is developing a plan of remedial action to address the weaknesses in internal controls identified with respect to the proper reporting of income taxes.
As a result of the above described matters, the Company requires additional time to finalize its financial statements and disclosures to be included in its Form 10-K and obtain the appropriate reports from KPMG LLP, the Company's independent registered public accounting firm. Accordingly, the Company has filed with the Securities and Exchange Commission a notification of late filing on Form 12b-25 extending the deadline to file the Company's Annual Report on Form 10-K for up to 15 days. The Company expects to make the filing within the 15-day extension period.
Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding includes KCSR, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, serving northeastern and central Mexico and the port cities of Lazaro Cardenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Canada and Mexico.
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|Date:||Mar 17, 2006|
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