REXHALL TO RESTATE FINANCES, FIRES 2 MANAGERS LET GO AFTER QUARTERLY ACCOUNTING ERROR.Byline: Daily News LANCASTER - Rexhall Industries announced it has fired two managers and will revise a financial statement after discovering accounting errors that led the company to incorrectly report it had turned a profit in the first three months of this year. The Lancaster-based motor-home manufacture said it will revise a financial reporting form called a 10-Q for the first quarter of 2002 due to errors in accounting for its raw materials inventory. The company announced the previous week that it filed for an extension for filing its 10-Q for the second quarter of 2002. ``After we discovered this discrepancy in our inventory and confirmed it with another physical count, our audit committee, which is composed of our external directors, and management brought it to the attention of KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen , our external auditors The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. ,'' Rexhall President William J. Rex said. Company managers felt it was necessary to bring in independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. to help determine how and why the problem occurred, Rex added. ``The board recognizes their primary fiduciary responsibility is to the shareholders,'' Rex said. Rex said the company terminated its chief financial officer and materials manager and reinstated Michael Bourne Michael Bourne was a fictional character in the US soap opera Sunset Beach portrayed by American actor Jason Winston George during the show's entire run. Character History The Beginning Michael was always a good person. as CFO See Chief Financial Officer. in addition to his other responsibilities. Bourne Bourne, town (1990 pop. 16,064), Barnstable co., SE Mass., crossed by Cape Cod Canal; settled 1627, inc. 1884. Bourne Bridge (1935), across the canal, made the town an entry point to Cape Cod and a resort and commercial center. already was executive vice president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . ``Improving our costing system is the highest priority now,'' Bourne said in the company's announcement. ``I am embarrassed that this occurred during my watch in an area of my expertise.'' Bourne said net income for the first quarter was reported to be 3 cents per diluted share and, based on the best available information at this time, company officials believe the restated first quarter will be a net loss of about 4 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Also based on best available information, the company believes it was profitable enough in the second quarter to offset the restated first-quarter loss, which should make the company either break even or slightly profitable for the year to date, Bourne said. Current managers will not keep or take any bonuses based on the previously released first-quarter reports, the company said. ``The recent stock split may now appear to be untimely,'' Rex concluded. ``However, the company's future is not in question. We still believe that we are on the right track to increasing market share, profitability and shareholder value, and we will continue to work hard to meet our customers' and shareholders' needs. |
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