These reports are also available at www.tescocorp.com. The restatements did not affect the Company's previously announced earnings of $0.83 per diluted share for 2006.
With respect to the restatement for the second quarter, the Company has identified an additional adjustment related to research and engineering cost for the second quarter of 2006. As a result of the restatement, as revised, net income for the second quarter 2006 was reduced from the reported $3.1 million to $2.2 million, on a Canadian GAAP basis (not $2.5 million as previously announced) and to $2.6 million on a U.S. GAAP basis (reduced from $3.0 million as previously announced).
A corresponding adjustment was made with respect to the fourth quarter, which had the effect of increasing reported net income from $10.2 million to $10.5 million on a U.S. GAAP basis ($0.28 to $0.29 per share on a fully diluted basis). This adjustment does not change the full calendar year 2006 net income or earnings per share of $0.83, on a fully diluted basis. Also, as previously announced, the restatement for the third quarter 2006 reduced reported net income from $9.3 million to $8.2 million on a Canadian GAAP basis or $8.5 million on a U.S. GAAP basis.
Delayed Filing of Annual Report on Form 10-K
The Company also announced that it had delayed the filing of its Annual Report on Form 10-K for the year ended December 31, 2006. As previously announced, the Company disclosed that it had discovered certain errors that would require it to restate its financial statements for the second and third fiscal quarters of 2006 (as indicated above), first became subject to the reporting and disclosure requirements under the Securities Exchange Act and related rules beginning January 1, 2007, was required to conduct an evaluation of its internal controls over financial reporting as of December 31, 2006 in accordance with Section 404 of the Sarbanes Oxley Act and identified certain material weaknesses in those controls, and it conducted a self-initiated review of its past stock option granting practices and related accounting, which required adjustments to its previously reported financial information.
Due to the occurrence and timing of these events and actions and the uncertainty surrounding the restatement of the Company's financial statements, the Company has been unable to complete its financial statements in time for the Company's Board of Directors' final review and deliver all required materials to its independent public accounting firm in time to complete its review and deliver its audit opinion. The Company's Board will complete its final review after the delivery of the final financial statements. Tesco Corporation intends to file a complete Annual Report on Form 10-K for the year ended December 31, 2006 no later than March 31, 2007. -- www.cnxmarketlink.com
Posted March 17th, 2007 by ruzik_tuzik
