Interpublic Still Looking at Books
Interpublic Group (IPG) - Get Report said Thursday that it continues to review its books for possible restatements going back as many as nine years.
The big advertising company said it can't yet say when it might file its 2004 annual report or post fourth-quarter earnings for last year. Interpublic continues to consider past accounting issues, particularly concerning "acquisitions made from 1996 through 2001, for which the company may have improperly consolidated the results of acquired companies."
The company has previously disclosed the existence of material weaknesses in internal control. Interpublic said it will host a conference call to update investors and answer questions on April 5.
As a result of the reporting delays, the company's first-quarter financial statement won't be filed on time, and its second-quarter report may be delayed. Interpublic also expects that it may be required to postpone its annual meeting until audited financial statements are available, and that it will need bondholder consent to meet its reporting obligations to creditors.
Interpublic also said estimated cash and cash equivalents, including short-term investments, totaled $1.9 billion at Dec. 31, while debt was $2.2 billion. Net debt of $300 million is the company's lowest in three years, and any potential restatement is not expected to have an adverse effect on the company's year-end cash position, the company said.
Late Thursday, Interpublic jumped 61 cents to $12.19.