Updated from 8:07 a.m. EDT

For the second time in a year and after its third separate earnings restatement of 2002, Hanover Compressor ( HC) says it has put its financial problems behind it.

Investors once again bought the story, sending the shares up 4.4% to $7.62.

"I'm confident that after four months of reviews that everything we know is out there. We haven't been able to come up with anything big, and we're close to or at the end of it," said Victor Grijalva, Hanover's chairman and acting chief executive officer, on a conference call Monday.

Hanover announced Monday morning that it would restate its revenue for 2000 and 2001 to reflect changes in its accounting for equipment sales. It was the third time this year the company disclosed restatements and came three days after the natural gas pump maker said its chief executive and chief operating officer had left the company.

The most recent steps cut 2001 revenue of $1.1 billion by $7.1 million while leaving diluted earnings unchanged at 95 cents. For 2000, revenue of $566.1 million was reduced by $2.2 million and diluted earnings of 77 cents a share were reduced by 2 cents.

CEO Michael McGhan resigned amid controversy over two loans he received from the company. According to executives speaking on the conference call, the first loan, for $2.2 million, matures in 2006. The second for $400,000 is due in 30 days and is expected to be paid off because McGhan pledged additional collateral for repayment.

Grijalva said the company has already hired CEO placement firm Korn Ferry to help find a new leader. Grijalva said he doesn't expect any more changes at the board level or more management departures at the top. Grijalva, 64, joined the board in February and is serving as CEO and chairman until the new CEO is hired.

As for the restatements, company officials said the required filings with regulators should be completed in September with the entire process to be completed in the fourth quarter. Hanover will have to pay a fine of $1.3 million in each of the second and third quarter for the restatements. Some of the restatements stem from improper accounting from a joint venture called Hampton Roads.

Since the restatements should only result in a 2-cent change to earnings over two years, analysts asked why Hanover simply did not take a charge instead of making restatements.

"We wanted to put out everything so we'd be totally transparent and we have your total confidence," Grijalva said. "We're tired of having a question mark over the company."

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