The Company also agreed that in the event it enters into a repricing transaction under the credit facilities within 12 months of the date of the amendment and waiver, it will pay lenders a prepayment premium of 1.0% on the amount of the then-outstanding loans and/or letters of credit deposits.
The Company today also reported detailed amounts and periods representing a cumulative, aggregate reduction of $4.5 million to prior years' net income for the restatement adjustments previously reported on September 14, 2007 related to income taxes, operating leases, a retirement plan match and other items. The Company also finalized its review of subscription revenue and determined there were inconsistencies in recognizing revenue with contract renewal cycles.
The following adjustment amounts are presented on an unaudited basis as the Company continues to work to file its Annual Report on Form 10-K for the fiscal year ended June 30, 2007, and restated quarterly reports on Form 10-Q/A for the quarters ended March 31, 2007, December 31, 2006 and September 30, 2006. The reports will include restated consolidated financial information for the interim periods and fiscal year ended June 30, 2006.
The adjustments are detailed below:
Increase (decrease) to Net Income
Adjustments - After Tax 2007 2006 2005
Subscription Revenue $ (175,637) $ (229,078) $ 698,299
Operating Leases 77,867 (42,389) 128,198
Retirement Plan (113,029) (218,616) (83,435)
Other Items 256,392 25,231 195,887
|SOURCE Rural-Metro Corporation|
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