Imax filing 2006 earnings late
EmptyGiant-screen exhibitor Imax Corp. has delayed filing its 10-K and annual financial results after uncovering $2.5 million in accounting errors stretched over a six-year period (HR 3/19).
Toronto-based Imax said Friday that it will satisfy regulatory requirements by filing its full-year 2006 earnings report by March 30.
Imax co-CEOs Bradley Wechs-ler and Rich Gelfond did little to hide their disappointment at delaying the financial report just as the company is experiencing momentum at the box-office and in new theater deals.
"We're obviously disappointed, regretful and sorry that we could not file the financials on time," Wechsler told analysts. "Our hope is that people can appreciate the very nice fundamental momentum in our business that has occurred over the last few months."
Both Imax executives stressed that the $2.5 million in accounting errors, which occurred from 2001-06, do not relate to ongoing probes by the U.S. Securities and Exchange Commission and the Ontario Securities Commission into the company's previous accounting recognition of theater revenue.
Those investigations, first made public in August, are the subject of investor lawsuits alleging that Imax misled shareholders.
The latest accounting issues were uncovered by Imax executives and PricewaterhouseCoopers Llp. during the company's recent year-end audit. In essence, they involve costs that were capitalized when they should have been expensed as they were incurred as well as unrecorded branch-level interest taxes, Imax said.