NEW YORK, July 16 /PRNewswire-FirstCall/ -- Temco Service Industries, Inc. (OTC-Symbol: TMCO), an International Facility Services Company, today announced its restated financial results for the twelve months ended September 30, 2005 as follows:
Twelve Months Ended September 30, 2005
Previously
reported Adjustments Restated
Revenues $306,297,340 $(1,518,430) $304,778,910
Income before income taxes 2,570,158 (1,220,355) 1,349,803
Provision for income taxes 1,385,358 (536,146) 849,212
Net income $1,184,800 $(684,209) $500,591
Net income per share common stock:
Basic $2.16 $(1.25) $0.91
Diluted $2.08 $(1.20) $0.88
Average number of shares
outstanding:
Basic 547,864 - 547,864
Diluted 568,614 - 568,614
NOTES
In February 2006, the Company discovered that one of its European customers was being over-invoiced by the site manager. The Company's investigation revealed over-billings that aggregated $1,518,430 through September 30, 2005. The Company reversed the amounts over-billed and decided to restate its financial statements as of and for the year ended September 30, 2005. The Company also terminated the employee involved in the improper invoicing and his direct managers. There was no material effect of the over- billing on the 2004 financial statements, and they have not been restated.
In connection with this restatement, the Company also corrected other items in the financial statements previously considered immaterial. The net effect of all items is to reduce previously reported revenues by $1,518,430, reduce previously reported income before income taxes by $1,220,355, reduce previously reported provision for income taxes by $536,146, and to reduce previously reported net income by $684,209. Basic net income per share was reduced by $1.25, and diluted net income per share by $1.20, from the amounts previously reported.
The Company anticipates reporting its financial results for the fiscal year ended September 30, 2006 by September 30, 2007.
About Temco Service Industries, Inc.
Temco is a major international provider of facility support services to corporate, commercial, manufacturing and educational facilities in the United States, Belgium, The Netherlands, Luxembourg and the United Kingdom. With fiscal 2006 revenues in excess of $320 million and more than 10,000 employees, Temco provides cleaning, grounds care, labor sourcing solutions, technical support and security services to thousands of clients each day. Temco Service Industries, Inc., the parent company, is headquartered in New York City, while the European operations are headquartered in Brussels, Belgium.
