Wright Express to File Corrected Financial Statements to Properly Record Increased Goodwill and Stockholders' Equity
October 31, 2006
• by Staff
SOUTH PORTLAND, MAINE
- Wright Express Corp. will restate certain previously issued financial statements to properly record goodwill and stockholders' equity.
Management and the Audit Committee of the Board of Directors have concluded that Cendant Corp. incorrectly allocated goodwill relating to its 2001 acquisition of Wright Express. Correcting this error will result in an increase of both goodwill and stockholders' equity on the company's previously issued balance sheets.
At this time, Wright Express believes there will be no effect on the income statements that have been publicly released by the company since its initial public offering. There will, however, be an income statement impact for a 10-month period in 2001 when the company would have been required to amortize goodwill. With the adoption of FAS 142 in Jan. 2002, the company was no longer required to amortize goodwill. In addition, the company believes there will be no impact on cash flows, and does not expect to record an impairment charge. Wright Express is working to file corrected financial statements as soon as possible.
The company believes its 2005 Form 10-K and subsequent reports on Form 10-Q will require restatement. Accordingly, the company is filing a Form 8-K reporting the previously issued financial statements should no longer be relied upon.
Wright Express plans to report its third-quarter 2006 financial results on Nov. 7, 2006. The company expects to provide a full income statement and selected balance sheet items at that time.
Originally posted on Fleet Financials