Regional wireless operator Centennial Communications Corp. said it will restate financial results for the three and nine months ended Feb. 28, 2005. The carrier said the restatement would correct an error in the amount of deferred income taxes included in the calculations of the gain on disposition of its previously owned Puerto Rican cable television subsidiary.
Centennial sold Puerto Rico Cable TV Corp. in December and counted the disposition as a discontinued operation.
Centennial said the correction will result in a $24.3 million increase on disposition of discontinued operations; $15.6 million increase in net income from discontinued operations; $15.6 million increase in consolidated net income; and a $15.6 million decrease in total stockholders’ deficit.
The restatement is not expected to impact previously reported revenue, adjusted operating income, cash flow or income from continuing operations.
“The company identified the error through application of certain internal controls that were implemented during the fiscal fourth quarter of 2005,” Centennial noted in a statement. “Accordingly, the company believes that, prior to year-end, it remediated the control weakness associated with these adjustments.”
Centennial is scheduled to release fiscal fourth-quarter and year-end 2005 results Aug. 11. The carrier’s stock was trading down 3 cents per share early Thursday at $14.28 per share.
