Trading of Dynamex Held As Earnings Are Restated
The American Stock Exchange suspended trading of Dynamex Inc. stock after the Dallas-based courier announced Sept. 17 that it will restate earnings for fiscal years 1997, 1998 and the first three quarters of fiscal years 1998 and 1999 because of accounting irregularities.
Trading will not resume until the company re-files audited financial information with the Securities and Exchange Commission and the exchange has had time to review the filings, company officials said.
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A review by a special committee of directors found problems in the way the company accounted for acquisitions and the manner in which deferral of expenses and revenue recognition was handled. The committee also found entries for workers’ compensation and bad debts in 1998 that lacked proper documentation.
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As a result of the restatement, Dynamex said net income will be reduced by $1.5 million, or 22 cents a share, for the fiscal year ended July 31, 1997, and by $2.3 million (29 cents) for the year ended July 31, 1998. The adjustments will result in net income of $2 million (31 cents) and $1.1 million (13 cents) in fiscal years 1997 and 1998, respectively.
