Business Context and Reporting Period
Company: Oil States International, Inc.
Filing Type: Form 8-K (Current Report)
Date: February 18, 2005
Context: The filing reports on the results of an internal investigation regarding overbillings by a subsidiary to a customer in South America.
Key Financial Metrics
Overbilling Amount: $439,000
Financial Impact: Appropriate financial statement adjustments were included in the previously reported fourth quarter 2004 results.
Other Metrics: The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the current period.
Material Changes
- Discovery: The Company's internal controls detected overbillings totaling $439,000 by a subsidiary to a South American customer.
- Accounting Adjustment: The financial impact was already recognized in the Q4 2004 financial statements; no restatement of prior periods is indicated in this text.
- Regulatory Action: The Company has voluntarily reported the investigation results to the SEC.
Outlook, Risks, and Management Commentary
- Investigation: Separate investigations were conducted by the Company and independent counsel retained by the audit committee, involving interviews and a thorough examination of facts.
- Cooperation: The Company stated it will fully cooperate with any information requests from the SEC.
- Risks: The filing highlights the risk of internal control failures regarding billing practices, though the system successfully detected the error.
- Guidance: The filing text does not provide updated financial guidance or outlook.
Key Facts for Investor Verification
- Verify the specific subsidiary and customer involved in the $439,000 overbilling.
- Confirm the details of the financial adjustments made to the Q4 2004 results.
- Review the full press release (Exhibit 99.1) for additional details on the investigation scope.
- Monitor future communications regarding the outcome of the SEC review.