Business Context and Reporting Period
Company: Redwood Trust, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: May 2, 2005 (Signed May 5, 2005)
Reporting Period: The filing primarily addresses the quarter ended March 31, 2005, and the fiscal year ending December 31, 2005.
Key Financial Metrics
This Form 8-K serves as a notification of the release of financial results rather than a detailed financial statement. Specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity are not contained within the text of this filing.
- Financial Results: The Company issued a press release and supplemental financial information for the quarter ended March 31, 2005, on May 3, 2005. These documents are attached as Exhibits 99.1 and 99.2.
- Accounting Status: The filing confirms that the independent auditor's reports for fiscal years 2003 and 2004 did not contain adverse opinions, disclaimers, or qualifications.
Material Changes
Change in Certifying Accountant:
- Event: PricewaterhouseCoopers LLP (PwC) declined to stand for re-appointment as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2005.
- Reason: The Audit Committee determined that periodic rotation of the independent accounting firm is in the best interests of the Company as a matter of good corporate governance.
- Timeline: PwC advised the Audit Committee on May 2, 2005, and completed procedures for the Q1 2005 interim financial statements on May 4, 2005.
- Disagreements: There were no disagreements with PwC regarding accounting principles, practices, financial statement disclosures, or auditing scope/procedures during the fiscal years ended December 31, 2004 and 2003, or through May 4, 2005.
Guidance, Outlook, and Risks
Management Commentary: The filing references a press release dated May 3, 2005, which contains the Company's results and commentary for the first quarter of 2005. The text of this 8-K does not provide specific guidance or outlook figures.
Risks and Contingencies:
- The transition of the independent registered public accounting firm is the primary event disclosed.
- The filing explicitly states there were no reportable events (as defined in Regulation S-K) during the relevant periods.
Investor Verification Checklist
- Review Exhibit 99.2 (Press Release dated May 3, 2005) for specific Q1 2005 revenue, earnings, and cash flow figures.
- Review Exhibit 99.1 for supplemental financial information regarding the quarter ended March 31, 2005.
- Monitor future filings to identify the new independent registered public accounting firm selected for the fiscal year ending December 31, 2005.
- Verify that the rotation of the auditor was purely for governance purposes and not due to undisclosed disagreements, as confirmed by the letter from PwC (Exhibit 16.1).