Business Context and Reporting Period
Company: Freightcar America, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: September 16, 2009
Event: Announcement of financial statement restatements due to historical accounting errors.
Key Financial Metrics
This filing does not report current period revenue, profit, cash flow, or liquidity metrics. It specifically addresses a material accounting error:
- Accounts Payable Error: The Company determined that accounts payable was overstated by $12.3 million as of June 30, 2009.
- Impact: The error relates to historical accounting practices affecting accounts payable.
Material Changes and Restatements
The Company filed amended reports to restate financial statements for the following periods due to the identified errors:
- Annual Periods: Years ended December 31, 2008, and 2007 (Form 10-K/A).
- Quarterly Periods: Ended March 31, 2008; June 30, 2008; September 30, 2008; and March 31, 2009 (Form 10-Q/A).
- Reliability Conclusion: On July 27, 2009, the Audit Committee concluded that financial statements for the noted periods should no longer be relied upon.
Outlook, Management Commentary, and Risks
Management Action: The Company announced a press release and conference call scheduled for September 22, 2009, to discuss second-quarter financial results in light of the restatements.
Risks: The primary risk identified is the loss of reliability in previously issued financial statements due to the $12.3 million accounts payable overstatement. The filing incorporates a press release (Exhibit 99.1) for further details.
Investor Verification Checklist
- Verify the specific impact of the $12.3 million accounts payable overstatement on net income and equity for the restated periods.
- Review the attached press release (Exhibit 99.1) for details on the nature of the accounting errors.
- Monitor the September 22, 2009, conference call for updated guidance and second-quarter results.
- Confirm the status of the Audit Committee's investigation and any changes to internal controls.