Business Context and Reporting Period
This Form 8-K was filed by Archrock, Inc. on May 17, 2016. The report addresses a notice received from the New York Stock Exchange (NYSE) regarding the Company's failure to comply with continued listing requirements due to the late filing of its Quarterly Report on Form 10-Q for the period ended March 31, 2016.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on regulatory compliance and the status of a financial restatement investigation.
Material Changes and Delisting Notice
- Listing Non-Compliance: The NYSE notified Archrock that it is not in compliance with Section 802.01E of the NYSE Listed Company Manual due to the failure to timely file the Form 10-Q for the three months ended March 31, 2016.
- Compliance Deadline: The Company has six months from May 17, 2016, to file the overdue Form 10-Q to regain compliance. The NYSE may grant an additional six-month extension at its discretion, though delisting proceedings could commence at any time if circumstances warrant.
- Reason for Delay: The delay is attributed to an ongoing investigation into potential errors in Exterran Corporation's (spun off November 3, 2015) application of percentage-of-completion accounting principles for Middle East projects by its Belleli subsidiary. Archrock is determining the impact of these potential errors on its pre-Spin-off historical financial statements.
Outlook, Risks, and Management Commentary
Management and the Audit Committee are actively working to determine the financial impact of the accounting issues identified by Exterran Corporation. The Company states it is working toward filing the Form 10-Q as soon as practicable. The primary risk identified is the potential delisting from the NYSE if the Form 10-Q is not filed within the specified compliance window.
Investor Verification Checklist
- Verify the status of the Form 10-Q for the quarter ended March 31, 2016, and confirm if it has been filed with the SEC.
- Monitor the outcome of the investigation into Exterran Corporation's Belleli subsidiary accounting errors and the resulting impact on Archrock's historical financial statements.
- Track the Company's progress against the six-month NYSE compliance deadline to avoid delisting proceedings.
- Review the press release issued on May 19, 2016 (Exhibit 99.1) for additional details on the non-compliance notice.