Business Context and Reporting Period
This Form 8-K was filed by EVERTEC, Inc. on March 16, 2016. The report addresses a regulatory compliance issue regarding the company's listing status on the New York Stock Exchange (NYSE).
Key Financial Metrics
This filing does not contain current period revenue, profit, cash flow, or liquidity metrics. The only specific financial figure disclosed relates to a historical accounting matter:
- Deferred Tax Asset: Approximately $14 million recognized as of December 31, 2010, related to a net operating loss tax deduction for certain 2010 expenditures.
Material Changes and Events
The primary event reported is the receipt of a notice from the NYSE indicating non-compliance with continued listing requirements under Section 802.01E of the NYSE Listed Company Manual. The non-compliance stems from the failure to timely file the Annual Report on Form 10-K for the fiscal year ended December 31, 2015.
The delay in filing is attributed to the company's ongoing evaluation of accounting treatments in prior years' financial statements concerning the aforementioned net operating loss tax deduction.
Outlook, Risks, and Management Commentary
- Compliance Deadline: The NYSE has granted the company six months from March 15, 2016, to file the 2015 Form 10-K to regain compliance.
- Management Expectation: Management states it is diligently working to complete the accounting analysis and fully expects to file the 2015 Form 10-K within the six-month deadline, if not sooner.
- Extension Possibility: If the deadline is missed, the NYSE may, at its sole discretion, grant an additional six-month extension depending on circumstances.
- Delisting Risk: The NYSE reserves the right to commence delisting proceedings at any time if it deems the circumstances warrant such action.
Investor Verification Checklist
- Verify the status of the accounting review regarding the 2010 net operating loss tax deduction.
- Monitor the filing date of the 2015 Form 10-K to ensure it meets the NYSE six-month compliance deadline.
- Watch for any further communications from the NYSE regarding potential delisting proceedings or extensions.
- Review the attached press release (Exhibit 99.1) for additional details on the company's public response.