Business Context and Reporting Period
Company: EVERTEC, Inc.
Filing Type: Form 8-K (Current Report)
Date: March 11, 2016
Context: The Company is reporting an inability to file its 2015 Annual Report on Form 10-K within the previously granted 15-day extension period ending March 15, 2016.
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 item:
- Deferred Tax Asset: Approximately $13 million recognized in 2012 related to a net operating loss tax deduction for certain 2010 expenditures.
Material Changes and Events
The primary material event is the delay in filing the 2015 Form 10-K. The Company is reevaluating the accounting treatment in prior years' financial statements regarding the aforementioned net operating loss. Due to the complexity of this matter and the need for additional advice, the Company requires more time to reach a conclusion.
Outlook, Risks, and Management Commentary
Management Commentary: The Company states it is diligently working to complete the analysis and will file the 2015 Form 10-K as soon as practicable.
Risks and Contingencies:
- Failure to complete the accounting analysis and file the 2015 Form 10-K in a timely manner.
- Potential resolution of the tax and related accounting position in a manner that adversely affects the Company's financial results.
Investor Verification Checklist
- Verify the status of the 2015 Form 10-K filing and any subsequent extensions granted by the SEC.
- Monitor for updates on the reevaluation of the $13 million deferred tax asset and its potential impact on prior year financial statements.
- Review the Company's previous Form 12b-25 filed on February 29, 2016, for initial details on the delay.