Form 8-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): April 10, 2009 (April 8, 2009)

 

 

Tri-S Security Corporation

(Exact name of registrant as specified in its charter)

 

 

 

Georgia   0-51148   30-0016962

(State or other jurisdiction

of incorporation)

  (Commission File Number)  

(IRS Employer

Identification No.)

 

Royal Center One, 11675 Great Oaks Way, Suite 120, Alpharetta, Georgia   30022
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (678) 808-1540

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02 Results of Operations and Financial Condition.

See the disclosure set forth in Item 4.02 of this Current Report which is incorporated into this Item 2.02 by this reference.

 

Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.

On April 8, 2009, the audit committee (the “Audit Committee”) of Tri-S Security Corporation (the “Company”) determined, upon advice of management, that the Company’s consolidated financial statements and related disclosures included in the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30, and September 30, 2008 (collectively, the “Previously Issued Financial Statements”), should be restated because they contain errors as addressed in Financial Accounting Standards Board Statement of Financial Accounting Standards No. 154, Accounting Changes and Error Corrections. Accordingly, the Previously Issued Financial Statements and the earnings releases issued by the Company for the quarters ended March 31, June 30, and September 30, 2008, and for the quarter and year ended December 31, 2008 (collectively, the “Earnings Releases”), should not be relied upon. The Company intends to restate the Previously Issued Financial Statements to correct these errors by amending its Quarterly Reports for the quarters ended March 31, June 30, and September 30, 2008. The Audit Committee has discussed the matters disclosed in this Item 4.02 with the Company’s independent registered accounting firm.

The errors in the Previously Issued Financial Statements relate to an incorrect payroll accrual for the quarters ended March 31, June 30, and September 30, 2008. As a result of this incorrect accrual, payroll expense and net loss were understated, and gross profit was overstated, in the Previously Issued Financial Statements and Earnings Releases. The following tables present the impact of the errors on previously reported amounts and the corrected amounts for the quarters ended March 31, June 30, and September 30, 2008, and for the quarter and year ended December 31, 2008.


Tri-S Security Corporation and Subsidiaries

Statements of Operations

Unaudited

(In thousands, except per share data)

 

     Note    Quarter
Ended
March 31, 2008
As Previously
Reported
    Adjustment     Quarter
Ended
March 31, 2008
As Corrected
    Quarter
Ended
June 30, 2008
As Previously
Reported
    Adjustment     Quarter
Ended
June 30, 2008
As Corrected
 

Revenues

      $ 26,465     $       $ 26,465     $ 38,346     $       $ 38,346  

Cost of revenues:

        24,241       313       24,554       35,101       328       35,429  
                                                   

Gross profit

        2,224       (313 )     1,911       3,245       (328 )     2,917  
                                                   

Selling, general and administrative

   1      3,129       1       3,130       3,305       1       3,306  
                                                   

Operating loss

        (905 )     (314 )     (1,219 )     (60 )     (329 )     (389 )
                                                   

Other expense

        (863 )       (863 )     (1,481 )       (1,481 )
                                                   

Loss before income taxes

        (1,768 )     (314 )     (2,082 )     (1,541 )     (329 )     (1,870 )
                                                   

Income tax expense (benefit)

        47         47       (55 )       (55 )
                                                   

Net loss

      $ (1,815 )   $ (314 )   $ (2,129 )   $ (1,486 )   $ (329 )   $ (1,815 )
                                                   

Basic and diluted net income (loss) per common share

      $ (0.43 )     $ (0.51 )   $ (0.35 )     $ (0.43 )

Basic and diluted weighted average number of common shares

        4,203         4,203       4,203         4,203  

Note:

1- Includes amortization of intangible assets.

Tri-S Security Corporation and Subsidiaries

Statements of Operations

Unaudited

(In thousands, except per share data)

 

     Note    Quarter
Ended
Sept. 30, 2008
As Previously
Reported
    Adjustment     Quarter
Ended
Sept. 30, 2008
As Corrected
    Quarter
Ended
Dec. 31, 2008
As Previously
Reported
    Adjustment     Quarter
Ended
Dec. 31, 2008
As Corrected
 

Revenues

      $ 40,697     $       $ 40,697     $ 35,824     $       $ 35,824  

Cost of revenues:

        37,167       290       37,457       33,642       795       34,437  
                                                   

Gross profit

        3,530       (290 )     3,240       2,182       (795 )     1,387  
                                                   

Selling, general and administrative

   2      8,033       1       8,034       6,002       1       6,003  
                                                   

Operating loss

        (4,503 )     (291 )     (4,794 )     (3,820 )     (796 )     (4,616 )
                                                   

Other expense

        (1,307 )       (1,307 )     (1,266 )       (1,266 )
                                                   

Loss before income taxes

        (5,810 )     (291 )     (6,101 )     (5,086 )     (796 )     (5,882 )
                                                   

Income tax benefit

        (24 )       (24 )     (55 )       (55 )
                                                   

Net loss

      $ (5,786 )   $ (291 )   $ (6,077 )   $ (5,031 )   $ (796 )   $ (5,827 )
                                                   

Basic and diluted net income (loss) per common share

      $ (1.38 )     $ (1.45 )   $ (1.20 )     $ (1.39 )

Basic and diluted weighted average number of common shares

        4,203         4,203       4,203         4,203  

Note:

2- Includes Goodwill Impairment and amortization of intangible assets.


Tri-S Security Corporation and Subsidiaries

Statements of Operations

Unaudited

(In thousands, except per share data)

 

     Note    Twelve Months
Ended
Dec. 31, 2008
As Previously
Reported
    Adjustment     Twelve Months
Ended
Dec. 31, 2008
As Corrected
 

Revenues

      $ 141,332     $       $ 141,332  

Cost of revenues:

        130,151       1,726       131,877  
                           

Gross profit

        11,181       (1,726 )     9,455  
                           

Selling, general and administrative

   1      20,469       4       20,473  
                           

Operating loss

        (9,288 )     (1,730 )     (11,018 )
                           

Other expense

        (4,917 )       (4,917 )
                           

Loss before income taxes

        (14,205 )     (1,730 )     (15,935 )
                           

Income tax benefit

        (87 )       (87 )
                           

Net loss

      $ (14,118 )   $ (1,730 )   $ (15,848 )
                           

Basic and diluted net income (loss) per common share

      $ (3.36 )     $ (3.77 )

Basic and diluted weighted average number of common shares

        4,203         4,203  

Note:

1- Includes Goodwill Impairment and amortization of intangible assets.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

 

TRI-S SECURITY CORPORATION
By:  

/s/ Nicolas V. Chater

  Nicolas V. Chater, Chief Financial Officer

Dated: April 10, 2009