Allegations of accounting irregularities at Adelphia Communications Corp.
gained steam after the troubled Coudersport, Pa.-based MSO revealed in a
Securities and Exchange Commission filing Monday that it had overstated revenue
and cash-flow figures in 2000 and 2001.
Adelphia also said it dismissed its auditors, Deloitte & Touche LLP, June
The company said it was in the process of hiring a new auditor, and it would
disclose more information concerning Deloitte & Touche's dismissal in later
In the filing, Adelphia reduced its 2000 consolidated revenue by $60 million,
to $2.548 billion from $2.608 billion, and its 2001 revenue by $70 million, to
$3.51 billion from $3.58 billion.
Earnings before interest, taxes depreciation and amortization, also known as
cash flow, was reduced by $160 million in 2000, to $1.042 billion from $1.202
billion, and by $210 million in 2001, to $1.199 billion from $1.409 billion.
Also in the statement, Adelphia reduced its number of total subscribers to
5.763 million from 5.81 million -- a reduction of 47,000 customers -- due to new
estimates regarding bulk subscribers.
Reports last week said the subscriber discrepancy would be between 400,000
and 500,000. However, in the SEC filing, Adelphia said the subscriber numbers
include joint ventures, which, if backed out, would result in an additional
reduction of 358,000 subscribers by some analysts' estimates.
Adelphia added in the filing that the percentage of company plant that was
previously reported as rebuilt was 'unreliable,' and that company management
plans to correct the information.
Shares in Adelphia plummeted 55 percent to a paltry 30
cents apiece Friday. The MSO's stock has dropped 95 percent since the beginning
of the year.