Cablevision Auditors Find Another $400K

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Cablevision Systems Corp. said Wednesday that its independent auditors found an additional $400,000 in improper expense accruals at units outside of its Rainbow Media Holdings Inc. programming division in November.

In a 10-Q quarterly filing with the Securities and Exchange Commission Wednesday, Cablevision said its independent auditors -- Wilmer, Cutler & Pickering -- discovered about $1.7 million in accelerated expenses at non-Rainbow entities that should have been recorded in 2003. Earlier in November, Cablevision said that amount was about $1.3 million.

Cablevision first revealed the improper accruals in June, when it said it found $6.2 million in expenses at its AMC and WE: Women's Entertainment units charged in 2003 that should have been charged in earlier years. At the time, Cablevision said it had restated all but $1.7 million of the accruals, and that they also involved fabricated invoices.

On Nov. 11, Cablevision said it would make restatements to its first- and second-quarter results totaling about $15 million in improper accruals, mostly at its Rainbow programming unit.

According to the most recent SEC filing, Cablevision said it would lower its earnings for the first three quarters of 2003 and for the second and third quarters of 2002 by about 1 cent per share.

That adjustment increased Cablevision’s third-quarter-2003 loss to $105.6 million (37 cents per share) from the previously reported loss of $104.6 million (36 cents).

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