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Restatement of Financial Statement
 12 Months Ended
Sep. 30, 2011
Restatement Of Financial Statement [Abstract]  
Restatement of Financial Statement

18. RESTATEMENT

 

The September 30, 2011 consolidated financial statements included in our Original Form 10-K filed on December 20, 2011, contained errors primarily related to the understatement of our vacation accrual that should have been recorded at September 30, 2008 and in each subsequent annual and interim period to September 30, 2011. Additionally, for all restated periods we recorded other immaterial adjustments. These adjustments include, but are not limited to, recording billing, payroll and other accruals, in the proper accounting period. In many cases, as a result of recording these adjustments, additional revenues are also recognized with an immaterial effect on gross margin, due to the use of the percentage of completion method of accounting and estimated margins on contracts in progress. As such, these adjustments impact multiple line items, including revenue, cost of revenue, selling general & administrative expenses, and their related balance sheet accounts. Accordingly, the September 30, 2011 consolidated financial statements have been restated to properly record these transactions and other immaterial adjustments. This restatement amends the following notes: 5, 6, 7, 10, 11 and 17.

 

The vacation accrual adjustment decreased beginning Retained Earnings at October 1, 2008 in the amount of $1,733 thousand, and increased (decreased) net loss by $(475) thousand, $(215) thousand, and $35 thousand for the years ended September 30, 2009, 2010 and 2011, respectively. The additional immaterial adjustments increased beginning Retained Earnings at October 1, 2008 in the amount of $607 thousand, and increased (decreased) net loss by $722 thousand, $(777) thousand, and $95 thousand for the years ended September 30, 2009, 2010 and 2011, respectively. The following schedules represent the effect of correcting these errors in our consolidated financial statements:

 

      Year ended September 30, 2009
      As Reported Adjustments As Restated
              
  Revenues $ 665,997 $ 1,040 $ 667,037
  Cost of services   556,469   1,444   557,913
   Gross profit   109,528   (404)   109,124
  Selling, general and administrative expenses   108,328   (157)   108,171
  Gain on sale of assets   (465)   -   (465)
  Restructuring charges   7,407   -   7,407
   Loss from operations   (5,742)   (247)   (5,989)
  Interest and other (income) expense:         
   Interest expense   4,526   -   4,526
   Interest income   (432)   -   (432)
   Other (income) expense, net   1,608   -   1,608
    Interest and other expense, net   5,702   -   5,702
  Loss from operations before income taxes   (11,444)   (247)   (11,691)
  Provision (benefit) for income taxes   495   -   495
 Net loss from continuing operations $ (11,939) $ (247) $ (12,186)
 Discontinued operations          
  Income (loss) from discontinued operations   187   -   187
  Provision (benefit) for income taxes   68   -   68
 Net income (loss) from discontinued operations   119   -   119
  Net loss $ (11,820) $ (247) $ (12,067)
              
  Basic loss per share:         
   Continuing operations $ (0.83) $ (0.02) $ (0.85)
   Discontinued operations $ 0.01 $ - $ 0.01
   Total $ (0.82) $ (0.02) $ (0.84)
              
  Diluted loss per share:         
   Continuing operations $ (0.83) $ (0.02) $ (0.85)
   Discontinued operations $ 0.01 $ - $ 0.01
  Total $ (0.82) $ (0.02) $ (0.84)
  Shares used in the computation of loss per share          
   Basic   14,331,614   14,331,614   14,331,614
   Diluted   14,331,614   14,331,614   14,331,614

      Year Ended September 30, 2009
      As Reported Adjustments As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:         
 Net loss $ (11,820) $ (247) $ (12,067)
 Adjustments to reconcile net loss to net cash provided by operating activities         
  Net income (loss) from discontinued operations   (119)   -   (119)
  Bad debt expense   2,539   -   2,539
  Deferred financing cost amortization   263   -   263
  Depreciation and amortization   8,258   67   8,325
  Loss (gain) on sale of assets   (465)   -   (465)
  Non-cash compensation expense   2,520   -   2,520
  Impairment of investment   2,850   -   2,850
  Paid in kind interest   678   -   678
  Equity in losses of investment   13   -   13
  Goodwill adjustment - utilization of deferred tax assets   911   (607)   304
  Deferred income tax   (1,924)   -   (1,924)
 Changes in operation assets and liabilities         
  Accounts receivable   29,567   281   29,848
  Inventories   2,701   -   2,701
  Costs and estimated earnings in excess of billings   1,189   (1,687)   (498)
  Prepaid expenses and other current assets   1,096   -   1,096
  Other non-current assets   6,598   (281)   6,317
  Accounts payable and accrued expenses   (23,547)   2,396   (21,151)
  Billings in excess of costs and estimated earnings   (12,546)   395   (12,151)
  Other non-current liabilities   910   (317)   593
Net cash (used in) provided by continuing operations   9,672   0   9,672
Net cash provided by discontinued operations   1,635   -   1,635
Net cash (used in) provided by operating activities   11,307   0   11,307
CASH FLOWS FROM INVESTING ACTIVITIES:         
 Purchases of property and equipment   (4,740)   -   (4,740)
 Proceeds from sales of property and equipment   935   -   935
 Investment in unconsolidated affiliates   (2,150)   -   (2,150)
Net cash (used in) provided by continuing operations   (5,955)   -   (5,955)
Net cash provided by discontinued operations   65   -   65
Net cash (used in) provided by investing activities   (5,890)   -   (5,890)
CASH FLOWS FROM FINANCING ACTIVITIES:         
 Borrowings of debt   792   -   792
 Repayments of debt   (2,427)   -   (2,427)
 Purchase of treasury stock   (4,317)   -   (4,317)
Net used in financing activities   (5,952)   -   (5,952)
NET INCREASE (DECREASE) IN CASH EQUIVALENTS   (535)   0   (535)
CASH AND CASH EQUIVALENTS, beginning of period   64,709   -   64,709
CASH AND CASH EQUIVALENTS, end of period $ 64,174 $ 0 $ 64,174
             

     As of September 30, 2010
     As Reported Adjustments As Restated
ASSETS         
 CURRENT ASSETS:         
  Cash and cash equivalents $ 32,924 $ - $ 32,924
  Accounts receivable:         
   Trade, Net   88,252   -   88,252
   Retainage   17,083   -   17,083
  Inventories   12,682   115   12,797
  Costs and estimated earnings in excess of billings on uncompleted contracts   12,566   1,983   14,549
  Prepaid expenses and other current assets   5,449   -   5,449
 Total current assets   168,956   2,098   171,054
 LONG TERM NOTES RECEIVABLES, net   440   -   440
 PROPERTY AND EQUIPMENT, net   19,846   50   19,896
 GOODWILL   3,981   607   4,588
 OTHER NON-CURRENT ASSETS, net   11,882   -   11,882
Total assets $ 205,105 $ 2,755 $ 207,860
LIABILITIES AND STOCKHOLDERS’ EQUITY         
 CURRENT LIABILITIES:         
  Current maturities of long-term debt $ 808 $ - $ 808
  Accounts payable and accrued expenses   67,799   5,000   72,799
  Billings in excess of costs and estimated earnings on uncompleted contracts   17,109   (1,865)   15,244
 Total current liabilities   85,716   3,135   88,851
 LONG-TERM DEBT, net of current maturities   10,448   -   10,448
 LONG-TERM DEFERRED TAX LIABILITY   1,046   -   1,046
 OTHER NON-CURRENT LIABILITIES   6,314   -   6,314
Total liabilities   103,524   3,135   106,659
 STOCKHOLDERS’ EQUITY:         
  Preferred stock, $0.01 par value   -   -   -
  Common stock, $0.01 par value   154   -   154
  Treasury stock, at cost   (13,677)   -   (13,677)
  Additional paid-in capital   171,510   -   171,510
  Accumulated other comprehensive income   (88)   -   (88)
  Retained deficit   (56,318)   (380)   (56,698)
Total stockholders’ equity   101,581   (380)   101,201
Total liabilities and stockholders’ equity $ 205,105 $ 2,755 $ 207,860
             

      Year ended September 30, 2010
      As Reported Adjustments As Restated
              
  Revenues $ 460,633 $ 2,797 $ 463,430
  Cost of services   404,140   1,848   405,988
   Gross profit   56,493   949   57,442
  Selling, general and administrative expenses   84,920   (43)   84,877
  Gain on sale of assets   (174)   -   (174)
  Restructuring charges   763   -   763
   Loss from operations   (29,016)   992   (28,024)
  Interest and other (income) expense:         
   Interest expense   3,513   -   3,513
   Interest income   (242)   -   (242)
   Other (income) expense, net   (109)   -   (109)
    Interest and other expense, net   3,162   -   3,162
  Loss from operations before income taxes   (32,178)   992   (31,186)
  Provision (benefit) for income taxes   (31)   -   (31)
  Net loss $ (32,147) $ 992 $ (31,155)
              
  Basic loss per share:         
   Continuing operations $ (2.23) $ 0.07 $ (2.16)
   Total $ (2.23) $ 0.07 $ (2.16)
              
  Diluted loss per share:         
   Continuing operations $ (2.23) $ 0.07 $ (2.16)
  Total $ (2.23) $ 0.07 $ (2.16)
  Shares used in the computation of loss per share          
   Basic   14,409,368   14,409,368   14,409,368
   Diluted   14,409,368   14,409,368   14,409,368

      Year Ended September 30, 2010
      As Reported Adjustments As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:         
 Net loss $ (32,147) $ 992 $ (31,155)
 Adjustments to reconcile net loss to net cash provided by operating activities         
  Bad debt expense   7,440   -   7,440
  Deferred financing cost amortization   314   -   314
  Depreciation and amortization   5,291   -   5,291
  Loss (gain) on sale of assets   (174)   -   (174)
  Non-cash compensation expense   1,370   -   1,370
  Impairment of investment   150   -   150
  Deferred income tax   (1,244)   -   (1,244)
 Changes in operation assets and liabilities         
  Accounts receivable   17,768   -   17,768
  Inventories   (2,527)   (115)   (2,642)
  Costs and estimated earnings in excess of billings   988   (1,983)   (995)
  Prepaid expenses and other current assets   1,820   -   1,820
  Other non-current assets   1,463   -   1,463
  Accounts payable and accrued expenses   (8,679)   2,971   (5,708)
  Billings in excess of costs and estimated earnings   (4,033)   (1,865)   (5,898)
  Other non-current liabilities   (966)   -   (966)
Net cash (used in) provided by continuing operations   (13,166)   -   (13,166)
Net cash (used in) provided by operating activities   (13,166)   -   (13,166)
CASH FLOWS FROM INVESTING ACTIVITIES:         
 Purchases of property and equipment   (924)   -   (924)
 Proceeds from sales of property and equipment   328   -   328
 Distribution from unconsolidated affiliates   393   -   393
Net cash (used in) provided by continuing operations   (203)   -   (203)
Net cash (used in) provided by investing activities   (203)   -   (203)
CASH FLOWS FROM FINANCING ACTIVITIES:         
 Borrowings of debt   753   -   753
 Repayments of debt   (18,184)   -   (18,184)
 Purchase of treasury stock   (172)   -   (172)
 Payments for debt issuance costs   (278)   -   (278)
Net used in financing activities   (17,881)   -   (17,881)
NET INCREASE (DECREASE) IN CASH EQUIVALENTS   (31,250)   -   (31,250)
CASH AND CASH EQUIVALENTS, beginning of period   64,174   -   64,174
CASH AND CASH EQUIVALENTS, end of period $ 32,924 $ - $ 32,924
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:         
             

     As of September 30, 2011
     As Reported Adjustments As Restated
ASSETS         
 CURRENT ASSETS:         
  Cash and cash equivalents $ 35,577 $ - $ 35,577
  Accounts receivable:         
   Trade, Net   85,728   -   85,728
   Retainage   17,944   -   17,944
  Inventories   8,443   -   8,443
  Costs and estimated earnings in excess of billings on uncompleted contracts   10,592   (629)   9,963
  Prepaid expenses and other current assets   2,840   -   2,840
 Total current assets   161,124   (629)   160,495
 LONG TERM NOTES RECEIVABLES, net   200   -   200
 PROPERTY AND EQUIPMENT, net   8,016   -   8,016
 GOODWILL   3,839   607   4,446
 OTHER NON-CURRENT ASSETS, net   7,087   -   7,087
Total assets $ 180,266 $ (22) $ 180,244
LIABILITIES AND STOCKHOLDERS’ EQUITY         
 CURRENT LIABILITIES:         
  Current maturities of long-term debt $ 209 $ - $ 209
  Accounts payable and accrued expenses   79,858   (878)   78,980
  Billings in excess of costs and estimated earnings on uncompleted contracts   18,220   1,365   19,585
 Total current liabilities   98,287   487   98,774
 LONG-TERM DEBT, net of current maturities   10,289   -   10,289
 LONG-TERM DEFERRED TAX LIABILITY   284   -   284
 OTHER NON-CURRENT LIABILITIES   6,596   -   6,596
Total liabilities   115,456   487   115,943
 STOCKHOLDERS’ EQUITY:         
  Preferred stock, $0.01 par value   -   -   -
  Common stock, $0.01 par value   154   -   154
  Treasury stock, at cost   (5,595)   -   (5,595)
  Additional paid-in capital   164,262   -   164,262
  Retained deficit   (94,011)   (509)   (94,520)
Total stockholders’ equity   64,810   (509)   64,301
Total liabilities and stockholders’ equity $ 180,266 $ (22) $ 180,244
             

      Year ended September 30, 2011
      As Reported Adjustments As Restated
              
  Revenues $ 481,607 $ (6,244) $ 475,363
  Cost of services   445,585   (5,607)   439,978
   Gross profit   36,022   (637)   35,385
  Selling, general and administrative expenses   69,365   (507)   68,858
  Gain on sale of assets   (6,583)   -   (6,583)
  Asset Impairment   4,804   -   4,804
  Restructuring charges   3,784   -   3,784
   Loss from operations   (35,348)   (130)   (35,478)
  Interest and other (income) expense:         
   Interest expense   2,277   -   2,277
   Interest income   (68)   -   (68)
   Other (income) expense, net   (10)   -   (10)
    Interest and other expense, net   2,199   -   2,199
  Loss from operations before income taxes   (37,547)   (130)   (37,677)
  Provision (benefit) for income taxes   146   -   146
  Net loss $ (37,693) $ (130) $ (37,823)
              
  Basic loss per share:         
   Continuing operations $ (2.60) $ (0.01) $ (2.61)
   Total $ (2.60) $ (0.01) $ (2.61)
              
  Diluted loss per share:         
   Continuing operations $ (2.60) $ (0.01) $ (2.61)
  Total $ (2.60) $ (0.01) $ (2.61)
  Shares used in the computation of loss per share          
   Basic   14,493,747   14,493,747   14,493,747
   Diluted   14,493,747   14,493,747   14,493,747

      Year Ended September 30, 2011
      As Reported Adjustments As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:         
 Net loss $ (37,693) $ (130) $ (37,823)
 Adjustments to reconcile net loss to net cash provided by operating activities         
  Bad debt expense   (715)   -   (715)
  Deferred financing cost amortization   338   -   338
  Depreciation and amortization   6,356   -   6,356
  Gain on sale of business units   (6,657)   -   (6,657)
  Loss (gain) on sale of assets   88   -   88
  Non-cash compensation expense   906   -   906
  Impairment of investment   4,804   50   4,854
  Deferred income tax   (107)   -   (107)
 Changes in operation assets and liabilities         
  Accounts receivable   (2,761)   -   (2,761)
  Inventories   (537)   -   (537)
  Costs and estimated earnings in excess of billings   1,592   630   2,222
  Prepaid expenses and other current assets   1,206   -   1,206
  Other non-current assets   3,092   -   3,092
  Accounts payable and accrued expenses   16,777   (1,915)   14,862
  Billings in excess of costs and estimated earnings   1,111   1,365   2,476
  Other non-current liabilities   348   -   348
Net cash (used in) provided by continuing operations   (11,852)   -   (11,852)
Net cash (used in) provided by operating activities   (11,852)   -   (11,852)
CASH FLOWS FROM INVESTING ACTIVITIES:         
 Purchases of property and equipment   (2,688)   -   (2,688)
 Proceeds from sales of property and equipment   1,268   -   1,268
 Proceeds from sales of facilities   16,763   -   16,763
Net cash (used in) provided by continuing operations   15,343   -   15,343
Net cash (used in) provided by investing activities   15,343   -   15,343
CASH FLOWS FROM FINANCING ACTIVITIES:         
 Repayments of debt   (766)   -   (766)
 Purchase of treasury stock   (72)   -   (72)
Net used in financing activities   (838)   -   (838)
NET INCREASE (DECREASE) IN CASH EQUIVALENTS   2,653   -   2,653
CASH AND CASH EQUIVALENTS, beginning of period   32,924   -   32,924
CASH AND CASH EQUIVALENTS, end of period $ 35,577 $ - $ 35,577