Financial Industries Corporation Provides Update on 10-K Filing
AUSTIN, Texas--(BUSINESS WIRE)--April 22, 2004--Financial Industries Corporation
("FIC") (Nasdaq:FNINE) today provided an update on the status of its 2003
financial statements and the filing of its Form 10-K for the fiscal year ending
December 31, 2003.
On March 16, 2004, the Company filed a Form 12b-25, Notification of Late Filing,
with respect to the filing of its 10-K report. It disclosed that the filing
delay was attributable to the Company's continuing work on its 2003 financial
statements.
In the course of its continuing work, the Company has tentatively identified
certain balance sheet accounts that may need to be written off, which, in the
aggregate, total approximately $3.0 million. These relate principally to
certain receivables, equipment, and other assets and affect several annual
reporting periods, including possibly periods prior to 2001. The Company is
performing additional reviews of its balance sheet accounts to determine whether
additional adjustments to its financial statements may be required.
In addition, the Company's review indicates that the intercompany accounts among
itself and its affiliates may not have been adequately reconciled for several
annual reporting periods, possibly including periods prior to 2001. The Company
is performing a detailed analysis of a net cumulative out-of-balance condition
in the intercompany accounts, which it currently estimates would result in an
aggregate write down of approximately $6.0 million, as of December 31, 2003.
This work involves analysis and reconciliation of the intercompany accounts for
multiple years. The Company is working diligently to complete this work. To
facilitate this process, the Audit Committee of the Company's Board of Directors
has retained the services of KPMG LLP, as accounting advisors.
The Company emphasizes that it is continuing its reviews and analysis, and,
accordingly, additional adjustments to its financial statements beyond those
described above may be required as a result of these efforts. In addition, as of
current date, the Company is not in a position to determine whether the
adjustments and reconciliations described above will affect the Company's
previously-disclosed estimate that the net loss for the year ended December 31,
2003 would be approximately $13.5 million.
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As provided by the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, Financial Industries Corporation cautions that the
statements in this press release relating to matters that are not historical
factual information are forward-looking statements that represent management's
belief and assumptions based on currently available information. The information
contained in this release relating to the amount of the net loss for the year
ended December 31, 2003, the amount and periods of balance sheet accounts that
may need to be written off, the amount of the net cumulative out-of-balance
condition in the intercompany accounts, possible additional adjustments to the
financial statements, and the contingencies and uncertainties to which the
Company may be subject, as well as other statements including words such as
"anticipate," "believe," "plan," "may", "estimate," "expect," "intend," and
other similar expressions constitute forward-looking statements under the
Private Securities Litigation Reform Act of 1995. Such statements are made based
upon management's current expectations and beliefs and are subject to known and
unknown risks, uncertainties and other factors that could cause actual results
to differ from those contemplated by the forward-looking statements, including
the timing, completion and results of the Company's reviews and audits.
Investors should not place undue reliance on forward-looking statements. Each
forward-looking statement speaks only as of the date of the particular
statement, and the Company undertakes no obligation to publicly update or revise
any forward-looking statements. There can be no assurance that other factors not
currently anticipated by management will not also materially and adversely
affect the Company.
About Financial Industries Corporation
Financial Industries Corporation, through its various subsidiaries, markets and
underwrites individual life insurance products. For more information on FIC, go
to http://www.ficgroup.com on the Internet.
Contact:
Financial Industries Corp., Austin
Investor Relations Department, 512-404-5128
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