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Talk of the bay

Cumbersome rules delay some annual reports

By SCOTT BARANCIK
Published March 28, 2005

Students who turn in an assignment late often are warned, "You won't be able to get away with this in the adult world."

But public companies having trouble with a required form usually can get an extension from the Securities and Exchange Commission, if they have a good reason. The SEC even has a special form for the occasion: Form 12b-25, Notification of Late Filing.

At least four Tampa companies recently requested an extension for filing their 10-K annual report. For businesses that operate on a calendar-year schedule, the 10-K was due March 16.

Two of the four companies cited the Sarbanes-Oxley Act of 2002 as the source of the problem. Trucking company Quality Distribution said it had "experienced delays in carrying out the review of the effectiveness of internal controls over financial reporting," a reference to Section 404 of the corporate-governance law. Call-center operator Sykes Enterprises cited Sarbanes-Oxley generally.

Other problems mentioned included income-tax issues (burger chain Checkers Drive-In Restaurants) and pension questions (bottle manufacturer Anchor Glass Container).

Sarbanes-Oxley's "internal controls" rule appears to be causing similar delays statewide. An estimated 20 Florida companies have told the SEC they will file their 10-Ks late, versus 10 last year. Of those 20, half cited compliance problems with Sarbanes-Oxley, and eight specifically mentioned Section 404.

Even more delays are expected next year, when public companies will have just 60 days from the end of their fiscal year to file a 10-K, versus 75 days currently.

So far, no company has tried using the infamous "dog-ate-my-10-K" excuse.

[Last modified March 25, 2005, 19:10:02]