SEC subpoenas VRfor more information
For the third time in two years Vail Resorts has been subpoenaed by the Securities and Exchange Commission in what company officials have labeled a routine and ongoing investigation of its accounting practices. The first subpoena issued in 2002, followed the company’s $13.9 million restatement of earnings regarding club memberships. The company pro-rated the membership fees over the length of the memberships instead of including them in the year they were sold.Vail Resorts in 2002 also changed its auditor from scandal-ridden Arthur Andersen to PriceWaterhouseCoopers.The second subpeona came in November when an additional $3.3 million was erased from the company’s books in a second restatement of earnings to correct what were called “in-house mistakes.” Shortly after that the company named a new chief financial officer.In April the company reported the SEC had requested additional documents and information for its investigation.”We’re in the midst of the along-standing SEC review,” Vail Resorts chief executive Adam Aron said. “We expect that the SEC will look at every aspect of our company’s finances before the review had ended.”Monday the company announced that its third quarter of the 2004 year was the most profitable in the 42 years of the company. It reported $62 million in pre-tax profits for the quarter.Cliff Thompson can be reached via e-mail at firstname.lastname@example.org or by calling 949-0555 ext. 450.
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