Swisher's Accounting Swish... Sticky Fingers (SWSH)

Source: Jon Ogg
Swisher Hygiene Inc. (NASDAQ: SWSH) is having a bad day and it has to have shareholders more than just a bit worried.  The company has said that it will file a Notification of Late Filing with the Securities and Exchange Commission regarding its annual report.  The 10-K delay will allow Swisher an additional 15 calendar days to file its annual report which is due on March 30, 2012.

The company outlined the delays and it is not really just a fluke.  The reasons cited for the delay are as follows:

  • an ongoing internal review by Swisher Hygiene’s Audit Committee primarily relating to possible adjustments to (1) the accounting for business acquisitions and (2) the calculation of the allowance of doubtful accounts receivable.

The delay notice also noted that on March 21, 2012 its board of directors concluded that the previously issued interim financial statements for the quarterly periods ended June 30, 2011 and September 30, 2011 (and the other financial information) should no longer be relied upon.

Subsequently, on March 27, 2012, the Audit Committee concluded that the Company’s previously issued interim financial statements for the quarterly period ended March 31, 2011 should no longer be relied upon.

The Audit Committee’s review is not complete but it believes that material adjustments to the prior financial information may be required.  It also believes that it needs to file restatements of the first, second and third quarter financial statements.

Swisher shares are down 9.5% at $2.76 and the 52-week trading range before today was $2.83 to $11.43.  Shares hit a new low of $2.60 today.

Sometimes there is just no good news to be found. That is the case here.