Adeptus Health Inc (NYSE:ADPT)
Adeptus Health Inc (NYSE:ADPT) reported that as an outcome of its failure to timely submit its Annual Report on Form 10-K for the year closed December 31, 2016, it has obtained a notice from the NYSE that the firm is not in compliance with its continued listing guidelines under the timely submission criteria.
As previously stated, the Adeptus Health Inc (NYSE:ADPT) delay in submission of the Form 10-K is following the requirement of additional time to close analysis of impairment of goodwill, intangible assets as well as investments in unconsolidated subsidiary firms and assessment of the requirement to write down deferred tax assets.
Additionally, the firm has noted material weaknesses in terms of internal control over financial reporting in the segment of accounts receivable, revenue recognition, accounting for input to unconsolidated JV, and accounting for equity in earnings/loss of unconsolidated joint ventures.
Pertaining to these segments where material weaknesses have been noted, the firm is assessing the impact of errors in its shortened consolidated financial statements and consolidated financial statements for previous periods.
An assessment of root causes and corrections plans are in process. Also, there remains considerable doubt about Adeptus Health Inc (NYSE:ADPT)’s ability to work as a going concern due to the lack of a committed long-term financing. Lastly, the firm needs additional time to complete its financial closing procedures. It will not be able to submit the Form 10-K until these concerns have been resolved and the audit of its previous financial statements for FY2016 is closed. The company will submit the Form 10-K as soon as feasible.
The NYSE conveyed to the firm that, under the rules, Adeptus has 6-month period from March 16, 2017 to submit the Form 10-K with the U.S. During this period, the firm can regain compliance with the set NYSE listing guidelines and submit the Form 10-K with the U.S. SEC.
Adeptus Health is a major patient-centered healthcare firm expanding access to the best quality emergency medical care via its partnerships with leading healthcare providers and setup of freestanding emergency rooms. It owns and manages First Choice Emergency Room, which is the country’s largest and oldest setup of freestanding emergency rooms.
Adeptus Health Inc (NYSE:ADPT) recorded a positive session yesterday as shares jumped 1.18% to close at $1.72. About 1.18 million shares exchanged hands as against an average daily volume of 1.99 million out of a float of around 21 million. After starting the trading day at $1.68, the shares traded in a range of $1.65 to $1.84.
|Last Price a/o 3:21 PM EST||$1.72|
|Market Cap (mlns)||$39.04M|
|Shares Outstanding (mlns)||22.70M|
|Share Float (mlns)||8.82M|
|Short Interest Ratio||4.62|
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.