RESTATEMENT OF FINANCIAL STATEMENTS |
NOTE 3 – RESTATEMENT OF FINANCIAL STATEMENTS |
The Company's 2012 consolidated financial statements have been restated for the effect of certain adjustments that were made in the preparation of AMAK's 2012 financial statements prepared in accordance with U.S. GAAP which the Company received in June 2013.
The Company had originally prepared its 2012 consolidated financial statements and applied the equity method of accounting for its investment in AMAK on the basis of AMAK's financial statements prepared in accordance with Saudi Arabian GAAP ("SA GAAP") and audited by a firm licensed in Saudi Arabia but not registered with the PCAOB and an analysis performed at that time to identify differences between SA GAAP and U. S. GAAP. In June 2013 the Company received AMAK's financial statements prepared in accordance with U.S. GAAP and audited by a firm of independent registered public accountants registered with the PCAOB to be filed by the Company under Rule 3-09 of Regulation S-X. The preparation and audit of those U.S. GAAP financial statements identified additional adjustments related to the timing of revenue recognition and the use of accelerated methods of depreciation and amortization. As a result of those adjustments the Company has had to restate its 2012 consolidated financial statements to adjust the amount recorded under the equity method of accounting for the Company's share of AMAK's net income (loss).
The effects of the restatement are as follows:
|
|
December 31, 2012 |
|
|
|
As Reported |
|
|
As Restated |
|
|
|
(thousands of dollars) |
|
Consolidated Balance Sheets |
|
|
|
|
|
|
Investment in AMAK |
|
$ |
38,971 |
|
|
$ |
37,894 |
|
Total Assets |
|
|
121,453 |
|
|
|
120,376 |
|
Retained Earnings |
|
|
36,428 |
|
|
|
35,351 |
|
Total Arabian American Development Company Stockholders' Equity
|
|
|
83,020 |
|
|
|
81,943 |
|
Total Equity |
|
|
83,309 |
|
|
|
82,232 |
|
Total Liabilities and Equity |
|
|
121,453 |
|
|
|
120,376 |
|
Consolidated Statements of Income |
|
|
|
|
|
|
Equity in earnings (loss) of AMAK |
|
$ |
866 |
|
|
$ |
(211 |
) |
Income before income tax expense |
|
|
17,302 |
|
|
|
16,226 |
|
Net income |
|
|
11,398 |
|
|
|
10,321 |
|
Net income attributable to Arabian American Development Company
|
|
|
11,398 |
|
|
|
10,321 |
|
Net income per common share: |
|
|
|
|
|
|
|
|
Basic earnings per share (dollars) |
|
$ |
0.47 |
|
|
$ |
0.43 |
|
Diluted earnings per share (dollars) |
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
Consolidated Statements of Comprehensive Income |
|
|
|
|
|
|
Net Income |
|
$ |
11,398 |
|
|
$ |
10,321 |
|
Comprehensive Income |
|
|
11,566 |
|
|
|
10,489 |
|
Consolidated Statement of Stockholders' Equity |
|
|
|
|
|
|
Net Income |
|
$ |
11,398 |
|
|
$ |
10,321 |
|
Retained Earnings |
|
|
36,428 |
|
|
|
35,351 |
|
Total |
|
|
83,020 |
|
|
|
81,943 |
|
Total Equity |
|
|
83,309 |
|
|
|
82,232 |
|
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
|
Net income attributable to Arabian American
Development Company
|
|
$ |
11,398 |
|
|
$ |
10,321 |
|
Equity in (income) loss of AMAK |
|
|
(866 |
) |
|
|
211 |
|
|