NEW YORK Interpublic Group today confirmed that its results for the second quarter of 2005 are late, and that it hopes to file them with the Securities and Exchange Commission by Sept. 30.
In a 10-Q filing with the SEC, IPG attributed the delay to the "breadth of the additional internal work and analysis required due to the material weaknesses management has identified as part of its assessment of the company's internal control over financial reporting and to the need to determine whether certain matters will require a restatement of financial statements for prior periods."
While IPG intends to report its second-quarter results by Sept. 30, the company also said it "can provide no assurance that it will complete these filings in time to meet this target because extensive work remains to be done."
Similar language was included in several previous IPG filings, including one connected with a bond deal in July and another related to the renegotiation of a credit agreement in June, an IPG representative said. Those filings also acknowledged that IPG had yet to report its results for 2004 and the first two quarters of 2005.
The rep added that IPG is required to file a notice with the SEC for each quarter its results are delayed.
Analyst Lauren Rich Fine, who follows IPG at Merrill Lynch, called the development "not surprising at all. This is to be expected since [IPG] has yet to file their year-end numbers. It would have been presumptuous for anyone to expect them to file their Q2 when they haven't even filed their Q1."
As for whether IPG can meet its Sept 30 deadline, Fine said, "There is no way, from the outside looking in, to even begin to speculate on the probability of whether they'll do this or not. With a new chief financial officer, one could argue it would almost be impossible. On the other hand, I don't know if he personally has to sign off on this—you'd have to ask someone else about that. I think you could get a treasurer or CEO to sign off. It's certainly a big challenge ahead for them."