08.05.2011

Essex Crane to restate 2010 results

US based Essex Crane will restate its financial results for 2010 after its accountants spotted an error in its tax liabilities.

A statement from the company said: “The Audit Committee of the board of directors, based on the recommendation of management and following discussions with the Company’s independent registered public accounting firm, concluded that the financial statements for the year ended December 31, 2010, included in its annual report on form 10-K should no longer be relied upon as a result of an error relating to the understatement of the company’s estimate of net deferred state tax liabilities resulting from the acquisition of Coast Crane and an overstatement of valuation allowances related to state net operating losses.”

The restatement is estimated to be a net $1.8 million increase in the company’s deferred state tax liabilities and an increase in tax expense and therefore net loss by the same amount for 2010.

The restatement has no impact on the company’s cash flows for the year or its liquidity.