Coudersport, PA – Adelphia Cable Communications has fired its auditors.
The firm of Deloitte and Touche was dismissed Sunday by Adelphia's board. Deloitte's apparent knowledge of questionable accounting practices at Adelphia and related Rigas family operations and their failure to disclose them led to the dismissal.
A new auditing firm is expected to be named soon.
Also Monday, Adelphia filed a Form 8-K with the Securities and Exchange Commission that provides revised figures for the years 2000 and 2001. The revisions of previous reported results show a drop 2001 earnings before interest, taxes, depreciation and amortization to $1.2 billion from $1.4 billion and a decrease in reported revenue to $3.51 billion from $3.58 billion.
The company also said it overstated the number of cable TV subscribers it had at the end of last year by more than 47,000.
The company said the revised estimates reflect changes from previous reports and "more conservative accounting policies that the company intends to follow in the future."
Later Monday, board members Leonard Tow and Scott Schneider announced their resignations, citing the "unreliability of corporate data."
Adelphia released a statement saying the company is "disappointed" that the two will not continue their service. Nevertheless, the company said, the remaining board members remain committed to restoring Adelphia's credibility.