Roadrunner receives notice from NYSE

Cudahy-based Roadrunner Transportation Systems Inc. faces the possibility of being removed from the New York Stock Exchange if it does not file its 2016 annual report with the SEC by the end of September.

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The company, which provides less-than-truckload transportation and other logistics, announced late last week it has received notice from the New York Stock Exchange that it is not in compliance with continued listing requirements. Roadrunner is yet to file its 2016 annual report after finding accounting errors that called into question results dating back to 2014.

In announcing the notice, the company repeatedly pointed out that the notices are “routinely issued” when there are late filings and this one was anticipated.

Roadrunner said it is still working to investigate the causes of the accounting discrepancies while also reviewing its internal control over financial reporting and compliance programs. It said it would file the report “as soon as practicable.”

In January, Roadrunner announced it had discovered discrepancies at two of its subsidiaries involving expenses from unreconciled balance sheet accounts including cash, driver and other receivables and linehaul and other driver payables.

The company expects to make $20 million to $25 million in adjustments to its results and record at least $200 million for a non-cash goodwill impairment charge.

Roadrunner’s stock price fell more than 35 percent after the problems were disclosed and shareholders have filed lawsuits against the company. The company also has had to work with its lenders to avoid default or breach of covenant actions and Peter Armbuster was also terminated from his position as the company’s chief financial officer on March 29.

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Arthur covers banking and finance and the economy at BizTimes while also leading special projects as an associate editor. He also spent five years covering manufacturing at BizTimes. He previously was managing editor at The Waukesha Freeman. He is a graduate of Carroll University and did graduate coursework at Marquette. A native of southeastern Wisconsin, he is also a nationally certified gymnastics judge and enjoys golf on the weekends.

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