Cudahy-based Roadrunner Transportation Systems Inc. has found accounting errors dating back to 2014 that will require $20 million to $25 million in adjustments to its results, the company announced Monday.
Roadrunner, an asset-light transportation and logistics provider, said it was made aware of potential accounting discrepancies in its Morgan Southern and Bruenger operating subsidiaries in November and began investigating.
The company said the investigation is still ongoing and could go back beyond 2014. The errors involved unrecorded expenses from unreconciled balance sheet accounts including cash, driver and other receivables and linehaul and other driver payables.
Roadrunner said a number of reports, including those from its independent registered public accounting firm Deloitte & Touche LLP should no longer be relied on. A Deloitte representative did not immediately respond to request for coment.
The company has hired Greenberg Traurig, LLP, as outside counsel, and RubinBrown LLP, as forensic accountants, to assist with the investigation. It is also expanding the investigation to see if any other operating entities were impacted by similar errors and is reviewing its internal controls and compliance programs.
The company said it would be restating its results for 2015 and the first three quarters of 2016. The company also plans to push back its fourth quarter earnings release until at least March.
“We want our stockholders to know that providing confidence and transparency in our financial statements is of paramount importance, and we are doing everything possible to ensure that these errors do not occur in the future,” said Mark DiBlasi, Roadrunner chief executive officer.
A number of law firms announced plans to investigate the situation for potential litigation opportunities after Roadrunner revealed the discrepancies. The company’s stock was down more than 33 percent just after noon and was trading around $7.70 per share.