Aerojet Rocketdyne Holdings Inc. said Monday it will have to restate earnings for a series of quarters stretching back to 2013 because of accounting issues regarding its purchase of the Rocketdyne business.
The Rancho Cordova rocket engine manufacturer said the restatement will increase its loss from continuing operations in 2013 by an estimated $9.5 million to $11.5 million.
However, the restatement is expected to shrink the loss from continuing operations in 2014 and the first nine months of 2015 by a combined $5.25 million to $8.25 million.
The problem relates to accounting for contracts held by Rocketdyne when Aerojet bought the business from United Technologies’ Pratt & Whitney division.
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“The restatement has no effect on cash received from the Rocketdyne business acquisition or cash flows generated from operating the Rocketdyne business,” Aerojet said in a document filed with the Securities and Exchange Commission.
Aerojet also said it will be late in filing its annual report for the fiscal year that ended last Nov. 30.
Restating earnings could have significant effects on a company’s share price. Aerojet stock had already closed at $15.24 a share on the New York Stock Exchange, down $1.21, when the SEC statement was filed. Shortly after the statement was disclosed, a plaintiffs’ law firm in New York announced it was investigating the matter with an eye toward a potential shareholders’ lawsuit.