CEO Embarrassingly Admits To Inaccurate SEC Reports After Grandma Bluff Goes Awry
Interviewer: “Mr. Hansen, can you tell us about the recent financial results of Alexander’s, Inc. and why there was such a large discrepancy between the earnings for the fourth quarter of 2021 and 2022?”
Gary Hansen: “Yes, our financial results for the fourth quarter of 2021 and 2022 are significantly different, and in this case, I am not proud to say that the discrepancy is the result of inaccuracies in the reporting that we provided to the SEC. To put it bluntly, the Alexander’s, Inc. management team intentionally misrepresented gains from the sale of real estate and included profits from discontinued operations that should not have been included in the financial statements.
Interviewer: “Can you tell us why the Alexander’s, Inc. management team would do this?”
Gary Hansen: “I’m embarrassed to admit that, at the time, the team was under immense pressure to match the reported earnings of similar companies. We were unsure of whether the earnings we had reported were accurate, so we decided to err on the side of caution. In hindsight, it was a bad decision that has put us in an uncomfortable position.
Interviewer: “Can you tell us a story about why accuracy and honesty are so important when it comes to earnings reports?”
Gary Hansen: “Absolutely! I recall an embarrassing experience from when I was in college: My roommate wanted to impress his girlfriend with his piano playing ability, and invited her over for dinner and a live performance. We had to borrow a piano from a music shop, and I offered to drive to the store and pick it up. When I arrived and tried to rent the piano, the shop owner asked me for a credit card to hold as a deposit. I had left the card at home, but decided to lie and told him my grandmother had just passed away and unfortunately, due to the gravity of the situation, I had given her credit cards to my mom who was unable to be present on such short notice. Seeing that I was in distress, the owner was nice enough to rent me the piano without a deposit. When the night ended and I returned the piano, I was shocked to find that the owner had gone out of his way and bought himself a new shiny piano. Turns out, the one I had borrowed was a very special and valuable antique.
The incident taught me a valuable lesson: honesty is always the best policy. And I carry that same lesson over to my work. That’s why I have made it a priority to ensure that the financial statement we report to the SEC are as accurate and honest as possible.”
Original Release: https://www.globenewswire.com/news-release/2023/02/13/2606724/0/en/Alexander-s-Announces-Fourth-Quarter-Financial-Results.html