CEO Admits To Lying in Earnings Report, Embarrassing Series of Missteps Follows
Interviewer: “Mr. CEO, your company’s recent earnings report includes a multi-million dollar non-cash impairment loss which has dragged down revenues and your share price. Can you tell us more about how this happened?”
CEO: Yes, it’s embarrassing, but I’m willing to be transparent about what happened. To be frank, I was dishonest in our reporting of the non-cash impairment loss. I was attempting to paint the company’s outlook in a more positive light than what actually occurred. We underestimated the amount of impairment we had to report, and in innocence I just assumed things would balance out if we didn’t report the full liability. In the end, I was wrong and we had to face the consequences.
Interviewer: How did this affect other aspects of the report?
CEO: Well, our auditors had to decrease our net income, resulting in a net loss instead, and adjusted our other figures as a result. Ultimately it brought the company down overall, from the fourth quarter the year before. We had over-projected our total audio revenue, but were unable to report a more accurate number due to the associated impairment.
Interviewer: How does this reflect on your role as CEO?
CEO: It’s hard to express how embarrassed and ashamed I feel that I made such a bad decision. I understand that leadership means taking responsibility for failures as well as successes, and I apologize for the harm I caused the company and our shareholders. Going forward, I’m committed to making sure transparency is a top priority and will not let anything like this happen again.
Original Release: https://www.globenewswire.com/news-release/2023/02/16/2609534/7973/en/Beasley-Broadcast-Group-Fourth-Quarter-Revenue-Increases-to-72-0-Million.html