Santander Consumer USA to Restate Financial Reports
September 23 2016 - 11:30AM
Dow Jones News
Santander Consumer USA Holdings Inc. said Friday it would
restate years of financial reports as they can no longer be relied
upon because of material weaknesses in internal control. The
company is restating its reports from the full-year 2013 until the
first quarter of 2016.
It says that the issues included its methodology for accreting
dealer discounts, its lack of consideration of net discounts when
estimating the allowance for credit losses and the discount rate
used in determining the impairment for loans accounted for as
troubled debt restructurings.
"Since the identification of errors in our financial reporting,
we have been completely focused on ensuring we correct everything
as quickly and transparently as possible," Chief Executive Jason
Kulas said.
The company expects the cumulative impact of the errors to
increase total equity of about 1%, as of March 31. The company also
said that the restatements will increase previously reported net
income for the quarter ended in March by about $9 million, or 2
cents a share.
The company said it is working to file its report for the
quarter ended in June as soon as possible and said it has received
waivers for some debt facilities that require timely filings.
Santander Consumer is a consumer finance company focused on
vehicle finance and third-party servicing.
Shares rose 11.7% in morning trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
September 23, 2016 11:15 ET (15:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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