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Chemori (NYSE: CC) shares on Wednesday slipped nearly 11% in extended trade, after the chemical maker finally filed its twice-late annual report showing a smaller loss for the fourth quarter of 2023 and saying its internal review had found “material weaknesses” in its situation financial. report.
CC’s actions were last down 10.6% at $25.80 after hours.
The review earlier this month revealed that three of the company’s top executives had manipulated some vendor payments and accounts receivable collections in the fourth quarter in part to meet free cash flow targets tied to their incentives.
At the end of February the company had placed executives – the former CEO, the CFO and the chief accountant – on administrative leave, following which the stock saw a record intraday plunge of more than 30%.
Chemours (CC) said on Wednesday that the internal review had also identified four material weaknesses in the company’s financial reporting that led to a review of CC’s balance sheet as of December 31, 2022 and statement of cash flows for each of the years ended December 31, 2022 and 2021.
The review also led to “non-material revisions” of CC’s March, June and September 2023 quarterly financial statements. Chemours (CC) added that the material weaknesses did not result in any misstatements of its financial statements or disclosures.
Chemours’ (CC) annual report showed that for the fourth quarter the company posted a loss per share of 12 cents on revenue of $1.36 billion. Analysts had expected the chemical maker to lose 24 cents a share on revenue of $1.34 billion.
Net loss attributable to Chemours (CC) narrowed to $18 million in the fourth quarter from a loss of $97 million a year ago. Meanwhile, revenue increased 1.7% y/y.
The company added that its internal review determined that payments of up to approximately $100 million were delayed until the first quarter of 2024, primarily to some suppliers that were originally supposed to be paid in the fourth quarter of 2023.
The review also found that collections of up to approximately $260 million in receivables, which were originally not due to be received until the first quarter of 2024, were accelerated into the fourth quarter of 2023.
Additionally, the review determined that similar actions, albeit to a lesser extent, were taken in the fourth quarter of 2022.