SEC Investigating Gaylord Entertainment Over Revised Financial Statements

Associated Press ^ | Jul 31, 2003 | Amber McDowell Associated Press Writer

[Kaslin]

NASHVILLE, Tenn. (AP) - Gaylord Entertainment Co. is being investigated by the Securities and Exchange Commission over the company's revised financial statements after it changed auditors, officials said Thursday.

Notice of the investigation was included in the second quarter earnings report by Gaylord, a hotel and entertainment company.

SEC investigators will examine financial results and transactions that led Gaylord to restate earnings for 2000, 2001 and the first nine months of 2002, the company said. The restatements reflected non-cash changes, including accounting for Gaylord's income tax accrual and the company's investment in the National Hockey League's Predators team.

Gaylord broke ties in 2002 with auditor Arthur Andersen, a now-defunct firm accused of destroying documents and computer records related to Enron.

Gaylord's new auditor, Ernst & Young, completed required re-audits and recommended the statement changes, Gaylord spokesman Jim Brown said.

Gaylord said the inquiry's outcome is unknown but should have no material adverse effect" on the company's operations or financial health.

In the second quarter Gaylord - whose holdings include the Grand Ole Opry and upscale hotels in Nashville, Florida and Texas - reported net income of $11.4 million, or 33 percents a share for the three months ending June 30. That's up from $5.9 million, or 17 cents per share, in the same quarter last year.

Revenue rose to $105 million, up from $95 million a year earlier.

Gaylord shares closed at $20.80 Thursday on the New York Stock Exchange, up 35 cents.

[Kaslin]

The biggest mistake Gaylord made was when it closed the Opryland Theme park

[GraniteStateConservative]

I was there the last month it was open-- Winter of 1997/98.

With the bluegrass revival at the Ryman, I'd think that Nashville tourism is a lot higher than way back then when they made the decision to shut it down.

[Chad Fairbanks]

But the best thing they did was dump Arthur Anderson... I I was their new accounting firm, I'd demand new audits too...

[Choose Ye This Day]

Gaylord? The Evil Empire? The next WorldCom?

BWAHAHAHAHAAA!!!

(Had the misfortune of working at Opryland Hotel years ago...)