UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 14, 2007
LEVITT CORPORATION
(Exact name of registrant as specified in its charter)
| |
|
|
|
|
| Florida
|
|
001-31931
|
|
11-3675068 |
|
|
|
|
|
|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(IRS Employer
Identification No.) |
| |
|
|
| 2200 West Cypress Creek Road, Fort Lauderdale, Florida
|
|
33309 |
|
|
|
|
| (Address of principal executive offices)
|
|
(Zip Code) |
Registrant’s telephone number, including area code: (954) 940-4950
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
|
| Item 4.02 |
|
Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review. |
(a) On May 14, 2007, Levitt Corporation (the “Company”) determined that the Company’s
financial statements for the quarter ended March 31, 2007 should no longer be relied upon. As a
result, it will be necessary to restate the Company’s previously issued financial statements
contained in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2007. The financial
statements are being restated to properly eliminate the revenue on an intercompany transaction amounting to $444,000 between Core Communities, LLC, which comprises
the Company’s Land Division, and Levitt and Sons, LLC, which comprises the Company’s Homebuilding
Division. The impact of the accounting error was to overstate net income by $274,000 and diluted
earnings per share by $0.01. The impact of the restatement on the unaudited financial statements as
of, and for the three months ended, March 31, 2007 is summarized below (in thousands except per
share data):
| |
|
|
|
|
|
|
|
|
| |
|
As Previously |
|
|
As |
|
| |
|
Reported |
|
|
Restated |
|
Sales of real estate |
|
$ |
141,742 |
|
|
$ |
141,298 |
|
Total revenues |
|
$ |
144,239 |
|
|
$ |
143,795 |
|
Income before taxes |
|
$ |
2,029 |
|
|
$ |
1,585 |
|
Provision for income taxes |
|
$ |
779 |
|
|
$ |
609 |
|
Net income |
|
$ |
1,250 |
|
|
$ |
976 |
|
Earnings per share (diluted) |
|
$ |
0.06 |
|
|
$ |
0.05 |
|
Inventory of real estate |
|
$ |
836,303 |
|
|
$ |
844,598 |
|
Total assets |
|
$ |
1,121,192 |
|
|
$ |
1,129,487 |
|
Accounts payable, accrued liabilities,
and other |
|
$ |
71,039 |
|
|
$ |
79,778 |
|
Current income tax payable |
|
$ |
985 |
|
|
$ |
815 |
|
Total liabilities |
|
$ |
776,146 |
|
|
$ |
784,715 |
|
Retained earnings |
|
$ |
157,333 |
|
|
$ |
157,059 |
|
Total shareholders’ equity |
|
$ |
345,046 |
|
|
$ |
344,772 |
|
The Company will include the restated results for the three months ended March 31, 2007 in an
amendment on Form 10-Q/A to the Company’s previously-filed Form
10-Q for the same period. Authorized officers of the Company discussed this matter with the Audit Committee of the
Company’s Board of Directors and with PricewaterhouseCoopers LLP, the Company’s independent
registered public accounting firm.