ADAMS RESOURCES & ENERGY, INC. (NYSEMKT:AE) Files An 8-K Changes in Registrant’s Certifying Accountant
Item 4.01. Changes in Registrants Certifying Accountant.
our) dismissed Deloitte Touche, LLP ( Deloitte ) from serving as
the Companys independent registered public accounting firm and
engaged KPMG LLP ( KPMG ), effective immediately, as the Companys
new independent registered public accounting firm to audit the
Companys financial statements as of and for the fiscal year
ending December 31, 2017. The Companys Audit Committee
unanimously approved and authorized the change, directed the
process of review of candidate firms to replace Deloitte and made
the final decision to engage KPMG.
Company as of and for the fiscal years ended December 31, 2016
and 2015 did not contain any adverse opinion or disclaimer of
opinion, and were not qualified or modified as to uncertainty,
audit scope or accounting principles. During the Companys fiscal
years ended December 31, 2016 and 2015, and the interim period
through June 7, 2017, (1) the Company had no disagreements with
Deloitte on any matter of accounting principles or practices,
financial statement disclosure or auditing scope or procedure,
which disagreements, if not resolved to Deloittes satisfaction,
would have caused Deloitte to make reference to the subject
matter of such disagreements in its reports on the financial
statements of the Company for such years and (2) there were no
reportable events of the type described in Item 304(a)(1)(v) of
Regulation S-K under the Securities Exchange Act of 1934, as
amended (the Exchange Act ), except the material weakness
discussed below, which is disclosed in the Companys Annual Report
on Form 10-K for the fiscal year ended December 31, 2016 and is
not remediated as of June 7, 2017.
deficiency, which also prevented the control from operating
effectively, related to the control over the review and approval
of manual journal entries in one of our segments. The design
deficiency related to the same personnel reviewing, approving and
posting journal entries.
disclosure required by Item 304(a) of Regulation S-K and
requested that Deloitte furnish the Company with a letter
addressed to the Securities and Exchange Commission stating
whether or not Deloitte agrees with the statements above
concerning Deloitte. A copy of Deloittes letter, dated June 9,
2017, is attached hereto as Exhibit 16.1.
interim period through June 7, 2017, the Company did not consult
KPMG with respect to either (i) the application of accounting
principles to a specified transaction, either completed or
proposed, or the type of audit opinion that might be rendered on
the Companys financial statements, and no written report or oral
advice was provided that KPMG concluded was an important factor
considered by the Company in reaching a decision as to the
accounting, auditing or financial reporting issue; or (ii) any
matter that was either the subject of a disagreement, as that
term is described in Item 304(a)(1)(iv) of Regulation S-K under
the Exchange Act and the related instructions to Item 304 of
Regulation S-K under the Exchange Act, or a reportable event, as
that term is described in Item 304(a)(1)(v) of Regulation S-K
under the Exchange Act.
Report on Form 8-K:
Letter from Deloitte Touche, LLP, dated June 9, 2017,
regarding the change in certifying accountant.
About ADAMS RESOURCES & ENERGY, INC. (NYSEMKT:AE)
Adams Resources & Energy, Inc., along with its subsidiaries, is engaged in the business of crude oil marketing, tank truck transportation of liquid chemicals, and oil and gas exploration and production. The Company’s segments include Marketing Segment, Transportation Segment, and Oil and Gas Segment. The Company manages its Marketing Segment through its subsidiary, Gulfmark Energy, Inc., which is engaged in marketing of crude oil. It operates approximately 210 tractor-trailer rigs and maintains over 120 pipeline inventory locations or injection stations. The Company operates its Transportation Segment, through Service Transport Company, which transports liquid chemicals. Its Service Transport Company subsidiary operates over 320 truck tractors, of which over 290 are Company-owned with over 30 independent owner-operator units. The Oil and Gas Segment operates through Adams Resources Exploration Corporation subsidiary, which explores and develops domestic oil and natural gas properties.