Penton Delays Filing Due to Restatement

Staff -- Tradeshow Week, 4/11/2005

Penton Media has delayed filing its 2004 annual report with the U.S. Securities and Exchange Commission because the company is restating its financial reports for the past three years.

The Cleveland-based company, a producer of magazines and tradeshows, including the Natural Products Expo series, is restating its 2002, 2003 and 2004 financial statements to better account for income tax expenses. The restatements, which will include other corrections previously deemed immaterial, are expected to add $16–$18 million to the 2003 stockholders' deficit and $18–$20 million to the 2004 stockholders' deficit.

The company is filing for a 15-day extension to the March 31 deadline to file its annual report.

Penton announced on March 28 that it would restate its results, four days after its management concluded, after a review of deferred tax assets and liabilities, that the valuation allowance for deferred tax assets had been incorrectly computed.

The announcement caused little change in the value of its shares, which are currently trading at about 17 cents. The company, which last June replaced CEO Tom Kemp with insider David Nussbaum, reported a 2003 loss of $87.8 million.