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CryoLife Inc. Message Board

  • dlhild@ymail.com dlhild Feb 26, 2013 12:40 PM Flag

    Accounting Change:

    IMO, anyone who thinks this was a “neutral” event is crazy.

    CRY has completed a “competitive process”. Nice cover story Steve, but I don’t buy that story for a second. So Steve, what really happened?

    The reports, by Deloitte & Touche during the last two fiscal years and any subsequent interim period did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles.

    That’s a nice “non answer” comment. What is not stated here is what happened during the fourth quarter of 2012 and at year end 2012 that caused this change. It is very disruptive to change accountants, so it is done infrequently. You don’t change audits to save a nominal amount of money. So the bottom line is that CRY and Deloitte & Touche had a major falling out, we just don’t know the details.

    This is similar to the Gerald Seery (GS) story. CRY makes it sound like GS just retired, when in reality it is probably more likely that he was fired so that SA could promote “sonny boy” Bruce Anderson into a more senior position.
    So CRY has a “WARNING LETTER” from the FDA.

    So it is highly probable that CRY changed their accountants because of some major accounting difference of opinion. Did the “WARNING LETTER” give rise to some problem? Did Deloitte & Touche tell SA that there had to be more disclosure showing the tissue cost centers (cardiac and vascular) were unprofitable, and it was not reasonable to pretend any longer? Did the accountants think there needed to be greater disclosure regarding future litigation regarding PerClot? Has SA messed up something else he doesn’t want to fess up to?
    IMO, it is unlikely that shareholders have been told the truth about this matter.

    Look at the share price = approximately $6/share. Then go to Google Finance, type in CRY’s symbol, click on “all” years, then look at the chart going back to 1993 I think. Then ask yourself this question. Has DIRECTOR, CEO, and PRESIDENT STEVE ANDERSON delivered shareholder value over the past 17 years?

    The above is just my opinion. You are responsible for doing your own due diligence.

 
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