Surgical hospital operator Dynacq Healthcare, Pasadena, Texas, said Ernst & Young has resigned as its auditor citing a lack of internal control necessary to develop reliable financial statements. Earlier this week, Dynacq said it would postpone filing its audited financial statements for the fiscal year ended Aug. 31 until the Securities and Exchange Commission completes a review of the company's previous reports. With profit margins far in excess of industry averages, Dynacq ranked second among Forbes' 200 Best Small Companies in 2002 and made Fortune's list of fastest-growing small companies for the past three years. This month Dynacq said unaudited results for the most recent fiscal year show net income of $21 million and revenue of $90 million, but it warned of lower profits for the current fiscal year's first quarter ended Nov. 30 because of renovation expenses at a newly acquired hospital in Garland, Texas, and lower activity at its Pasadena hospital. Dynacq also operates a surgical hospital in Baton Rouge, La., and an outpatient surgery center in the Houston market. -- by Mary Chris Jaklevic
Dynacq auditor quits, cites lack of control
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.