Towers Watson (ticker: TW, exchange: NYSE Archipelago Exchange (.N))
News Release -
Watson Wyatt & Company Reschedules Fourth Quarter Results Earnings ReleaseWASHINGTON, Aug 14, 2002 (BUSINESS WIRE) -- Watson Wyatt & Company Holdings
(NYSE: WW), a leading international human capital consulting firm, has
re-scheduled its fourth quarter earnings release and conference call until it
finalizes its evaluation of an issue related to potential professional liability
As the Company was closing its books for fiscal 2002 and preparing its press
release for fiscal 2002 financial results, an issue arose related to reporting
its potential claims for professional liability. The issue is that the balance
sheet should reflect an actuarially determined liability for claims not yet
reported but potentially incurred (IBNR) for appropriate presentation. The
Company, with independent actuaries, is sizing the IBNR, estimated from all of
its previously disclosed professional liability claims, as well as determining
which periods in earlier years might be affected.
"We decided, in the interest of complete and accurate disclosure, to postpone
the release of the fourth quarter and fiscal year ended June 30, 2002 results
pending the completion of our review and analysis and the concurrence of the
Audit Committee of our Board of Directors, our independent accountants and
outside actuarial firm," said John Haley, President and CEO of Watson Wyatt.
"There are no new claims activity that has not been previously disclosed in SEC
filings. Based on initial actuarial estimates, we believe that the liability
will be between $6 million and $10 million and will be reflected as an
adjustment to Accumulated Deficit (retained earnings) as of July 1, 1999.
"We believe that there is no effect on the current or the two prior years'
revenue, net income or cash flow. For the fiscal 2002, we expect to report net
income of $47.1 million on revenue of $710.5 million."
The company intends to file its Form 10-K with the Securities and Exchange
Commission no later than September 30, 2002, and plans to announce its fourth
quarter results on August 20, 2002 after which management will hold a conference
call to discuss the company's results and performance for the fourth quarter and
fiscal year ended June 30, 2002.
The Company will host a conference call to be broadcast via Webcast on
Wednesday, August 14, 2002. The conference call and live Webcast will begin at
9:00 a.m. Eastern Time. An archive of the Webcast will be available two hours
after the live call and until midnight Wednesday, August 21, 2002. To access the
live Webcast or archive, please visit
Watson Wyatt is an international human capital consulting firm that provides
services in the areas of employee benefits, human resources technologies and
human capital strategies. The firm is headquartered in Washington, D.C., and has
4,250 associates in 61 offices in the Americas and Asia-Pacific. Together with
Watson Wyatt LLP, a leading European-based consulting partnership, the firm
operates globally as Watson Wyatt Worldwide. Watson Wyatt Worldwide has more
than 6,300 associates in 87 offices in 30 countries.
Statements in this press release regarding projections and expectations of
future earnings, revenues, operations, business trends and other such items are
forward-looking statements. A number of risks and uncertainties exist which
could cause actual results to differ materially from the results reflected in
these forward-looking statements. Such factors include, but are not limited to,
the Company's continued ability to recruit and retain highly qualified
associates, outcomes of litigation, changes in the demand for the consulting
services the Company offers as a result of changing economic conditions or other
factors, and other factors discussed under "risk factors" in the Company's
prospectus filed on Form S-3 dated June 25, 2001, which is on file with the
Securities and Exchange Commission. These statements are based on assumptions
that may not come true. All forward-looking disclosure is speculative by its
nature. The Company undertakes no obligation to update any of the
forward-looking information included in this release, whether as a result of new
information, future events, changed expectations or otherwise. The inclusion of
any statement in this release does not constitute an admission by Watson Wyatt &
Company Holdings or any other person that the events or circumstances described
in such statement are material.
CONTACT: Watson Wyatt, Washington
Carl D. Mautz, 202/715-7056
Lippert Heilshorn & Associates, Inc.
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
Copyright (C) 2002 Business Wire. All rights reserved.