New Enterprise Stone & Lime Co. Inc. announced that it has further developed its previously disclosed cost-reduction and operational-efficiency plan. The company has appointed BDO USA LLP as the company’s new independent registered public accounting firm for its fiscal year ending Feb. 28, 2014.
The company anticipates obtaining an additional $10 million of cost savings in fiscal 2015. The cost savings will come from the elimination of costs relating to the implementation of its Enterprise Resource Planning system, reduction of professional fees, modifications to benefit plans and further workforce reductions.
Precipitated by a planned partner rotation with its current auditor, the company also announced the appointment of BDO as the company’s independent registered public accounting firm. Under the guidance of the Audit Committee, management conducted a competitive request for proposal of audit services.
Management and the Audit Committee evaluated a number of potential firms that were invited to submit a proposal. The company’s management and the Audit Committee determined that BDO offered the broadest array of services at pricing that represented the best value for the company. The decision to change auditors was not the result of any disagreement between the company and PricewaterhouseCoopers LLP, the company’s current auditors, on any matter of accounting principle or practice, financial statement disclosures, or auditing scope or procedure.
“New Enterprise is pleased to be able to engage an organization such as BDO,” said Paul Detwiler, III, New Enterprise’s president and CEO. “As a key component of our cost reduction plan, we are monitoring our business in an effort to manage costs and improve our profitability. We feel that the engagement of BDO is consistent with our goal of maintaining top quality while achieving our objective of cost efficiency. We believe that making this change commencing with the third quarter review will allow us to transition to our new auditors with no disruptions to our financial reporting.”