24. Unaudited Quarterly Financial Results

The following tables present selected unaudited Consolidated Statements of Operations for each quarter of the years ended December 31, 2013 and 2012.


	Fiscal Year 2013
	First Quarter (As Restated)			Second Quarter (As Restated)			Third Quarter (As Restated)			Fourth Quarter
Net sales	$	194,322		$	193,533		$	170,812		$	175,510
Gross profit		58,235			45,241			34,413			17,179
Operating income (loss)		13,966			2,665			(10,220	)		(33,179	)
Net income (loss)	$	(17,589	)	$	(24,668	)	$	251		$	(22,197	)
Earnings (loss) per share:
Basic	$	(0.49	)	$	(0.70	)	$	0.01		$	(0.64	)
Diluted	$	(0.49	)	$	(0.70	)	$	0.01		$	(0.64	)
Weighted average common stock outstanding:
Basic		35,539,413			35,474,001			35,443,820			34,480,849
Diluted		35,539,413			35,474,001			37,484,601			34,480,849


	Fiscal Year 2012
	First Quarter (As Restated)		Second Quarter (As Restated)		Third Quarter (As Restated)		Fourth Quarter (As Restated)
Net sales	$	176,049	$	200,989	$	220,881	$	209,417
Gross profit		45,512		59,900		74,649		63,186
Operating income		9,565		20,345		32,492		21,913
Net income	$	13,361	$	2,458	$	47,210	$	47,009
Earnings per share:
Basic	$	0.36	$	0.07	$	1.30	$	1.31
Diluted	$	0.35	$	0.07	$	1.27	$	1.27
Weighted average common stock outstanding:
Basic		37,524,127		36,713,569		36,199,655		35,845,367
Diluted		38,282,932		37,517,712		37,290,612		37,050,284

The following table presents the impact of the restatement adjustments on the Company’s condensed consolidated statement of operations for each of first three quarters of the year ended December 31, 2013 (Unaudited):


	Three Month Ended March 31, 2013									Three Month Ended June 30, 2013								Three Month Ended September 30, 2013
	As Previously Reported			Adjustments (a)			As Restated			As Previously Reported		Adjustments (b)			As Restated			As Previously Reported		Adjustments (c)			As Restated
Net sales	$	205,298		$	(10,976	)	$	194,322		$	215,289	$	(21,756	)	$	193,533		$	217,824	$	(47,012	)	$	170,812
Gross profit		65,743			(7,508	)		58,235			71,048		(25,807	)		45,241			71,888		(37,475	)		34,413
Operating income (loss)		22,924			(8,958	)		13,966			30,208		(27,543	)		2,665			30,625		(40,845	)		(10,220	)
Net income (loss)	$	(7,405	)	$	(10,184	)	$	(17,589	)	$	4,436	$	(29,104	)	$	(24,668	)	$	46,671	$	(46,420	)	$	251
Earnings (loss) per share:
Basic	$	(0.21	)	$	(0.28	)	$	(0.49	)	$	0.13	$	(0.83	)	$	(0.70	)	$	1.32	$	(1.31	)	$	0.01
Diluted	$	(0.21	)	$	(0.28	)	$	(0.49	)	$	0.12	$	(0.82	)	$	(0.70	)	$	1.24	$	(1.23	)	$	0.01
Weighted average common stock outstanding:
Basic		35,539,413						35,539,413			35,474,001					35,474,001			35,443,820					35,443,820
Diluted		35,539,413						35,539,413			37,125,005					35,474,001			37,493,550					37,484,601

Adjustments to net income for the quarter ended March 31, 2013 include the unfavorable impact of $2,534 thousand related to the correction of revenue recognition, the unfavorable impact of $3,860 thousand related to increased inventory reserve, the unfavorable impact of $2,487 thousand for correction of inappropriately recognized maintenance expense, (which includes an offset favorable impact of $520 thousand for those transactions that involve certain cash payments to a maintenance supplies vendor, that (i) the vendor used to purchase products from distributors; (ii) the distributors then paid to the Company for those products; and (iii) in turn were applied to the Company’s aged accounts receivable), the unfavorable impact of $1,119 thousand related to tax matters and the net unfavorable impact of $184 thousand for other adjustments.

Adjustments to net income for the quarter ended June 30, 2013 include the unfavorable impact of $9,350 thousand related to the correction of revenue recognition, the unfavorable impact of $6,336 thousand related to increased inventory reserve, the unfavorable impact of $11,561 related to settlement obligations, the unfavorable impact of $1,395 thousand for tax matters and the net unfavorable impact of $462 thousand for other adjustments.

Adjustments to net income for the quarter ended September 30, 2013 include the unfavorable impact of $15,764 thousand related to the correction of revenue recognition, the unfavorable impact of $17,825 thousand related to increased inventory reserve, the unfavorable impact of $2,446 thousand for correction of inappropriately recognized maintenance expense, (which includes an offset favorable impact of $1,100 thousand for those transactions that involve certain cash payments to a maintenance supplies vendor, that (i) the vendor used to purchase products from distributors; (ii) the distributors then paid to the Company for those products; and (iii) in turn were applied to the Company’s aged accounts receivable), the unfavorable impact of $11,139 thousand related to tax matters, the favorable impact of $1,412 related to settlement obligations and the net unfavorable impact of $658 thousand for other adjustments. In addition, we have corrections for net presentation of certain revenue recognition from gross presentation which has no impact to net income.

The following table presents the impact of the restatement adjustments on the Company’s condensed consolidated statement of operations for each quarter of the year ended December 31, 2012 (Unaudited):


	Three Month Ended March 31, 2012							Three Month Ended June 30, 2012							Three Month Ended September 30, 2012							Three Month Ended December 31, 2012
	As previously reported		Adjustments (a)			As Restated		As previously reported		Adjustments (b)			As Restated		As previously reported		Adjustments (c)			As Restated		As previously reported		Adjustments (d)			As Restated
Net sales	$	177,002	$	(953	)	$	176,049	$	202,634	$	(1,645	)	$	200,989	$	221,872	$	(991	)	$	220,881	$	218,084	$	(8,667	)	$	209,417
Gross profit		49,915		(4,403	)		45,512		62,858		(2,958	)		59,900		76,440		(1,791	)		74,649		74,288		(11,102	)		63,186
Operating income		11,875		(2,310	)		9,565		23,003		(2,658	)		20,345		35,582		(3,090	)		32,492		35,347		(13,434	)		21,913
Net income	$	15,263	$	(1,902	)	$	13,361	$	4,340	$	(1,882	)	$	2,458	$	48,412	$	(1,202	)	$	47,210	$	125,286	$	(78,277	)	$	47,009
Earnings per share:
Basic	$	0.41	$	(0.05	)	$	0.36	$	0.12	$	(0.05	)	$	0.07	$	1.34	$	(0.04	)	$	1.30	$	3.50	$	(2.19	)	$	1.31
Diluted	$	0.40	$	(0.05	)	$	0.35	$	0.12	$	(0.05	)	$	0.07	$	1.30	$	(0.03	)	$	1.27	$	3.38	$	(2.11	)	$	1.27
Weighted average common stock outstanding:
Basic		37,524,127					37,524,127		36,713,569					36,713,569		36,199,655					36,199,655		35,845,367					35,845,367
Diluted		38,298,336					38,282,932		37,566,699					37,517,712		37,324,787					37,290,612		37,074,657					37,050,284

Adjustments to net income for the quarter ended March 31, 2012 include the favorable impact of $2,914 thousand related to the correction of revenue recognition, the unfavorable impact of $4,479 thousand related to increased inventory reserve and the net unfavorable impact of $337 thousand for other adjustments.

Adjustments to net income for the quarter ended June 30, 2012 include the unfavorable impact of $4,730 thousand related to the correction of revenue recognition, the favorable impact of $2,352 thousand related to change in inventory reserve and the net favorable impact of $496 thousand for other adjustments.

Adjustments to net income for the quarter ended September 30, 2012 include the favorable impact of $3,502 thousand related to the correction of revenue recognition, the unfavorable impact of $2,665 thousand related to increased inventory reserve, the unfavorable impact of $3,378 thousand related to accrual of understated employee benefits and the net favorable impact of $1,339 thousand for other adjustments.

Adjustments to net income for the quarter ended December 31, 2012 include the unfavorable impact of $66,236 thousand related to tax matters, the unfavorable impact of $10,423 thousand related to the correction of revenue recognition and the net unfavorable impact of $1,618 thousand for other adjustments.