18. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The following table presents selected quarterly financial data for each of the quarters in the years ended December 31, 2018 and 2017:


	For the 2018 Quarter Ended
	March 31		June 30		September 30		December 31
Net sales	$	1,342,484	$	1,416,078	$	1,373,334	$	1,360,628
Gross profit (1)(2)		90,378		98,416		93,358		93,856
(Loss) income before income taxes		(1,318)		(2,224)		48		(303,814)
Net (loss) income		(450)		(3,964)		169		(298,025)
Net (loss) income attributable to Diplomat Pharmacy		(450)		(3,964)		169		(298,025)
Basic (loss) income per common share		(0.01)		(0.05)		0.00		(4.00)
Diluted (loss) income per common share		(0.01)		(0.05)		0.00		(4.00)


	For the 2017 Quarter Ended
	March 31		June 30		September 30		December 31
Net sales	$	1,078,740	$	1,126,464	$	1,124,957	$	1,155,069
Gross profit (1)(2)		69,762		66,714		65,090		72,579
Income (loss) before income taxes		6,532		2,946		299		(1,714)
Net income		4,225		3,490		961		6,513
Net income attributable to Diplomat Pharmacy		4,367		3,591		1,016		6,536
Basic income per common share		0.07		0.05		0.01		0.09
Diluted income per common share		0.06		0.05		0.01		0.09

(1)

During the second quarter of 2018, the Company changed its accounting policy to reclassify shipping and handling costs incurred at its dispensing pharmacies from Selling, general and administrative expenses to Cost of sales in its consolidated statements of operations. As a result, this reclassification decreased gross profit by $11,100, $13,286, $15,408, $15,642 and $15,139 for the first quarter of 2017, second quarter of 2017, third quarter of 2017, fourth quarter of 2017 and first quarter of 2018, respectively.

(2)

During the second quarter of 2018, the Company changed the classification of the cost of its nursing support services to Cost of sales, which were previously reported in Selling, general and administrative expenses in its consolidated statements of operations. As a result, this reclassification decreased gross profit by $4,187, $4,834, $4,805, $5,282 and $5,095 for the first quarter of 2017, second quarter of 2017, third quarter of 2017, fourth quarter of 2017 and first quarter of 2018, respectively.

The Company’s results were also impacted by the following:

Quarter ended December 31, 2017: The Company recognized $1,710 of changes in the fair values of contingent consideration. The Company recognized a $7,828 income tax benefit due to the enactment of the Tax Act.

Quarter ended September 30, 2017: The Company recognized $1,965 of changes in the fair values of contingent consideration.

Quarter ended December 31, 2018: The Company recorded goodwill impairments of $224,966 and impairments of definite-lived intangible assets of $82,678.