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Quarterly Results of Operations (Unaudited)
 12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Results of Operations (Unaudited)
Quarterly Results of Operations (Unaudited)

In the fourth quarter of 2019, KC met the requirements to be reported as a discontinued operation. The following consolidated financial tables reflect KC as a discontinued operation for all periods presented and are labeled "Recast". See Note 3, Discontinued Operations for more information.

A summary of the unaudited results of operations for the year ended December 31 is as follows:
 
2019
 
As Restated and Recast
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
Revenue
$
126,642


$
131,065


$
149,508


$
204,570

Gross profit
$
26,702


$
28,507


$
30,946


$
42,397

Operating profit
$
111


$
3,185


$
4,439


$
19,060

 











Income (loss) from continuing operations, net of tax
$
(662
)

$
1,898


$
553


$
13,304

Loss from discontinued operations, net of tax
(2,723
)

(2,516
)

(2,753
)

(20,608
)
Net income (loss)
$
(3,385
)

$
(618
)

$
(2,200
)

$
(7,304
)
 











Basic and diluted earnings (loss) per share:











Continuing operations
$
(0.05
)

$
0.14


$
0.04


$
0.98

Discontinued operations
(0.20
)

(0.18
)

(0.20
)

(1.52
)
Basic and diluted earnings (loss) per share
$
(0.25
)

$
(0.04
)

$
(0.16
)

$
(0.54
)


 
2018
 
As Restated and Recast
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
Revenue
$
125,032


$
135,583


$
171,301


$
198,166

Gross profit
$
27,928


$
30,727


$
38,404


$
41,993

Operating profit
$
1,794


$
3,944


$
11,763


$
16,050

 











Income from continuing operations, net of tax
$
894


$
1,645


$
9,030


$
11,490

(Loss) income from discontinued operations, net of tax
(3,077
)

(2,766
)

(1,889
)

2,371

Net income (loss)
$
(2,183
)

$
(1,121
)

$
7,141


$
13,861

 











Basic and diluted earnings (loss) per share:











Continuing operations
$
0.07


$
0.12


$
0.66


$
0.84

Discontinued operations
(0.22
)

(0.20
)

(0.14
)

0.17

Basic and diluted earnings (loss) per share
$
(0.15
)

$
(0.08
)

$
0.52


$
1.01



Quarterly Discussion and Analysis

Revenue

Revenue for the first quarter of 2019 increased $1.6 million, or 1.3% compared to the first quarter of 2018 due to sales of new and higher priced products in the U.S. consumer market partially offset by lower sales volume in the international consumer market and unfavorable foreign currency movements.

Revenue for the second quarter of 2019 decreased $4.5 million, or 3.3% compared to the second quarter of 2018 primarily due to lower sales volume in the U.S. consumer and global commercial markets, partially offset by increased sales in the international consumer market.

Revenue for the third quarter of 2019 decreased $21.8 million, or 12.7% compared to the third quarter of 2018 primarily due to lower sales volume in the U.S. and international consumer markets. The lower sales volume in the U.S. was primarily due to a significant change in retailer order patterns and lower direct import sales driven by the adverse impact of tariffs. Also contributing to the third-quarter revenue shortfall was a loss of placements in the dollar store channel resulting from HBB's decision to not maintain this low margin business, ongoing foot traffic challenges at some retailers and other pressure points facing individual retail companies. HBB's international consumer markets reported lower sales volume due in large part to a one-time special purchase in 2018 by a customer in Latin America and to a lesser degree to reduced demand in several markets.

Gross profit

Gross profit for the first quarter of 2019 decreased $1.2 million, or 4.4% compared to the first quarter of 2018. As a percentage of revenue, gross profit declined from 22.3% to 21.1%. Gross profit margin declined primarily due to higher product costs arising from increased inbound freight expenses and unfavorable foreign currency movements.

Gross profit for the second quarter of 2019 decreased $2.2 million, or 7.2% compared to the second quarter of 2018 primarily due to lower sales volume. As a percentage of revenue, gross profit declined from 22.7% to 21.8% due to increased inbound freight expenses and unfavorable foreign currency movements.

Gross profit for the third quarter of 2019 decreased $7.5 million, or 19.4% compared to the third quarter of 2018 primarily due to lower sales volume. As a percentage of revenue, gross profit declined from 22.4% to 20.7% primarily due to to higher inbound freight, transportation and warehousing expenses, and the adverse impact of tariffs.

Selling, general and administrative expenses

Selling, general and administrative expenses for the first quarter of 2019 increased $0.4 million, or 1.8% compared to first quarter of 2018 due to increased legal and professional service fees.

Selling, general and administrative expenses for the second quarter decreased $1.5 million, or 5.5% compared to second quarter of 2018 primarily due to a $3.7 million decline in the environmental reserve at one site and lower employee-related costs, partially offset by a one-time charge of $3.2 million for a contingent loss related to patent litigation.

Selling, general and administrative expenses for the third quarter of 2019 decreased $0.1 million, or 0.5% compared to the third quarter of 2018, including a decline of $1.2 million primarily due to lower legal and professional services fees and a decrease in employee-related costs due to reduced incentive compensation expense.

Certain former employees of one of the Company's Mexico subsidiaries engaged in unauthorized transactions with the Company’s Mexican subsidiaries and in doing so expenditures were deferred on the balance sheet of the Mexican subsidiaries beyond the period for which the costs pertained. Included in selling, general and administrative expenses are non-cash charges to write-off unrealizable assets created as a result of these unauthorized transactions as follows:
•
Expenses of $1.8 million and $2.0 million for the three months ended March 31, 2019 and 2018, respectively;
•
Expenses of $0.6 million and $1.0 million for the three months ended June 30, 2019 and 2018, respectively; and
•
Expenses of $2.7 million and $1.5 million for the three months ended September 30, 2019 and 2018, respectively.

Interest expense, net
During the first quarter of 2019, interest expense, net increased $0.2 million from the first quarter of 2018 primarily due to an increase in average borrowings outstanding under HBB's revolving credit facility and higher average interest rates.

In the second quarter of 2019, interest expense, net remained consistent with the prior year. A decrease in average borrowings outstanding under HBB's revolving credit facility was offset by higher average interest rates.

In the third quarter of 2019 interest expense, net decreased $0.1 million from the third quarter of 2018 primarily due to decreased average borrowings outstanding under HBB's revolving credit facility.

Other expense, net
In the first quarter of 2019, other income, net decreased $0.3 million compared with other income in 2018 primarily due to unfavorable foreign currency movements as the Mexican peso weakened against the U.S. dollar during the period.

Other income for the second quarter of 2019 includes currency gains of $0.1 million compared with other expense in 2018 related to currency losses of $0.7 million.

Other expense for the third quarter of 2019 includes currency losses of $0.8 million compared with other income in 2018 related to currency gains of $0.2 million.

Income tax expense

The Company recognized $0.3 income tax expense in the first quarter of 2019 on a loss before income taxes of $0.4 million. The expense in 2019 is primarily attributable to non-cash charges to write-off unrealizable assets for which the corresponding tax benefit has been substantially offset by an increase in unrecognized tax benefits. The first quarter of 2018 included an insignificant one-time tax benefit recorded in the first three months of 2019 related to the non-U.S. pension plan. The Company recognized an income tax expense of $0.6 million in the second quarter of 2019 on income from continuing operations before income taxes of $2.5 million, an effective tax rate of 43.1% for the six months ended June 30, 2019. The effective tax rate increased from 40.5% in the first six months of 2018 primarily due to increased tax credits reflected in the forecasted 2019 effective tax rate. During the third quarter of 2019, the Company recognized income tax expense of $2.4 million on income from continuing operations before income taxes of $3.0 million.

Restatement of Previously Issued Unaudited Condensed Consolidated Financial Statements

In lieu of filing amended quarterly reports on Form 10-Q, the following tables represent our restated unaudited condensed consolidated financial statements for each of the quarters during the years ended December 31, 2019 and 2018. See Note 2, Restatement of Previously Issued Consolidated Financial Statements, for additional information.

Following the restated consolidated financial statement tables, we have presented a reconciliation from our prior periods, as previously reported, to the restated values. The values as previously reported were derived from our Quarterly Reports on Form 10-Q for the interim periods of 2019 and from the Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed on February 26, 2020. In the fourth quarter of 2019, KC met the requirements to be reported as a discontinued operation. The following consolidated financial tables reflect KC as a discontinued operation for all periods presented and are labeled "Recast".
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
As Restated and Recast
 
December 31, 2019
 
September 30, 2019
 
June 30, 2019
 
March 31, 2019
 
Three Months Ended
 
Three Months Ended
 
Nine Months Ended
 
Three Months Ended
 
Six Months Ended
 
Three Months Ended
 
(In thousands, except per share data)
Revenue
$
204,570


$
149,508


$
407,216


$
131,065


$
257,707


$
126,642

Cost of sales
162,173


118,562


321,060


102,558


202,498


99,940

Gross profit
42,397


30,946


86,155


28,507


55,209


26,702

Selling, general and administrative expenses
22,996


26,165


77,385


24,976


51,222


26,246

Amortization of intangible assets
341


345


1,036


346


691


345

Operating profit (loss)
19,060


4,439


7,734


3,185


3,296


111

Interest expense, net
767


756


2,208


789


1,452


663

Other expense (income), net
(710
)

681


352


(132
)

(329
)

(197
)
Income (loss) from continuing operations before income taxes
19,003


3,002


5,174


2,528


2,173


(355
)
Income tax expense (benefit)
5,699


2,449


3,385


630


937


307

Net income (loss) from continuing operations
13,304


553


1,789


1,898


1,236


(662
)
Loss from discontinued operations, net of tax
(20,608
)

(2,753
)

(7,992
)

(2,516
)

(5,239
)

(2,723
)
Net loss
$
(7,304
)

$
(2,200
)

$
(6,203
)

$
(618
)

$
(4,003
)

$
(3,385
)
 











Basic and diluted earnings (loss) per share:















Continuing operations
$
0.98


$
0.04


$
0.13


$
0.14


$
0.09


$
(0.05
)
Discontinued operations
(1.52
)

(0.20
)

(0.58
)

(0.18
)

(0.38
)

(0.20
)
Basic and diluted earnings (loss) per share
$
(0.54
)

$
(0.16
)

$
(0.45
)

$
(0.04
)

$
(0.29
)

$
(0.25
)
 

















Basic weighted average shares outstanding
13,518


13,579


13,726


13,813


13,800


13,786

Diluted weighted average shares outstanding
13,625


13,595


13,731


13,826


13,813


13,786

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
As Restated and Recast
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
Three Months Ended
 
Three Months Ended
 
Nine Months Ended
 
Three Months Ended
 
Six Months Ended
 
Three Months Ended
 
(In thousands, except per share data)
Revenue
$
198,166


$
171,301


$
431,916


$
135,583


$
260,615


$
125,032

Cost of sales
156,173


132,897


334,857


104,856


201,960


97,104

Gross profit
41,993


38,404


97,059


30,727


58,655


27,928

Selling, general and administrative expenses
25,599


26,296


78,522


26,437


52,225


25,789

Amortization of intangible assets
345


345


1,036


346


691


345

Operating profit
16,050


11,763


17,501


3,944


5,738


1,794

Interest expense, net
711


886


2,205


809


1,319


510

Other expense (income), net
429


(433
)

(280
)

679


153


(526
)
Income from continuing operations before income taxes
14,910


11,310


15,576


2,456


4,266


1,810

Income tax expense
3,420


2,280


4,007


811


1,727


916

Net income from continuing operations
11,490


9,030


11,569


1,645


2,539


894

Income (loss) from discontinued operations, net of tax
2,371


(1,889
)

(7,732
)

(2,766
)

(5,843
)

(3,077
)
Net income (loss)
$
13,861


$
7,141


$
3,837


$
(1,121
)

$
(3,304
)

$
(2,183
)
 











Basic and diluted earnings (loss) per share:















Continuing operations
$
0.84


$
0.66


$
0.84


$
0.12


$
0.19


$
0.07

Discontinued operations
0.17


(0.14
)

(0.56
)

(0.20
)

(0.43
)

(0.22
)
Basic and diluted earnings (loss) per share
$
1.01


$
0.52


$
0.28


$
(0.08
)

$
(0.24
)

$
(0.15
)
 

















Basic weighted average shares outstanding
13,714


13,704


13,694


13,695


13,689


13,683

Diluted weighted average shares outstanding
13,844


13,713


13,697


13,704


13,693


13,692

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
As Restated
 
December 31, 2019
 
September 30, 2019
 
June 30, 2019
 
March 31, 2019
 
Three Months Ended
 
Three Months Ended
 
Nine Months Ended
 
Three Months Ended
 
Six Months Ended
 
Three Months Ended
 
(In thousands)
Net income (loss)
$
(7,304
)

$
(2,200
)

$
(6,203
)

$
(618
)

$
(4,003
)

$
(3,385
)
Other comprehensive income (loss), net of tax:

















Foreign currency translation adjustment
201


(18
)

309


113


327


214

(Loss) gain on long-term intra-entity foreign currency transactions
294


(509
)

(373
)

121


136


15

Cash flow hedging activity
(143
)

(127
)

(1,426
)

(877
)

(1,299
)

(422
)
Reclassification of hedging activities into earnings
81


122


268


144


146


2

Pension plan adjustment
1,410


—


—


—


—


—

Reclassification of pension adjustments into earnings
35


127


313


102


186


84

Total other comprehensive income (loss), net of tax
1,878


(405
)

(909
)

(397
)

(504
)

(107
)
Comprehensive income (loss)
$
(5,426
)

$
(2,605
)

$
(7,112
)

$
(1,015
)

$
(4,507
)

$
(3,492
)

 
As Restated
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
Three Months Ended
 
Three Months Ended
 
Nine Months Ended
 
Three Months Ended
 
Six Months Ended
 
Three Months Ended
 
(In thousands)
Net income (loss)
$
13,861


$
7,141


$
3,837


$
(1,121
)

$
(3,304
)

$
(2,183
)
Other comprehensive income (loss), net of tax:

















Foreign currency translation adjustment
(1,135
)

902


1,063


(412
)

161


573

(Loss) gain on long-term intra-entity foreign currency transactions
60


(53
)

(1,066
)

(1,013
)

(1,013
)

—

Cash flow hedging activity
(352
)

(301
)

452


464


753


289

Reclassification of hedging activities into earnings
48


(102
)

105


41


207


166

Pension plan adjustment
(1,920
)

—


—


—


—


—

Reclassification of pension adjustments into earnings
141


115


415


142


300


158

Total other comprehensive income (loss), net of tax
(3,158
)

561


969


(778
)

408


1,186

Comprehensive income (loss)
$
10,703


$
7,702


$
4,805


$
(1,899
)

$
(2,896
)

$
(997
)
CONDENSED CONSOLIDATED BALANCE SHEETS
`
As Restated and Recast
 
September 30, 2019
 
June 30, 2019
 
March 31, 2019
 
(In thousands)
Assets
 
 
 
 
 
Current assets
 
 
 
 
 
Cash and cash equivalents
$
1,559


$
1,029


$
1,636

Trade receivables, net
103,091


86,268


79,102

Inventory
161,043


121,472


120,707

Prepaid expenses and other current assets
14,086


16,412


17,379

Current assets of discontinued operations
22,830


21,255


24,692

Total current assets
302,609


246,436


243,516

Property, plant and equipment, net
22,193


21,649


20,984

Goodwill
6,253


6,253


6,253

Other intangible assets, net
3,483


3,828


4,174

Deferred income taxes
5,640


3,754


3,166

Deferred costs
8,804


8,564


8,316

Other non-current assets
1,553


1,984


2,403

Non-current assets of discontinued operations
1,744


4,420


4,446

Total assets
$
352,279


$
296,888


$
293,258

Liabilities and stockholders' equity





Current liabilities





Accounts payable
$
140,011


$
86,199


$
73,720

Accounts payable to NACCO Industries, Inc.
220


220


2,425

Revolving credit agreements
50,152


51,505


54,812

Accrued compensation
14,650


11,725


8,398

Accrued product returns
8,266


8,224


9,314

Other current liabilities
25,880


21,382


17,705

Current liabilities of discontinued operations
24,713


20,048


21,473

Total current liabilities
263,892


199,303


187,847

Revolving credit agreements
30,000


30,000


30,000

Other long-term liabilities
14,258


14,699


18,619

Non-current liabilities of discontinued operations
1,585


3,697


3,834

Total liabilities
309,735


247,699


240,300

Stockholders’ equity





Class A Common stock
95


95


95

Class B Common stock
44


44


44

Capital in excess of par value
54,143


53,342


52,520

Treasury stock
(5,960
)

(2,334
)

—

Retained earnings
12,231


15,646


17,506

Accumulated other comprehensive loss
(18,009
)

(17,604
)

(17,207
)
Total stockholders’ equity
42,544


49,189


52,958

Total liabilities and stockholders' equity
$
352,279


$
296,888


$
293,258

 
 
 
 
 
 




CONDENSED CONSOLIDATED BALANCE SHEETS
`
As Restated and Recast
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
(In thousands)
Assets
 
 
 
 
 
Current assets
 
 
 
 
 
Cash and cash equivalents
$
1,567


$
1,393


$
1,784

Trade receivables, net
112,309


76,132


79,358

Inventory
155,744


138,721


132,749

Prepaid expenses and other current assets
12,595


14,569


14,615

Current assets of discontinued operations
32,185


30,704


29,086

Total current assets
314,400


261,519


257,592

Property, plant and equipment, net
20,988


19,088


17,643

Goodwill
6,253


6,253


6,253

Other intangible assets, net
4,864


5,209


5,555

Deferred income taxes
7,704


8,877


10,419

Deferred costs
10,153


9,825


10,187

Other non-current assets
3,282


3,178


3,068

Non-current assets of discontinued operations
5,313


5,688


5,661

Total assets
$
372,957


$
319,637


$
316,378

Liabilities and stockholders' equity





Current liabilities





Accounts payable
$
131,620


$
92,488


$
96,924

Accounts payable to NACCO Industries, Inc.
2,480


2,769


7,814

Revolving credit agreements
60,083


66,326


63,308

Accrued compensation
15,421


11,984


9,238

Accrued product returns
9,601


9,648


10,815

Other current liabilities
22,488


15,769


21,227

Current liabilities of discontinued operations
29,693


26,830


21,509

Total current liabilities
271,386


225,814


230,835

Revolving credit agreements
30,000


30,000


20,000

Other long-term liabilities
22,343


21,654


21,831

Non-current liabilities of discontinued operations
2,293


2,416


2,565

Total liabilities
326,022


279,884


275,231

Stockholders’ equity





Class A Common stock
92


92


92

Class B Common stock
45


45


45

Capital in excess of par value
51,366


50,721


49,051

Treasury stock
—


—


—

Retained earnings
9,373


3,397


5,683

Accumulated other comprehensive loss
(13,941
)

(14,502
)

(13,724
)
Total stockholders’ equity
46,935


39,753


41,147

Total liabilities and stockholders' equity
$
372,957


$
319,637


$
316,378

The restatement corrections impact certain components within operating cash flows of the Consolidated Statements of Cash Flows. Total operating cash flows was unchanged, except for the impact of exchange rate changes resulting from the adjustments. Total investing activities, financing activities, and cash and cash equivalents are unchanged as a result of the restatements.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the Year Ended December 31, 2019
 
Class A common stock
Class B common stock
Capital in excess of par value (1)
Treasury stock
Retained earnings (1)
Accumulated other comprehensive income (loss) (1)
Total stockholders' equity (1)
 
(In thousands, except per share data)
Balance as Restated, January 1, 2019
$
93

$
44

$
51,714

$
—

$
22,068

$
(17,101
)
$
56,818

Net loss
—

—

—

—

(3,385
)
—

(3,385
)
Issuance of common stock, net of conversions
2

—

(1
)
—

—

—

1

Purchase of treasury stock
—

—

—

—

—

—

—

Share-based compensation expense
—

—

807

—

—

—

807

Cash dividends, $0.085 per share
—

—

—

—

(1,177
)
—

(1,177
)
Other comprehensive loss
—

—

—

—

—

(192
)
(192
)
Reclassification adjustment to net loss
—

—

—

—

—

86

86

Balance as Restated, March 31, 2019
$
95

$
44

$
52,520

$
—

$
17,506

$
(17,207
)
$
52,958

Net loss
—

—

—

—

(618
)
—

(618
)
Issuance of common stock, net of conversions
—

—

—

—

—

—

—

Purchase of treasury stock
—

—

—

(2,334
)
—

—

(2,334
)
Share-based compensation expense
—

—

822

—

—

—

822

Cash dividends, $0.09 per share
—

—

—

—

(1,242
)
—

(1,242
)
Other comprehensive loss
—

—

—

—

—

(643
)
(643
)
Reclassification adjustment to net loss
—

—

—

—

—

246

246

Balance as Restated, June 30, 2019
$
95

$
44

$
53,342

$
(2,334
)
$
15,646

$
(17,604
)
$
49,189

Net loss
—

—

—

—

(2,200
)
—

(2,200
)
Issuance of common stock, net of conversions
—

—

—

—

—

—

—

Purchase of treasury stock
—

—

—

(3,626
)
—

—

(3,626
)
Share-based compensation expense
—

—

801

—

—

—

801

Cash dividends, $0.09 per share
—

—

—

—

(1,215
)
—

(1,215
)
Other comprehensive loss
—

—

—

—

—

(654
)
(654
)
Reclassification adjustment to net loss
—

—

—

—

—

249

249

Balance as Restated, September 30, 2019
$
95

$
44

$
54,143

$
(5,960
)
$
12,231

$
(18,009
)
$
42,544

Net loss
—

—

—

—

(7,304
)
—

(7,304
)
Issuance of common stock, net of conversions
3

(3
)
(1
)
—

—

—

(1
)
Purchase of treasury stock
—

—

—

—

—

—

—

Share-based compensation expense
—

—

367

—

—

—

367

Cash dividends, $0.09 per share
—

—

—

—

(1,217
)
—

(1,217
)
Other comprehensive loss
—

—

—

—

—

1,761

1,761

Reclassification adjustment to net loss
—

—

—

—

—

116

116

Balance as Restated, December 31, 2019
$
98

$
41

$
54,509

$
(5,960
)
$
3,710

$
(16,132
)
$
36,266

















(1) As Restated. The restatement impacts on net income are described in the reconciliation of the consolidated statement of operations. The restatement impacts on other comprehensive loss are described in the reconciliation of the consolidated statement of comprehensive income (loss) for the corresponding periods of the year ended December 31, 2019. The quarter ended March 31, 2019 included a change to the reclassification adjustment to net loss of $0.1 million.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
 
For the Year Ended December 31, 2018
 
Class A common stock
Class B common stock
Capital in excess of par value
Retained earnings (1)
Accumulated other comprehensive income (loss) (1)
Total stockholders' equity (1)
 
(In thousands, except per share data)
Balance as Restated, January 1, 2018
$
88

$
48

$
47,773

$
7,860

$
(13,743
)
$
42,026

Net loss
—

—

—

(2,183
)
—

(2,183
)
Issuance of common stock, net of conversions
4

(3
)
323

—

—

324

Share-based compensation expense
—

—

955

—

—

955

Cash dividends, $0.085 per share
—

—

—

(1,162
)
—

(1,162
)
Reclassification due to adoption of ASU 2018-02
—

—

—

1,168

(1,168
)
—

Other comprehensive loss
—

—

—

—

863

863

Reclassification adjustment to net loss
—

—

—

—

324

324

Balance as Restated, March 31, 2018
$
92

$
45

$
49,051

$
5,683

$
(13,724
)
$
41,147

Net loss
—

—

—

(1,121
)
—

(1,121
)
Issuance of common stock, net of conversions
—

—

198

—

—

198

Share-based compensation expense
—

—

1,472

—

—

1,472

Cash dividends, $0.085 per share
—

—

—

(1,165
)
—

(1,165
)
Other comprehensive loss
—

—

—

—

(961
)
(961
)
Reclassification adjustment to net loss
—

—

—

—

183

183

Balance as Restated, June 30, 2018
$
92

$
45

$
50,721

$
3,397

$
(14,502
)
$
39,753

Net loss
—

—

—

7,141

—

7,141

Issuance of common stock, net of conversions
—

—

246

—

—

246

Share-based compensation expense
—

—

399



—

399

Cash dividends, $0.085 per share
—

—

—

(1,165
)
—

(1,165
)
Other comprehensive loss
—

—

—

—

548

548

Reclassification adjustment to net loss
—

—

—

—

13

13

Balance as Restated, September 30, 2018
$
92

$
45

$
51,366

$
9,373

$
(13,941
)
$
46,935

Net loss
—

—

—

13,861

—

13,861

Issuance of common stock, net of conversions
1

(1
)
(444
)
—

—

(444
)
Share-based compensation expense
—

—

792

—

—

792

Cash dividends, $0.085 per share
—

—

—

(1,166
)
—

(1,166
)
Other comprehensive loss
—

—

—

—

(3,349
)
(3,349
)
Reclassification adjustment to net loss
—

—

—

—

189

189

Balance as Restated, December 31, 2018
$
93

$
44

$
51,714

$
22,068

$
(17,101
)
$
56,818

 
 
 
 
 
 
 

(1) As Restated. The restatement impacts on net income are described in the reconciliation of the consolidated statement of operations. The restatement impacts on other comprehensive loss are described in the reconciliation of the consolidated statement of comprehensive income (loss) for the corresponding periods of the year ended December 31, 2018.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
For the Three Months Ended December 31, 2019
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
 
(In thousands)
Revenue
$
207,085


$
(2,515
)

a,b,c,d

$
204,570

Cost of sales
162,173


—




162,173

Gross profit
44,912


(2,515
)



42,397

Selling, general and administrative expenses
19,054


3,942


a,c,f

22,996

Amortization of intangible assets
341


—




341

Operating profit (loss)
25,517


(6,457
)



19,060

Interest expense, net
767


—




767

Other expense (income), net
(710
)

—




(710
)
Income (loss) from continuing operations before income taxes
25,460


(6,457
)



19,003

Income tax expense (benefit)
6,066


(367
)

e

5,699

Net income (loss) from continuing operations
19,394


(6,090
)



13,304

Loss from discontinued operations, net of tax
(20,608
)

—




(20,608
)
Net income (loss)
$
(1,214
)

$
(6,090
)



$
(7,304
)
 







Basic and diluted earnings (loss) per share:










Continuing operations
$
1.43


$
(0.45
)



$
0.98

Discontinued operations
(1.52
)

—




(1.52
)
Basic and diluted earnings (loss) per share
$
(0.09
)

$
(0.45
)



$
(0.54
)
 










Basic weighted average shares outstanding
13,518


—




13,518

Diluted weighted average shares outstanding
13,625


—




13,625


(a) Write-off of Assets: The correction of these misstatements resulted in a decrease to revenue of $0.4 million, and an increase to selling, general and administrative ("SG&A") expense of $3.7 million
(b) Reversal of Revenue: The correction of these misstatements resulted in a decrease to revenue of $0.6 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in a decrease to revenue and a decrease to SG&A expense of $0.2 million
(d) Correction for the timing of recognition of customer price concessions: The correction of these misstatements resulted in a decrease to revenue of $1.3 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in a decrease to income tax expense of $0.4 million
(f) Correction of other immaterial errors: The correction of these misstatements resulted in an increase to SG&A expense of $0.5 million

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
For the Three Months Ended September 30, 2019
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
Recasting Impacts
As Restated and Recast
 
(In thousands)
Revenue
$
169,778


$
18


b,c

$
169,796

$
(20,288
)
$
149,508

Cost of sales
129,194


—


 

129,194

(10,632
)
118,562

Gross profit
40,584


18


 

40,602

(9,656
)
30,946

Selling, general and administrative expenses
36,182


2,573


a,c,f

38,755

(12,590
)
26,165

Amortization of intangible assets
345


—


 

345

—

345

Operating profit (loss)
4,057


(2,552
)

 

1,505

2,934

4,439

Interest expense, net
864


—


 

864

(108
)
756

Other expense (income), net
688


—


 

688

(7
)
681

Income (loss) from continuing operations before income taxes
2,505


(2,552
)

 

(47
)
3,049

3,002

Income tax expense (benefit)
2,108


45


e

2,153

296

2,449

Net income (loss) from continuing operations
397


(2,597
)

 

(2,200
)
2,753

553

Loss from discontinued operations, net of tax
—


—


 

—

(2,753
)
(2,753
)
Net income (loss)
$
397


$
(2,597
)

 

$
(2,200
)
$
—

$
(2,200
)
 




 




Basic and diluted earnings (loss) per share:






 







Continuing operations
$
0.03


$
(0.19
)

 

$
(0.16
)
$
0.20

$
0.04

Discontinued operations
—


—


 

—

(0.20
)
(0.20
)
Basic and diluted earnings (loss) per share
$
0.03


$
(0.19
)

 

$
(0.16
)
$
—

$
(0.16
)
 






 







Basic weighted average shares outstanding
13,579


—


 

13,579

—

13,579

Diluted weighted average shares outstanding
13,595


—


 

13,595

—

13,595


(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $2.2 million
(b) Reversal of Revenue: The correction of these misstatements resulted in a decrease to revenue of $0.5 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $0.5 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to income tax expense
(f) Correction of other immaterial errors: The correction of these misstatements resulted in a decrease to SG&A expense of $0.1 million

 
For the Nine Months Ended September 30, 2019
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
Recasting Impacts
As Restated and Recast
 
(In thousands)
Revenue
$
463,582


$
1,458


b,c,f

$
465,040

$
(57,824
)
$
407,216

Cost of sales
352,618


(65
)

f

352,553

(31,493
)
321,060

Gross profit
110,964


1,522


 

112,486

(26,331
)
86,155

Selling, general and administrative expenses
108,306


5,137


a,c,f

113,443

(36,058
)
77,385

Amortization of intangible assets
1,036


—


 

1,036

—

1,036

Operating profit (loss)
1,622


(3,615
)

 

(1,993
)
9,727

7,734

Interest expense, net
2,514


—


 

2,514

(306
)
2,208

Other expense (income), net
230


144


f

374

(22
)
352

Income (loss) from continuing operations before income taxes
(1,122
)

(3,759
)

 

(4,881
)
10,055

5,174

Income tax expense (benefit)
1,186


136


e

1,322

2,063

3,385

Net income (loss) from continuing operations
(2,308
)

(3,895
)

 

(6,203
)
7,992

1,789

Loss from discontinued operations, net of tax
—


—


 

—

(7,992
)
(7,992
)
Net income (loss)
$
(2,308
)

$
(3,895
)

 

$
(6,203
)
$
—

$
(6,203
)
 




 




Basic and diluted earnings (loss) per share:






 







Continuing operations
$
(0.17
)

$
(0.28
)

 

$
(0.45
)
$
0.58

$
0.13

Discontinued operations
—


—


 

—

(0.58
)
(0.58
)
Basic and diluted earnings (loss) per share
$
(0.17
)

$
(0.28
)

 

$
(0.45
)
$
—

$
(0.45
)
 






 







Basic weighted average shares outstanding
13,726


—


 

13,726

—

13,726

Diluted weighted average shares outstanding
13,726


—


 

13,726

5

13,731


(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $3.3 million
(b) Reversal of Revenue: The correction of these misstatements resulted in a decrease to revenue of $0.5 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $1.8 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to income tax expense of $0.1 million
(f) Correction of other immaterial errors: The correction of these misstatements resulted in an increase to revenue of $0.2 million, a decrease to cost of sales of $0.1 million, and an increase to other expense of $0.1 million.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
For the Three Months Ended June 30, 2019
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
Recasting Impacts
As Restated and Recast
 
(In thousands)
Revenue
$
148,427


$
921


c

$
149,348

$
(18,283
)
$
131,065

Cost of sales
112,770


—


 

112,770

(10,212
)
102,558

Gross profit
35,657


921


 

36,578

(8,071
)
28,507

Selling, general and administrative expenses
35,617


594


a,c

36,211

(11,235
)
24,976

Amortization of intangible assets
346


—


 

346

—

346

Operating profit (loss)
(306
)

327


 

21

3,164

3,185

Interest expense, net
904


—


 

904

(115
)
789

Other expense (income), net
(126
)

—


 

(126
)
(6
)
(132
)
Income (loss) from continuing operations before income taxes
(1,084
)

327


 

(757
)
3,285

2,528

Income tax expense
(140
)

1




(139
)
769

630

Net income (loss) from continuing operations
(944
)

326


 

(618
)
2,516

1,898

Loss from discontinued operations, net of tax
—


—


 

—

(2,516
)
(2,516
)
Net income (loss)
$
(944
)

$
326


 

$
(618
)
$
—

$
(618
)
 




 




Basic and diluted earnings (loss) per share:






 







Continuing operations
$
(0.07
)

$
0.03


 

$
(0.04
)
$
0.18

$
0.14

Discontinued operations
—


—


 

—

(0.18
)
(0.18
)
Basic and diluted earnings (loss) per share
$
(0.07
)

$
0.02


 

$
(0.05
)
$
—

$
(0.04
)
 






 







Basic weighted average shares outstanding
13,813


—


 

13,813

—

13,813

Diluted weighted average shares outstanding
13,813


—


 

13,813

13

13,826


(a) Write-off of Assets: The correction of these misstatements resulted in a decrease to selling, general and administrative ("SG&A") expense of $0.3 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $0.9 million


 
For the Six Months Ended June 30, 2019
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
Recasting Impacts
As Restated and Recast
 
(In thousands)
Revenue
$
293,804


$
1,439


c,f

$
295,243

$
(37,536
)
$
257,707

Cost of sales
223,424


(65
)

f

223,359

(20,861
)
202,498

Gross profit
70,380


1,504


 

71,884

(16,675
)
55,209

Selling, general and administrative expenses
72,124


2,566


a,c,f

74,690

(23,468
)
51,222

Amortization of intangible assets
691


—


 

691

—

691

Operating profit (loss)
(2,435
)

(1,062
)

 

(3,497
)
6,793

3,296

Interest expense, net
1,650


—


 

1,650

(198
)
1,452

Other expense (income), net
(458
)

144


f

(314
)
(15
)
(329
)
Income (loss) from continuing operations before income taxes
(3,627
)

(1,206
)

 

(4,833
)
7,006

2,173

Income tax expense (benefit)
(922
)

92


e

(830
)
1,767

937

Net income (loss) from continuing operations
(2,705
)

(1,298
)

 

(4,003
)
5,239

1,236

Loss from discontinued operations, net of tax
—


—


 

—

(5,239
)
(5,239
)
Net loss
$
(2,705
)

$
(1,298
)

 

$
(4,003
)
$
—

$
(4,003
)
 




 




Basic and diluted earnings (loss) per share:






 







Continuing operations
$
(0.20
)

$
(0.09
)

 

$
(0.29
)
$
0.38

$
0.09

Discontinued operations
—


—


 

—

(0.38
)
(0.38
)
Basic and diluted earnings (loss) per share
$
(0.20
)

$
(0.09
)

 

$
(0.29
)
$
—

$
(0.29
)
 






 







Basic weighted average shares outstanding
13,800


—


 

13,800

—

13,800

Diluted weighted average shares outstanding
13,800


—


 

13,800

13

13,813


(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $1.1 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $1.3 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to income tax expense of $0.1 million
(f) Correction of other immaterial errors: The correction of these misstatements resulted in an increase to revenue of $0.1 million, a decrease to cost of sales of $0.1 million, an increase to SG&A of $0.2 million, and an increase to other expense of $0.1 million

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
For the Three Months Ended March 31, 2019

As Previously Reported

Restatement Impacts

Restatement References

As Restated
Recasting Impacts
As Restated and Recast
 
(In thousands)
Revenue
$
145,377


$
518


c,f

$
145,895

$
(19,253
)
$
126,642

Cost of sales
110,654


(65
)

f

110,589

(10,649
)
99,940

Gross profit
34,723


583




35,306

(8,604
)
26,702

Selling, general and administrative expenses
36,507


1,972


a,c,f

38,479

(12,233
)
26,246

Amortization of intangible assets
345


—




345

—

345

Operating profit (loss)
(2,129
)

(1,389
)



(3,518
)
3,629

111

Interest expense, net
746


—




746

(83
)
663

Other expense (income), net
(332
)

144


f

(188
)
(9
)
(197
)
Income (loss) from continuing operations before income taxes
(2,543
)

(1,533
)



(4,076
)
3,721

(355
)
Income tax expense (benefit)
(782
)

91


e

(691
)
998

307

Net income (loss) from continuing operations
(1,761
)

(1,624
)



(3,385
)
2,723

(662
)
Loss from discontinued operations, net of tax
—


—




—

(2,723
)
(2,723
)
Net loss
$
(1,761
)

$
(1,624
)



$
(3,385
)
$
—

$
(3,385
)










Basic and diluted earnings (loss) per share:














Continuing operations
$
(0.13
)

$
(0.12
)



$
(0.25
)
$
0.20

$
(0.05
)
Discontinued operations
—


—




—

(0.20
)
(0.20
)
Basic and diluted earnings (loss) per share
$
(0.13
)

$
(0.12
)



$
(0.25
)
$
—

$
(0.25
)















Basic weighted average shares outstanding
13,786


—




13,786

—

13,786

Diluted weighted average shares outstanding
13,786


—




13,786

—

13,786


(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $1.4 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $0.4 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to income tax expense of $0.1 million
(f) Correction of other immaterial errors: The correction of these misstatements resulted in an increase to revenue of $0.1 million, a decrease to cost of sales of $0.1 million, an increase to SG&A expense of $0.2 million, and an increase in other expense of $0.1 million

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
For the Three Months Ended December 31, 2018
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
 
(In thousands, except per share data)
Revenue
$
198,981


$
(815
)

c,f

$
198,166

Cost of sales
157,419


(1,246
)

f

156,173

Gross profit
41,562


431




41,993

Selling, general and administrative expenses
23,677


1,922


a,c,f

25,599

Amortization of intangible assets
345


—




345

Operating profit
17,540


(1,490
)



16,050

Interest expense, net
711


—




711

Other expense (income), net
573


(144
)

f

429

Income from continuing operations before income taxes
16,256


(1,346
)



14,910

Income tax expense
3,595


(175
)

e

3,420

Net income from continuing operations
12,661


(1,171
)



11,490

Loss from discontinued operations, net of tax
2,371


—




2,371

Net income (loss)
$
15,032


$
(1,171
)



$
13,861

 







Basic and diluted earnings (loss) per share:










Continuing operations
$
0.93


$
(0.09
)



$
0.84

Discontinued operations
0.17


—




0.17

Basic and diluted earnings (loss) per share
$
1.10


$
(0.09
)



$
1.01

 










Basic weighted average shares outstanding
13,714


—




13,714

Diluted weighted average shares outstanding
13,844


—




13,844


(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $1.4 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $0.6 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in a decrease to income tax expense of $0.2 million
(f) Correction of other immaterial errors: The correction of these misstatements resulted in a decrease to revenue of $1.4 million, a decrease to cost of sales of $1.2 million, and a decrease in other income of $0.1 million

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
For the Three Months Ended September 30, 2018
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
Recasting Impacts
As Restated and Recast
 
(In thousands)
Revenue
$
196,901


$
284


c

$
197,185

$
(25,884
)
$
171,301

Cost of sales
146,550


—




146,550

(13,653
)
132,897

Gross profit
50,351


284




50,635

(12,231
)
38,404

Selling, general and administrative expenses
39,211


1,496


a,c

40,707

(14,411
)
26,296

Amortization of intangible assets
345


—




345

—

345

Operating profit
10,795


(1,212
)



9,583

2,180

11,763

Interest expense, net
1,001


—




1,001

(115
)
886

Other expense (income), net
(426
)

—




(426
)
(7
)
(433
)
Income from continuing operations before income taxes
10,220


(1,212
)



9,008

2,302

11,310

Income tax expense
2,176


(309
)

e

1,867

413

2,280

Net income from continuing operations
8,044


(903
)



7,141

1,889

9,030

Loss from discontinued operations, net of tax
—


—




—

(1,889
)
(1,889
)
Net income (loss)
$
8,044


$
(903
)



$
7,141

$
—

$
7,141

 









Basic and diluted earnings (loss) per share:














Continuing operations
$
0.59


$
(0.07
)



$
0.52

$
0.14

$
0.66

Discontinued operations
—


—




—

(0.14
)
(0.14
)
Basic and diluted earnings (loss) per share
$
0.59


$
(0.07
)



$
0.52

$
—

$
0.52

 














Basic weighted average shares outstanding
13,704


—




13,704

—

13,704

Diluted weighted average shares outstanding
13,713


—




13,713

—

13,713


(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $1.2 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $0.3 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in a decrease to income tax expense of $0.3 million


 
For the Nine Months Ended September 30, 2018
 
 
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
Recasting Impacts
As Restated and Recast
 
(In thousands)
Revenue
$
501,475


$
1,187


c.f

$
502,662

$
(70,746
)
$
431,916

Cost of sales
372,478


81


f

372,559

(37,702
)
334,857

Gross profit
128,997


1,106




130,103

(33,044
)
97,059

Selling, general and administrative expenses
117,328


4,235


a,c,f

121,563

(43,041
)
78,522

Amortization of intangible assets
1,036


—




1,036

—

1,036

Operating profit
10,633


(3,129
)



7,504

9,997

17,501

Interest expense, net
2,422


—




2,422

(217
)
2,205

Other expense (income), net
(253
)

—




(253
)
(27
)
(280
)
Income from continuing operations before income taxes
8,464


(3,129
)



5,335

10,241

15,576

Income tax expense
1,712


(214
)

e

1,498

2,509

4,007

Net income from continuing operations
6,752


(2,915
)



3,837

7,732

11,569

Loss from discontinued operations, net of tax
—


—




—

(7,732
)
(7,732
)
Net income (loss)
$
6,752


$
(2,915
)



$
3,837

$
—

$
3,837

 









Basic and diluted earnings (loss) per share:














Continuing operations
$
0.49


$
(0.21
)



$
0.28

$
0.56

$
0.84

Discontinued operations
—


—




—

(0.56
)
(0.56
)
Basic and diluted earnings (loss) per share
$
0.49


$
(0.21
)



$
0.28

$
—

$
0.28

 














Basic weighted average shares outstanding
13,694


—




13,694

—

13,694

Diluted weighted average shares outstanding
13,697


—




13,697

—

13,697


(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $3.5 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $0.9 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in a decrease to income tax expense of $0.2 million
(f) Correction of other immaterial errors: The correction of these misstatements resulted in an increase to revenue of $0.3 million, an increase to cost of sales of $0.1 million, and a decrease to SG&A of $0.2 million
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
For the Three Months Ended June 30, 2018
 
 
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
Recasting Impacts
As Restated and Recast
 
(In thousands)
Revenue
$
157,941


$
404


c

$
158,345

$
(22,762
)
$
135,583

Cost of sales
117,088


—




117,088

(12,232
)
104,856

Gross profit
40,853


404




41,257

(10,530
)
30,727

Selling, general and administrative expenses
40,123


525


a,c,f

40,648

(14,211
)
26,437

Amortization of intangible assets
346


—




346

—

346

Operating profit
384


(121
)



263

3,681

3,944

Interest expense, net
889


—




889

(80
)
809

Other expense (income), net
687


—




687

(8
)
679

Income from continuing operations before income taxes
(1,192
)

(121
)



(1,313
)
3,769

2,456

Income tax expense
(318
)

126


e

(192
)
1,003

811

Net income from continuing operations
(874
)

(247
)



(1,121
)
2,766

1,645

Loss from discontinued operations, net of tax
—


—




—

(2,766
)
(2,766
)
Net income (loss)
$
(874
)

$
(247
)



$
(1,121
)
$
—

$
(1,121
)
 









Basic and diluted earnings (loss) per share:














Continuing operations
$
(0.06
)

$
(0.02
)



$
(0.08
)
$
0.20

$
0.12

Discontinued operations
—


—




—

(0.20
)
(0.20
)
Basic and diluted earnings (loss) per share
$
(0.06
)

$
(0.02
)



$
(0.08
)
$
—

$
(0.08
)
 














Basic weighted average shares outstanding
13,695


—




13,695

—

13,695

Diluted weighted average shares outstanding
13,695


—




13,695

9

13,704


(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $0.5 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $0.4 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to income tax expense of $0.1 million
(f) Correction of other immaterial errors: The correction of these misstatements resulted in a decrease to SG&A of $0.4 million

 
For the Six Months Ended June 30, 2018
 
 
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
Recasting Impacts
As Restated and Recast
 
(In thousands)
Revenue
$
304,574


$
903


c,f

$
305,477

$
(44,862
)
$
260,615

Cost of sales
225,928


81


f

226,009

(24,049
)
201,960

Gross profit
78,646


822




79,468

(20,813
)
58,655

Selling, general and administrative expenses
78,117


2,738


a,c,f

80,855

(28,630
)
52,225

Amortization of intangible assets
691


—




691

—

691

Operating profit
(162
)

(1,917
)



(2,079
)
7,817

5,738

Interest expense, net
1,421


—




1,421

(102
)
1,319

Other expense (income), net
173


—




173

(20
)
153

Income from continuing operations before income taxes
(1,756
)

(1,917
)



(3,673
)
7,939

4,266

Income tax expense
(464
)

95


e

(369
)
2,096

1,727

Net income from continuing operations
(1,292
)

(2,012
)



(3,304
)
5,843

2,539

Loss from discontinued operations, net of tax
—


—




—

(5,843
)
(5,843
)
Net income (loss)
$
(1,292
)

$
(2,012
)



$
(3,304
)
$
—

$
(3,304
)
 










Basic and diluted earnings (loss) per share:















Continuing operations
$
(0.09
)

$
(0.15
)



$
(0.24
)
$
0.43

$
0.19

Discontinued operations
—


—




—

(0.43
)
(0.43
)
Basic and diluted earnings (loss) per share
$
(0.09
)

$
(0.15
)



$
(0.24
)
$
—

$
(0.24
)
 















Basic weighted average shares outstanding
13,689


—




13,689

—

13,689

Diluted weighted average shares outstanding
13,689


—




13,689

4

13,693


(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $2.3 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $0.6 million
(e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to income tax expense of $0.1 million
(f) Correction of other immaterial errors: The correction of these misstatements resulted in an increase to revenue of $0.3 million, an increase to cost of sales of $0.1 million, and a decrease to SG&A of $0.2 million


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
For the Three Months Ended March 31, 2018
 
As Previously Reported
 
Restatement Impacts
 
Restatement References
 
As Restated
Recasting Impacts
As Restated and Recast
 
(In thousands)
Revenue
$
146,633


$
499


c,f

$
147,132

$
(22,100
)
$
125,032

Cost of sales
108,840


81


f

108,921

(11,817
)
97,104

Gross profit
37,793


418




38,211

(10,283
)
27,928

Selling, general and administrative expenses
37,994


2,214


a,c,f

40,208

(14,419
)
25,789

Amortization of intangible assets
345


—




345

—

345

Operating profit
(546
)

(1,796
)



(2,342
)
4,136

1,794

Interest expense, net
532


—




532

(22
)
510

Other expense (income), net
(514
)

—




(514
)
(12
)
(526
)
Income from continuing operations before income taxes
(564
)

(1,796
)



(2,360
)
4,170

1,810

Income tax expense
(146
)

(31
)



(177
)
1,093

916

Net income from continuing operations
(418
)

(1,765
)



(2,183
)
3,077

894

Loss from discontinued operations, net of tax
—


—




—

(3,077
)
(3,077
)
Net income (loss)
$
(418
)

$
(1,765
)



$
(2,183
)
$
—

$
(2,183
)
 









Basic and diluted earnings (loss) per share:














Continuing operations
$
(0.03
)

$
(0.12
)



$
(0.15
)
$
0.22

$
0.07

Discontinued operations
—


—




—

(0.22
)
(0.22
)
Basic and diluted earnings (loss) per share
$
(0.03
)

$
(0.12
)



$
(0.15
)
$
—

$
(0.15
)
 














Basic weighted average shares outstanding
13,683


—




13,683

—

13,683

Diluted weighted average shares outstanding
13,683


—




13,683

9

13,692


(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $1.7 million
(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $0.2 million
(f) Correction of other immaterial errors: The correction of these misstatements resulted in an increase to revenue of $0.3 million, and increase to cost of sales of $0.1 million, an increase to SG&A of $0.3 million
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
For the Three Months Ended December 31, 2019
 
As Previously Reported
 
Restatement Impacts
 
As Restated
 
(In thousands)
Net income (loss)
$
(1,214
)

$
(6,090
)

$
(7,304
)
Other comprehensive income (loss), net of tax:








Foreign currency translation adjustment
857


(656
)

201

(Loss) gain on long-term intra-entity foreign currency transactions
294


—


294

Cash flow hedging activity
(143
)

—


(143
)
Reclassification of hedging activities into earnings
81


—


81

Pension plan adjustment
1,410


—


1,410

Reclassification of pension adjustments into earnings
35


—


35

Total other comprehensive loss, net of tax
2,534


(656
)

1,878

Comprehensive income (loss)
$
1,320


$
(6,746
)

$
(5,426
)

See description of the net income (loss) impacts in the consolidated statement of operations for the three months ended December 31, 2019 section above.
The decrease to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories.


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
For the Three Months Ended September 30, 2019
 
As Previously Reported
 
Restatement Impacts
 
As Restated
 
(In thousands)
Net income (loss)
$
397


$
(2,597
)

$
(2,200
)
Other comprehensive income (loss), net of tax:








Foreign currency translation adjustment
(312
)

294


(18
)
(Loss) gain on long-term intra-entity foreign currency transactions
(509
)

—


(509
)
Cash flow hedging activity
(127
)

—


(127
)
Reclassification of hedging activities into earnings
122


—


122

Pension plan adjustment
—


—


—

Reclassification of pension adjustments into earnings
127


—


127

Total other comprehensive loss, net of tax
(699
)

294


(405
)
Comprehensive income (loss)
$
(302
)

$
(2,303
)

$
(2,605
)

See description of the net income (loss) impacts in the consolidated statement of operations for the three months ended September 30, 2019 section above.
The increase to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories.

 
For the Nine Months Ended September 30, 2019
 
As Previously Reported
 
Restatement Impacts
 
As Restated
 
(In thousands)
Net income (loss)
$
(2,308
)

$
(3,895
)

$
(6,203
)
Other comprehensive income (loss), net of tax:








Foreign currency translation adjustment
244


65


309

(Loss) gain on long-term intra-entity foreign currency transactions
(373
)

—


(373
)
Cash flow hedging activity
(1,570
)

144


(1,426
)
Reclassification of hedging activities into earnings
268


—


268

Pension plan adjustment
—


—


—

Reclassification of pension adjustments into earnings
219


94


313

Total other comprehensive loss, net of tax
(1,212
)

303


(909
)
Comprehensive income (loss)
$
(3,520
)

$
(3,592
)

$
(7,112
)

See description of the net income (loss) impacts in the consolidated statement of operations for the nine months ended September 30, 2019 section above.
The increase to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories.
The increases to cash flow hedging and the reclassification of pension adjustments are from the correction of other immaterial errors.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
For the Three Months Ended June 30, 2019
 
As Previously Reported
 
Restatement Impacts
 
As Restated
 
(In thousands)
Net income (loss)
$
(944
)

$
326


$
(618
)
Other comprehensive income (loss), net of tax:








Foreign currency translation adjustment
226


(113
)

113

(Loss) gain on long-term intra-entity foreign currency transactions
121


—


121

Cash flow hedging activity
(877
)

—


(877
)
Reclassification of hedging activities into earnings
144


—


144

Pension plan adjustment
—


—


—

Reclassification of pension adjustments into earnings
102


—


102

Total other comprehensive loss, net of tax
(284
)

(113
)

(397
)
Comprehensive income (loss)
$
(1,228
)

$
213


$
(1,015
)

See description of the net income (loss) impacts in the consolidated statement of operations for the three months ended June 30, 2019 section above.
The decrease to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories.
The increases to the reclassification of pension adjustments are from the correction of other immaterial errors.

 
For the Six Months Ended June 30, 2019
 
As Previously Reported
 
Restatement Impacts
 
As Restated
 
(In thousands)
Net income (loss)
$
(2,705
)

$
(1,298
)

$
(4,003
)
Other comprehensive income (loss), net of tax:








Foreign currency translation adjustment
556


(229
)

327

(Loss) gain on long-term intra-entity foreign currency transactions
136


—


136

Cash flow hedging activity
(1,443
)

144


(1,299
)
Reclassification of hedging activities into earnings
146


—


146

Pension plan adjustment
—


—


—

Reclassification of pension adjustments into earnings
92


94


186

Total other comprehensive loss, net of tax
(513
)

9


(504
)
Comprehensive income (loss)
$
(3,218
)

$
(1,289
)

$
(4,507
)

See description of the net income (loss) impacts in the consolidated statement of operations for the six months ended June 30, 2019 section above.
The decrease to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets and timing of recognition of customer pricing concessions categories.
The increase to cash flow hedging and the reclassification of pension adjustments is from the correction of other immaterial errors.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
For the Three Months Ended March 31, 2019

As Previously Reported

Restatement Impacts

As Restated
 
(In thousands)
Net income (loss)
$
(1,761
)

$
(1,624
)

$
(3,385
)
Other comprehensive income (loss), net of tax:








Foreign currency translation adjustment
330


(116
)

214

(Loss) gain on long-term intra-entity foreign currency transactions
15


—


15

Cash flow hedging activity
(566
)

144


(422
)
Reclassification of hedging activities into earnings
2


—


2

Pension plan adjustment
—


—


—

Reclassification of pension adjustments into earnings
(10
)

94


84

Total other comprehensive loss, net of tax
(229
)

122


(107
)
Comprehensive income (loss)
$
(1,990
)

$
(1,502
)

$
(3,492
)

See description of the net income (loss) impacts in the consolidated statement of operations for the three months ended March 31, 2019 section above.
The decrease to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories.
The increase to cash flow hedging is from the correction of other immaterial errors.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
For the Three Months Ended December 31, 2018
 
As Previously Reported
 
Restatement Impacts
 
As Restated
 
(In thousands)
Net income (loss)
$
15,032


$
(1,171
)

$
13,861

Other comprehensive income (loss), net of tax:








Foreign currency translation adjustment
(1,441
)

306


(1,135
)
(Loss) gain on long-term intra-entity foreign currency transactions
60


—


60

Cash flow hedging activity
(208
)

(144
)

(352
)
Reclassification of hedging activities into earnings
48


—


48

Pension plan adjustment
(1,920
)

—


(1,920
)
Reclassification of pension adjustments into earnings
235


(94
)

141

Total other comprehensive loss, net of tax
(3,226
)

68


(3,158
)
Comprehensive income (loss)
$
11,806


$
(1,103
)

$
10,703


See description of the net income (loss) impacts in the consolidated statement of operations for the three months ended December 31, 2018 section above.
The increase to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories.
The decrease to cash flow hedging and the reclassification of pension adjustments are from the correction of other immaterial errors.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
For the Three Months Ended September 30, 2018
 
As Previously Reported
 
Restatement Impacts
 
As Restated
 
(In thousands)
Net income (loss)
$
8,044


$
(903
)

$
7,141

Other comprehensive income (loss), net of tax:








Foreign currency translation adjustment
1,257


(355
)

902

(Loss) gain on long-term intra-entity foreign currency transactions
(53
)

—


(53
)
Cash flow hedging activity
(301
)

—


(301
)
Reclassification of hedging activities into earnings
(102
)

—


(102
)
Pension plan adjustment
—


—


—

Reclassification of pension adjustments into earnings
115


—


115

Total other comprehensive loss, net of tax
916


(355
)

561

Comprehensive income (loss)
$
8,960


$
(1,258
)

$
7,702


See description of the net income (loss) impacts in the consolidated statement of operations for the three months ended September 30, 2018 section above.
The decrease to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories.

 
For the Nine Months Ended September 30, 2018
 
As Previously Reported
 
Restatement Impacts
 
As Restated
 
(In thousands)
Net income (loss)
$
6,752


$
(2,915
)

$
3,837

Other comprehensive income (loss), net of tax:








Foreign currency translation adjustment
1,282


(219
)

1,063

(Loss) gain on long-term intra-entity foreign currency transactions
(1,066
)

—


(1,066
)
Cash flow hedging activity
452


—


452

Reclassification of hedging activities into earnings
105


—


105

Pension plan adjustment
—


—


—

Reclassification of pension adjustments into earnings
415


—


415

Total other comprehensive loss, net of tax
1,188


(219
)

969

Comprehensive income (loss)
$
7,940


$
(3,135
)

$
4,805


See description of the net income (loss) impacts in the consolidated statement of operations for the nine months ended September 30, 2018 section above.
The decrease to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
For the Three Months Ended June 30, 2018
 
As Previously Reported
 
Restatement Impacts
 
As Restated
 
(In thousands)
Net income (loss)
$
(874
)

$
(247
)

$
(1,121
)
Other comprehensive income (loss), net of tax:








Foreign currency translation adjustment
(892
)

480


(412
)
(Loss) gain on long-term intra-entity foreign currency transactions
(1,013
)

—


(1,013
)
Cash flow hedging activity
464


—


464

Reclassification of hedging activities into earnings
41


—


41

Pension plan adjustment
—


—


—

Reclassification of pension adjustments into earnings
142


—


142

Total other comprehensive loss, net of tax
(1,258
)

480


(778
)
Comprehensive income (loss)
$
(2,132
)

$
233


$
(1,899
)

See description of the net income (loss) impacts in the consolidated statement of operations for the three months ended June 30, 2018 section above.
The increase to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories.

 
For the Six Months Ended June 30, 2018
 
As Previously Reported
 
Restatement Impacts
 
As Restated
 
(In thousands)
Net income (loss)
$
(1,292
)

$
(2,012
)

$
(3,304
)
Other comprehensive income (loss), net of tax:








Foreign currency translation adjustment
25


136


161

(Loss) gain on long-term intra-entity foreign currency transactions
(1,013
)

—


(1,013
)
Cash flow hedging activity
753


—


753

Reclassification of hedging activities into earnings
207


—


207

Pension plan adjustment
—


—


—

Reclassification of pension adjustments into earnings
300


—


300

Total other comprehensive loss, net of tax
272


136


408

Comprehensive income (loss)
$
(1,020
)

$
(1,876
)

$
(2,896
)

See description of the net income (loss) impacts in the consolidated statement of operations for the six months ended June 30, 2018 section above.
The increase to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
For the Three Months Ended March 31, 2018
 
As Previously Reported
 
Restatement Impacts
 
As Restated
 
(In thousands)
Net income (loss)
$
(418
)

$
(1,765
)

$
(2,183
)
Other comprehensive income (loss), net of tax:








Foreign currency translation adjustment
917


(344
)

573

(Loss) gain on long-term intra-entity foreign currency transactions
—


—


—

Cash flow hedging activity
289


—


289

Reclassification of hedging activities into earnings
166


—


166

Pension plan adjustment
—


—


—

Reclassification of pension adjustments into earnings
158


—


158

Total other comprehensive loss, net of tax
1,530


(344
)

1,186

Comprehensive income (loss)
$
1,112


$
(2,109
)

$
(997
)

See description of the net income (loss) impacts in the consolidated statement of operations for the three months ended March 31, 2018 section above.
The decrease to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories.