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Quarterly Financial Information (Unaudited)
 12 Months Ended
Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information (Unaudited)
Quarterly Financial Information (Unaudited)

The following table summarizes quarterly financial results for 2017 and 2016. In management’s opinion, all material adjustments necessary for a fair statement of the information for such quarters have been reflected.
 
1st Quarter
 
2nd Quarter
 
3rd Quarter
 
4th Quarter
In thousands except per share data
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Net sales
$
165,487

 
$
129,700

 
$
174,879

 
$
137,235

 
$
180,041

 
$
155,725

 
$
178,030

 
$
144,192

Gross profit
$
40,424

 
$
32,377

 
$
43,253

 
$
35,990

 
$
39,980

 
$
38,193

 
$
39,405

 
$
31,982

Net income
$
11,669

 
$
9,169

 
$
13,125

 
$
10,813

 
$
10,675

 
$
12,785

 
$
13,848

 
$
4,420

Earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.69

 
$
0.54

 
$
0.77

 
$
0.64

 
$
0.63

 
$
0.76

 
$
0.81

 
$
0.26

Diluted
$
0.68

 
$
0.54

 
$
0.76

 
$
0.63

 
$
0.62

 
$
0.75

 
$
0.80

 
$
0.26



The table above includes the quarterly results of Texel since the acquisition date of July 7, 2016. The Gutsche acquisition was on December 31, 2016, therefore, there are no operating results included in the table above from Gutsche for 2016.





















The following components are included gross profit and net income for 2017 and 2016 and impact the comparability of each year:
 
1st Quarter
 
2nd Quarter
 
3rd Quarter
 
4th Quarter
In thousands except per share data
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Gross profit impact:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory step-up purchase accounting adjustments
$
481

 
$
—

 
$
543

 
$
—

 
$
83

 
$
1,607

 
$
—

 
$
347

Restructuring, severance and segment consolidation expenses
441

 
—

 
92

 
—

 
287

 
—

 
155

 
—

Net income impact:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory step-up purchase accounting adjustments
350

 
—

 
394

 
—

 
59

 
1,176

 
—

 
254

Restructuring, severance and segment consolidation expenses
702

 
—

 
216

 
—

 
910

 
—

 
488

 
—

Long-lived asset impairment charge
490

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Strategic initiatives expenses
125

 
365

 
—

 
1,080

 
219

 
820

 
205

 
786

German Cartel settlement
—

 
—

 
—

 
—

 
—

 
—

 
—

 
3,479



During the quarter ended December 31, 2017, the Company recorded an out of period adjustment reducing net income by $0.8 million to correct a foreign tax error in prior periods. This error resulted in the overstatement of net income by less than $0.1 million in each of the first, second, and third quarters of 2017. This error also impacted each quarter in 2016, 2015 and 2014 by less than $0.1 million. The Company evaluated the impact of these errors and determined them to be immaterial to all quarters and years.

During the quarter ended December 31, 2016, the Company recorded out of period adjustments reducing gross profit by $0.9 million and net income by $0.6 million to correct inventory and cost of sales errors within the T/A Metals and Technical Nonwovens segments. These errors resulted in the overstatement of gross profit by $0.5 million and net income by $0.3 million in the second quarter of 2016 and overstatement of gross profit by $0.4 million and net income by $0.3 million in the third quarter of 2016. The Company evaluated the impact of these errors and determined them to be immaterial to all quarters in 2016.