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

The following table summarizes quarterly financial results for 2019 and 2018. 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
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Net sales
$
218,025

 
$
191,660

 
$
220,811

 
$
186,413

 
$
205,274

 
$
197,886

 
$
193,288

 
$
209,938

Gross profit
$
42,056

 
$
39,507

 
$
45,275

 
$
36,127

 
$
36,356

 
$
35,139

 
$
28,103

 
$
41,872

Net income (loss)
$
3,890

 
$
11,054

 
$
(6,946
)
 
$
10,450

 
$
3,004

 
$
6,256

 
$
(70,461
)
 
$
7,184

Earnings (loss) per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.23

 
$
0.64

 
$
(0.40
)
 
$
0.61

 
$
0.17

 
$
0.36

 
$
(4.07
)
 
$
0.42

Diluted
$
0.22

 
$
0.64

 
$
(0.40
)
 
$
0.60

 
$
0.17

 
$
0.36

 
$
(4.07
)
 
$
0.42



The table above includes the quarterly results of Interface since the acquisition date of August 31, 2018.

The following components are included gross profit and net income for 2019 and 2018 and impact the comparability of each year:
 
1st Quarter
 
2nd Quarter
 
3rd Quarter
 
4th Quarter
In thousands except per share data
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Gross profit impact:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory step-up purchase accounting adjustments
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,390

 
$
—

 
$
585

Restructuring, severance and segment consolidation expenses
351

 
449

 
42

 
876

 
88

 
400

 
1,137

 
169

Net income impact:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory step-up purchase accounting adjustments
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,077

 
$
—

 
$
438

Restructuring, severance and segment consolidation expenses
364

 
494

 
93

 
711

 
114

 
409

 
1,836

 
527

Goodwill and other long-lived asset impairment charges
—

 
—

 
—

 
—

 
—

 
—

 
64,206

 
—

CEO transition expenses
—

 
—

 
—

 
—

 
—

 
—

 
1,728

 
—

Strategic initiatives expenses
652

 
87

 
311

 
923

 
—

 
1,730

 
161

 
493

Employee benefit plan settlements
—

 
—

 
14,977

 
—

 
142

 
—

 
(347
)
 
—

Gain on sale from a divestiture
—

 
—

 
(1,265
)
 
—

 

 
—

 
—

 
—

Discrete tax items
—

 
—

 
—

 
—

 
—

 
—

 
—

 
320



In connection with the preparation of its 2019 audited financial statements, the Company identified that in its previously filed unaudited interim financial statements for the three and six months ended June 30, 2019 and the nine months ended September 30, 2019, the Company had incorrectly excluded from its Consolidated Statements of Comprehensive Income the impact to comprehensive income resulting from the settlement of its U.S. Lydall Pension Plan (see Note 12).  As a result, unaudited comprehensive income for such periods was understated by $19.0 million. This error did not have any impact on the Company’s corresponding previously filed Consolidated Balance Sheets, Statements of Operations or Statements of Cash Flows. Management has concluded that such errors did not result in the previously issued unaudited financial statements being materially misstated. The Company will, however, revise these Consolidated Statements of Comprehensive Income in connection with the future filings of its 2020 Form 10-Qs to correct for such errors.