RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2014

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

Summary impact of restatement adjustments to previously reported financial information

	As of December 31,
(in thousands)	2013			2012			2011
As previously reported - Retained Earnings	$	288,813		$	225,229		$	161,537
Inventory valuation	(61,323		)	(51,275		)	(39,907		)
Allowance for disallowed revenue and doubtful accounts	(28,301		)	(14,997		)	(12,952		)
Property, plant and equipment, net	(11,311		)	(10,489		)	(8,214		)
Real property leases	(7,542		)	(6,681		)	(5,031		)
All other restatement adjustments	(32,113		)	(24,013		)	(17,332		)
Total restatement adjustments	(140,590		)	(107,455		)	(83,436		)
Tax effect of restatement adjustments	49,302			39,240			30,889
As restated - Retained Earnings	$	197,525		$	157,014		$	108,990

	As of December 31,
(in thousands)	2013			2012
As previously reported - Income before Income Taxes	$	100,744		$	98,169
Inventory valuation	(10,048		)	(11,368		)
Allowance for disallowed revenue and doubtful accounts	(13,304		)	(2,045		)
Property, plant and equipment, net	(822		)	(2,275		)
Real property leases	(861		)	(1,650		)
All other restatement adjustments	(8,100		)	(6,681		)
Total restatement adjustments	(33,135		)	(24,019		)
Restated Income before Income Taxes	67,609			74,150
Adjustment for loss from discontinued operations	8,725			315
As restated - Income from Continuing Operations before Income Taxes	$	76,334		$	74,465

Schedule of differing adjustments to previously issued consolidated balance sheets from the restatement adjustments and discontinued operations

CONSOLIDATED BALANCE SHEET

(dollars in thousands, except par value and share amounts)

	As of December 31, 2013
	As Previously Reported			Restatement Adjustments			Restatement Reference	As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	9,860		$	(8,247	)	h,i	$	1,613
Accounts receivable, net of allowance for doubtful accounts of $6,472	185,769			(31,030		)	b,e,f,h,i	154,739
Inventories	141,518			(59,261		)	a,h	82,257
Other current assets	15,519			6,087			d,h,k,i	21,606
Deferred income taxes	30,298			45,318			k	75,616
Total current assets	382,964			(47,133		)		335,831
Non-current assets:
Property, plant and equipment, net	126,798			(10,509		)	c,d,g,h	116,289
Goodwill	681,547			1,081			h,k	682,628
Other intangible assets, net	58,021			(1,781		)	h	56,240
Debt issuance costs, net	8,564			(68		)	h	8,496
Other assets	13,766			1,738			d,h	15,504
Total assets	$	1,271,660		$	(56,672	)		$	1,214,988
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	15,998		$	1,730		d,h,cc	$	17,728
Accounts payable	36,729			7,790			g,h	44,519
Accrued expenses and other current liabilities	24,923			19,510			d,e,g,h,k,cc	44,433
Accrued interest payable	1,898			121			d	2,019
Accrued compensation related costs	36,331			2,275			h	38,606
Total current liabilities	115,879			31,426				147,305
Long-term liabilities:
Long-term debt, less current portion	452,261			17,557			d,h,cc	469,818
Deferred income taxes	76,545			(11,216		)	k	65,329
Other liabilities	46,755			(5,532		)	d,h,cc	41,223
Total liabilities	691,440			32,235				723,675
Commitments and contingent liabilities
Shareholders’ Equity:
Common stock, $.01 par value; 60,000,000 shares authorized, 35,158,196 shares issued and 35,017,042 shares outstanding	361			(10		)	j	351
Additional paid-in capital	292,722			2,391			j,h	295,113
Accumulated other comprehensive loss	(1,020		)	—				(1,020		)
Retained earnings	288,813			(91,288		)	a,b,c,d,e,f, g,h,j	197,525
	580,876			(88,907		)		491,969
Treasury stock at cost, 141,154 shares	(656		)	—				(656		)
Total shareholders’ equity	580,220			(88,907		)		491,313
Total liabilities and shareholders’ equity	$	1,271,660		$	(56,672	)		$	1,214,988

Schedule of differing adjustments to previously issued consolidated statements of operations and comprehensive income from the restatement adjustments, reclassification of expenses and discontinued operations

CONSOLIDATED STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

(dollars in thousands, except share and per share amounts)

	For the Year Ended December 31, 2013
	As Previously Reported		Restatement Adjustments			Restatement Reference	Reclassification of Expenses (aa)			Discontinued Operations (bb)			As Restated
Net revenue	$	1,046,438	$	(27,976	)	b,e,f,h	$	—		$	(42,693	)	$	975,769
Material costs	319,046		738			a,h	—			(17,781		)	302,003
Personnel costs	369,738		9,264			a,c,h,j	(31,805		)	(21,417		)	325,780
Other operating costs	186,304		(7,178		)	a,b,c,d,g,h	(52,674		)	(10,685		)	115,767
General and administrative expenses	—		—				78,658			—			78,658
Professional accounting and legal fees	—		—				5,821			—			5,821
Depreciation and amortization	37,486		(1,819		)	c,d,h	—			(1,482		)	34,185
Income from operations	133,864		(28,981		)		—			8,672			113,555
Interest expense, net	26,475		4,154			d,h	—			(53		)	30,576
Extinguishment of debt	6,645		—				—			—			6,645
Income from continuing operations before income taxes	100,744		(33,135		)		—			8,725			76,334
Provision for income taxes	37,160		(10,062		)	k	—			3,357			30,455
Income from continuing operations	63,584		(23,073		)		—			5,368			45,879
Loss from discontinued operations, net of income taxes	—		—				—			(5,368		)	(5,368		)
Net income	$	63,584	$	(23,073	)		$	—		$	—		$	40,511
Other comprehensive income
Unrealized gain on SERP net of tax provision of $531	$	899	$	—			$	—		$	—		$	899
Total other comprehensive income	899		—				—			—			899
Comprehensive income	$	64,483	$	(23,073	)		$	—		$	—		$	41,410
Basic Per Common Share Data
Income from continuing operations	$	1.83	$	(0.67	)		$	—		$	0.16		$	1.32
Loss from discontinued operations, net of income taxes	—		—				—			(0.16		)	(0.16		)
Basic income per share	$	1.83	$	(0.67	)		$	—		$	—		$	1.16
Shares used to compute basic per common share amounts	34,818,214		7,653			j	—			—			34,825,867
Diluted Per Common Share Data
Income from continuing operations	$	1.80	$	(0.65	)		$	—		$	0.15		$	1.30
Loss from discontinued operations, net of income taxes	—		—				—			(0.15		)	(0.15		)
Diluted income per share	$	1.80	$	(0.65	)		$	—		$	—		$	1.15
Shares used to compute diluted per common share amounts	35,394,721		(185,967		)	j	—			—			35,208,754

CONSOLIDATED STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

(dollars in thousands, except share and per share amounts)

	For the Year Ended December 31, 2012
	As Previously Reported			Restatement Adjustments			Restatement Reference	Reclassification of expenses (aa)			Discontinued Operations (bb)			As Restated
Net revenue	$	974,429		$	(11,629	)	b,e,f,h	$	—		$	(39,279	)	$	923,521
Material costs	296,193			2,686			a,h	—			(13,006		)	285,873
Personnel costs	335,328			9,255			a,c,h,j	(27,133		)	(18,446		)	299,004
Other operating costs	178,918			(2,047		)	a,b,c,d,g,h	(58,956		)	(7,034		)	110,881
General and administrative expenses	—			—				81,182			—			81,182
Professional accounting and legal fees	—			—				4,907			—			4,907
Depreciation and amortization	34,652			(1,044		)	c,d,h	—			(1,019		)	32,589
Income from operations	129,338			(20,479		)		—			226			109,085
Interest expense, net	31,169			3,540			d,h	—			(89		)	34,620
Income from continuing operations before income taxes	98,169			(24,019		)		—			315			74,465
Provision for income taxes	34,477			(8,351		)	k	—			80			26,206
Income from continuing operations	63,692			(15,668		)		—			235			48,259
Loss from discontinued operations, net of income taxes	—			—				—			(235		)	(235		)
Net income	$	63,692		$	(15,668	)		$	—		$	—		$	48,024
Other comprehensive income
Unrealized loss on SERP, net of tax benefit of $439	$	(734	)	$	—			$	—		$	—		$	(734	)
Total other comprehensive loss	(734		)	—				—			—			(734		)
Comprehensive income	$	62,958		$	(15,668	)		$	—		$	—		$	47,290
Basic Per Common Share Data
Income from continuing operations	$	1.86		$	(0.46	)		$	—		$	0.01		$	1.41
Loss from discontinued operations, net of income taxes	—			—				—			(0.01		)	(0.01		)
Basic income per share	$	1.86		$	(0.46	)		$	—		$	—		$	1.40
Shares used to compute basic per common share amounts	34,282,591			(8,970		)	j	—			—			34,273,621
Diluted Per Common Share Data
Income from continuing operations	$	1.83		$	(0.45	)		$	—		$	0.01		$	1.39
Loss from discontinued operations, net of income taxes	—			—				—			(0.01		)	(0.01		)
Diluted income per share	$	1.83		$	(0.45	)		$	—		$	—		$	1.38
Shares used to compute diluted per common share amounts	34,832,830			(95,410		)	j	—			—			34,737,420

Schedule of differing adjustments to previously issued consolidated statements of cash flows from the restatement adjustments

CONSOLIDATED STATEMENT OF CASH FLOWS

(dollars in thousands)

	For the Year Ended December 31, 2013
	As Previously Reported			Restatement Adjustments			Restatement Reference	As Restated
Cash flows from operating activities:
Net income	$	63,584		$	(23,073	)	a - h,j,k	$	40,511
Loss from discontinued operations, net of income taxes	—			(5,368		)	bb	(5,368		)
Income from continuing operations	63,584			(17,705		)		45,879
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	37,486			(3,301		)	c,d,h	34,185
Provision for doubtful accounts	14,330			(9,277		)	b,h	5,053
Compensation expense on restricted stock units	9,080			266			j	9,346
Benefit from deferred income taxes	(1,602		)	(12,897		)	k	(14,499		)
Amortization of debt issuance costs	2,488			730			h	3,218
Loss on extinguishment of debt	6,645			—				6,645
Gain on sale of property, plant and equipment	(5,914		)	(344		)	c	(6,258		)
Contingent consideration gains	(1,032		)	(429		)	h	(1,461		)
Changes in operating assets and liabilities, net of effects of acquired companies:
Net accounts receivable	(32,060		)	23,205			b,e,f,h	(8,855		)
Inventories	(11,329		)	7,836			a,h	(3,493		)
Other current assets and income taxes	4,689			2,320			d,h,k	7,009
Accounts payable	6,235			(1,139		)	g,h	5,096
Accrued expenses and other current liabilities, accrued interest payable	(223		)	910			d,e,g,h	687
Accrued compensation related costs	(7,379		)	813			h	(6,566		)
Other liabilities	1,262			2,886			d,h,k	4,148
Net cash provided by operating activities - continuing operations	86,260			(6,126		)		80,134
Net cash used in operating activities - discontinued operations	—			(3,102		)	bb	(3,102		)
Net cash provided by operating activities	86,260			(9,228		)		77,032
Cash flows from investing activities:
Purchase of property, plant and equipment, net of acquisitions	(34,236		)	8,329			c,d,g,h	(25,907		)
Purchase of equipment leased to third parties under operating leases	(4,210		)	107			c	(4,103		)
Acquisitions, net of cash acquired	(9,296		)	(999		)	h	(10,295		)
Change in restricted cash associated with workers’ compensation program	3,120			—				3,120
Proceeds from sale of property, plant and equipment	8,684			382			c	9,066
Net cash used in investing activities - continuing operations	(35,938		)	7,819				(28,119		)
Net cash used in investing activities - discontinued operations	—			(1,438		)	bb	(1,438		)
Net cash used in investing activities	(35,938		)	6,381				(29,557		)
Cash flows from financing activities:
Borrowings under term loan	225,000			—				225,000
Repayment of term loan	(296,113		)	—				(296,113		)
Borrowings under revolving credit agreement	249,000			—				249,000
Repayments under revolving credit agreement	(224,000		)	—				(224,000		)
Payment of seller notes	(12,410		)	3,754			h	(8,656		)
Payment of contingent consideration	—			(2,590		)		(2,590		)
Payment of financing obligations	(1,047		)	(320		)	d	(1,367		)
Payment of fees associated with debt modifications and extinguishments	(3,667		)	2			h	(3,665		)
Excess tax benefit from stock-based compensation	3,501			(153		)	h	3,348
Proceeds from issuance of common stock	2,437			—				2,437
Purchase and retirement of common stock	(2,374		)	—				(2,374		)
Net cash used in financing activities - continuing operations	(59,673		)	693				(58,980		)
Net cash used in financing activities - discontinued operations	—			(12		)	bb	(12		)
Net cash used in financing activities	(59,673		)	681				(58,992		)
Decrease in cash and cash equivalents	(9,351		)	(2,166		)		(11,517		)
Cash and cash equivalents, at beginning of year	19,211			(6,081		)	i	13,130
Cash and cash equivalents, at end of year	$	9,860		$	(8,247	)		$	1,613

CONSOLIDATED STATEMENT OF CASH FLOWS

(dollars in thousands)

	For the Year Ended December 31, 2012
	As Previously Reported			Restatement Adjustments			Restatement Reference	As Restated
Cash flows from operating activities:
Net income	$	63,692		$	(15,668	)	a - h, j,k	$	48,024
Loss from discontinued operations, net of income taxes	—			(235		)	bb	(235		)
Income from continuing operations	63,692			(15,433		)		48,259
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	34,652			(2,063		)	c,d,h	32,589
Provision for doubtful accounts	9,589			(5,166		)	b,h	4,423
Compensation expense on restricted stock units	8,061			152			j	8,213
Benefit from deferred income taxes	(4,303		)	(9,509		)	k	(13,812		)
Amortization of debt issuance costs	3,452			439			h	3,891
Loss (gain) on sale of property, plant and equipment	64			(2,083		)	c	(2,019		)
Contingent consideration gains	(993		)	(395		)	h	(1,388		)
Changes in operating assets and liabilities, net of effects of acquired companies:
Net accounts receivable	(30,259		)	14,725			b,e,f,h	(15,534		)
Inventories	(12,827		)	13,149			a,h	322
Other current assets and income taxes	3,867			(2,369		)	d,h,k	1,498
Accounts payable	(2,114		)	3,378			g,h	1,264
Accrued expenses, other current liabilities and accrued interest payable	3,501			(50		)	d,e,g,h	3,451
Accrued compensation related costs	4,348			(1,541		)	h	2,807
Other liabilities	589			(758		)	d,h,k	(169		)
Net cash provided by operating activities - continuing operations	81,319			(7,524		)		73,795
Net cash used in operating activities - discontinued operations	—			(3,037		)	bb	(3,037		)
Net cash provided by operating activities	81,319			(10,561		)		70,758
Cash flows from investing activities:
Purchase of property, plant and equipment, net of acquisitions	(29,492		)	4,989			c,d,g,h	(24,503		)
Purchase of equipment leased to third parties under operating leases	(3,671		)	908			c	(2,763		)
Acquisitions, net of cash acquired	(62,500		)	1,099			h	(61,401		)
Change in restricted cash associated with workers’ compensation program	(3,120		)	—				(3,120		)
Purchase of company-owned life insurance investment	(2,000		)	—				(2,000		)
Proceeds from sale of property, plant and equipment	1,732			1,499			c	3,231
Net cash used in investing activities - continuing operations	(99,051		)	8,495				(90,556		)
Net cash used in investing activities - discontinued operations	—			(1,118		)	bb	(1,118		)
Net cash used in investing activities	(99,051		)	7,377				(91,674		)
Cash flows from financing activities:
Repayment of term loan	(3,700		)	—				(3,700		)
Payment of seller notes	(5,255		)	351			h	(4,904		)
Payment of contingent consideration	—			(2,915		)		(2,915		)
Payment of financing obligations	(713		)	(391		)	d	(1,104		)
Excess tax benefit from stock-based compensation	1,505			(16		)	h	1,489
Proceeds from issuance of common stock	3,560			—			h	3,560
Purchase and retirement of common stock	(1,350		)	—				(1,350		)
Net cash used in financing activities - continuing operations	(5,953		)	(2,971		)		(8,924		)
Net cash used in financing activities - discontinued operations	—			(353		)	bb	(353		)
Net cash used in financing activities	(5,953		)	(3,324		)		(9,277		)
Decrease in cash and cash equivalents	(23,685		)	(6,508		)		(30,193		)
Cash and cash equivalents, at beginning of year	42,896			427			i	43,323
Cash and cash equivalents, at end of year	$	19,211		$	(6,081	)		$	13,130

Schedule of impact of restatement adjustments on previously reported consolidated statements of operations and comprehensive income

For the Year Ended December 31, 2013

(in thousands)	Total Restatement Adjustments			Inventory Valuation (a)			Allowances for Disallowed Revenue and Doubtful Accounts (b)			Property, Plant and Equipment, net (c)			Real Property Leases (d)			All Other Adjustments (e,f,g,h)
Net revenue	$	(27,976	)	$	—		$	(20,616	)	$	—		$	—		$	(7,360	)
Material costs	738			3,455			—			—			—			(2,717		)
Personnel costs	9,264			6,656			—			2,312			—			296
Other operating costs	(7,178		)	(63		)	(7,312		)	1,216			(2,972		)	1,953
Depreciation and amortization	(1,819		)	—			—			(2,706		)	1,002			(115		)
Income from operations	(28,981		)	(10,048		)	(13,304		)	(822		)	1,970			(6,777		)
Interest expense, net	4,154			—			—			—			2,831			1,323
Income from continuing operations before taxes	$	(33,135	)	$	(10,048	)	$	(13,304	)	$	(822	)	$	(861	)	$	(8,100	)

For the Year Ended December 31, 2012

(in thousands)	Total Restatement Adjustments			Inventory Valuation (a)			Allowances for Disallowed Revenue and Doubtful Accounts (b)			Property, Plant and Equipment, net (c)			Real Property Leases (d)			All Other Adjustments (e,f,g,h)
Net revenue	$	(11,629	)	$	—		$	(5,940	)	$	—		$	—		$	(5,689	)
Material costs	2,686			4,587			—			—			—			(1,901		)
Personnel costs	9,255			5,347			—			2,889			—			1,019
Other operating costs	(2,047		)	1,434			(3,895		)	1,703			(2,588		)	1,299
Depreciation and amortization	(1,044		)	—			—			(2,317		)	1,239			34
Income from operations	(20,479		)	(11,368		)	(2,045		)	(2,275		)	1,349			(6,140		)
Interest expense, net	3,540			—			—			—			2,999			541
Income from continuing operations before taxes	$	(24,019	)	$	(11,368	)	$	(2,045	)	$	(2,275	)	$	(1,650	)	$	(6,681	)