Revision of Prior Period Financial Statements

6 Months Ended

Jun. 30, 2024

Accounting Changes and Error Corrections [Abstract]

Revision of Prior Period Financial Statements

Note 2 — Revision of Prior Period Financial Statements

As previously disclosed in Note 2 to the Company’s consolidated financial statements as of and for the year ended December 31, 2023, the Company identified a prior period accounting error related to the Company’s estimate for accrued payroll, and specifically accrued vacation that was concluded to not be material to the Company’s previously reported consolidated financial statements or unaudited interim condensed consolidated financial statements. The Company assessed the quantitative and qualitative factors associated with the foregoing error in accordance with SEC Staff Accounting Bulletin (“SAB”) No. 99 and 108, Materiality, codified in Accounting Standards Codification (“ASC”) 250, Presentation of Financial Statements, and concluded that the error was not material to any of the Company’s previously reported annual or interim consolidated financial statements. Notwithstanding this conclusion, the Company corrected the error by revising the consolidated 2023 accompanying consolidated interim financial statements to give effect to the correction of the error.

The effect of the correction of the error noted above on the Company’s Consolidated Statements of Comprehensive (Loss) Income for the three and six months ended June 30, 2023 is as follows:

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	As reported		Adjustment		Revised		As reported		Adjustment		Revised
	(in thousands, except per share amounts)
Costs of services provided	$	367,728	$	476	$	368,204	$	728,706	$	1,877	$	730,583
Income before taxes	$	11,410	$	(476)	$	10,934	$	28,966	$	(1,877)	$	27,089
Income tax provision	$	2,812	$	(132)	$	2,680	$	7,684	$	(520)	$	7,164
Net income	$	8,598	$	(344)	$	8,254	$	21,282	$	(1,357)	$	19,925
Basic earnings per common share	$	0.12	$	(0.01)	$	0.11	$	0.29	$	(0.02)	$	0.27
Diluted earnings per common share	$	0.12	$	(0.01)	$	0.11	$	0.29	$	(0.02)	$	0.27

In addition to the effect of the correction noted above, the error also reduced retained earnings by $7.9 million as of December 31, 2022, as presented in the Consolidated Statements of Stockholders’ Equity. The effect of the correction of the error noted above had no impact on the Company’s previously reported consolidated statements of cash flows for the six months ended June 30, 2023, except for adjustments to individual line items as described in the tables above.