Acquisitions

The Company did not complete any business acquisitions during the fiscal years ended July 31, 2015 and 2014 and had one business acquisition during the fiscal year ended July 31, 2013. This transaction was accounted for using business combination accounting; therefore, the results of the acquired operations are included in the accompanying consolidated financial statements only since their acquisition date.

Fiscal 2013

On December 28, 2012, the Company acquired all of the outstanding shares of Precision Dynamics Corporation ("PDC"), a manufacturer of identification products primarily for the healthcare sector headquartered in Valencia, California. PDC is reported within the Company's ID Solutions segment. Financing for this acquisition consisted of $220,000 from the Company's revolving loan agreement and the balance from cash on hand. As of July 31, 2015, the Company has repaid the entire amount of the borrowing.

The following table reflects the unaudited pro-forma operating results of the Company for fiscal year 2013 which give effect to the acquisition of PDC as if it had occurred at the beginning of fiscal 2012, after giving effect to certain adjustments, including amortization of intangible assets, interest expense on acquisition debt, and income tax effects. The pro-forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations which may occur in the future or that would have occurred had the acquisitions been effected on the date indicated, nor are they necessarily indicative of the Company's future results of operations.



	2013
Net sales, as reported	$	1,157,792
Net sales, pro forma	1,226,217
(Loss) earnings from continuing operations, as reported	(138,257		)
(Loss) earnings from continuing operations, pro forma	(133,957		)
Basic (loss) earnings from continuing operations per Class A Common Share, as reported	(2.70		)
Basic (loss) earnings from continuing operations per Class A Common Share, pro forma	(2.61		)
Diluted (loss) earnings from continuing operations per Class A Common Share, as reported	(2.70		)
Diluted (loss) earnings from continuing operations per Class A Common Share, pro forma	(2.61		)

Pro forma results for fiscal 2013, were adjusted to exclude $3,600 of acquisition-related expenses and $1,530 of nonrecurring expense related to the fair value adjustment to acquisition-date inventory, and were adjusted to include $529 in interest expense on acquisition debt, $429 in income tax benefit, and $5,215 of pre-tax amortization expense related to intangible assets, respectively.