The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month period ended July 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending April 30, 2022. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes in the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2021 filed with the U.S. Securities and Exchange Commission ("SEC").

COVID-19: COVID-19 continues to spread throughout the United States and other countries across the world, and the duration and severity of the long-term effects are currently unknown. We were negatively impacted by the COVID-19 pandemic as demand for our products significantly decreased during the fourth quarter of fiscal 2020 and first quarter of fiscal 2021, "stay at home" orders and other work disruptions created disruptions to our business operations, and our supply chain has been negatively impacted. Additionally, COVID-19 continues to impact our overall business, including hiring and retaining employees and through challenges caused by material availability and transportation delays, as well as pricing related to the aforementioned items.

Inventories: Effective May 1, 2021, the Company changed its accounting method for inventory valuation for inventories which previously utilized a last-in, first-out ("LIFO") basis to a first-in, first-out ("FIFO") basis. As of July 31, 2021 and April 30, 2021, inventories accounted for under the LIFO method would have represented approximately 43% of the Company's total inventories during each of the respective periods. We believe this change in accounting method is preferable as it: (i) results in a uniform method to value our inventory across the entire organization; (ii) improves comparability with our peers; (iii) is expected to better reflect the current value of inventory on the consolidated balance sheets and would result in a better matching of revenue and expense, and (iv) is reflective of the physical flow of inventory.

All prior periods presented in the Condensed Consolidated Financial Statements have been retrospectively adjusted to apply the effects of the change in accounting method from the LIFO method to FIFO method of accounting. As of April 30, 2021, the cumulative effect of the change increased inventories by $17.9 million, partially offset by $4.5 million in deferred income taxes resulting in an impact to retained earnings of approximately $13.3 million. There was no impact on total cash provided by operating activities for the periods presented as a result of this change. The impact of the change in accounting method to net earnings was $1.6 million for the three months ended July 31, 2021.

As a result of the change in accounting method, the Company now uses the FIFO method of inventory costing across the entire organization. Costs include materials, labor, and production overhead at normal production capacity. Costs do not exceed net realizable values. See Note F - Inventories for additional information.


Condensed Consolidated Statement of Income for the three months ended July 31, 2021
	As Computed under previous method	Effect of Change		As Reported under FIFO
Cost of sales and distribution		$	391,342	$	(2,204)	$	389,138
Gross Profit		$	51,239	$	2,204	$	53,443
Operating Income		$	4,252	$	2,204	$	6,456
Income Before Income Taxes		$	2,006	$	2,204	$	4,210
Income tax expense		$	654	$	575	$	1,229
Net Income		$	1,352	$	1,629	$	2,981
Net earnings per share, basic		$	0.08	$	0.10	$	0.18
Net earnings per share, diluted		$	0.08	$	0.10	$	0.18


Condensed Consolidated Balance Sheet as of July 31, 2021
	As Computed under previous method		Effect of Change		As Reported under FIFO
Inventories	$	179,590	$	2,204	$	181,794
Total current assets	$	353,216	$	2,204	$	355,420
Total assets	$	1,587,381	$	2,204	$	1,589,585
Other accrued expenses	$	21,454	$	575	$	22,029
Total current liabilities	$	198,242	$	575	$	198,817
Retained earnings	$	430,508	$	1,629	$	432,137
Total shareholders' equity	$	735,472	$	1,629	$	737,101
Total liabilities and shareholders' equity	$	1,587,381	$	2,204	$	1,589,585


Condensed Consolidated Statement of Cash Flows for the three months ended July 31, 2021
	As Computed under previous method		Effect of Change		As Reported under FIFO
Net income	$	1,352	$	1,629	$	2,981
Inventories	$	(21,328)	$	(2,204)	$	(23,532)
Income taxes payable	$	(249)	$	575	$	326


Condensed Consolidated Statement of Stockholders' equity for the three months ended July 31, 2021
	As Computed under previous method		Effect of Change		As Reported under FIFO
Net income	$	1,352	$	1,629	$	2,981
Total shareholders' equity	$	735,472	$	1,629	$	737,101


Condensed Consolidated Statement of Comprehensive income for the three months ended July 31, 2021
	As Computed under previous method		Effect of Change		As Reported under FIFO
Net income	$	1,352	$	1,629	$	2,981
Total Comprehensive Income	$	1,152	$	1,629	$	2,781


Condensed Consolidated Statements of Income for the three months ended July 31, 2020
	As Previously Reported	Effect of Change		As Adjusted
Cost of sales and distribution		$	309,949	$	571	$	310,520
Gross Profit		$	80,138	$	(571)	$	79,567
Operating Income		$	26,797	$	(571)	$	26,226
Income Before Income Taxes		$	22,455	$	(571)	$	21,884
Income tax expense		$	5,970	$	(145)	$	5,825
Net Income		$	16,485	$	(426)	$	16,059
Net earnings per share, basic		$	0.97	$	(0.02)	$	0.95
Net earnings per share, diluted		$	0.97	$	(0.03)	$	0.94


Condensed Consolidated Balance Sheet as of April 30, 2021
	As Previously Reported		Effect of Change		As Adjusted
Inventories	$	140,282	$	17,885	$	158,167
Total current assets	$	392,080	$	17,885	$	409,965
Total assets	$	1,636,514	$	17,885	$	1,654,399
Deferred income taxes	$	38,348	$	4,543	$	42,891
Retained earnings	$	434,940	$	13,342	$	448,282
Total shareholders' equity	$	742,896	$	13,342	$	756,238
Total liabilities and shareholders' equity	$	1,636,514	$	17,885	$	1,654,399


Condensed Consolidated Statement of Cash Flows for the three months ended July 31, 2020
	As Previously Reported		Effect of Change		As Adjusted
Net income	$	16,485	$	(426)	$	16,059
Deferred income taxes	$	(2,855)	$	(145)	$	(3,000)
Inventories	$	(15,539)	$	571	$	(14,968)


Condensed Consolidated Statement of Stockholders' equity for the three months ended July 31, 2020
	As Previously Reported		Effect of Change		As Adjusted
Net income	$	16,485	$	(426)	$	16,059
Total shareholders' equity	$	721,520	$	10,486	$	732,006


Condensed Consolidated Statement of Comprehensive income for the three months ended July 31, 2020
	As Previously Reported		Effect of Change		As Adjusted
Net income	$	16,485	$	(426)	$	16,059
Total comprehensive income	$	16,812	$	(426)	$	16,386


Condensed Consolidated Statement of Stockholders' equity for the year ended April 31, 2020
	As Previously Reported		Effect of Change		As Adjusted
Retained earnings as of April 30, 2020	$	392,281	$	10,912	$	403,193
Total shareholders' equity as of April 30,2020	$	700,538	$	10,912	$	711,450

Goodwill and Intangible Assets: Goodwill represents the excess of purchase price over the net amount of identifiable assets acquired and liabilities assumed in a business combination measured at fair value. The Company does not amortize goodwill

In accordance with accounting standards, when evaluating goodwill, an entity has the option first to assess qualitative factors to determine whether events and circumstances indicate that it is more likely than not that goodwill is impaired. If after such assessment an entity concludes that the asset is not impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the asset using a quantitative impairment test, and if impaired, the associated assets must be written down to fair value. There were no impairment charges related to goodwill for the three-month periods ended July 31, 2021 and 2020.

Intangible assets consist of customer relationship intangibles. The Company amortizes the cost of intangible assets over their estimated useful lives, six years, unless such lives are deemed indefinite. There were no impairment charges related to intangible assets for the three-month periods ended July 31, 2021 and 2020.

Derivative Financial Instruments: The Company uses derivatives as part of the normal business operations to manage its exposure to fluctuations in interest rates associated with variable interest rate debt and foreign exchange rates. The Company has established policies and procedures that govern the risk management of these exposures. The primary objective in managing these exposures is to decrease the volatility of cash flows affected by changes in interest rates.

The Company uses interest rate swap contracts to manage interest rate exposures. Derivatives are recorded in the condensed consolidated balance sheets at fair value. Changes in the fair value of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income, and subsequently reclassified into earnings in the period the hedged forecasted transaction affects earnings. If a derivative is deemed to be ineffective, the change in fair value of the derivative is recognized directly in earnings.