Error Correction (Tables)

6 Months Ended

Jun. 30, 2020

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The following tables represent our corrected consolidated statements of income and statements of stockholders' equity for the three and six months ended June 30, 2019 and statements of cash flows for the six months ended June 30, 2019, as well as our corrected consolidated balance sheet data at June 30, 2019. The values as previously reported for June 30, 2019 were derived from our Quarterly Report on Form 10-Q for the three and six month ended June 30, 2019 filed on August 1, 2019.

	Consolidated Statements of Income
	Three Months Ended June 30, 2019							Six Months Ended June 30, 2019
	Previously Reported		Corrections			As Corrected		Previously Reported		Corrections			As Corrected
	(in thousands, except share and per share data)
Net sales	$	119,437	$	—		$	119,437	$	233,259	$	—		$	233,259
Cost of sales	89,262		(29)		(a)	89,233		177,291		334		(a)	177,625
Gross profit	30,175		29			30,204		55,968		(334)			55,634
Selling, general and administrative expenses	13,481		(569)		(b)	12,912		24,482		2,107		(b)	26,589
Loss (gain) on disposal of assets	6		—			6		290		—			290
Income from operations	16,688		598			17,286		31,196		(2,441)			28,755
Interest income, net	31		—			31		40		—			40
Other (expense) income, net	17		—			17		(9)		—			(9)
Income before taxes	16,736		598			17,334		31,227		(2,441)			28,786
Income tax provision	3,775		168		(c)	3,943		7,364		(726)		(c)	6,638
Net income	$	12,961	$	430		$	13,391	$	23,863	$	(1,715)		$	22,148
Earnings per share:
Basic	$	0.25	$	0.01		$	0.26	$	0.46	$	(0.03)		$	0.43
Diluted	$	0.25	$	—		$	0.25	$	0.45	$	(0.03)		$	0.42
Cash dividends declared per common share:	$	0.16	$	—		$	0.16	$	0.16	$	—		$	0.16
Weighted average shares outstanding:
Basic	52,120,272		—			52,120,272		52,087,626		—			52,087,626
Diluted	52,747,199		—			52,747,199		52,589,845		—			52,589,845
Balance Sheet Data (at end of period):
Current assets	$	168,630	$	(270)	(c)	$	168,360
Total assets	342,251		(270)		(c)	341,981
Current liabilities	58,953		(851)		(d)	58,102
Deferred income taxes	14,938		(2,361)		(c)	12,577
Total stockholders' equity	$	264,569	$	2,942	(e)	$	267,511

(a) The share-based compensation correction to cost of sales for the three and six months ended June 30, 2019 was approximately $0.1 million and $0.3 million, respectively.

(b) The share-based compensation correction to selling, general and administrative expenses for the three and six months ended June 30, 2019 was approximately $0.6 million and $2.4 million, respectively. Included in the correction to selling, general and administrative expenses is a correction to reduce our employee profit sharing bonus plan (Note 13) of approximately $0.1 million and $0.3 million for the three and six months ended June 30, 2019, respectively.

(c) The corrections to income tax receivable and deferred tax liability are the tax effect of the share-based compensation correction.

(d) This is the cumulative reduction of our employee profit sharing bonus plan (Note 13) liability as a result of the share-based compensation correction. The prior period costs were recovered through our estimated 2019 fourth quarter payment which was paid in early 2020.

(e) This is the cumulative effect on stockholders' equity as a result of the share-based compensation correction. See table below for a description of the changes in stockholders' equity in the consolidated statements of stockholders' equity for the three and six months ended June 30, 2019, respectively.

		Consolidated Statements of Stockholders’ Equity
		Six Months Ended June 30, 2019
		Common Stock			Paid-in		Retained
		Shares	Amount		Capital		Earnings		Total
As Previously Reported		(in thousands)
	Balances at December 31, 2018	51,991	$	208	$	—	$	247,291	$	247,499
	Net income	—	—		—		23,863		23,863
	Stock options exercised and restricted	384	2		7,683		—		7,685
	stock awards granted
	Share-based compensation	—	—		5,073		—		5,073
	Stock repurchased and retired	(257)	(1)		(11,170)		—		(11,171)
	Dividends	—	—		—		(8,380)		(8,380)
	Balances at June 30, 2019	52,118	209		1,586		262,774		264,569
Correction Impacts
	Balances at December 31, 2018	—	—		—		1,944		1,944
	Net income	—	—		—		(1,715)		(1,715)
	Stock options exercised and restricted	—	—		—		—		—
	stock awards granted
	Share-based compensation	—	—		2,713		—		2,713
	Stock repurchased and retired	—	—		—		—		—
	Dividends	—	—		—		—		—
	Balances at June 30, 2019	—	—		2,713		229		2,942
As Corrected
	Balances at December 31, 2018	51,991	$	208	$	—	$	249,235	$	249,443
	Net income	—	—		—		22,148		22,148
	Stock options exercised and restricted	384	2		7,683		—		7,685
	stock awards granted
	Share-based compensation	—	—		7,786		—		7,786
	Stock repurchased and retired	(257)	(1)		(11,170)		—		(11,171)
	Dividends	—	—		—		(8,380)		(8,380)
	Balances at June 30, 2019	52,118	$	209	$	4,299	$	263,003	$	267,511

See descriptions of changes to net income in the consolidated statement of income for the six months ended June 30, 2019 in the table above.

		Consolidated Statements of Stockholders’ Equity
		Three Months Ended June 30, 2019
		Common Stock			Paid-in		Retained
		Shares	Amount		Capital		Earnings		Total
As Previously Reported		(in thousands)
	Balances at March 31, 2019	52,099	$	208	$	969	$	258,193	$	259,370
	Net income	—	—		—		12,961		12,961
	Stock options exercised and restricted	147	1		3,674		—		3,675
	stock awards granted
	Share-based compensation	—	—		3,043		—		3,043
	Stock repurchased and retired	(128)	—		(6,100)		—		(6,100)
	Dividends	—	—		—		(8,380)		(8,380)
	Balances at June 30, 2019	52,118	209		1,586		262,774		264,569
Correction Impacts
	Balances at March 31, 2019	—	—		3,377		(201)		3,176
	Net income	—	—		—		430		430
	Stock options exercised and restricted	—	—		—		—		—
	stock awards granted
	Share-based compensation	—	—		(664)		—		(664)
	Stock repurchased and retired	—	—		—		—		—
	Dividends	—	—		—		—		—
	Balances at June 30, 2019	—	—		2,713		229		2,942
As Corrected
	Balances at March 31, 2019	52,099	$	208	$	4,346	$	257,992	$	262,546
	Net income	—	—		—		13,391		13,391
	Stock options exercised and restricted	147	1		3,674		—		3,675
	stock awards granted
	Share-based compensation	—	—		2,379		—		2,379
	Stock repurchased and retired	(128)	—		(6,100)		—		(6,100)
	Dividends	—	—		—		(8,380)		(8,380)
	Balances at June 30, 2019	52,118	$	209	$	4,299	$	263,003	$	267,511

See descriptions of changes to net income in the consolidated statement of income for the three months ended June 30, 2019 in the table above.

	Consolidated Statements of Cash Flows
	Six Months Ended June 30, 2019
	Previously Reported		Corrections		As Corrected
Operating Activities	(in thousands)
Net income	$	23,863	$	(1,715)	$	22,148
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,760		—		11,760
Provision for losses on accounts receivable, net of adjustments	128		—		128
Provision for excess and obsolete inventories	1,153		—		1,153
Share-based compensation	5,073		2,713		7,786
Loss (gain) on disposition of assets	290		—		290
Foreign currency transaction (gain) loss	(13)		—		(13)
Interest income on note receivable	(26)		—		(26)
Deferred income taxes	4,112		(794)		3,318
Changes in assets and liabilities:
Accounts receivable	(14,983)		—		(14,983)
Income taxes	2,858		67		2,925
Inventories	(585)		—		(585)
Prepaid expenses and other	(650)		—		(650)
Accounts payable	(2,592)		—		(2,592)
Deferred revenue	172		—		172
Accrued liabilities and donations	5,312		(271)		5,041
Net cash provided by operating activities	35,872		—		35,872
Investing Activities
Capital expenditures	(16,784)		—		(16,784)
Proceeds from sale of property, plant and equipment	59		—		59
Investment in certificates of deposits	(6,000)		—		(6,000)
Maturities of certificates of deposits	2,000		—		2,000
Principal payments from note receivable	28		—		28
Net cash used in investing activities	(20,697)		—		(20,697)
Financing Activities
Stock options exercised	7,685		—		7,685
Repurchase of stock	(10,191)		—		(10,191)
Employee taxes paid by withholding shares	(980)		—		(980)
Net cash used in financing activities	(3,486)		—		(3,486)
Net decrease in cash and cash equivalents	11,689		—		11,689
Cash and cash equivalents, beginning of year	1,994		—		1,994
Cash and cash equivalents, end of year	$	13,683	$	—	$	13,683