Restatement of Previously Issued Financial Statements

As previously disclosed, the Company determined that for certain contracts within its Energy Segment for which revenue was historically recognized upon contract completion and transfer of title, the Company instead should have applied the percentage-of-completion method in accordance with the FASB’s Accounting Standards Codification No. 605-35, Construction-Type and Production-Type Contracts. In general, the percentage-of-completion method results in a revenue recognition pattern over time as a project progresses as opposed to deferring revenues until contract completion.

The Company concluded that the impact of applying the percentage-of-completion method to its revenue contracts was materially different from its previously reported results under its historical practice. As a result, the Company is restating its condensed consolidated financial statements for the periods impacted. The following financial tables reconcile the previously reported amounts to the restated amounts for each condensed consolidated financial statement.

The table below sets forth the condensed consolidated statements of income, including the balances originally reported, corrections and the as restated balances for each restated period (in thousands):



	Three Months Ended November 30,							Nine Months Ended November 30,
	2016							2016
	As Reported		Correction			As Restated		As Reported		Correction			As Restated
Net Sales	$	227,459	$	657		$	228,116	$	665,171	$	14,101		$	679,272
Cost of Sales	173,593		3,226			176,819		506,091		14,651			520,742
Gross Profit	53,866		(2,569		)	51,297		159,080		(550		)	158,530

Operating Income	28,784		(2,569		)	26,215		78,182		(550		)	77,632

Income Before Income Taxes	25,946		(2,569		)	23,377		67,946		(550		)	67,396
Income Tax Expense	7,695		(964		)	6,731		18,609		(207		)	18,402
Net Income	$	18,251	$	(1,605	)	$	16,646	$	49,337	$	(343	)	$	48,994
Earnings Per Common Share
Basic Earnings Per Share	$	0.70	$	(0.06	)	$	0.64	$	1.90	$	(0.01	)	$	1.89
Diluted Earnings Per Share	$	0.70	$	(0.06	)	$	0.64	$	1.89	$	(0.01	)	$	1.88

The table below sets forth the condensed consolidated statements of comprehensive income, including the balances originally reported, corrections and the as restated balances for each restated period (in thousands):



	Three Months Ended November 30,							Nine Months Ended November 30,
	2016							2016
	As Reported		Correction			As Restated		As Reported		Correction			As Restated
Net Income	$	18,251	$	(1,605	)	$	16,646	$	49,337	$	(343	)	$	48,994
Comprehensive Income	15,319		(1,605		)	13,714		49,061		(343		)	48,718

The table below sets forth the condensed consolidated statements of cash flows from operating activities, including the balances originally reported, corrections and the as restated balances for each restated period (in thousands):



	Nine Months Ended November 30,
	2016
	As Reported			Correction			As Restated
Cash flows from operating activities:
Net income	$	49,337		$	(343	)	$	48,994
Deferred income taxes	(331		)	(207		)	(538		)
Inventories	(20,760		)	13,965			(6,795		)
Net change in billings related to costs and estimated earnings on uncompleted contracts	8,853			(12,130		)	(3,277		)
Other accrued liabilities and income taxes payable	329			(1,285		)	(956		)
Net cash provided by operating activities:	$	57,275		$	—		$	57,275

In addition to the restated condensed consolidated financial statements, the information contained in Notes 3 and 5 has been restated.