XML 47 R22.htm IDEA: XBRL DOCUMENT v3.2.0.727
Restatement of Previously Issued Financial Statements Restatement of Previously Issued Financial Statements
 3 Months Ended
Jan. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Accounting Changes and Error Corrections [Text Block]
Restatement of Previously Issued Financial Statements

As disclosed in the Company's Current Report on Form 8-K, filed on September 14, 2015, the Company, after an investigation by the Audit Committee, with the assistance of management and independent third-party advisors, concluded that previously issued condensed consolidated financial statements should not be relied upon due to errors related to the understatement of consolidated cost of sales of $1,700 for the fiscal quarter ended January 31, 2015.  The Audit Committee’s decision to restate the condensed consolidated financial statements was based upon the results of an investigation of accounting for inventoried costs at the Company’s Wellington facility.  The Company has restated its condensed consolidated financial statements for the fiscal quarter ended January 31, 2015 and such statements are included in this Amended Filing.

During the Company's investigation, other correcting    entries specific to the Wellington facility were identified and corrected, including certain amounts such as prepaid accounts that should have been expensed during the periods. The adjustments for the three month period ended January 31, 2015 included certain immaterial amounts from fiscal 2014 totaling $982 pre-tax primarily related to inventoried costs. Further, the tax impact of all adjustments has been recorded.

Impact of Corrections on Previously Issued Condensed Consolidated Financial Statements
 
The following table presents the effect of the restatement adjustments on the condensed consolidated balance sheet for the period ended January 31, 2015:
 
 
Three Months Ended January 31, 2015
 
 
As Reported
 
Adjustments
 
As Restated
Accounts receivable
 
$
155,781

 
$
(54
)
 
$
155,727

Prepaid income taxes
 
1,410

 
609

 
2,019

Inventories, net
 
97,810

 
(1,351
)
 
96,459

Prepaid expenses
 
11,482

 
(163
)
 
11,319

Total current assets
 
278,793

 
(959
)
 
277,834

Property, plant and equipment, net
 
278,236

 
(6
)
 
278,230

Total assets
 
616,556

 
(965
)
 
615,591

Accounts Payable
 
143,022

 
106

 
143,128

Other accrued expenses
 
32,276

 
159

 
32,435

Total current liabilities
 
176,899

 
265

 
177,164

Total liabilities
 
481,312

 
265

 
481,577

Retained earnings
 
116,866

 
(1,230
)
 
115,636

Total stockholders' equity
 
135,244

 
(1,230
)
 
134,014

Total liabilities and stockholders' equity
 
616,556

 
(965
)
 
615,591

The following table summarizes the effects of the restatement on the condensed consolidated financial statements of operations for the three months ended January 31, 2015:
 
 
Three Months Ended January 31, 2015
 
 
As Reported
 
Adjustments
 
As Restated
Net revenues
 
$
257,078

 
$
(169
)
 
$
256,909

Cost of sales
 
236,530

 
1,702

 
238,232

Gross profit
 
20,548

 
(1,871
)
 
18,677

Selling, general & administrative expenses
 
13,625

 
(10
)
 
13,615

Operating income
 
6,291

 
(1,861
)
 
4,430

Other income, net
 
(373
)
 
(22
)
 
(395
)
Income before income taxes
 
4,909

 
(1,839
)
 
3,070

Provision for income taxes
 
1,236

 
(609
)
 
627

Net income
 
3,673

 
(1,230
)
 
2,443

 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
Basic earnings per share
 
$0.21
 
$(0.07)
 
$0.14
Diluted earnings per share
 
$0.21
 
$(0.07)
 
$0.14
 
 
 
 
 
 
 

The following table presents the effect of the restatement adjustments on the condensed consolidated statements of comprehensive income (loss) for the three months ended January 31, 2015.
 
 
Three Months Ended January 31, 2015
 
 
As Reported
 
Adjustments
 
As Restated
Net income
 
$
3,673

 
$
(1,230
)
 
$
2,443

Comprehensive loss
 
(9,591
)
 
(1,230
)
 
(10,821
)

The following table presents the effect of the restatement adjustments on the condensed consolidated statements of cash flows for the three months ended January 31, 2015.
 
 
Three Months Ended January 31, 2015
 
 
As Reported
 
Adjustments
 
As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net income
 
$
3,673

 
$
(1,230
)
 
$
2,443

Accounts receivable
 
14,034

 
54

 
14,088

Inventories
 
(7,313
)
 
1,351

 
(5,962
)
Prepaids and other assets
 
760

 
163

 
923

Payables and other liabilities
 
(18,285
)
 
265

 
(18,020
)
Accrued income taxes
 
732

 
(609
)
 
123

Net cash provided by operating activities
 
2,553

 
(6
)
 
2,547

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Capital expenditures
 
(10,884
)
 
6

 
(10,878
)
Net cash used in investing activities
 
(10,812
)
 
6

 
(10,806
)