—Basis of Presentation

The condensed consolidated financial statements have been prepared by Shiloh Industries, Inc. and its subsidiaries (the "Company"), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). The information furnished in the condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP") have been condensed or omitted pursuant to the rules and regulations of the SEC. Although the Company believes that the disclosures are adequate to make the information presented not misleading, these condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2016.

Revenues and operating results for the three months ended January 31, 2017 are not necessarily indicative of the results to be expected for the full year.

Revision of Prior Period Financial Statements

In the fourth quarter of fiscal 2016, the Company became aware of immaterial errors in certain balance sheet accounts at one of its manufacturing facilities. An assessment concluded that the errors were not material, individually or in the aggregate, to any prior period consolidated financial statements. As such, in accordance with ASC 250 (SAB No. 108, Considering Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the prior period consolidated financial statements have been revised (the "Revision") in the applicable consolidated financial statements. The Company concluded a revision of prior period consolidated financial statements was appropriate the next time they were reported, since the correction of errors would have been material if recorded in fiscal year 2016. Periods not presented herein will be revised, as applicable, in future filings. Although management has determined that the errors, individually and in the aggregate, were not material to prior periods, the financial statements for the three months ended January 31, 2016, included herein, have been revised to correct for the impact of these items. Unless otherwise indicated, the condensed consolidated financial information as of and for the three months ended January 31, 2017 presented in this Quarterly Report on Form 10-Q reflects these revisions.

The following table summarizes the effects of the Revision on the condensed consolidated statements of operations:



	Three Months Ended January 31, 2016
Statement of Operations	As Reported			Adjustment			As Adjusted
Cost of sales	$	235,074		$	92		$	235,166
Gross profit	15,981			(92		)	15,889
Selling, general and administrative expenses	17,584			(240		)	17,344
Asset impairment	—			273			273
Operating loss	(2,167		)	(125		)	(2,292		)
Loss before income taxes	(6,913		)	(125		)	(7,038		)
Benefit for income taxes	(1,854		)	(57		)	(1,911		)
Net loss	$	(5,059	)	$	(68	)	$	(5,127	)
Loss per share:
Basic loss per share	$(0.29)			$(0.01)			$(0.30)
Diluted loss per share	$(0.29)			$(0.01)			$(0.30)

The following table summarizes the effects of the Revision on the condensed consolidated statements of cash flows:



	Three Months Ended January 31, 2016
Statement of Cash Flows	As Reported			Adjustment			As Adjusted
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(5,059	)	$	(68	)	$	(5,127	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	9,289			23			9,312
Changes in operating assets and liabilities:
Accounts receivable	40,095			51			40,146
Inventories	(2,753		)	(21		)	(2,774		)
Payables and other liabilities	(27,158		)	(22		)	(27,180		)
Prepaid and accrued income taxes	(2,330		)	(57		)	(2,387		)
Net cash provided by operating activities	18,689			(94		)	18,595
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(1,891		)	94			(1,797		)
Net cash used for investing activities	(1,756		)	94			(1,662		)