—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 and six months ended April 30, 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 and six months ended April 30, 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 and six months ended April 30, 2017 presented in this Quarterly Report on Form 10-Q reflects these revisions.

The following tables summarize the effects of the Revision on the condensed consolidated statements of operations:



	Three Months Ended April 30, 2016
Statement of Operations	As Reported		Adjustment			As Adjusted
Cost of sales	$	259,039	$	(1,056	)	$	257,983
Gross profit	25,225		1,056			26,281
Operating income	7,668		1,056			8,724
Other (income) expense	83		(448		)	(365		)
Income before income taxes	3,069		1,504			4,573
Provision for income taxes	12		352			364
Net income	$	3,057	$	1,152		$	4,209
Earnings per share:
Basic earnings per share	$0.17		$0.07			$0.24
Diluted earnings per share	$0.17		$0.07			$0.24



	Six Months Ended April 30, 2016
Statement of Operations	As Reported			Adjustment			As Adjusted
Cost of sales	$	494,113		$	(964	)	$	493,149
Gross profit	41,206			964			42,170
Selling, general and administrative expenses	34,576			(240		)	34,336
Asset impairment	—			273			273
Operating income	5,501			931			6,432
Other expense	479			(448		)	31
Loss before income taxes	(3,844		)	1,379			(2,465		)
Benefit for income taxes	(1,842		)	295			(1,547		)
Net loss:	$	(2,002	)	$	1,084		$	(918	)
Loss per share:
Basic loss per share	$(0.11)			$0.06			$(0.05)
Diluted loss per share	$(0.11)			$0.06			$(0.05)

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



	Six Months Ended April 30, 2016
Statement of Cash Flows	As Reported			Adjustment			As Adjusted
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(2,002	)	$	1,084		$	(918	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	18,873			50			18,923
Changes in operating assets and liabilities:
Accounts receivable	11,909			69			11,978
Inventories	(2,172		)	66			(2,106		)
Prepaids and other assets	6,663			(454		)	6,209
Payables and other liabilities	(5,608		)	264			(5,344		)
Prepaid and accrued income taxes	1,934			295			2,229
Net cash provided by operating activities	31,537			1,374			32,911
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(8,818		)	126			(8,692		)
Investment in joint venture	—			(1,500		)	(1,500		)
Net cash used for investing activities	(7,652		)	(1,374		)	(9,026		)