CONSOLIDATED FINANCIAL STATEMENTS

The accompanying unaudited consolidated financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for the fair presentation of results for the interim period have been included. The results of operations for the three and nine month periods ended September 30, 2016 are not necessarily indicative of the results expected for the full year. The Company is subject to reduced activity in the first and fourth quarters as colder, inclement weather reduces order rates from end markets it serves. The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our annual Form 10-K for the year ended December 31, 2015.

Immaterial Adjustments to Previously Reported Interim Periods

In preparing its consolidated financial statements for the three and nine months ended September 30, 2016, the Company identified certain adjustments during the implementation and subsequent testing of internal controls over financial reporting, including internal controls over revenue recognition for the acquired company that closed in 2015. The Company determined that these identified adjustments should be made to previously reported interim periods within the Company's Renewable Energy and Conservation segment. These adjustments are a result of deficiencies and errors in the Company's accounting for estimated total contract costs at completion as it is related to revenue recognition under the percentage of completion accounting method. Specifically, beginning in the first quarter of 2016, the Company identified cost savings from margin improvement initiatives which included raw material sourcing, freight management, and strategic make versus buy decisions. These costs savings were incurred sooner than expected. They should have been reflected in the total estimated contract costs at completion for the quarters ended March 31, 2016 and June 30, 2016, which resulted in an understatement of revenue recorded for these respective quarters.

In accordance with ASC Topic 250, Accounting Changes and Error Corrections, and Staff Accounting Bulletin No. 99, Materiality, the Company assessed these adjustments and determined that they were immaterial to each of the reporting periods affected and, therefore, amendment of previously filed reports was not required. However, the cumulative effect of correcting these errors would have been material to the results of our operations for the quarter ended September 30, 2016. Therefore, in order to provide consistency in the consolidated financial statements, adjustments for these immaterial amounts to previously reported interim period amounts are reflected in the financial information herein, and will be reflected in future filings containing such financial information.

In accordance with ASC Topic 250, the effect of the correction on each financial statement line item, income from continuing operations, net income and related per-share amounts for each prior interim periods of the current fiscal year is as follows (in thousands, except per share data):



For the Three Months Ended March 31, 2016
	As Previously Reported		Adjustments		As Restated
Net sales	$	233,677	$	3,994	$	237,671
Gross profit	$	50,156	$	3,994	$	54,150
Income from operations	$	13,607	$	3,994	$	17,601
Income from continuing operations	$	10,111	$	3,994	$	14,105
Provision for income taxes	$	3,618	$	1,458	$	5,076
Net income	$	6,493	$	2,536	$	9,029

Net earnings per share - Basic	$	0.21	$	0.08	$	0.29
Net earnings per share - Diluted	$	0.20	$	0.08	$	0.28



For the Three Months Ended June 30, 2016
	As Previously Reported			Adjustments		As Restated
Net sales	$	263,099		$	2,639	$	265,738
Gross profit	$	66,204		$	2,639	$	68,843
Income from operations	$	25,777		$	2,639	$	28,416
Income from continuing operations	$	14,076		$	2,639	$	16,715
Provision for income taxes	$	(2,913	)	$	1,016	$	(1,897	)
Net income	$	16,989		$	1,623	$	18,612

Net earnings per share - Basic	$	0.54		$	0.05	$	0.59
Net earnings per share - Diluted	$	0.53		$	0.05	$	0.58



For the Six Months Ended June 30, 2016
	As Previously Reported		Adjustments		As Restated
Net sales	$	496,776	$	6,633	$	503,409
Gross profit	$	116,360	$	6,633	$	122,993
Income from operations	$	39,384	$	6,633	$	46,017
Income from continuing operations	$	24,187	$	6,633	$	30,820
Provision for income taxes	$	705	$	2,474	$	3,179
Net income	$	23,482	$	4,159	$	27,641

Net earnings per share - Basic	$	0.75	$	0.13	$	0.88
Net earnings per share - Diluted	$	0.74	$	0.13	$	0.87

The tables below depict the effect of the correction for the Renewable Energy and Conservation segment on net sales and income from operations for each prior interim periods of the current fiscal year as follows (in thousands):



For the Three Months Ended March 31, 2016
	As Previously Reported		Adjustments		As Restated
Net sales	$	53,880	$	3,994	$	57,874
Income from operations	$	4,313	$	3,994	$	8,307



For the Three Months Ended June 30, 2016
	As Previously Reported		Adjustments		As Restated
Net sales	$	62,127	$	2,639	$	64,766
Income from operations	$	7,657	$	2,639	$	10,296



For the Six Months Ended June 30, 2016
	As Previously Reported		Adjustments		As Restated
Net sales	$	116,007	$	6,633	$	122,640
Income from operations	$	11,970	$	6,633	$	18,603

There were no adjustments made to retained earnings at the beginning of 2016 as the effects of the adjusted amounts were to interim periods during the current fiscal year ending December 31, 2016.