Immaterial Corrections | 6 Months Ended |
Nov. 30, 2014 |
Accounting Changes and Error Corrections [Abstract] | |
Immaterial Corrections | IMMATERIAL ERROR CORRECTIONS |
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During the financial closing process for the first quarter of fiscal year 2015, the Company determined that financial management had incorrectly accounted for certain asset, liability and income statement balances, beginning in 2011. The Company has identified amounts and concluded that they were not material individually or in the aggregate to any of its previously issued annual and interim financial statements. Although management has determined the amounts individually and in the aggregate are not material to prior periods, in accordance with authoritative accounting literature on considering the effects of misstatements in prior years when quantifying misstatements in the current year, the financial statements included herein have been adjusted to correct for the impact of these items. |
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The Company has corrected the relevant financial information from previous reporting periods contained in these financial statements. The immaterial error corrections identified were primarily related to our failure to recognize the expense associated with prepaid and other assets in accordance with the underlying contractual terms (cumulative impact of approximately $1.2 million) and depreciation expense (cumulative impact of approximately $0.4 million), and other individually immaterial items. Also, approximately $5.4 million of contingent consideration liabilities that had been classified as current are classified as long term in the balance sheet. |
The impacts of these revisions are shown in the tables below: |
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| Three months ended August 31, 2013 |
| As previously reported | | Adjustments | | As revised |
Net sales | $ | 83,579 | | | $ | 65 | | | $ | 83,644 | |
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Cost of sales | 41,097 | | | (33 | ) | | 41,064 | |
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Gross profit | 42,482 | | | 98 | | | 42,580 | |
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Total operating expenses | 41,195 | | | (17 | ) | | 41,178 | |
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Operating income | 1,287 | | | 115 | | | 1,402 | |
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Total other income (expenses) | (1,934 | ) | | (31 | ) | | (1,965 | ) |
Income (loss) before taxes | (647 | ) | | 84 | | | (563 | ) |
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Income tax benefit (expense) | 221 | | | (31 | ) | | 190 | |
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Net income (loss) | (426 | ) | | 53 | | | (373 | ) |
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Total comprehensive income (loss), net of tax | (155 | ) | | 53 | | | (102 | ) |
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| Three months ended November 30, 2013 |
| As previously reported | | Adjustments | | As revised |
Net sales | $ | 88,616 | | | $ | (45 | ) | | $ | 88,571 | |
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Cost of sales | 43,686 | | | — | | | 43,686 | |
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Gross profit | 44,930 | | | (45 | ) | | 44,885 | |
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Total operating expenses | 43,356 | | | 88 | | | 43,444 | |
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Operating income | 1,574 | | | (133 | ) | | 1,441 | |
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Total other income (expense) | (1,660 | ) | | (131 | ) | | (1,791 | ) |
Income (loss) before taxes | (86 | ) | | (264 | ) | | (350 | ) |
Income tax benefit (expense) | (13 | ) | | 102 | | | 89 | |
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Net income (loss) | (99 | ) | | (162 | ) | | (261 | ) |
Total comprehensive income (loss), net of tax | (358 | ) | | (162 | ) | | (520 | ) |
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| Six months ended November 30, 2013 |
| As previously reported | | Adjustments | | As revised |
Net sales | $ | 172,195 | | | $ | 20 | | | $ | 172,215 | |
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Cost of sales | 84,783 | | | (33 | ) | | 84,750 | |
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Gross profit | 87,412 | | | 53 | | | 87,465 | |
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Total operating expenses | 84,551 | | | 71 | | | 84,622 | |
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Operating income | 2,861 | | | (18 | ) | | 2,843 | |
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Total other income (expense) | (3,594 | ) | | (162 | ) | | (3,756 | ) |
Income (loss) before taxes | (733 | ) | | (180 | ) | | (913 | ) |
Income tax benefit (expense) | 208 | | | 71 | | | 279 | |
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Net income (loss) | (525 | ) | | (109 | ) | | (634 | ) |
Total comprehensive income (loss), net of tax | (513 | ) | | (109 | ) | | (622 | ) |
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| Three months ended February 28, 2014 |
| As previously reported | | Adjustments | | As revised |
Net sales | $ | 88,195 | | | $ | (45 | ) | | $ | 88,150 | |
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Cost of sales | 43,277 | | | 80 | | | 43,357 | |
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Gross profit | 44,918 | | | (125 | ) | | 44,793 | |
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Total operating expenses | 38,066 | | | 214 | | | 38,280 | |
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Operating income | 6,852 | | | (339 | ) | | 6,513 | |
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Total other income (expense) | (1,985 | ) | | 15 | | | (1,970 | ) |
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Income (loss) before taxes | 4,867 | | | (324 | ) | | 4,543 | |
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Income tax benefit (expense) | (176 | ) | | 148 | | | (28 | ) |
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Net income (loss) | 4,691 | | | (176 | ) | | 4,515 | |
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Total comprehensive income (loss), net of tax | 4,869 | | | (176 | ) | | 4,693 | |
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| Nine months ended February 28, 2014 |
| As previously reported | | Adjustments | | As revised |
Net sales | $ | 260,390 | | | $ | (25 | ) | | $ | 260,365 | |
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Cost of sales | 128,060 | | | 47 | | | 128,107 | |
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Gross profit | 132,330 | | | (72 | ) | | 132,258 | |
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Total operating expenses | 122,617 | | | 285 | | | 122,902 | |
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Operating income | 9,713 | | | (357 | ) | | 9,356 | |
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Total other income (expense) | (5,579 | ) | | (147 | ) | | (5,726 | ) |
Income (loss) before taxes | 4,134 | | | (504 | ) | | 3,630 | |
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Income tax benefit (expense) | 32 | | | 219 | | | 251 | |
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Net income (loss) | 4,166 | | | (285 | ) | | 3,881 | |
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Total comprehensive income (loss), net of tax | 4,356 | | | (285 | ) | | 4,071 | |
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| Three months ended May 31, 2014 |
| As previously reported | | Adjustments | | As revised |
Net sales | $ | 94,065 | | | $ | (5 | ) | | $ | 94,060 | |
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Cost of sales | 46,534 | | | 116 | | | 46,650 | |
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Gross profit | 47,531 | | | (121 | ) | | 47,410 | |
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Total operating expenses | 43,796 | | | 30 | | | 43,826 | |
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Operating income | 3,735 | | | (151 | ) | | 3,584 | |
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Total other income (expense) | (1,489 | ) | | 15 | | | (1,474 | ) |
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Income (loss) before taxes | 2,246 | | | (136 | ) | | 2,110 | |
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Income tax benefit (expense) | (3,324 | ) | | (1 | ) | | (3,325 | ) |
Net income (loss) | (1,078 | ) | | (137 | ) | | (1,215 | ) |
Total comprehensive income (loss), net of tax | (1,003 | ) | | (137 | ) | | (1,140 | ) |
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| Year ended May 31, 2014 |
| As previously reported | | Adjustments | | As revised |
Net sales | $ | 354,455 | | | $ | (30 | ) | | $ | 354,425 | |
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Cost of sales | 174,594 | | | 163 | | | 174,757 | |
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Gross profit | 179,861 | | | (193 | ) | | 179,668 | |
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Total operating expenses | 166,413 | | | 315 | | | 166,728 | |
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Operating income | 13,448 | | | (508 | ) | | 12,940 | |
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Total other income (expense) | (7,068 | ) | | (132 | ) | | (7,200 | ) |
Income (loss) before taxes | 6,380 | | | (640 | ) | | 5,740 | |
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Income tax benefit (expense) | (3,292 | ) | | 218 | | | (3,074 | ) |
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Net income (loss) | 3,088 | | | (422 | ) | | 2,666 | |
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Total comprehensive income (loss), net of tax | 3.353 | | | (422 | ) | | 2.931 | |
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| Year ended May 31, 2014 |
| As previously reported | | Adjustments | | As revised |
Net cash provided by (used in) operating activities | $ | 25,280 | | | $ | (599 | ) | | $ | 24,681 | |
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Net cash provided by (used in) investing activities | (17,047 | ) | | 599 | | | (16,448 | ) |
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Net cash provided by (used in) financing activities | (14,016 | ) | | — | | | (14,016 | ) |
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| As of May 31, 2014 |
| As previously reported | | Adjustments | | As revised |
Accounts receivable, net of allowances | $ | 62,148 | | | $ | (180 | ) | | $ | 61,968 | |
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Inventories | 61,056 | | | 178 | | | 61,234 | |
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Prepaid expenses and other | 5,975 | | | (504 | ) | | 5,471 | |
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Total current assets | 152,228 | | | (506 | ) | | 151,722 | |
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Property, plant and equipment, net | 67,208 | | | (618 | ) | | 66,590 | |
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Other assets | 4,876 | | | (950 | ) | | 3,926 | |
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Goodwill | 360,294 | | | 179 | | | 360,473 | |
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Deferred income taxes, long term | 9,767 | | | 636 | | | 10,403 | |
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Total assets | 800,150 | | | (1,259 | ) | | 798,891 | |
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Accrued liabilities | 16,762 | | | (110 | ) | | 16,652 | |
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Current portion of contingent payments | 16,341 | | | (5,423 | ) | | 10,918 | |
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Total current liabilities | 72,286 | | | (5,533 | ) | | 66,753 | |
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Contingent consideration, net of current portion | 51,080 | | | 5,333 | | | 56,413 | |
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Total liabilities | 262,256 | | | (200 | ) | | 262,056 | |
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Additional paid-in capital | 508,263 | | | 91 | | | 508,354 | |
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Retained earnings | 32,651 | | | (1,150 | ) | | 31,501 | |
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Total stockholders' equity | 537,894 | | | (1,059 | ) | | 536,835 | |
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| Year ended May 31, 2013 |
| As previously reported | | Adjustments | | As revised |
Net sales | $ | 342,026 | | | $ | (110 | ) | | $ | 341,916 | |
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Cost of sales | 173,037 | | | 365 | | | 173,402 | |
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Gross profit | 168,989 | | | (475 | ) | | 168,514 | |
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Total operating expenses | 161,895 | | | 331 | | | 162,226 | |
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Operating income | 7,094 | | | (806 | ) | | 6,288 | |
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Total other income (expense) | (7,737 | ) | | (138 | ) | | (7,875 | ) |
Income (loss) before taxes | (643 | ) | | (944 | ) | | (1,587 | ) |
Income tax benefit (expense) | 31 | | | 345 | | | 376 | |
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Net income (loss) | (612 | ) | | (599 | ) | | (1,211 | ) |
Total comprehensive income (loss), net of tax | (872 | ) | | (599 | ) | | (1,471 | ) |
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| Year ended May 31, 2013 |
| As previously reported | | Adjustments | | As revised |
Net cash provided by (used in) operating activities | $ | 26,883 | | | $ | (231 | ) | | $ | 26,652 | |
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Net cash provided by (used in) investing activities | (22,238 | ) | | — | | | (22,238 | ) |
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Net cash provided by (used in) financing activities | (6,286 | ) | | — | | | (6,286 | ) |
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| As of May 31, 2013 |
| As previously reported | | Adjustments | | As revised |
Accounts receivable, net of allowances | $ | 47,791 | | | $ | (110 | ) | | $ | 47,681 | |
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Inventories | 55,062 | | | 17 | | | 55,079 | |
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Prepaid expenses and other | 7,554 | | | (269 | ) | | 7,285 | |
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Total current assets | 141,516 | | | (362 | ) | | 141,154 | |
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Property, plant and equipment, net | 62,650 | | | (259 | ) | | 62,391 | |
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Other assets | 5,559 | | | (651 | ) | | 4,908 | |
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Intangible assets, net | 214,848 | | | (175 | ) | | 214,673 | |
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Goodwill | 355,458 | | | 179 | | | 355,637 | |
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Deferred income taxes, long term | 11,007 | | | 418 | | | 11,425 | |
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Total assets | 791,584 | | | (850 | ) | | 790,734 | |
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Accounts payable | 24,522 | | | (52 | ) | | 24,470 | |
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Accrued liabilities | 16,426 | | | (70 | ) | | 16,356 | |
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Total current liabilities | 63,437 | | | (122 | ) | | 63,315 | |
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Total liabilities | 264,754 | | | (122 | ) | | 264,632 | |
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Retained earnings | 29,563 | | | (728 | ) | | 28,835 | |
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Total stockholders' equity | 526,830 | | | (728 | ) | | 526,102 | |
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| Year ended May 31, 2012 |
| As previously reported | | Adjustments | | As revised |
Net sales | $ | 221,787 | | | $ | 130 | | | $ | 221,917 | |
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Cost of sales | 95,829 | | | 779 | | | 96,608 | |
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Gross profit | 125,958 | | | (649 | ) | | 125,309 | |
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Total operating expenses | 128,920 | | | 297 | | | 129,217 | |
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Operating income | (2,962 | ) | | (946 | ) | | (3,908 | ) |
Total other income (expense) | (2,320 | ) | | 806 | | | (1,514 | ) |
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Income (loss) before taxes | (5,282 | ) | | (140 | ) | | (5,422 | ) |
Income tax expense (benefit) | 188 | | | 51 | | | 239 | |
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Net income (loss) | (5,094 | ) | | (89 | ) | | (5,183 | ) |
Total comprehensive income (loss), net of tax | (5,095 | ) | | (89 | ) | | (5,184 | ) |
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| Year ended May 31, 2012 |
| As previously reported | | Adjustments | | As revised |
Net cash provided by (used in) operating activities | $ | 11,497 | | | $ | 105 | | | $ | 11,602 | |
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Net cash provided by (used in) investing activities | (176,360 | ) | | 126 | | | (176,234 | ) |
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Net cash provided by (used in) financing activities | 142,338 | | | — | | | 142,338 | |
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| As of May 31, 2012 |
| As previously reported | | Adjustments | | As revised |
Cash and cash equivalents | $ | 23,508 | | | $ | 231 | | | $ | 23,739 | |
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Accounts receivable, net of allowances | 48,588 | | | (1,685 | ) | | 46,903 | |
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Prepaid expenses and other | 9,826 | | | (23 | ) | | 9,803 | |
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Total current assets | 159,238 | | | (1,477 | ) | | 157,761 | |
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Property, plant and equipment, net | 55,915 | | | (305 | ) | | 55,610 | |
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Other assets | 10,707 | | | (348 | ) | | 10,359 | |
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Intangible assets, net | 147,266 | | | 97 | | | 147,363 | |
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Goodwill | 308,912 | | | 179 | | | 309,091 | |
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Deferred income taxes, long term | 39,198 | | | 73 | | | 39,271 | |
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Total assets | 721,769 | | | (1,781 | ) | | 719,988 | |
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Accrued liabilities | 18,722 | | | (1,652 | ) | | 17,070 | |
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Total current liabilities | 55,422 | | | (1,652 | ) | | 53,770 | |
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Total liabilities | 198,249 | | | (1,652 | ) | | 196,597 | |
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Retained earnings | 30,175 | | | (129 | ) | | 30,046 | |
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Total stockholders' equity | 523,520 | | | (129 | ) | | 523,391 | |
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