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Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

POWER SOLUTIONS INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)	As of
	March 31, 2017			June 30, 2017			September 30, 2017
ASSETS
Current assets
Cash and cash equivalents	$	342		$	—		$	—
Accounts receivable, net	64,305			56,673			60,811
Income tax receivable	6,829			1,996			841
Inventories, net	97,286			103,335			113,074
Prepaid expenses and other current assets	15,291			12,453			14,536
Total current assets	184,053			174,457			189,262
Property, plant and equipment, net	19,230			19,050			18,974
Intangible assets, net	24,819			23,610			22,401
Goodwill	29,835			29,835			29,835
Other noncurrent assets	5,053			4,518			6,035
TOTAL ASSETS	$	262,990		$	251,470		$	266,507

LIABILITIES, MEZZANINE AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	67,167		$	55,610		$	54,195
Contingent consideration	30			29			20
Revolving line of credit, current	16,887			25,263			41,332
Other accrued liabilities	35,234			35,379			41,393
Total current liabilities	119,318			116,281			136,940
Deferred income taxes	933			1,066			1,210
Warrants	20,700			21,500			23,200
Long-term debt, less current maturities, net	54,045			54,168			54,305
Other noncurrent liabilities	13,328			12,438			13,312
TOTAL LIABILITIES	$	208,324		$	205,453		$	228,967

MEZZANINE EQUITY
Series B convertible preferred stock, net of issuance costs	$	24,617		$	27,807		$	31,411

STOCKHOLDERS’ EQUITY
Preferred stock	$	—		$	—		$	—
Common stock	14			14			14
Additional paid-in capital	100,686			96,543			91,737
Accumulated deficit	(59,070		)	(66,817		)	(76,018		)
Treasury stock, at cost	(11,582		)	(11,530		)	(9,604		)
TOTAL STOCKHOLDERS’ EQUITY	30,048			18,210			6,129
TOTAL LIABILITIES, MEZZANINE AND STOCKHOLDERS’ EQUITY	$	262,990		$	251,470		$	266,507

POWER SOLUTIONS INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)	As of
	March 31, 2016 (Restated)			June 30, 2016			September 30, 2016
ASSETS
Current assets
Cash and cash equivalents	$	1,495		$	435		$	1,610
Accounts receivable, net	45,384			57,884			53,364
Income tax receivable	1,723			3,384			5,737
Inventories, net	139,519			115,062			111,133
Prepaid expenses and other current assets	4,132			4,026			5,146
Total current assets	192,253			180,791			176,990
Property, plant and equipment, net	20,662			20,386			20,257
Intangible assets, net	30,316			28,888			27,459
Goodwill	29,835			29,835			29,835
Deferred income taxes	19,285			—			—
Other noncurrent assets	2,664			2,621			2,821
TOTAL ASSETS	$	295,015		$	262,521		$	257,362

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	43,160		$	49,729		$	45,764
Current maturities of long-term debt	—			—			375
Contingent consideration	5,481			100			88
Revolving line of credit, current	—			14,038			16,994
Other accrued liabilities	17,929			19,182			22,405
Total current liabilities	66,570			83,049			85,626
Revolving line of credit	80,568			—			—
Deferred income taxes	—			372			522
Warrants	226			—			—
Long-term debt, less current maturities, net	53,799			110,929			111,517
Other noncurrent liabilities	11,952			12,833			12,730
TOTAL LIABILITIES	$	213,115		$	207,184		$	210,395

STOCKHOLDERS’ EQUITY
Preferred stock	$	—		$	—		$	—
Common stock	11			12			12
Additional paid-in capital	83,729			86,043			86,408
Retained earnings (accumulated deficit)	9,612			(19,180		)	(27,895		)
Treasury stock, at cost	(11,452		)	(11,537		)	(11,558		)
TOTAL STOCKHOLDERS’ EQUITY	81,900			55,337			46,967
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	295,015		$	262,521		$	257,362

POWER SOLUTIONS INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)	For the Quarter Ended
	March 31, 2017			June 30, 2017			September 30, 2017			December 31, 2017
Net sales	$	84,265		$	100,922		$	99,953		$	131,476
Cost of sales	74,497			88,443			86,702			115,981
Gross profit	9,768			12,479			13,251			15,495
Operating expenses:
Research, development and engineering expenses	3,950			3,848			5,687			6,459
Selling, general and administrative expenses	10,209			10,688			12,062			11,297
Asset impairment charges	—			—			—			1
Amortization of intangible assets	1,209			1,209			1,210			1,210
Total operating expenses	15,368			15,745			18,959			18,967
Operating loss	(5,600		)	(3,266		)	(5,708		)	(3,472		)
Other expense:
Interest expense	6,080			1,404			1,654			1,703
Loss from change in fair value of warrants	—			800			1,700			1,500
Loss on debt extinguishment and modifications	11,921			—			—			—
Other expense (income), net	453			2,142			(9		)	(225		)
Total other expense	18,454			4,346			3,345			2,978
Loss before income taxes	(24,054		)	(7,612		)	(9,053		)	(6,450		)
Income tax expense (benefit)	479			135			149			(320		)
Net loss	(24,533		)	(7,747		)	(9,202		)	(6,130		)
Deemed dividend on Series B convertible stock	—			(3,190		)	(3,603		)	(31,067		)
Net loss available to common stockholders	$	(24,533	)	$	(10,937	)	$	(12,805	)	$	(37,197	)

POWER SOLUTIONS INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)	For the Quarter Ended
	March 31, 2016 (Restated)			June 30, 2016			September 30, 2016			December 31, 2016
Net sales	$	76,470		$	85,771		$	78,944		$	98,280
Cost of sales	69,827			81,253			72,820			86,376
Gross profit	6,643			4,518			6,124			11,904
Operating expenses:
Research, development and engineering expenses	4,904			4,817			4,498			4,742
Selling, general and administrative expenses	6,405			6,699			6,855			8,563
Asset impairment charges	345			1,064			38			167
Amortization of intangible assets	1,428			1,429			1,429			1,430
Contingent consideration	—			(283		)	—			—
Total operating expenses	13,082			13,726			12,820			14,902
Operating loss	(6,439		)	(9,208		)	(6,696		)	(2,998		)
Other expense:
Interest expense	1,438			1,649			3,726			4,402
Gain from change in fair value of warrants	(1,256		)	(157		)	—			—
Loss on debt extinguishment and modifications	—			—			25			332
Other expense, net	59			92			62			146
Total other expense	241			1,584			3,813			4,880
Loss before income taxes	(6,680		)	(10,792		)	(10,509		)	(7,878		)
Income tax (benefit) expense	(3,357		)	18,000			(1,792		)	(1,238		)
Net loss	$	(3,323	)	$	(28,792	)	$	(8,717	)	$	(6,640	)

POWER SOLUTIONS INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)	For the Year to Date Period Ended
	March 31, 2017			June 30, 2017			September 30, 2017
Cash provided by (used in) operating activities
Net loss	$	(24,533	)	$	(32,280	)	$	(41,482	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Amortization of intangible assets	1,209			2,419			3,628
Depreciation	1,172			2,342			3,502
Change in valuation of warrants	—			800			2,500
Stock compensation expense	(865		)	(1,028		)	(297		)
Amortization of financing fees	3,109			3,441			3,778
Deferred income taxes	469			602			746
Loss on extinguishment of debt	11,921			11,921			11,921
Provision for doubtful accounts	48			131			216
Provision for inventory obsolescence	146			539			882
Loss on disposal of fixed assets	10			66			115
Other sources, net	135			198			189
Changes in operating assets and liabilities:
Trade accounts receivable, net	(4,017		)	3,532			(691		)
Inventory, net	3,122			(3,326		)	(13,408		)
Prepaid expenses and other assets	(1,624		)	1,238			(1,359		)
Trade accounts payable	15,186			3,244			1,879
Income taxes refundable	298			5,135			6,293
Accrued expenses	2,432			3,242			8,867
Other noncurrent liabilities	(121		)	(894		)	(821		)
Net cash provided by (used in) operating activities	8,097			1,322			(13,542		)
Cash (used in) provided by investing activities
Capital expenditures	(1,896		)	(2,669		)	(3,856		)
Other sources, net	—			245			245
Net cash used in investing activities	(1,896		)	(2,424		)	(3,611		)
Cash (used in) provided by financing activities
Repayments of issuance of long-term debt	(71,400		)	(71,400		)	(71,400		)
Financing fees	(253		)	(928		)	(928		)
Net proceeds from stock offering and warrant	59,396			59,396			59,396
Proceeds from revolving line of credit	85,945			209,082			324,416
Repayments of revolving line of credit	(81,833		)	(196,593		)	(295,859		)
Acquisition of businesses contingent consideration payments	(6		)	(9		)	(19		)
Other uses, net	—			(738		)	(745		)
Net cash (used in) provided by financing activities	(8,151		)	(1,190		)	14,861
Decrease in cash	(1,950		)	(2,292		)	(2,292		)
Cash at beginning of the year	2,292			2,292			2,292
Cash at end of the period	$	342		$	—		$	—

POWER SOLUTIONS INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)	For the Year to Date Period Ended
	March 31, 2016 (Restated)			June 30, 2016			September 30, 2016
Cash provided by (used in) operating activities
Net loss	$	(3,323	)	$	(32,115	)	$	(40,832	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Amortization of intangible assets	1,429			2,857			4,286
Depreciation	1,118			2,250			3,412
Change in valuation of warrants	(1,256		)	(1,413		)	(1,413		)
Stock compensation expense	441			692			1,188
Amortization of financing fees	143			445			1,451
Deferred income taxes	(1,628		)	18,029			18,179
Loss on extinguishment of debt	—			—			25
Asset impairment charges	345			1,410			1,447
Change in valuation of contingent consideration	—			(283		)	(283		)
(Income) provision for doubtful accounts	(10		)	24			69
Provision for inventory obsolescence	288			3,441			3,928
Loss (gain) on disposal of fixed assets	236			(852		)	(846		)
Other sources, net	113			205			266
Changes in operating assets and liabilities:
Trade accounts receivable, net	25,158			12,624			17,100
Inventory, net	22,288			42,947			46,390
Prepaid expenses and other assets	(207		)	(1,261		)	(2,443		)
Trade accounts payable	(36,459		)	(30,324		)	(34,056		)
Income taxes refundable (payable)	3,441			1,783			(682		)
Accrued expenses	1,891			3,041			6,099
Other noncurrent liabilities	(98		)	1,011			1,028
Net cash provided by operating activities	13,910			24,511			24,313
Cash flows from investing activities
Capital expenditures	(1,099		)	(1,977		)	(3,286		)
Proceeds from disposal of assets	—			2,466			2,466
Other uses, net	—			—			(245		)
Net cash (used in) provided by investing activities	(1,099		)	489			(1,065		)
Cash flows from financing activities
Proceeds from issuance of long-term debt	—			60,000			60,000
Financing fees	—			(3,402		)	(3,402		)
Net proceeds from stock offering and warrant	—			2,001			2,001
Proceeds from revolving line of credit	46,902			111,902			196,179
Repayments of revolving line of credit	(63,634		)	(195,164		)	(276,484		)
Acquisition of businesses contingent consideration payments	(3,029		)	(8,258		)	(8,279		)
Other uses, net	—			(89		)	(98		)
Net cash used in financing activities	(19,761		)	(33,010		)	(30,083		)
Decrease in cash	(6,950		)	(8,010		)	(6,835		)
Cash at beginning of the year	8,445			8,445			8,445
Cash at end of the period	$	1,495		$	435		$	1,610

Effect of Restatement

The following table sets forth the effects of the restatement adjustments on revenue and pretax income (loss) in the Consolidated Statements of Operations for the years ended December 31, 2015 and 2014. Due to the substantial number of restatement adjustments, each of the restatement categories listed in the table below may represent multiple related adjustments that have been aggregated for disclosure purposes.



(in thousands)	For the Year Ended December 31,
	2015						2014
	Net Sales			Income (Loss) Before Income Taxes			Net Sales			Income (Loss) Before Income Taxes
Previously reported	$	389,446		$	13,890		$	347,995		$	34,539
Restatement adjustments:
Revenue recognition adjustments	(27,059		)	(9,215		)	(415		)	(2,700		)
Product development cost	—			(1,001		)	—			(2,397		)
Inventory valuation	—			(1,069		)	—			38
Impairment of long-lived assets	—			(11,733		)	—			(310		)
Product warranty	—			(2,484		)	—			591
Accrued liabilities	—			(1,106		)	—			591
Purchase accounting	—			—			—			(845		)
Equity investment	—			125			—			(286		)
Net restatement adjustments	(27,059		)	(26,483		)	(415		)	(5,318		)
Restated	$	362,387		$	(12,593	)	$	347,580		$	29,221

The following table presents the effect of the restatement adjustments and reclassifications on the Consolidated Statement of Operations for 2015:



(in thousands, except for per share data)	Year Ended December 31, 2015
	Previously Reported			Restatement Adjustments and Reclassifications				Restated

Net sales	$	389,446		$	(27,059	)		$	362,387
Cost of sales	326,612			(15,464		)		311,148
Gross profit	62,834			(11,595		)		51,239
Operating expenses:
Research, development and engineering expenses	21,681			1,893				23,574
Selling, general and administrative expenses	27,376			1,461				28,837
Asset impairment charge	—			11,686				11,686
Amortization of intangible assets	4,582			—				4,582
Change in fair value of contingent consideration	—			(23		)	—	(23		)
Total operating expenses	53,639			15,017				68,656
Operating income (loss)	9,195			(26,612		)		(17,417		)
Other (income) expense:
Interest expense	4,327			(7		)		4,320
Contingent consideration	48			(48		)		—
Gain from change in fair value of warrants	(9,299		)	(1		)		(9,300		)
Loss on debt extinguishment and modifications	—			12				12
Other expense, net	229			(85		)		144
Total other income	(4,695		)	(129		)		(4,824		)
Income (loss) before income taxes	13,890			(26,483		)		(12,593		)
Income tax benefit	(388		)	(9,314		)		(9,702		)
Net income (loss)	$	14,278		$	(17,169	)		$	(2,891	)

Weighted-average common shares outstanding:
Basic	10,808			—				10,808
Diluted	11,074			(83		)		10,991
Earnings (loss) per common share:
Basic	$	1.32		$	(1.59	)		$	(0.27	)
Diluted	$	0.45		$	(1.56	)		$	(1.11	)

The following table presents the effect of the restatement adjustments and reclassifications on the Consolidated Statement of Operations for 2014:



(in thousands, except for per share data)	Year Ended December 31, 2014
	Previously Reported			Restatement Adjustments and Reclassifications			Restated
	Previously Reported			Restatement Adjustments and Reclassifications			Restated
Net sales	$	347,995		$	(415	)	$	347,580
Cost of sales	280,950			2,590			283,540
Gross profit	67,045			(3,005		)	64,040
Operating expenses:
Research, development and engineering expenses	16,900			2,405			19,305
Selling, general and administrative expenses	23,088			54			23,142
Asset impairment charge	—			310			310
Amortization of intangible assets	1,013			—			1,013
Change in fair value of contingent consideration	—			(3,840		)	(3,840		)
Total operating expenses	41,001			(1,071		)	39,930
Operating income	26,044			(1,934		)	24,110
Other expense (income):
Interest expense	1,331			11			1,342
Contingent consideration	(3,840		)	3,840			—
Gain from change in fair value of warrants	(6,169		)	(1		)	(6,170		)
Other expense (income), net	183			(466		)	(283		)
Total other income	(8,495		)	3,384			(5,111		)
Income before income taxes	34,539			(5,318		)	29,221
Income tax expense	10,813			(3,069		)	7,744
Net income	$	23,726		$	(2,249	)	$	21,477

Weighted-average common shares outstanding:
Basic	10,707			(2		)	10,705
Diluted	11,132			(1		)	11,131
Earnings (loss) per common share:
Basic	$	2.22		$	(0.21	)	$	2.01
Diluted	$	2.13		$	(0.75	)	$	1.38

The following table sets forth the effects of the restatement adjustments and reclassifications adjustments on the Company's Consolidated Balance Sheet as of December 31, 2015:



(in thousands)	As of December 31, 2015
	Previously Reported			Restatement Adjustments and Reclassifications			Restated
ASSETS
Current assets
Cash and cash equivalents	$	8,445		$	—		$	8,445
Accounts receivable, net	104,365			(33,833		)	70,532
Income tax receivable	5,230			35			5,265
Inventories, net	130,347			31,748			162,095
Prepaid expenses and other current assets	4,288			(1,585		)	2,703
Total current assets	252,675			(3,635		)	249,040
Property, plant and equipment, net	26,001			(3,192		)	22,809
Intangible assets, net	31,745			—			31,745
Goodwill	41,466			(11,631		)	29,835
Deferred income taxes	819			16,838			17,657
Other noncurrent assets	7,230			(4,479		)	2,751
TOTAL ASSETS	$	359,936		$	(6,099	)	$	353,837

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	76,078		$	3,745		$	79,823
Contingent consideration	8,788			(513		)	8,275
Other accrued liabilities	14,396			3,450			17,846
Total current liabilities	99,262			6,682			105,944
Revolving line of credit	97,299			—			97,299
Warrants	1,482			—			1,482
Long-term debt, less current maturities, net	53,820			(15		)	53,805
Other noncurrent liabilities	1,776			8,658			10,434
TOTAL LIABILITIES	$	253,639		$	15,325		$	268,964

STOCKHOLDERS’ EQUITY
Preferred stock	$	—		$	—		$	—
Common stock	12			(1		)	11
Additional paid-in capital	75,179			8,198			83,377
Retained earnings	35,356			(22,419		)	12,937
Treasury stock, at cost	(4,250		)	(7,202		)	(11,452		)
TOTAL STOCKHOLDERS’ EQUITY	106,297			(21,424		)	84,873
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	359,936		$	(6,099	)	$	353,837

The following table sets forth the effects of the restatement adjustments and reclassifications on the Company's Consolidated Balance Sheet as of December 31, 2014:



(in thousands)	As of December 31, 2014
	Previously Reported			Restatement Adjustments and Reclassifications			Restated
ASSETS
Current assets
Cash and cash equivalents	$	6,561		$	—		$	6,561
Accounts receivable, net	81,740			(5,474		)	76,266
Inventories, net	93,903			12,347			106,250
Prepaid expenses and other current assets	4,801			39			4,840
Deferred income taxes	3,998			4,554			8,552
Total current assets	191,003			11,466			202,469
Property, plant and equipment, net	20,892			(2,938		)	17,954
Intangible assets, net	21,392			(200		)	21,192
Goodwill	23,546			(132		)	23,414
Deferred income tax asset	—			13			13
Other noncurrent assets	5,804			(3,901		)	1,903
TOTAL ASSETS	$	262,637		$	4,308		$	266,945

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	60,877		$	6,836		$	67,713
Current maturities of long-term debt	1,667			—			1,667
Other accrued liabilities	13,504			4,678			18,182
Total current liabilities	76,048			11,514			87,562
Revolving line of credit	78,030			—			78,030
Deferred income taxes	3,241			(3,241		)	—
Warrants	11,036			—			11,036
Long-term debt, less current maturities, net	2,361			—			2,361
Other noncurrent liabilities	1,122			351			1,473
TOTAL LIABILITIES	$	171,838		$	8,624		$	180,462

STOCKHOLDERS’ EQUITY
Preferred stock	$	—		$	—		$	—
Common stock	12			(1		)	11
Additional paid-in capital	73,959			7,787			81,746
Retained earnings	21,078			(5,250		)	15,828
Treasury stock, at cost	(4,250		)	(6,852		)	(11,102		)
TOTAL STOCKHOLDERS’ EQUITY	90,799			(4,316		)	86,483
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	262,637		$	4,308		$	266,945

The following table sets forth the effect of the restatement adjustments on the components of total stockholders, equity as of December 31, 2013:



(in thousands)	As of December 31, 2013
	Previously Reported			Restatement Adjustments			Restated
Preferred stock	$	—		$	—		$	—
Common Stock	11			—			11
Additional paid-in capital	57,308			4,622			61,930
Accumulated deficit	(2,649		)	(3,079		)	(5,728		)
Treasury stock, at cost	(4,250		)	(4,435		)	(8,685		)
Total stockholders' equity	$	50,421		$	(2,891	)	$	47,530

The following table summarizes the effects of the restatement on the Company's Consolidated Statements of Changes in Stockholders’ Equity as of December 31, 2015 and 2014:



(in thousands)	Year Ended December 31,
	2015			2014
Stockholders' equity, as previously reported	$	106,297		$	90,799
Effect of restatement adjustments on net income/retained earnings	(21,424		)	(4,316		)
Stockholders' equity, restated	$	84,873		$	86,483

The following table includes comparison of selected previously reported and restated information from the Company's Consolidated Statements of Cash Flows for 2015 and 2014:



(in thousands)	For the Year Ended December 31,
	2015						2014
	Previously Reported			Restated			Previously Reported			Restated
	Previously Reported			Restated			Previously Reported			Restated
Net cash used in operating activities	$	(23,049	)	$	(22,815	)	$	(15,685	)	$	(15,094	)
Net cash used in investing activities	(43,570		)	(43,805		)	(51,713		)	(52,322		)
Net cash provided by financing activities	68,503			68,504			67,653			67,671
Increase in cash	1,884			1,884			255			255
Cash at beginning of year	6,561			6,561			6,306			6,306
Cash at end of year	$	8,445		$	8,445		$	6,561		$	6,561

The following table sets forth the effect of the restatement adjustments on the components of total stockholders' equity as of December 31, 2013:



(in thousands)	As of December 31, 2013
Stockholders' Equity	Previously Reported			Restatement Adjustments			Restated
Common stock	$	11		$	—		$	11
Additional paid-in capital	57,308			4,622			61,930
Accumulated deficit	(2,648		)	(3,079		)	(5,649		)
Treasury stock, at cost	(4,250		)	(4,435		)	(8,685		)
Total	$	50,421		$	(2,891	)	$	47,607

The Company identified the following categories that required restatement or reclassification and were comprised of a number of related adjustments that have been aggregated for disclosure purposes:



(in thousands)	Three Months Ended March 31, 2016
	Net Sales		(Loss) Income Before Income Taxes
Previously Reported	$	61,814	$	(8,931	)
Restatement adjustments:
Revenue recognition adjustments	$	14,656	$	3,111
Product development cost	—		123
Inventory valuation	—		(404		)
Impairment of long-lived assets	—		(557		)
Product warranty	—		(319		)
Accrued liabilities	—		422
Equity investment	—		(125		)
Net restatement adjustments	14,656		2,251
Restated	$	76,470	$	(6,680	)

The following table presents the effect of the restatement adjustments and reclassifications on the Consolidated Statement of Operations for three months ended March 31, 2016:



(in thousands, except for per share data)	Three Months Ended March 31, 2016
	Previously Reported			Restatement Adjustments and Reclassifications			Restated
Net sales	$	61,814		$	14,656		$	76,470
Cost of sales	57,758			12,069			69,827
Gross profit	4,056			2,587			6,643
Operating expenses:
Research, development and engineering expenses	5,250			(346		)	4,904
Selling, general and administrative expenses	6,058			347			6,405
Asset impairment charge	—			345			345
Amortization of intangible assets	1,429			(1		)	1,428
Total operating expenses	12,737			345			13,082
Operating loss	(8,681		)	2,242			(6,439		)
Other expense (income):
Interest expense	1,421			17			1,438
Private placement warrants income	(1,256		)	—			(1,256		)
Other expense, net	85			(26		)	59
Total other expense	250			(9		)	241
Loss before income taxes	(8,931		)	2,251			(6,680		)
Income tax benefit	(3,680		)	323			(3,357		)
Net loss	$	(5,251	)	$	1,928		$	(3,323	)

Weighted-average common shares outstanding:
Basic	10,819			—			10,819
Diluted	10,819			—			10,819
(Loss) earnings per common share:
Basic	$	(0.49	)	$	0.07		$	(0.42	)
Diluted	$	(0.49	)	$	0.07		$	(0.42	)

as of March 31, 2016:



(in thousands)	As of March 31, 2016
	Previously Reported			Restatement Adjustments and Reclassifications			Restated
ASSETS
Current assets
Cash and cash equivalents	$	1,495		$	—		$	1,495
Accounts receivable, net	63,163			(17,779		)	45,384
Income tax receivable	—			1,723			1,723
Inventories, net	120,735			18,784			139,519
Prepaid expenses and other current assets	9,496			(5,364		)	4,132
Total current assets	194,889			(2,636		)	192,253
Property, plant and equipment, net	24,289			(3,627		)	20,662
Intangible assets, net	30,316			—			30,316
Goodwill	41,466			(11,631		)	29,835
Deferred income taxes	819			18,466			19,285
Other noncurrent assets	7,181			(4,517		)	2,664
TOTAL ASSETS	$	298,960		$	(3,945	)	$	295,015

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	41,491		$	1,669		$	43,160
Contingent consideration	—			5,481			5,481
Other accrued liabilities	19,692			(1,763		)	17,929
Total current liabilities	61,183			5,387			66,570
Revolving line of credit	80,568			—			80,568
Warrants	226			—			226
Long-term debt, less current maturities, net	53,946			(147		)	53,799
Other noncurrent liabilities	1,670			10,282			11,952
TOTAL LIABILITIES	$	197,593		$	15,522		$	213,115

STOCKHOLDERS’ EQUITY
Preferred stock	$	—		$	—		$	—
Common stock	12			(1		)	11
Additional paid-in capital	75,500			8,229			83,729
Retained earnings	30,105			(20,493		)	9,612
Treasury stock, at cost	(4,250		)	(7,202		)	(11,452		)
TOTAL STOCKHOLDERS’ EQUITY	101,367			(19,467		)	81,900
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	298,960		$	(3,945	)	$	295,015

The restatement effect on the previously issued condensed Consolidated Statement of Cash Flow for the three months ended March 31, 2016 is as follows:



(in thousands)	Three Months Ended March 31, 2016
	Previously Reported			Restatement and Reclassification			Reclassified
Net cash provided by operating activities	$	9,995		$	3,915		$	13,910
Net cash used in investing activities	(214		)	(885		)	(1,099		)
Net cash used in financing activities	(16,731		)	(3,030		)	(19,761		)
Decrease in cash	(6,950		)	—			(6,950		)
Cash at beginning of year	8,445			—			8,445
Cash at end of period	$	1,495		$	—		$	1,495