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Revision to Previously Reported Financial Information
 9 Months Ended
Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]  
Revision to Previously Reported Financial Information

5. Revision to Previously Reported Financial Information

In conjunction with our close process for the second quarter of 2023, we identified accounting errors related to an indemnification receivable and duplicate billing errors impacting prior periods. In the third quarter of 2022, due to the expiration of the statute of limitations of an Uncertain Tax Position (“UTP”), we released the liability for this UTP, but failed to write-off the related indemnification receivable previously obtained from the seller of an acquired business, resulting in an overstatement of operating income during the period. In addition, the Company identified billing errors in 2022 and 2021 that resulted in an overstatement of revenue and trade receivables.

The following table presents the impact of correcting the errors on the affected line items of our condensed consolidated balance sheet as of December 31, 2022:

 

 

December 31, 2022

 

 

 

As Reported

 

 

Adjustments

 

 

As Revised

 

 

 

(In thousands)

 

Trade receivables, net

 

$

91,504

 

 

$

(643

)

 

$

90,861

 

Other current assets

 

 

34,359

 

 

 

(1,921

)

 

 

32,438

 

Total current assets

 

 

752,588

 

 

 

(2,564

)

 

 

750,024

 

Total assets

 

 

972,515

 

 

 

(2,564

)

 

 

969,951

 

Total stockholders’ equity

 

 

874,916

 

 

 

(2,564

)

 

 

872,352

 

The following table presents the impact of correcting the errors on the affected line items of our condensed consolidated statement of income (loss) for the three months ended September 30, 2022:

 

 

Three months ended September 30, 2022

 

 

 

As Reported

 

 

Adjustments

 

 

As Revised

 

 

 

(In thousands, except per share data)

 

Restructuring and other charges

 

$

2,180

 

 

$

1,921

 

 

$

4,101

 

Operating income (loss)

 

 

14,352

 

 

 

(1,921

)

 

 

12,431

 

Income (loss) before income taxes

 

 

14,600

 

 

 

(1,921

)

 

 

12,679

 

Net income (loss)

 

 

15,210

 

 

 

(1,921

)

 

 

13,289

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

    Basic

 

 

0.45

 

 

 

(0.06

)

 

 

0.39

 

    Diluted

 

 

0.44

 

 

 

(0.06

)

 

 

0.38

 

 

The following table presents the impact of correcting the errors on the affected line items of our condensed consolidated statement of income (loss) for the nine months ended September 30, 2022:

 

 

Nine months ended September 30, 2022

 

 

 

As Reported

 

 

Adjustments

 

 

As Revised

 

 

 

(In thousands, except per share data)

 

Restructuring and other charges

 

$

7,977

 

 

$

1,921

 

 

$

9,898

 

Operating income (loss)

 

 

4,892

 

 

 

(1,921

)

 

 

2,971

 

Income (loss) before income taxes

 

 

5,763

 

 

 

(1,921

)

 

 

3,842

 

Net income (loss)

 

 

702

 

 

 

(1,921

)

 

 

(1,219

)

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

    Basic

 

 

0.02

 

 

 

(0.06

)

 

 

(0.04

)

    Diluted

 

 

0.02

 

 

 

(0.06

)

 

 

(0.04

)

The condensed consolidated statement of stockholders’ equity for the period from January 1, 2022 to September 30, 2022 and the period from July 1, 2022 to September 30, 2022 has also been revised to reflect the impacts to net earnings. The impact of the error arising in 2021, as reflected above, has been reflected as a reduction to opening retained earnings in the amount of $0.5 million in the condensed consolidated statement of stockholders’ equity.

The Company also assessed the impact of all these errors on the statement of cash flows and noted that there was no impact to the net cash provided by (used in) operating activities as the changes in assets and net income offset completely.