2.	REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

As previously disclosed in note

to the Company’s consolidated financial statements included in the

2017

Form

-K, the Company changed its accounting for the capitalization of certain internal labor and related costs associated with construction and customer installation activities commencing in the

first

quarter of

2017.

The Company initially classified the entire change as a change in accounting estimate. During the

fourth

quarter of

2017,

the Company determined that a portion of what had previously been reflected as a change in estimate should have been categorized as a change in accounting principle, a portion was determined to be the correction of an error and a portion remained a change in estimate. The changes determined to be a change in estimate or change in accounting principle were applied prospectively for all of

2017.

The Company estimates that the change in principle resulted in a decrease in operating expenses (excluding depreciation and amortization) of approximately

$3.8

million and

$3.9

million, a decrease in selling, general and administrative expenses of approximately

$0.1

million and

$0.1

million and an increase in depreciation and amortization expense of

$0.2

million and

$0.7

million for the

three

months ended March

31,

2017

and March

31,

2018,

respectively, compared to the results under the prior principle. Although the Company determined the error to be immaterial to its previously issued financial statements, the cumulative effect of the error would have been material if corrected in

2017.

Therefore, as disclosed in the

2017

Form

-K, the Company revised its historical financial statements to properly reflect the impact of the labor capitalization, including the related impact to depreciation expense and income taxes. In connection with this revision, the Company also corrected for other previously identified immaterial errors. The financial statements for the

three

months ended

March 31, 2017

included in this Quarterly Report on Form

-Q have been similarly revised to reflect the correction of these errors and should be read in conjunction with note

and note

in the

2017

Form

-K.

The following tables present the effect of the revision on the condensed consolidated financial statements for the

three

months ended

March 31, 2017 (

in thousands, except per share data):

	Three Months Ended March 31, 2017
	As Reported		Adjustment			As Re vised
Condensed Consolidated Statement of Operations and Comprehensive Income Information
Selling, general and administrative	$	45,733	$	523		$	46,256
Depreciation and amortization		38,404		1,132			39,536
Total costs and expenses		147,074		1,655			148,729
Income from operations		60,353		(1,655	)		58,698
Income before income taxes		53,034		(1,655	)		51,379
Income tax provision		19,819		(629	)		19,190
Net income		33,215		(1,026	)		32,189
Comprehensive income	$	33,217	$	(1,026	)	$	32,191

Net income per common share:
Basic	$	5.86	$	(0.18	)	$	5.68
Diluted	$	5.80	$	(0.18	)	$	5.62

Condensed Consolidated Statement of Cash Flows Information
Net income	$	33,215	$	(1,026	)	$	32,189
Depreciation and amortization		38,404		1,132			39,536
Accounts receivable, net		6,034		523			6,557
Change in deferred income taxes		472		(629	)		(157	)
Net cash provided by operating activities	$	78,260	$	-		$	78,260