Quarterly Financial Data (unaudited)

12 Months Ended

Sep. 30, 2013

Quarterly Financial Data (unaudited)

Quarterly Financial Data (unaudited)

18. Quarterly Financial Data (unaudited)

        Summarized unaudited quarterly financial data for 2012 and 2013 is as follows.

	2012
(in thousands, except per-share amounts)	First quarter(3)			Second quarter			Third quarter(4)			Fourth quarter(5)			Full year
Net revenue(1)	$	137,427		$	129,632		$	175,621		$	190,107		$	632,787
Gross profit(1)		34,442			31,565			52,358			56,702			175,067
Net loss(1)(6)(7)		(23,748	)		(20,558	)		(13,036	)		(4,906	)		(62,248	)
Basic and diluted earnings (loss) per share(2)		(0.39	)		(0.34	)		(0.21	)		(0.08	)		(1.02	)

	2013
(in thousands, except per-share amounts)	First quarter			Second quarter			Third quarter		Fourth quarter		Full year
Net revenue(1)	$	149,573		$	140,988		$	197,030	$	214,985	$	702,576
Gross profit(1)		37,245			32,411			58,505		64,321		192,482
Net income (loss)(1)(7)		(5,872	)		(8,260	)		11,016		10,253		7,137
Basic and diluted earnings (loss) per share(2)		(0.09	)		(0.11	)		0.15		0.14		0.10

(1)

Headwaters' revenue is seasonal, with higher revenues typically occurring in the third and fourth quarters than in the first and second quarters. As a result, profitability is also usually higher in the last half of the year than in the first half of the year.

(2)

In accordance with ASC Topic 260 Earnings Per Share, EPS is computed independently for each of the four fiscal quarters in a year. The basic and diluted EPS computed for certain years may not equal the sum of the four quarterly computations due to the combination of profitable quarters and loss quarters and / or rounding conventions.

(3)

In the first quarter of 2012, Headwaters recorded a loss of approximately $6.3 million on the sale of its interest in an equity-method investment (see Note 13).

(4)

In the third quarter of 2012, Headwaters recorded an asset impairment charge of $13.0 million (see Note 4).

(5)

In the fourth quarter of 2012, Headwaters recorded a loss of approximately $3.2 million related to another equity-method investment (see Note 13).

(6)

In 2012, Headwaters recorded restructuring costs of $2.1 million (see Note 14). These restructuring costs were approximately $1.4 million and $0.7 million for the first and second quarters of the year, respectively.

(7)

In both 2012 and 2013, Headwaters recorded a full valuation allowance on its net amortizable deferred tax assets and recorded income tax expense in both years (even though there was a significant pre-tax loss in 2012). The reported income tax rates differ from the expected rates primarily due to not recognizing benefit for pre-tax losses and tax credits (see Note 9).