QUARTERLY RESULTS (UNAUDITED)

The following tables contain selected unaudited Consolidated Statements of Operations and Comprehensive Income data for each quarter for the years ended December 31, 2014 and 2013. The operating results for any quarter are not necessarily indicative of results for any future period. The quarterly results are as follows (in thousands):



	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Fiscal Year
2014
Sales	$	229,601	$	265,943	$	268,297	$	286,453	$	1,050,294
Gross profit	76,598		97,274		94,962		102,850		371,685		(1)
Net earnings	7,832		10,841		15,597		12,316		46,585		(1) (2)
Net earnings attributable to Knoll, Inc. stockholders	7,826		10,855		15,628		12,288		46,596		(1) (2)
Earnings per share—Basic	$	0.17	$	0.23	$	0.33	$	0.26	$	0.98	(1)
Earnings per share—Diluted	$	0.16	$	0.23	$	0.33	$	0.26	$	0.97	(1)
2013
Sales	$	200,586	$	214,312	$	216,898	$	230,456	$	862,252
Gross profit	63,877		69,881		72,339		74,235		280,332
Net earnings	6,395		7,813		8,230		746		23,184		(3)
Net earnings attributable to Knoll, Inc. stockholders	6,395		7,813		8,230		746		23,184		(3)
Earnings per share—Basic	$	0.14	$	0.17	$	0.18	$	0.02	$	0.49	(1)
Earnings per share—Diluted	$	0.13	$	0.16	$	0.17	$	0.02	$	0.49	(1)

_______________________________________________________________________________


(1)	Results do not add due to rounding.


(2)	During 2014, the Company recorded $1.5 million of pre-tax restructuring charges. These charges were incurred in the first, second, and fourth quarters of 2014 and were $0.6 million, $0.2 million, and $0.7 million, respectively. Additionally, during the fourth quarter of 2014, the Company recorded pension settlement and OPEB curtailment charges of $6.5 million.


(3)	During the fourth quarter of 2013, the Company recorded a non-cash pre-tax impairment charge of $8.9 million and a pre-tax restructuring charge of $5.1 million.

23. QUARTERLY RESULTS (UNAUDITED) (continued)

The following information reconciles the Company's previously reported information with as restated amounts for quarterly periods ending between March 31, 2013 and September 30, 2014. Refer to Notes 2 and 15 for additional information regarding the restatement of previously reported financial information.



	Three months ended									Three months ended
	March 31, 2014									March 31, 2013
	(dollars in thousands)
Consolidated Statements of Operations	As previously reported			Correction of prior period misstatements			As restated			As previously reported			Correction of prior period misstatements			As restated
Sales	$	229,331		$	270		$	229,601		$	200,586		$	—		$	200,586
Cost of sales	152,856			147			153,003			136,959			(250		)	136,709
Gross profit	76,475			123			76,598			63,627			250			63,877
Selling, general, and administrative expenses	64,650			72			64,722			53,333			396			53,729
Restructuring charges	—			592			592			—			—			—
Operating profit	11,825			(541		)	11,284			10,294			(146		)	10,148
Interest expense	1,671			—			1,671			1,495			—			1,495
Other (income) expense, net	(2,504		)	—			(2,504		)	(1,291		)	—			(1,291		)
Income before income tax expense	12,658			(541		)	12,117			10,090			(146		)	9,944
Income tax expense	4,466			(181		)	4,285			4,016			(467		)	3,549
Net earnings	8,192			(360		)	7,832			6,074			321			6,395
Net earnings attributable to noncontrolling interests	6			—			6			—			—			—
Net earnings attributable to Knoll, Inc. stockholders	$	8,186		$	(360	)	$	7,826		$	6,074		$	321		$	6,395

Earnings per share:
Basic	$	0.17		$	—		$	0.17		$	0.13		$	0.01		$	0.14
Diluted	$	0.17		$	(0.01	)	$	0.16		$	0.13		$	—		$	0.13

23. QUARTERLY RESULTS (UNAUDITED) (continued)



	Three months ended								Three months ended
	June 30, 2014								June 30, 2013
	(dollars in thousands)
Consolidated Statements of Operations	As previously reported			Correction of prior period misstatements		As restated			As previously reported			Correction of prior period misstatements			As restated
Sales	$	265,797		$	146	$	265,943		$	214,312		$	—		$	214,312
Cost of sales	168,594			75		168,669			144,431			—			144,431
Gross profit	97,203			71		97,274			69,881			—			69,881
Selling, general, and administrative expenses	74,805			28		74,833			57,473			(197		)	57,276
Restructuring charges	203			—		203			—			—			—
Operating profit	22,195			43		22,238			12,408			197			12,605
Interest expense	1,944			—		1,944			1,517			—			1,517
Other (income) expense, net	2,700			—		2,700			(2,206		)	—			(2,206		)
Income before income tax expense	17,551			43		17,594			13,097			197			13,294
Income tax expense	6,712			41		6,753			5,209			272			5,481
Net earnings	10,839			2		10,841			7,888			(75		)	7,813
Net losses attributable to noncontrolling interests	(14		)	—		(14		)	—			—			—
Net earnings attributable to Knoll, Inc. stockholders	$	10,853		$	2	$	10,855		$	7,888		$	(75	)	$	7,813

Earnings per share:
Basic	$	0.23		$	—	$	0.23		$	0.17		$	—		$	0.17
Diluted	$	0.23		$	—	$	0.23		$	0.17		$	(0.01	)	$	0.16

23. QUARTERLY RESULTS (UNAUDITED) (continued)



	Three months ended									Three months ended
	September 30, 2014									September 30, 2013
	(dollars in thousands)
Consolidated Statements of Operations	As previously reported			Correction of prior period misstatements			As restated			As previously reported		Correction of prior period misstatements			As restated
Sales	$	268,297		$	—		$	268,297		$	216,898	$	—		$	216,898
Cost of sales	173,335			—			173,335			144,559		—			144,559
Gross profit	94,962			—			94,962			72,339		—			72,339
Selling, general, and administrative expenses	71,647			—			71,647			55,288		197			55,485
Operating profit	23,315			—			23,315			17,051		(197		)	16,854
Interest expense	1,899			—			1,899			1,484		—			1,484
Other (income) expense, net	(3,294		)	—			(3,294		)	2,224		—			2,224
Income before income tax expense	24,710			—			24,710			13,343		(197		)	13,146
Income tax expense	9,088			25			9,113			4,793		123			4,916
Net earnings	15,622			(25		)	15,597			8,550		(320		)	8,230
Net losses attributable to noncontrolling interests	(31		)	—			(31		)	—		—			—
Net earnings attributable to Knoll, Inc. stockholders	$	15,653		$	(25	)	$	15,628		$	8,550	$	(320	)	$	8,230

Earnings per share:
Basic	$	0.33		$	—		$	0.33		$	0.18	$	—		$	0.18
Diluted	$	0.33		$	—		$	0.33		$	0.18	$	(0.01	)	$	0.17

23. QUARTERLY RESULTS (UNAUDITED) (continued)



	Three months ended
	December 31, 2013
	(dollars in thousands)
Consolidated Statements of Operations	As previously reported			Correction of prior period misstatements			As restated
Sales	$	230,872		$	(416	)	$	230,456
Cost of sales	156,443			(222		)	156,221
Gross profit	74,429			(194		)	74,235
Selling, general, and administrative expenses	58,525			(100		)	58,425
Restructuring charges	5,696			(592		)	5,104
Intangible asset impairment charge	8,900			—			8,900
Operating profit	1,308			498			1,806
Interest expense	1,445			—			1,445
Other (income) expense, net	(2,157		)	—			(2,157		)
Income before income tax expense	2,020			498			2,518
Income tax expense	1,386			386			1,772
Net earnings	634			112			746
Net losses attributable to noncontrolling interests	—			—			—
Net earnings attributable to Knoll, Inc. stockholders	$	634		$	112		$	746

Earnings per share:
Basic	$	0.01		$	0.01		$	0.02
Diluted	$	0.01		$	0.01		$	0.02