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Quarterly Financial Data (Unaudited)
 12 Months Ended
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited) (in thousands except per share data)
Restatement of the 2017 Unaudited Quarterly Financial Statements
As previously described in the Company’s Current Reports on Form 8-K filed on February 20, 2018 and on June 6, 2018, the Audit Committee, in consultation with outside advisors and management, concluded that the Company’s interim financial statements previously issued for the quarterly and year-to-date periods ended March 31, 2017, June 30, 2017 and September 30, 2017 should not be relied upon due to errors identified in such financial statements related to the timing of revenue recognition, gross vs. net presentation of administrative fees paid to GPOs, the related impacts on cost of goods sold and bad debt expense due to changes in revenue recognition practices, the timing of certain general and administrative expenses and cash collections, impacts of any losses associated with contingency exposures, share-based compensation expense and the related income tax impacts, as well disclosures and internal controls.
The corrections contained in the below restated unaudited quarterly financial statement information were prepared following the Audit Committee Investigation as described in the Note 4 “Restatement of the Consolidated Financial Statements,” and a review by management of other accounting matters not specifically addressed by the Audit Committee Investigation. The unaudited quarterly information for the quarter ended December 31, 2018 is presented below for the first time.
The following tables summarize the impacts of the restatement on our previously reported condensed consolidated statements of operations included in our Quarterly Reports on Form 10-Q for each respective period. Information for the first, second, and third quarters of 2017 are restated.
 
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Net sales
2018
$
84,149

 
$
95,417

 
$
86,959

 
$
92,586

 
2017
68,795

 
80,487

 
84,000

 
87,857

 
 
 
 
 
 
 
 
 
Gross profit
2018
$
74,791

 
$
86,147

 
$
79,604

 
$
82,183

 
2017
60,766

 
72,002

 
74,697

 
78,455

 
 
 
 
 
 
 
 
 
Income tax (provision) benefit
2018
$
1,552

 
$
13

 
$
(650
)
 
$
(27,497
)
 
2017
(280
)
 
(980
)
 
30,436

 
(9,537
)
 
 
 
 
 
 
 
 
 
Net income (loss)
2018
$
4,619

 
$
1,804

 
$
(178
)
 
$
(36,224
)
 
2017
5,998

 
10,402

 
44,051

 
4,276

 
 
 
 
 
 
 
 
 
Net income (loss) per common share - basic
2018
$
0.04

 
$
0.02

 
$
—

 
$
(0.34
)
 
2017
0.06
 
0.10

 
0.41

 
0.04

 
 
 
 
 
 
 
 
 
Net income (loss) per common share - diluted
2018
$
0.04

 
$
0.02

 
$
—

 
$
(0.34
)
 
2017
0.05
 
0.09

 
0.37

 
0.04

The Company’s previously reported selected quarterly financial data for the First, Second, and Third Quarter of 2017 is as follows:
 
 
First Quarter
 
Second Quarter
 
Third Quarter
Net sales
2017
$
72,607

 
$
76,412

 
$
84,573

 
 
 
 
 
 
 
Gross profit
2017
$
63,864

 
$
67,781

 
$
74,974

 
 
 
 
 
 
 
Income tax provision (benefit)
2017
$
(1,713
)
 
$
1,005

 
$
4,384

 
 
 
 
 
 
 
Net income
2017
$
4,327

 
$
8,069

 
$
17,457

 
 
 
 
 
 
 
Net income per share - basic
2017
$
0.04

 
$
0.08

 
$
0.16

 
 
 
 
 
 
 
Net income per share - diluted
2017
$
0.04

 
$
0.07

 
$
0.15