Quarterly Financial Information (Unaudited)

The following table summarizes quarterly financial results for 2016 and 2015. In management’s opinion, all material adjustments necessary for a fair statement of the information for such quarters have been reflected.



	1st Quarter				2nd Quarter				3rd Quarter				4th Quarter
In thousands except per share data	2016		2015		2016		2015		2016		2015		2016		2015
Net sales	$	129,700	$	127,306	$	137,235	$	134,561	$	155,725	$	131,240	$	144,192	$	131,398
Gross profit	$	32,377	$	27,700	$	35,990	$	33,889	$	38,193	$	31,691	$	31,982	$	29,217
Net income	$	9,169	$	18,937	$	10,813	$	10,817	$	12,785	$	11,186	$	4,420	$	5,319
Earnings per common share:
Basic	$	0.54	$	1.12	$	0.64	$	0.65	$	0.76	$	0.67	$	0.26	$	0.32
Diluted	$	0.54	$	1.11	$	0.63	$	0.64	$	0.75	$	0.66	$	0.26	$	0.31

The table above includes the quarterly results of Texel since the acquisition date of July 7, 2016. The Gutsche acquisition was on December 31, 2016, therefore, there no operating results from Gutsche are included in the above table.

Gross profit during the quarters ended September 30, 2016 and December 31, 2016 were negatively impacted by purchase accounting adjustments of $1.6 million and $0.3 million, respectively, related to the acquisition of Texel. These purchase accounting adjustments reduced net income by $1.2 million and $0.2 million during the quarters ended September 30, 2016 and December 31, 2016, respectively. (See Note 2)

Net income during the quarters ended March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016 was negatively impacted by corporate acquisition expenses for Texel and Gutsche of $0.4 million, $1.1 million, $0.8 million and $0.8 million, respectively. Net income during the quarter ended December 31, 2016 was negatively impacted by a $3.5 million German Cartel settlement expense within the T/A Metals segment.

During the quarter ended December 31, 2016, the Company recorded out of period adjustments reducing gross profit by $0.9 million and net income by $0.6 million to correct inventory and cost of sales errors within the T/A Metals and Technical Nonwovens segments. These errors resulted in the overstatement of gross profit by $0.5 million and net income by $0.3 million in the second quarter of 2016 and overstatement of gross profit by $0.4 million and net income by $0.3 million in the third quarter of 2016. The Company evaluated the impact of these errors and determined them to be immaterial to all quarters in 2016.

Net income during the quarter ended March 31, 2015 was positively impacted by an after-tax gain of $11.8 million due to the sale of Life Sciences Vital Fluids. Net income during the quarter ended September 30, 2015 was positively impacted by discrete tax benefits of $1.2 million, related to the completion of a tax credit project and the release of reserves for previously uncertain tax positions. Net income during the quarter ended December 31, 2015 was negatively impacted by a $1.4 million long-lived asset impairment charge related to Solutech and $1.2 million of a discrete income tax charges related to changes in state tax legislation. During the quarter ended December 31, 2015, the Company identified an error in its income tax expense related to a state tax credit carryforward that resulted in the overstatement of net income by $0.4 million for the quarter ended September 30, 2015. The correction of this error was recorded during the quarter ended December 31, 2015 and reduced net income by $0.4 million, or $0.02 per share. The Company evaluated the impact of the error and determined it to be immaterial to both the third and fourth quarters of 2015.