ADJUSTED QUARTERLY FINANCIAL INFORMATION

9 Months Ended

Jun. 30, 2021

ADJUSTED QUARTERLY FINANCIAL INFORMATION

ADJUSTED QUARTERLY FINANCIAL INFORMATION

13.  ADJUSTED QUARTERLY FINANCIAL INFORMATION

During the third quarter of 2021, the Company identified immaterial errors in the historical consolidated financial statements of Westland, within the A&D segment, and are being corrected as an immaterial revision of those financial statements. Specifically, the adjustments include $3.5 million related to net sales being overstated, of which $2.4 million related to the fourth quarter of 2020, $0.3 million related to the first quarter of 2021, and $0.8 million related to the second quarter of 2021. In addition, $2.1 million of the total adjustments resulted from inventory being overstated and cost of goods sold being understated, of which $0.9 million related to the fourth quarter of 2020, $0.8 million related to the first quarter of 2021, and $0.4 million related to the second quarter of 2021. The tax impact of correcting these errors was a reduction in tax expense of $0.8 million, $0.2 million, and $0.3 million in the fourth quarter of 2020, first quarter of 2021, and second quarter of 2021, respectively. This correction also resulted in a reclassification in the Consolidated Statements of Cash Flows between line items of net earnings, changes in assets and liabilities, and effect of deferred taxes totaling $3.3 million in the fourth quarter of 2020, $1.1 million in the first quarter of 2021, and $1.2 million in the second quarter of 2021, with no impact to the total net cash provided by operating activities for any period. The fiscal 2021 and 2020 quarterly results have been adjusted to reflect the correction of these adjustments in the proper periods. The table below shows the impact of all adjustments to the respective periods. Management has determined that all of these adjustments are not material to any prior periods or the current fiscal year.

	First Quarter		First Quarter	Second Quarter	Second Quarter
(Dollars in thousands, except per share amounts)	(As Reported)		(As Adjusted)	(As Reported)	(As Adjusted)
2021
Net sales	$	162,949	162,674	166,644	165,894
Cost of sales		98,777	99,622	103,113	103,553
Earnings before income taxes		17,660	16,540	21,339	20,149
Income tax expense		3,974	3,722	5,025	4,745
Net earnings		13,686	12,818	16,314	15,404
Diluted earnings (loss) per share:
Net earnings	$	0.52	0.49	0.62	0.59

	First Quarter		First Quarter	Second Quarter	Second Quarter
	(As Reported)		(As Adjusted)	(As Reported)	(As Adjusted)
Contract assets	$	93,762	91,043	95,002	91,533
Inventories		144,054	142,316	145,342	143,164
Retained earnings	$	790,000	786,563	804,231	799,884

	Fourth Quarter		Fourth Quarter
(Dollars in thousands, except per share amounts)	(As Reported		(As Adjusted)
2020
Net sales	$	208,030	205,586
Cost of sales		129,763	130,656
Loss before income taxes		(16,461)	(19,798)
Income tax expense		5,347	4,579
Net loss		(21,808)	(24,377)
Diluted earnings (loss) per share:
Net loss	$	(0.83)	(0.93)

	Fourth Quarter		Fourth Quarter
(Dollars in thousands, except per share amounts)	(As Reported		(As Adjusted)
September 30, 2020
Contract assets	$	96,746	94,302
Inventories		136,189	135,296
Total current assets		446,630	443,293
Total assets		1,373,523	1,370,186
Total shareholders’ equity		961,595	959,026
Total liabilities and shareholders’ equity		1,373,523	1,370,186