(16) Quarterly Financial Information (unaudited)
| First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
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|
Year ended July 31, 2013 |
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|
Net sales |
$ | 258,462 | $ | 220,844 | $ | 184,905 | $ | 199,801 | ||||||||
|
Gross profit (1) |
58,546 | 50,569 | 43,350 | 53,058 | ||||||||||||
|
Operating expenses (2) |
54,742 | 25,935 | 45,230 | 197,880 | ||||||||||||
|
Net income (loss) |
(10,729 | ) | 10,141 | (15,582 | ) | (147,062 | ) | |||||||||
|
Basic earnings (loss) per share |
(0.49 | ) | 0.46 | (0.71 | ) | (6.71 | ) | |||||||||
|
Basic shares (in thousands) |
21,753 | 21,781 | 21,819 | 21,905 | ||||||||||||
|
Diluted earnings (loss) per share |
(0.49 | ) | (0.37 | ) | (0.71 | ) | (6.71 | ) | ||||||||
|
Diluted shares (in thousands) |
21,753 | 23,215 | 21,819 | 21,905 | ||||||||||||
| First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
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|
Year ended July 31, 2012 |
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|
Net sales |
$ | 287,393 | $ | 262,351 | $ | 207,685 | $ | 223,989 | ||||||||
|
Gross profit |
61,307 | 41,922 | 34,228 | 42,264 | ||||||||||||
|
Operating expenses (3) |
59,385 | 58,033 | 51,796 | 61,144 | ||||||||||||
|
Net income (loss) |
10,801 | (20,184 | ) | (44,017 | ) | (32,936 | ) | |||||||||
|
Basic earnings (loss) per share |
0.49 | (0.93 | ) | (2.02 | ) | (1.52 | ) | |||||||||
|
Basic shares (in thousands) |
21,668 | 21,724 | 21,752 | 21,733 | ||||||||||||
|
Diluted earnings (loss) per share |
0.47 | (0.93 | ) | (2.02 | ) | (1.52 | ) | |||||||||
|
Diluted shares (in thousands) |
22,567 | 21,724 | 21,752 | 21,733 | ||||||||||||
| (1) | A change in the cost of inventories sold during the previous quarters in the fiscal year results in a pre-tax increase or decrease in cost of sales. Diamond routinely revises its estimate for expected walnut costs to reflect changes in market conditions and other factors. In the quarter ended July 31, 2013, the prior period cost of sales adjustment for changes in walnut prices was $0.4 million. This was the result of a reduction in walnut prices in the fourth quarter of fiscal 2013 due to a credit from the Walnut Marketing Board. There were no such changes in estimates in the quarters ended January 31, 2013 and April 30, 2013. |
| (2) | In the fourth quarter of fiscal 2013, the Company recorded settlement costs associated with the private securities class action in the aggregate amount of $96.1 million. Refer to Note 17 to the Notes to the Consolidated Financial Statements for further detail. Additionally, the Company recorded asset impairment charges of $37.6 million related to brand intangibles and customer contracts and related relationships. Refer to Note 6 to the Notes to the Consolidated Financial Statements. |
| (3) | Includes acquisition and integration related expenses of $0.7 million, $11.3 million, $12.1 million and $17.2 million for the quarters ended July 31, 2012, April 30, 2012, January 31, 2012 and October 31, 2011, respectively. |