Quarterly report pursuant to Section 13 or 15(d)

Note 2 - Revisions of Previously Issued Financial Statements

v3.3.0.814
Note 2 - Revisions of Previously Issued Financial Statements
 9 Months Ended
Sep. 27, 2015
Notes to Financial Statements  
Accounting Changes and Error Corrections [Text Block]
2.
Revisions of Previously Issued Financial Statements
 
In connection with the preparation of the consolidated financial statements of the Company for the year ended December 28, 2014, the Company identified certain errors in its previously issued consolidated financial statements for the periods ended December 29, 2013, December 30, 2012 and opening January 2, 2012. The errors related to (i) an understatement of amortization expense due to an error uncovered in the Company’s amortization schedule; (ii) an understatement of unrealized losses related to the mark to market revaluation of outstanding derivative forward contracts; (iii) an understatement of employee benefit obligations related to seniority premiums earned by Mexican employees; (iv) overstatement of deferred tax assets associated with temporary differences on certain benefit obligations in Mexico; and (v) an overstatement of cash used in investing activities related to unpaid purchases of property, plant and equipment and a corresponding understatement of accounts payable and accrued liabilities impacting cash flow from operations and (vi) reclassification of previously reported gross revenues and intersegment revenue elimination between Mexico and China.
 
The following table summarizes the selected line items from the Company’s unaudited interim consolidated financial statements illustrating the effect of these adjustments to the comparative quarter and period year to date.   
 
Impact on the Unaudited Interim Consolidated
Statements of Operations and Comprehensive Loss
 
In thousands, except per share data
 
  
Three months
ended
September 28, 2014
As
previously filed
    
Adjustment
    
Three months
ended
September 28, 2014
As
adjusted
  
Cost of sales – unrealized loss on derivative instruments (2)
   $ 753     $ 170     $ 923  
Gross profit
     4,734       (170
)
     4,564  
Operating earnings (loss)
     45       (170
)
     (125 )
Net loss and comprehensive loss
   $ (588 )   $ (170
)
   $ (758 )
Basic and diluted loss per share
  $ (0.04 )           $ (0.05 )
 
 
Impact on the Unaudited Interim Consolidated
Statements of Operations and Comprehensive Loss
 
In thousands, except per share data
 
  
Nine months
ended
September 28, 2014
As previously filed
    
Adjustment
    
Nine months
ended
September 28, 2014
As adjusted
  
Cost of sales – unrealized gain on derivative instruments (2)
   $ (136
)
   $ (35
)
   $ (171
)
Cost of sales – depreciation (1)
     3,135       (175
)
     2,960  
Gross profit
     14,898       210       15,108  
Operating earnings
     283       210       493  
Net loss and comprehensive loss
   $ (1,660
)
   $ 210     $ (1,450
)
Basic and diluted loss per share
  $ (0.10
)
           $ (0.09
)
 
 
Impact on the
Unaudited
Interim Consolidated Statement of Changes in Shareholders’ Equity
 
In thousands
  
September 28, 2014
As
previously filed
    
Adjustment
    
September 28, 2014
As
adjusted
  
Shareholders’ equity – deficit (3)
   $ (234,660
)
   $ (1,508
)
   $ (236,168
)
 
Impact on the
Unaudited
Interim Consolidated Statement of Cash Flow
 
In thousands
  
Nine months
ended
September 28, 2014
As
previously filed
    
Adjustment
    
Nine months
ended
September 28, 2014
As
adjusted
  
Net loss
   $ (1,660
)
   $ 210     $ (1,450
)
Items not involving cash:
                        
Depreciation
     3,135       (175
)
     2,960  
Unrealized gain on derivative instruments
     (136
)
     (35
)
     (171
)
Accounts payable (4)
     (3,077 )     12       (3,065
)
Accrued liabilities (4)
     (153
)
     121       (32 )
Cash flow provided by operations
  $ 945     $ 133     $ 1,078  
Cash flow used in investing (4)
   $ (1,151
)
   $ (133 )   $ (1,284
)
 
 
 
(1)
Cost of sales has been reduced by $175 for the nine months ended September 28, 2014 on the unaudited interim consolidated statement of operations and comprehensive loss related to a reduction to depreciation of $175 due to an error. There was no impact on the three months ended September 28, 2014 as the error occurred in the three months ended March 30, 2014.
 
 
(2)
Cost of sales has been increased by $170 and decreased by $35 for the three and nine months ended September 28, 2014 respectively, related to the revaluation of the outstanding derivative forward contracts.
 
 
(3)
The total net change of ($1,508) to the deficit was the result of the opening, fiscal 2014 cumulative understatement of expenses of ($1,718) related to the prior period errors, which was offset by the decrease to cost of sales of $210 for the nine months ended September 28, 2014 as described above.
 
 
(4)
The net change of $133 related to purchases of property, plant and equipment that were unpaid in cash as at September 28, 2014 and therefore reflect decreases to accounts payable and accrued liabilities, respectively and a corresponding reduction in cash used by investing.