ANAREN INC

CIK:0000006314|SEC Filings

Note 9 - Earnings Per Share

6 Months Ended

Dec. 31, 2013

(9) Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding, as well as dilutive potential common shares which, in the Company’s case, comprise shares issuable under the Company’s Comprehensive Long-Term Incentive Plan. The weighted average number of common shares utilized in the calculation of the diluted earnings per share does not include anti-dilutive shares aggregating 153,000 for the three and six months ended December 31, 2012, respectively. There were no antidilutive shares for the three and six months ended December 31, 2013. The treasury stock method is used to calculate dilutive shares, which reduces the gross number of dilutive shares by the number of shares purchasable from the proceeds of the options assumed to be exercised.

The following table sets forth the computation of basic and fully diluted earnings per share:

	Three Months Ended December 31				Six Months Ended December 31
(amounts in thousands)	2013		2012		2013		2012
Numerator:
Net income	$	2,765	$	3,513	$	5,748	$	6,366

Denominator:
Denominator for basic earnings per share outstanding		12,833		12,697		12,741		12,848

Denominator for diluted earnings per share:
Weighted average shares outstanding		12,833		12,697		12,741		12,848
Common stock options and restricted stock		488		494		516		585

Weighted average shares		13,321		13,191		13,257		13,433

Condensed Consolidated Statements of Cash Flows (unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 5,748	$ 6,366
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	3,595	3,830
Gain on disposal of fixed assets	(606)
Amortization	472	680
Deferred income taxes	395	693
Equity-based compensation	1,752	2,047
Changes in operating assets and liabilities:
Receivables	543	(2,762)
Inventories	(2,231)	(1,745)
Prepaid expenses and other assets	511	(1,010)
Accounts payable	2,968	(2,041)
Accrued expenses	(1,064)	224
Customer advance payments	(526)	(139)
Other liabilities	(158)	732
Pension and postretirement benefit obligation	(25)	48
Net cash provided by operating activities	11,374	6,923
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(3,806)	(2,184)
Proceeds from sale of property, plant, and equipment	606	5,230
Purchase of Cellular Machines LLC	(350)
Maturities and sales of held to maturity securities	9,188	9,065
Net cash provided by investing activities	5,638	12,111
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt obligation		8,000
Stock options exercised	2,766	1,476
Excess tax benefit	612	554
Purchase of treasury stock	(2,758)	(20,111)
Net cash provided by (used in) financing activities	620	(10,081)
Effect of exchange rates on cash	147	14
Net increase in cash and cash equivalents	17,779	8,967
Cash and cash equivalents, beginning of period	44,308	21,012
Cash and cash equivalents, end of period	62,087	29,979
Cash paid during the period for:
Interest	26	66
Income tax payments, net	$ 1,808	$ 2,543

Condensed Consolidated Balance Sheets (unaudited) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Jun. 30, 2013
Assets:
Cash and cash equivalents	$ 62,087	$ 44,308
Securities held to maturity		6,688
Receivables, less allowances of $470 and $414 at December 31, 2013 and June 30, 2013.	31,515	32,059
Inventories	37,159	34,928
Prepaid expenses and other assets	2,776	3,288
Deferred income taxes	993	1,820
Total current assets	134,530	123,091
Securities held to maturity		2,582
Property, plant, and equipment, net	41,053	40,842
Goodwill	42,408	42,297
Other intangible assets, net	6,833	6,833
Total assets	224,824	215,645
Liabilities and Stockholders’ Equity:
Accounts payable	10,437	7,319
Accrued expenses	3,742	4,806
Income taxes payable	2,131	3,780
Customer advance payments	1,077	1,603
Other liabilities	1,710	1,555
Total current liabilities	19,097	19,063
Deferred income taxes	3,629	2,671
Pension and postretirement benefit obligation	6,573	6,598
Other liabilities	955	1,010
Total liabilities	30,254	29,342
Stockholders' Equity:
Common stock, $0.01 par value. Authorized 200,000 shares; issued 30,056 and 29,752 at December 31, 2013 and June 30, 2013, respectively	301	298
Additional paid-in capital	235,482	230,355
Retained earnings	160,495	154,747
Accumulated other comprehensive loss	(711)	(858)
Total stockholders’ equity before treasury stock	395,567	384,542
Less 16,611 and 16,503 treasury shares at December 31, 2013 and June 30, 2013, respectively, at cost	200,997	198,239
Total stockholders' equity	194,570	186,303
Total liabilities and stockholders' equity	$ 224,824	$ 215,645