AMERICAN LOCKER GROUP INC

CIK:0000008855|SEC Filings

Note 7 - Earnings Per Share

6 Months Ended

Jun. 30, 2014

7. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per common share for the six and three months ended June 30, 2014 and 2013:

	Six months ended June 30,
	2014			2013
Numerator:
Net loss applicable to common shareholders	$	(802,768	)	$	(1,276,614	)
Denominator:
Denominator for earnings per share (basic and diluted) ― weighted average shares		1,687,319			1,687,319
Net loss per share applicable to common shareholders (basic and diluted):	$	(0.48	)	$	(0.76	)

	Three months ended June 30,
	2014			2013
Numerator:
Net loss applicable to common shareholders	$	(748,410	)	$	(262,984	)
Denominator:
Denominator for earnings per share (basic and diluted) ― weighted average shares		1,687,319			1,687,319
Net loss per share applicable to common shareholders (basic and diluted):	$	(0.44	)	$	(0.16	)

The Company had 12,000 stock options outstanding at June 30, 2013 which were not included in the weighted average shares computation for loss per share, as the common stock equivalents were anti-dilutive. The weighted average shares computation for loss per share at June 30, 2014 excludes preferred stock convertible into 150,752 shares of common stock because those common stock equivalents were anti-dilutive.

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Operating activities:
Net loss	$ (793,842)	$ (1,276,614)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	319,555	398,955
Gain on sale of property	(703,439)
Provision for uncollectible accounts	51,956	2,145
Changes in assets and liabilities:
Accounts receivable	(314,748)	106,635
Inventories	(613,826)	16,631
Prepaid expenses and other assets	(168,944)	(218,006)
Accounts payable, customer deposits, accrued legal settlement (current and long-term) and accrued expenses	753,436	652,664
Pension and other benefits	(81,424)	12,152
Income taxes	(1,315)	7,184
Net cash used in operating activities	(1,552,591)	(298,254)
Investing activities:
Purchase of property, plant and equipment	(68,984)	(50,604)
Proceeds from sale of property	1,128,075
Net cash provided by (used in) investing activities	1,059,091	(50,604)
Financing activities:
Payment of capital lease obligation	(6,842)
Payment of preferred stock dividends	(5,339)
Net cash provided by financing activities	331,777	270,000
Effect of exchange rate changes on cash	11,673	(16,214)
Net decrease in cash and cash equivalents	(150,050)	(95,072)
Cash and cash equivalents at beginning of period	279,288	413,353
Cash and cash equivalents at end of period	129,238	318,281
Cash paid for:
Interest	115,248	54,766
Income taxes	10,241	5,606
Bank of America Merrill Lynch [Member]
Financing activities:
Long-term debt payments		(100,000)
Borrowings on line of credit		220,000
Long-term debt borrowings from Bank of America Merrill Lynch		150,000
Triumph Commercial Finance [Member]
Financing activities:
Long-term debt payments	(240,000)
Borrowings on line of credit	$ 583,958

Consolidated Balance Sheets (Current Period Unaudited) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 129,238	$ 279,288
Accounts receivable, less allowance for doubtful accounts of approximately $145,000 in 2014 and $199,000 in 2013	2,361,199	2,097,644
Inventories, net	3,353,030	2,738,813
Prepaid expenses	491,225	299,730
Total current assets	6,334,692	5,415,475
Property, plant and equipment:
Buildings and leasehold improvements	456,333	552,561
Machinery and equipment	10,521,425	12,089,799
	10,977,758	12,642,360
Less allowance for depreciation and amortization	(8,452,428)	(9,226,076)
	2,525,330	3,416,284
Other noncurrent assets	191,465	123,856
Total assets	9,051,487	8,955,615
Current liabilities:
Accounts payable	2,943,024	2,496,331
Customer deposits	280,206	216,107
Commissions, salaries, wages, and taxes thereon	160,684	77,101
Income taxes payable	4,011	5,326
Revolving line of credit	2,164,569	1,580,611
Current portion of long-term debt	240,000	240,000
Note payable to related party	200,000	200,000
Current portion of capital lease obligation	14,287	13,883
Accrued settlement, current portion		156,000
Other accrued expenses	982,421	660,771
Total current liabilities	6,989,202	5,646,130
Long-term liabilities:
Long-term debt, net of current portion	680,000	920,000
Capital lease obligation, net of current portion	52,522	59,768
Accrued settlement, net of current portion		130,000
Pension and other benefits	1,192,372	1,274,173
	1,924,894	2,383,941
Total liabilities	8,914,096	8,030,071
Stockholders’ equity:
Common stock, $1.00 par value: Authorized shares – 4,000,000 Issued shares – 1,879,319 in 2014 and 1,879,319 in 2013; Outstanding shares – 1,687,319 in 2014 and 1,687,319 in 2013	1,879,319	1,879,319
Other capital	271,381	271,381
Retained earnings	765,953	1,565,134
Treasury stock at cost, 192,000 shares	(2,112,000)	(2,112,000)
Accumulated other comprehensive loss	(967,262)	(978,290)
Total stockholders’ equity	137,391	925,544
Total liabilities and stockholders’ equity	9,051,487	8,955,615
Series C Preferred Stock [Member]
Stockholders’ equity:
Series C redeemable, convertible preferred stock, $1.00 par value: Liquidation preference of $5 per share Authorized shares - 100,000 Issued and outstanding shares - 60,000 in 2014 and 60,000 in 2013	$ 300,000	$ 300,000