BAKER MICHAEL CORP

CIK:0000009263|SEC Filings

Earnings Per Common Share

6 Months Ended

Jun. 30, 2013

10. EARNINGS PER COMMON SHARE

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations:


	For the three months ended					For the six months ended
(In thousands, except per share amounts)	June 30, 2013		July 1, 2012			June 30, 2013		July 1, 2012
Net income from continuing operations before noncontrolling interests	$	5,107	$	2,907		$	10,824	$	4,049
Less: Net income attributable to noncontrolling interests		347		223			531		406

Net income from continuing operations attributable to Michael Baker Corporation		4,760		2,684			10,293		3,643
Net (loss)/income from discontinued operations, net of tax		—		(236	)		—		501

Net income attributable to Michael Baker Corporation	$	4,760	$	2,448		$	10,293	$	4,144

Basic:
Weighted average shares outstanding		9,545		9,373			9,535		9,368
Earnings per share:
Continuing operations	$	0.50	$	0.29		$	1.08	$	0.39
Discontinued operations		—		(0.03	)		—		0.05

*Total*	$	0.50	$	0.26		$	1.08	$	0.44
Diluted:
Effect of dilutive securities - contingently issuable shares and stock options		130		250			136		231
Weighted average shares outstanding		9,675		9,623			9,671		9,599
Earnings per share:
Continuing operations	$	0.49	$	0.28		$	1.06	$	0.38
Discontinued operations		—		(0.03	)		—		0.05

*Total*	$	0.49	$	0.25		$	1.06	$	0.43

Company stock options totaling 53,890 and 54,939 for the three and six months ended June 30, 2013, respectively, and Company stock options totaling 72,000 for both the three and six months ended July 1, 2012, were excluded from the computations of diluted shares outstanding because the option exercise prices were more than the average market price of the Company’s common shares.

Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jul. 01, 2012
Cash Flows from Operating Activities
Net income before noncontrolling interests	$ 10,824	$ 4,550
Adjustments to reconcile net income before noncontrolling interests to net cash provided by operating activities:
Net income from discontinued operations		(501)
Depreciation and amortization	6,321	8,934
Stock-based compensation	717	1,175
Changes in assets and liabilities:
(Increase)/decrease in receivables	(11,136)	878
Decrease in unbilled revenues	5,336	5,166
Decrease in other net assets	1,364	710
(Decrease)/increase in accounts payable	(407)	399
Decrease in billings in excess of revenues	(4,241)	(2,562)
Decrease in accrued expenses and other	(481)	(1,571)
Net cash provided by continuing operations	8,297	17,178
Net cash used in discontinued operations		(25)
Net cash provided by operating activities	8,297	17,153
Cash Flows from Investing Activities
Additions to property, plant and equipment	(1,783)	(1,427)
Cash portion of acquisitions		(1,000)
Purchase of certificates of deposit	(2,000)
Purchase of available-for-sale securities	(13,380)	(801)
Sale of available-for-sale securities	2,845	13,130
Proceeds from sale of fixed assets	147	19
Net cash (used in)/provided by investing activities	(14,171)	9,921
Cash Flows from Financing Activities
Dividends paid	(1,545)
Proceeds from employee stock purchases and exercise of stock options	555	576
Treasury stock purchases	(281)	(272)
Noncontrolling interest distributions	(176)	(375)
Net cash used in financing activities	(1,447)	(71)
Net (decrease)/increase in cash and cash equivalents	(7,321)	27,003
Cash and cash equivalents, beginning of period	77,367	36,050
Cash and cash equivalents, end of period	$ 70,046	$ 63,053

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents	$ 70,046	$ 77,367
Certificates of deposit	1,500
Available-for-sale securities	9,695
Receivables, net of allowances of $3,204 and $2,915, respectively	96,869	85,733
Unbilled revenues on contracts in progress	72,726	78,062
Prepaid expenses and other	7,201	7,630
Prepaid income taxes	3,748	3,731
Total current assets	261,785	252,523
Property, plant and equipment, net	15,733	17,286
Goodwill	81,598	81,598
Other intangible assets, net	9,684	12,765
Deferred income tax asset	1,725	3,125
Other long-term assets	6,404	6,112
Total assets	376,929	373,409
Current Liabilities
Accounts payable	40,979	41,386
Accrued employee compensation	23,725	21,008
Accrued insurance	9,211	9,715
Billings in excess of revenues on contracts in progress	17,974	22,215
Deferred income tax liability	17,707	17,707
Other accrued expenses	13,785	13,513
Total current liabilities	123,381	125,544
Long-term Liabilities
Deferred income tax liability	10,126	11,517
Other long-term liabilities	9,970	11,196
Total liabilities	143,477	148,257
Commitments and contingencies
Shareholders' Investment
Common Stock, par value $1, authorized 44,000,000 shares, issued 10,199,521 and 10,171,664, respectively	10,200	10,172
Additional paid-in capital	70,804	69,514
Retained earnings	157,095	150,087
Accumulated other comprehensive loss - unrealized loss on investments	(58)
Less - 525,315 and 513,227 shares of Common Stock in treasury, at cost, respectively	(5,496)	(5,173)
Total Michael Baker Corporation shareholders' investment	232,545	224,600
Noncontrolling interests	907	552
Total shareholders' investment	233,452	225,152
Total liabilities and shareholders' investment	$ 376,929	$ 373,409