COBRA ELECTRONICS CORP

CIK:0000030828|SEC Filings

EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2014

(9) EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share excludes any dilution and is computed by dividing net earnings (loss) available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock resulted in the issuance of common stock. If the common stock equivalents have an anti-dilutive effect, they are excluded from the computation of diluted earnings (loss) per share. The earnings or loss per share for the three and six months ended June 30, 2014 and 2013 follows:


	Three Months Ended					Six Months Ended
	June 30					June 30
	2014		2013			2014			2013
	(in thousands, except per share data)					(in thousands, except per share data)
Net earnings (loss)	$	87	$	(1,943	)	$	(1,579	)	$	(3,475	)
Weighted-average shares outstanding
Basic		6,603		6,611			6,603			6,611
Diluted		6,603		6,611			6,603			6,611
Basic earnings (loss) per share	$	0.01	$	(0.29	)	$	(0.24	)	$	(0.53	)
Diluted earnings (loss) per share	$	0.01	$	(0.29	)	$	(0.24	)	$	(0.53	)

The diluted earnings per share calculations include the incremental shares of common stock issuable upon the exercise of stock options that have a market price in excess of the exercise price. When the exercise price of an option exceeds its market price, the incremental shares are excluded from the diluted earnings per share calculation. A summary of the options outstanding, the options includable and excludable from the diluted earnings per share calculations and the incremental shares included in the diluted earnings per share calculation for the three and six months ended June 30, 2014 and 2013 follows:


	Three Months Ended				Six Months Ended
	June 30				June 30
	2014		2013		2014		2013
	(in thousands)				(in thousands)
Options included in diluted earnings (loss) per share calculation		—		—		—		—
Options excluded from diluted earnings (loss) per share calculation		325		352		325		352

Total options		325		352		325		352


	Three Months Ended				Six Months Ended
	June 30				June 30
	2014		2013		2014		2013
	(in thousands)				(in thousands)
Incremental shares included in the diluted earnings (loss) per share		—		—		—		—

Consolidated Statements of Cash Flows - Unaudited (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:
Net loss	$ (1,579)	$ (3,475)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization	1,905	1,673
Deferred income taxes	(29)	(31)
Gain on cash surrender value (CSV) life insurance	(339)	(564)
Stock-based compensation	102	139
Changes in assets and liabilities:
Receivables	3,667	8,541
Inventories	179	3,040
Other assets	(457)	(640)
Accounts payable	1,254	(1,804)
Other liabilities	(709)	(1,078)
Net cash provided by operating activities	3,994	5,801
Cash flows from investing activities:
Property, plant and equipment	(382)	(776)
Premiums on CSV	(125)	(282)
Intangible assets	(495)	(563)
Net cash used in investing activities	(1,002)	(1,621)
Cash flows from financing activities:
Bank borrowings	52,117	45,467
Bank repayments	(54,116)	(49,536)
Capital lease obligations	(29)	(20)
Net cash used in financing activities	(2,028)	(4,089)
Effect of exchange rate changes on cash and cash equivalents	(170)	108
Net increase in cash	794	199
Cash at beginning of period	3,059	1,785
Cash at end of period	3,853	1,984
Cash paid during the period for:
Interest	423	236
Income taxes	$ 13	$ 571

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Current assets:
Cash	$ 3,853	$ 3,059
Receivables, net of allowance for doubtful accounts of $159 in 2014 and $126 in 2013	15,717	19,338
Inventories, primarily finished goods, net	35,715	35,810
Other current assets	3,722	3,686
Total current assets	59,007	61,893
Property, plant and equipment, at cost:
Buildings and improvements	7,027	7,010
Tooling and equipment	13,169	14,937
Property, plant and equipment, gross	20,196	21,947
Accumulated depreciation	(15,287)	(16,724)
Land	230	230
Property, plant and equipment, net	5,139	5,453
Other assets:
Cash surrender value of life insurance policies	8,050	7,586
Deferred income taxes, non-current	307	322
Intangible assets	7,266	7,372
Other assets	190	180
Total other assets	15,813	15,460
Total assets	79,959	82,806
Current liabilities:
Revolving bank loan facility	18,674	20,673
Accounts payable	6,995	5,726
Accrued salaries and commissions	1,625	1,612
Accrued advertising and sales promotion costs	1,092	1,207
Accrued product warranty costs	853	1,113
Accrued income taxes	1	13
Deferred income taxes, current	182	174
Other accrued liabilities	2,904	3,102
Total current liabilities	32,326	33,620
Non-current liabilities:
Deferred compensation	7,946	7,910
Deferred income taxes	623	653
Other long-term liabilities	560	714
Total non-current liabilities	9,129	9,277
Total liabilities	41,455	42,897
Commitments and contingencies
Shareholders' equity:
Preferred stock, $1 par value Authorized: 1,000,000 shares Issued: None
Common stock, $.33 1/3 par value Authorized: 12,000,000 shares Issued: 7,170,800 shares Outstanding: 6,602,980 shares	2,390	2,390
Additional paid-in capital	21,634	21,532
Retained earnings	19,740	21,319
Accumulated other comprehensive loss	(1,423)	(1,495)
Total shareholders' equity before treasury stock	42,341	43,746
Treasury stock, at cost (567,820 shares)	(3,837)	(3,837)
Total shareholders' equity	38,504	39,909
Total liabilities and shareholders' equity	$ 79,959	$ 82,806