EMS TECHNOLOGIES INC

CIK:0000032198|SEC Filings

Earnings Per Share

6 Months Ended

Jul. 02, 2011

6. Earnings Per Share

Following is a reconciliation of the denominators for basic and diluted earnings per share calculations (in thousands):

	Three Months Ended		Six Months Ended
	July 2	July 3	July 2	July 3
	2011	2010	2011	2010

Basic weighted-average number of common shares outstanding	15,304	15,191	15,267	15,185
Dilutive potential shares using the treasury share method	0	39	0	33
Diluted weighted-average number of common shares outstanding	15,304	15,230	15,267	15,218


Shares that were not included in computation of diluted earnings
per share that could potentially dilute future basic earnings
per share because their effect on the periods were antidilutive	1,281	1,008	971	1,045

Basic earnings per share is the per-share allocation of income available to common shareholders based only on the weighted-average number of common shares actually outstanding during the period. Diluted earnings per share represents the per-share allocation of income attributable to common shareholders based on the weighted-average number of common shares actually outstanding plus all potential common share equivalents outstanding during the period, if dilutive. The Company uses the treasury stock method to determine diluted earnings per share. Potential dilutive shares were excluded from the computation of diluted net loss per share for the three and six months ended July 2, 2011 because the effect of their inclusion would have been anti-dilutive.

Consolidated Statements Of Cash Flows (USD $) In Thousands	6 Months Ended
Consolidated Statements Of Cash Flows (USD $) In Thousands	Jul. 02, 2011	Jul. 03, 2010
Cash flows from operating activities:
Net (loss) earnings	$ (4,050)	$ 4,459
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	9,861	9,819
Deferred income taxes	(3,191)	(119)
Stock-based compensation expense	992	885
Change in fair value of contingent consideration liability	0	304
Excess tax benefits from stock-based compensation	(130)	0
Payment for acquisition of business under contingent consideration arrangement	(325)	(1,248)
Changes in operating assets and liabilities:
Trade accounts receivable	6,742	(16,503)
Costs and estimated earnings in excess of billings on long-term contracts	(1,708)	(545)
Billings in excess of costs and estimated earnings on long-term contracts	(2,304)	3,035
Inventories	(6,407)	(6,112)
Accounts payable	9,897	4,105
Income taxes	1,596	316
Accrued compensation and retirement costs	(7,244)	459
Deferred revenue	1,413	3,287
Other	85	4,041
Net cash provided by operating activities in continuing operations	5,227	6,183
Net cash used in operating activities in discontinued operations	0	(8,810)
Net cash provided by (used in) operating activities	5,227	(2,627)
Cash flows from investing activities:
Purchases of property, plant and equipment	(5,726)	(3,820)
Proceeds from sales of assets	356	24
Net cash used in investing activities	(5,370)	(3,796)
Cash flows from financing activities:
Net borrowings under revolving credit facility	13,500	12,000
Repayment of other debt	(804)	(687)
Deferred financing costs paid	0	(28)
Payment for acquisition of business under contingent consideration arrangement	(626)	(5,952)
Payments for repurchase and retirement of common shares	(121)	(51)
Excess tax benefits from stock-based compensation	130	0
Proceeds from exercises of stock options	2,738	13
Net cash provided by financing activities	14,817	5,295
Effect of changes in exchange rates on cash and cash equivalents	2,235	(1,241)
Net change in cash and cash equivalents	16,909	(2,369)
Cash and cash equivalents at beginning of period	55,938	47,174
Cash and cash equivalents at end of period	$ 72,847	$ 44,805

Consolidated Balance Sheets (USD $) In Thousands	Jul. 02, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 72,847	$ 55,938
Trade accounts receivable, net of allowance for doubtful accounts of $1,184 in 2011 and $1,389 in 2010	63,608	68,691
Costs and estimated earnings in excess of billings on long-term contracts	24,247	21,980
Inventories	48,731	41,649
Deferred income taxes	2,317	3,891
Other current assets	8,228	7,319
Total current assets	219,978	199,468
Property, plant and equipment:
Land	1,150	1,150
Buildings and leasehold improvements	19,463	19,115
Machinery and equipment	123,086	117,855
Furniture and fixtures	11,019	10,850
Total property, plant and equipment	154,718	148,970
Less accumulated depreciation	106,370	100,587
Net property, plant and equipment	48,348	48,383
Deferred income taxes	12,930	11,845
Goodwill	60,554	60,474
Other intangible assets, net of accumulated amortization of $32,510 in 2011 and $28,079 in 2010	37,682	41,319
Costs and estimated earnings in excess of billings on long-term contracts	8,538	8,611
Other assets	2,898	2,844
Total assets	390,928	372,944
LIABILITIES AND SHAREHOLDERS' EQUITY
Current installments of long-term debt	1,559	1,496
Accounts payable	35,135	24,979
Billings in excess of contract costs and estimated earnings on long-term contracts	6,293	8,593
Accrued compensation and related costs	13,697	20,626
Deferred revenue	11,130	10,897
Other current liabilities	8,826	6,946
Total current liabilities	76,640	73,537
Long-term debt, excluding current installments	40,109	27,476
Deferred income taxes	1,164	4,859
Other liabilities	11,711	10,052
Total liabilities	129,624	115,924
Shareholders' equity:
Preferred stock of $1.00 par value per share; Authorized 10,000 shares; none issued	0	0
Common stock of $0.10 par value per share; Authorized 75,000 shares; issued and outstanding 15,514 in 2011 and 15,311 in 2010	1,551	1,531
Additional paid-in capital	141,727	138,138
Accumulated other comprehensive income - foreign currency translation adjustment	14,623	9,898
Retained earnings	103,403	107,453
Total shareholders' equity	261,304	257,020
Commitments and contingencies
Total liabilities and shareholders' equity	$ 390,928	$ 372,944