FURNITURE BRANDS INTERNATIONAL INC

CIK:0000050957|SEC Filings

Earnings Per Share

6 Months Ended

Jun. 29, 2013

EARNINGS PER SHARE

Weighted average shares used in the computation of basic and diluted earnings (loss) per common share are as follows:



	Three Months Ended		Six Months Ended
	June 29, 2013	June 30, 2012	June 29, 2013	June 30, 2012
Weighted average shares used for basic loss per common share	7,929	7,877	7,918	7,870
Effect of dilutive stock options and restricted stock	—	—	—	—
Weighted average shares used for diluted loss per common share	7,929	7,877	7,918	7,870

For the three and six months ended June 29, 2013 and June 30, 2012 all potentially dilutive securities are excluded from the calculation of diluted earnings (loss) per share as we generated a net loss for the period. For the period ended June 29, 2013, securities excluded from the calculation of diluted earnings (loss) per share, because their inclusion would be antidilutive, include options to purchase 590 shares at an average price of $30.45 per share and 115 shares of restricted stock. For the period ended June 30, 2012, securities excluded from the calculation of diluted earnings (loss) per share, because their inclusion would be antidilutive, include options to purchase 274 shares at an average price of $66.29 per share and 225 shares of restricted stock.

On May 24, 2013, the Company filed an amendment to its Restated Certificate of Incorporation with the Delaware Secretary of State to effect a one for seven reverse stock split of the Company's outstanding common stock, no par value per share, and to decrease the number of shares of the Company's common stock authorized for issuance from 200,000 to 28,571. The Company's common stock began trading on a split-adjusted basis on May 29, 2013. Each stockholder's percentage ownership in the Company and proportional voting power was unaffected by the reverse stock split, except for minor changes and adjustments resulting from the treatment of fractional shares. The reverse stock split was approved at the annual meeting of stockholders held on May 2, 2013 where the stockholders authorized the Board of Directors to proceed with a reverse split. As a result of the reverse split, all common share, option, and restricted stock amounts and related per share amounts have been restated for all periods presented to give effect to the reverse stock split.

Consolidated Statements of Cash Flows (unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 29, 2013	Jun. 30, 2012
Net loss	$ (62,024)	$ (6,391)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	7,917	10,166
Compensation expense related to stock option grants and restricted stock awards	837	1,205
Impairment of assets	28,173	478
Other, net	(558)	(336)
Changes in operating assets and liabilities:
Accounts receivable	16,056	(12,620)
Income taxes receivable	333	283
Inventories	17,795	(20,882)
Prepaid expenses and other assets	2,397	(787)
Accounts payable and other accrued expenses	(14,452)	30,490
Deferred income taxes	(83)	544
Long-term liabilities	(7,074)	(5,155)
Net cash used by operating activities	(10,683)	(3,005)
Cash flows from investing activities:
Additions to property, plant, equipment, and software	(7,284)	(3,469)
Proceeds from the disposal of assets	2,348	114
Net cash used in investing activities	(4,936)	(3,355)
Cash flows from financing activities:
Payments of long-term debt	(22,000)	0
Payments of term loan debt	(253)	0
Payments for debt issuance costs	(172)	0
Proceeds from the issuance of long term debt	35,000	0
Other	(8)	43
Net cash provided by financing activities	12,567	43
Net decrease in cash and cash equivalents	(3,052)	(6,317)
Cash and cash equivalents at beginning of period	11,869	25,387
Cash and cash equivalents at end of period	8,817	19,070
Supplemental disclosure:
Cash payments (refunds) for income taxes, net	428	(163)
Cash payments for interest expense	$ 4,891	$ 1,643

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 29, 2013	Dec. 29, 2012
Current assets:
Cash and cash equivalents	$ 8,817	$ 11,869
Receivables, less allowances of $12,975 ($11,615 at December 29, 2012)	109,351	125,739
Inventories, net	226,538	244,333
Prepaid expenses and other current assets	10,021	11,287
Total current assets	354,727	393,228
Property, plant, and equipment, net	96,254	103,403
Trade names	65,339	76,105
Other assets	30,412	45,705
Total assets	546,732	618,441
Current liabilities:
Accounts payable	108,057	113,590
Accrued employee compensation	15,934	18,431
Other accrued expenses	33,913	40,310
Total current liabilities	157,904	172,331
Long-term debt	117,747	105,000
Deferred income taxes	17,866	18,002
Pension liability	208,671	213,295
Other long-term liabilities	47,944	55,015
Shareholders’ equity:
Preferred stock, 10,000,000 shares authorized, no par value — none issued	0	0
Common stock, 28,571,429 shares authorized, $1.00 stated value — 8,659,249 shares issued at June 29, 2013 and December 29, 2012	8,659	8,659
Paid-in capital	239,121	239,490
Retained earnings	75,760	137,784
Accumulated other comprehensive loss	(231,401)	(234,397)
Treasury stock at cost 613,047 shares at June 29, 2013 and 615,112 shares at December 29, 2012	(95,539)	(96,738)
Total shareholders’ (deficit) equity	(3,400)	54,798
Total liabilities and shareholders’ (deficit) equity	$ 546,732	$ 618,441