SPARTECH CORP

CIK:0000077597|SEC Filings

Net Earnings (Loss) Per Share

3 Months Ended

Feb. 02, 2013

Basic earnings per share excludes any dilution and is computed by dividing net earnings attributable to common stockholders 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 were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The dilution from each of these instruments is calculated using the treasury stock method. Outstanding equity instruments that could potentially dilute basic earnings per share in the future but were not included in the computation of diluted earnings per share because they were antidilutive are as follows (in thousands):



	Three Months Ended
	February 2, 2013	February 4, 2012
Antidilutive shares:
SSARs	1,141	1,828
Stock options	302	522
Total antidilutive shares excluded from diluted earnings per share	1,443	2,350

The Company used the two-class method to compute basic and diluted earnings per share for all periods presented. The reconciliation of the net earnings, net earnings attributable to common stockholders and the weighted average number of common and participating shares used in the computations of basic and diluted earnings per share for three months ended February 2, 2013, and February 4, 2012 are as follows (shares in thousands):



	Three Months Ended
	February 2, 2013			February 4, 2012
Basic and diluted net loss:
Net loss	$	(467	)	$	(2,249	)
Less: net earnings allocated to participating securities	—			—
Net loss attributable to common shareholders	$	(467	)	$	(2,249	)
Weighted average shares outstanding:
Basic weighted average common shares outstanding	31,145			30,782
Add: dilutive shares from equity instruments	—			—
Diluted weighted average shares outstanding	31,145			30,782
Basic loss per share attributable to common stockholders:
Net loss	(0.01		)	(0.07		)
Diluted loss per share attributable to common shareholders:
Net loss	(0.01		)	(0.07		)

Consolidated Condensed Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 02, 2013	Feb. 04, 2012
Cash flows from operating activities
Net loss	$ (467)	$ (2,249)
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	7,462	8,227
Stock-based compensation expense	456	943
Restructuring and exit costs	593	0
Loss on disposition of assets, net	34	53
Provision for bad debt expense	77	282
Change in current assets and liabilities	(22,010)	(13,793)
Other, net	(39)	(177)
Net cash used by operating activities	(13,894)	(6,714)
Cash flows from investing activities
Capital expenditures	(5,121)	(3,884)
Proceeds from the disposition of assets	4	105
Net cash used by investing activities	(5,117)	(3,779)
Cash flows from financing activities
Bank credit facility borrowings, net	22,030	11,009
Payments on bonds and leases	(112)	(122)
Debt issuance costs	0	(485)
Tax payments for employee stock exercises	(1,028)	(62)
Net cash provided by financing activities	20,890	10,340
Effect of exchange rates on cash and cash equivalents	(7)	4
Increase (decrease) in cash and cash equivalents	1,872	(149)
Cash and cash equivalents at beginning of period	1,092	877
Cash and cash equivalents at end of period	$ 2,964	$ 728

Consolidated Condensed Balance Sheets (USD $) In Thousands, unless otherwise specified	Feb. 02, 2013	Nov. 03, 2012
Current assets:
Cash and cash equivalents	$ 2,964	$ 1,092
Trade receivables, net of allowances of $2,494 and $3,341, respectively	136,235	150,566
Inventories, net of inventory reserves of $9,941 and $9,534, respectively	114,980	105,099
Prepaid expenses and other current assets, net	31,138	24,855
Assets held for sale	2,614	2,614
Total current assets	287,931	284,226
Property, plant and equipment, net	195,694	197,373
Goodwill	47,466	47,466
Other intangible assets, net	10,760	11,182
Other long-term assets	4,174	4,386
Total assets	546,025	544,633
Current liabilities:
Current maturities of long-term debt	22,645	22,636
Accounts payable	124,300	141,937
Accrued liabilities	36,789	39,088
Total current liabilities	183,734	203,661
Long-term debt, less current maturities	134,357	112,288
Other long-term liabilities:
Deferred taxes	41,960	41,960
Other long-term liabilities	7,007	6,739
Total liabilities	367,058	364,648
Shareholders’ equity
Preferred stock (authorized: 4,000,000 shares, par value $1.00) Issued: None	0	0
Common stock (authorized: 55,000,000 shares, par value $0.75) Issued: 33,131,846 shares; outstanding: 31,210,911 and 30,801,994 shares, respectively	24,849	24,849
Contributed capital	193,089	203,092
Accumulated losses	(8,901)	(8,435)
Treasury stock, at cost, 1,920,935 and 2,329,852 shares, respectively	(34,921)	(44,481)
Accumulated other comprehensive income	4,851	4,960
Total shareholders’ equity	178,967	179,985
Total liabilities and shareholders’ equity	$ 546,025	$ 544,633