NATIONAL TECHNICAL SYSTEMS INC /CA/

CIK:0000110536|SEC Filings

EARNINGS PER SHARE

6 Months Ended

Jul. 31, 2013

7.	Earnings Per Share

Basic earnings per share have been computed using the weighted average number of shares of common stock outstanding during the year. Basic earnings per share exclude any dilutive effects of options, warrants, non-vested restricted shares and convertible securities.

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jul. 31, 2013	Jul. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,667,000	$ 3,060,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,152,000	4,943,000
Amortization of debt issuance cost and debt discount	1,180,000	344,000
Allowance for doubtful accounts	(147,000)	129,000
Gain on investments	(51,000)	(37,000)
Deferred income taxes	0	128,000
Share based compensation	2,991,000	572,000
Changes in operating assets and liabilities (net of acquisitions):
Accounts receivable	1,792,000	(2,255,000)
Unbilled accounts receivable	(3,784,000)	(4,624,000)
Inventories	167,000	796,000
Prepaid expenses	(514,000)	(182,000)
Other assets	406,000	190,000
Income taxes, net	(1,947,000)	2,293,000
Accounts payable	(2,115,000)	(4,190,000)
Accrued expenses	(385,000)	(268,000)
Deferred income	1,793,000	645,000
Deferred compensation	117,000	61,000
Net cash provided by operating activities	6,322,000	1,605,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(2,525,000)	(3,609,000)
Investment in life insurance	(267,000)	(1,000)
Cash surrender of insurance policy	0	476,000
Acquisition of businesses, net of cash aquired	0	(3,116,000)
Investment in retirement funds	0	(281,000)
Net cash used in investing activities	(2,792,000)	(6,531,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from current and long-term debt	9,783,000	10,579,000
Repayments of current and long-term debt	(16,817,000)	(5,963,000)
Proceeds from stock options exercised	618,000	65,000
Tax benefit from restricted stock issuance and stock options exercised	73,000	55,000
Net cash (used) provided by financing activities	(6,343,000)	4,736,000
Effect of exchange rate changes on cash	(106,000)	91,000
Net decrease in cash and cash equivalents	(2,919,000)	(99,000)
Beginning cash and cash equivalents balance	8,875,000	4,335,000
ENDING CASH AND CASH EQUIVALENTS BALANCE	$ 5,956,000	$ 4,236,000

Consolidated Balance Sheets (Unaudited) (USD $)	Jul. 31, 2013	Jan. 31, 2013
CURRENT ASSETS:
Cash and cash equivalents	$ 5,956,000	$ 8,875,000
Investments	3,691,000	3,410,000
Accounts receivable, less allowance for doubtful accounts of $701,000 at July 31, 2013 and $847,000 at January 31, 2013	31,928,000	33,573,000
Unbilled receivable	11,857,000	8,073,000
Income taxes receivable, net	2,586,000	639,000
Inventories, net	279,000	446,000
Deferred income taxes	4,959,000	4,959,000
Prepaid expenses	2,523,000	2,524,000
Total current assets	63,779,000	62,499,000
Property, plant and equipment, at cost	150,334,000	147,864,000
Less: accumulated depreciation	(89,670,000)	(85,586,000)
Net property, plant and equipment	60,664,000	62,278,000
Goodwill	21,799,000	21,799,000
Intangible assets, net	15,136,000	16,149,000
Other assets	912,000	1,904,000
TOTAL ASSETS	162,290,000	164,629,000
CURRENT LIABILITIES:
Accounts payable	5,358,000	7,473,000
Accrued expenses	15,596,000	13,142,000
Deferred income	4,767,000	2,974,000
Current installments of long-term debt	6,037,000	5,572,000
Total current liabilities	31,758,000	29,161,000
Long-term debt, excluding current installments	41,545,000	48,379,000
Deferred income taxes	16,461,000	16,461,000
Deferred compensation	1,288,000	1,794,000
Other long-term liabilites	437,000	382,000
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Preferred stock, no par value, 2,000,000 shares authorized; none issued	0	0
Common stock, no par value. Authorized, 20,000,000 shares; issued and outstanding, 11,660,000 as of July 31, 2013 and 11,475,000 as of January 31, 2013	29,841,000	29,053,000
Retained earnings	40,583,000	39,296,000
Accumulated other comprehensive loss	(248,000)	(142,000)
Total shareholders' equity	70,176,000	68,207,000
Noncontrolling interests	625,000	245,000
Total equity	70,801,000	68,452,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 162,290,000	$ 164,629,000