AMERICAN MEDICAL ALERT CORP

CIK:0000700721|SEC Filings

Earnings Per Share

9 Months Ended

Sep. 30, 2011

5.	Earnings Per Share:

Earnings per share data for the nine and three months ended September 30, 2011 and 2010 is presented in conformity with ASC Topic 250, Earnings Per Share.

The following table is a reconciliation of the numerators and denominators in computing earnings per share:

	Income (Loss)			Shares		Per-Share
Nine Months Ended September 30, 2011	(Numerator)			(Denominator)		Amounts

Basic EPS - Income available to common stockholders	$	824,885			9,586,143	$	..09
Effect of dilutive securities -
Options and warrants		-			244,224
Diluted EPS - Income available to common stockholders and assumed conversions	$	824,885			9,830,367	$	..08

Three Months Ended September 30, 2011

Basic EPS -Income available /(loss) attributable to common stockholders	$	(44,063	)		9,605,183	$	(.00	)
Effect of dilutive securities -
Options and warrants		-			-
Diluted EPS - Income available to common stockholders and assumed conversions	$	(44,063	)		9,605,183	$	(.00	)

Nine Months Ended September 30, 2010

Basic EPS - Income available to common stockholders	$	2,017,981			9,544,931	$	..21
Effect of dilutive securities -
Options and warrants		-			297,970
Diluted EPS - Income available to common stockholders and assumed conversions	$	2,017,981			9,842,901	$	..21

Three Months Ended September 30, 2010

Basic EPS -Income available to common stockholders	$	407,706			9,559,005	$	..04
Effect of dilutive securities -
Options and warrants		-			299,338
Diluted EPS - Income available to common stockholders and assumed conversions	$	407,706			9,858,343	$	..04

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2011	Sep. 30, 2010
Cash Flows From Operating Activities:
Net income	$ 824,885	$ 2,017,981
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,347,742	2,794,776
Stock compensation charge	146,972	197,990
Equity in net loss from investment in limited liability company	1,496,053	507,512
Decrease (increase) in:
Accounts receivable	(779,451)	(252,729)
Inventory	(51,169)	(277,384)
Prepaid income taxes	401,858	(163,777)
Prepaid expenses and other current assets	(18,048)	(104,251)
Increase (decrease) in:
Accounts payable, accrued expenses and other	613,844	516,657
Deferred revenue	80,358	38,385
Net Cash Provided by Operating Activities	5,063,044	5,275,160
Cash Flows From Investing Activities:
Expenditures for fixed assets	(1,245,651)	(913,151)
Purchase of Alpha Message Center, Inc.	0	(577,977)
Purchase - account acquisition	(108,000)	0
Payment of Investment in limited liability company	0	(4,150,336)
Decrease (increase) in other assets	(53,351)	4,798
Net Cash Used In Investing Activities	(1,407,002)	(5,636,666)
Cash Flows From Financing Activities:
Proceeds from long-term debt	0	2,000,000
Repayment of long-term debt	(540,000)	(1,506,666)
Payment of accrued expense - acquisitions	(82,893)	(73,346)
Proceeds upon exercise of stock options	205,600	47,394
Payment of loan financing costs	0	(4,370)
Dividends paid	0	(1,901,879)
Net Cash Used In Financing Activities	(417,293)	(1,438,867)
Net Increase (Decrease) in Cash	3,238,749	(1,800,373)
Cash, Beginning of Period	4,090,528	5,498,448
Cash, End of Period	7,329,277	3,698,075
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
CASH PAID DURING THE PERIOD FOR INTEREST	43,089	42,699
CASH PAID DURING THE PERIOD FOR INCOME TAXES	705,963	1,551,769
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Other assets, deposits on equipment transferred to fixed asset	0	21,875
Other assets, deposits on product transferred to inventory	0	105,476
American Mediconnect Inc.
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Accrued expense - acquisitions / additional goodwill	0	38,298
Alpha Message Center, Inc.
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Accrued expense - acquisitions / additional goodwill	$ 0	$ 200,000

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Dec. 31, 2010
CURRENT ASSETS
Cash	$ 7,329,277	$ 4,090,528
Accounts receivable (net of allowance for doubtful accounts of $483,800 and $452,000)	8,276,818	7,497,367
Inventory, net of non-current portion	983,137	1,005,488
Prepaid income taxes	208,621	610,479
Prepaid expenses and other current assets	382,795	364,747
Deferred income tax asset	173,000	219,000
Total Current Assets	17,353,648	13,787,609
FIXED ASSETS (Net of accumulated depreciation and amortization)	6,382,035	7,195,019
OTHER ASSETS
Intangible assets (net of accumulated amortization of $7,258,278 and $6,864,657)	1,065,314	1,350,936
Goodwill	10,842,352	10,842,352
Investment in limited liability company	1,474,157	2,970,210
Other assets (including inventory of $481,135 and $407,615)	1,602,744	1,371,359
Total Other Assets, Total	14,984,567	16,534,857
TOTAL ASSETS	38,720,250	37,517,485
CURRENT LIABILITIES:
Current portion of long-term debt	420,000	660,000
Accounts payable	1,134,185	732,849
Accrued expense - acquisitions	95,214	105,807
Accrued expenses	2,240,216	2,013,152
Deferred revenue	312,183	231,825
Total Current Liabilities	4,201,798	3,743,633
DEFERRED INCOME TAX LIABILITY	1,182,000	1,228,000
LONG-TERM DEBT, Net of Current Portion	1,850,000	2,150,000
CUSTOMER DEPOSITS	87,574	101,499
ACCRUED RENTAL OBLIGATION	565,603	566,235
ACCRUED EXPENSE - ACQUISITION	0	72,300
TOTAL LIABILITIES	7,886,975	7,861,667
COMMITMENTS AND CONTINGENT LIABILITIES	0	0
SHAREHOLDERS' EQUITY
Preferred stock, $.01 par value - authorized, 1,000,000 shares; none issued and outstanding
Common stock, $.01 par value - authorized 20,000,000 shares; issued 9,675,478 shares in 2011 and 9,618,083 shares in 2010	96,755	96,181
Additional paid-in capital	16,958,016	16,606,018
Retained earnings	13,915,081	13,090,196
Stockholders' Equity before Treasury Stock, Total	30,969,852	29,792,395
Less treasury stock, at cost (48,573 shares in 2011 and 2010)	(136,577)	(136,577)
Total Shareholders' Equity	30,833,275	29,655,818
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 38,720,250	$ 37,517,485