OUTDOOR CHANNEL HOLDINGS INC

CIK:0000760326|SEC Filings

Earnings (Loss) Per Common Share

3 Months Ended

Mar. 31, 2013

Earnings (Loss) Per Common Share [Abstract]

NOTE 3—EARNINGS (LOSS) PER COMMON SHARE

Basic earnings (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during each period, excluding unvested restricted stock. Diluted earnings (loss) per common share reflects the potential dilution of securities by including common stock equivalents, such as unvested restricted stock and stock units in the weighted average number of common shares outstanding for a period, if dilutive.

The following table sets forth a reconciliation of the basic and diluted number of weighted average shares outstanding used in the calculation of loss per share for the three months ended March 31 (in thousands):


	2013		2012
Weighted average shares used to calculate basic loss per share		25,351		25,021
Dilutive effect of potentially issuable common shares upon exercise of dilutive stock options, unvested restricted stock and stock units		—		—

Weighted average shares used to calculate diluted loss per share		25,351		25,021

For both the three months ended March 31, 2013 and 2012, outstanding options to purchase a total of approximately 250,000 shares of common stock were not included in the calculation of diluted loss per share because their effect was antidilutive.

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Operating activities:
Net loss	$ (6,065)	$ (1,158)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	787	732
Amortization of subscriber acquisition fees	152	472
Loss on sale of equipment	1	10
Provision for doubtful accounts		15
Share-based employee and director compensation	573	844
Deferred tax benefit, net	(2,790)
Changes in operating assets and liabilities:
Accounts receivable	3,195	3,644
Income tax receivable and payable, net	(1,990)	(2,781)
Programming and production costs	49	(1,540)
Other current assets	1,725	1,487
Deposits and other assets	(1)	34
Accounts payable and accrued expenses	(376)	(1,672)
Deferred revenue	(503)	538
Deferred obligations	(22)	61
Unfavorable lease obligations	(43)	(39)
Net cash provided by (used in) operating activities	(5,308)	647
Investing activities:
Purchases of property, plant and equipment	(821)	(646)
Proceeds from sale of equipment		87
Purchases of available-for-sale securities	(11,995)	(24,143)
Proceeds from sale of available-for-sale and auction-rate securities	14,561	26,037
Net cash provided by investing activities	1,745	1,335
Financing activities:
Purchase of common stock	(619)	(547)
Net cash used in financing activities	(619)	(547)
Net increase (decrease) in cash and cash equivalents	(4,182)	1,435
Cash and cash equivalents, beginning of period	30,476	19,498
Cash and cash equivalents, end of period	26,294	20,933
Supplemental disclosure of cash flow information:
Merger related expenses paid	6,592
Income taxes paid	1,213	1,960
Supplemental disclosures of non-cash investing and financing activities:
Effect of change in fair value of available-for-sale and auction-rate securities	(4)	26
Property, plant and equipment costs incurred but not paid	$ 328	$ 178

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 26,294	$ 30,476
Investments in available-for-sale securities	24,924	22,943
Investments in auction-rate securities		4,551
Accounts receivable, net of allowance for doubtful accounts of $841 and $922	11,871	15,066
Income taxes	1,095	53
Deferred tax assets, net	5,926	3,136
Programming and production costs	9,540	9,589
Subscriber acquisition fees, current portion	503	608
Other current assets	2,688	4,413
Total current assets	82,841	90,835
Property, plant and equipment, net	13,883	14,121
Amortizable intangible assets, net	126	170
Goodwill	43,160	43,160
Deferred tax assets, net	453	453
Subscriber acquisition fees, net of current portion	655	702
Deposits and other assets	239	251
Totals	141,357	149,692
Current liabilities:
Accounts payable and accrued expenses	13,439	14,143
Deferred revenue	1,471	1,974
Deferred obligations, current portion	61	70
Unfavorable lease, current portion	182	178
Income taxes payable		948
Total current liabilities	15,153	17,313
Deferred obligations	233	246
Unfavorable lease	456	503
Total liabilities	15,842	18,062
Commitments and contingencies
Equity:
Preferred stock, $0.001 par value; 25,000 shares authorized; none issued
Common stock, $0.001 par value; 75,000 shares authorized; 25,845 and 25,931 shares issued and outstanding	26	26
Additional paid-in capital	171,921	171,967
Accumulated other comprehensive income (loss)		4
Accumulated deficit	(46,432)	(40,367)
Total stockholders' equity	125,515	131,630
Noncontrolling interest
Total equity	125,515	131,630
Totals	$ 141,357	$ 149,692