SYNOVIS LIFE TECHNOLOGIES INC

CIK:0000780127|SEC Filings

Earnings Per Share

12 Months Ended

Oct. 31, 2011

11.	Earnings Per Share (in thousands):

The following table sets forth the computation of basic and diluted shares outstanding for the fiscal years ended October 31:

	2011		2010		2009
Numerator:
Net income	$	8,461	$	4,876	$	2,706
Denominator:
Denominator for basic earnings per share –weighted average common shares		11,381		11,262		11,588
Effect of dilutive securities:
Shares associated with option plans		190		179		239
Dilutive potential common shares		190		179		239
Denominator for diluted earnings per share –weighted average
common shares and dilutive potential common shares		11,571		11,441		11,827

Stock options outstanding which were anti-dilutive totaled 81, 827, and 178 options for fiscal years ended October 31, 2011, 2010, and 2009, respectively.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Oct. 31, 2011	Oct. 31, 2010	Oct. 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 8,461	$ 4,876	$ 2,706
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, plant and equipment	1,154	1,228	1,017
Amortization of intangible assets	734	782	539
Amortization of investment premium, net	1,263	1,626	1,027
Provision for uncollectible accounts	250	204	149
Stock-based compensation	1,231	1,455	937
Tax benefit from stock option exercises	(522)	(296)	(203)
Acquired in-process research and development expense	0	0	3,500
Loss on sale of investments	0	0	1,350
Impairment of intangible assets	0	0	600
Loss on sale or disposal of property, plant and equipment	25	192	25
Deferred income taxes	(107)	(117)	(2,206)
Changes in operating assets and liabilities:
Accounts receivable	(2,811)	(1,980)	(953)
Inventories	(565)	(1,709)	62
Other current assets	(258)	40	677
Accounts payable	591	(318)	637
Accrued expenses	1,931	920	(118)
Net cash provided by operating activities	11,377	6,903	9,746
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(1,932)	(1,102)	(1,156)
Investments in identifiable intangible assets	(316)	(123)	(105)
Purchase of assets of Pegasus Biologics, Inc.	0	0	(12,319)
Purchases of investments	(51,116)	(79,397)	(43,226)
Redemptions of investments	50,228	73,618	23,405
Decrease in restricted cash	0	0	2,950
Other	0	(2)	(335)
Net cash used in investing activities	(3,136)	(7,006)	(30,786)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds related to stock-based compensation plans	3,879	1,996	823
Repurchase of the Company's common stock	(7,580)	(5,101)	(11,018)
Excess tax benefit of stock option exercises	522	296	203
Net cash used in financing activities	(3,179)	(2,809)	(9,992)
Net change in cash and cash equivalents	5,062	(2,912)	(31,032)
Cash and cash equivalents at beginning of year	12,951	15,863	46,895
Cash and cash equivalents at end of year	$ 18,013	$ 12,951	$ 15,863

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Oct. 31, 2011	Oct. 31, 2010
Current assets:
Cash and cash equivalents	$ 18,013	$ 12,951
Short-term investments	41,203	41,119
Accounts receivable, net	11,262	8,701
Inventories	9,998	9,433
Deferred income tax asset, net	447	367
Other current assets	1,973	1,715
Total current assets	82,896	74,286
Investments, net	7,335	7,854
Property, plant and equipment, net	4,154	3,401
Goodwill	3,620	3,620
Other intangible assets, net	5,764	6,182
Deferred income tax asset, net	2,166	2,139
Total assets	105,935	97,482
Current liabilities:
Accounts payable	2,235	1,644
Accrued expenses	7,780	6,371
Total current liabilities	10,015	8,015
Total liabilities	10,015	8,015
Commitments and contingencies (Note 9)
Shareholders' equity:
Preferred stock: authorized 5,000,000 shares of $0.01 par value; none issued or outstanding as of October 31, 2011 and 2010	0	0
Common stock: authorized 20,000,000 shares of $0.01 par value; issued and outstanding, 11,167,690 and 11,228,654 as of October 31, 2011 and 2010, respectively	112	112
Additional paid-in capital	59,832	61,780
Accumulated other comprehensive (loss) income	(34)	26
Retained earnings	36,010	27,549
Total shareholders' equity	95,920	89,467
Total liabilities and shareholders' equity	$ 105,935	$ 97,482