WINNER MEDICAL GROUP INC

CIK:0000808011|SEC Filings

Net Income Attributable to Winner Medical Group Inc. Per Share

9 Months Ended

Jun. 30, 2012

Net Income Attributable to Winner Medical Group Inc. Per Share

4. Net Income Attributable to Winner Medical Group Inc. Per Share

Net income attributable to Winner Medical Group Inc. per share- Basic net income attributable to Winner Medical Group Inc. per share is computed by dividing net income attributable to Winner Medical Group Inc. available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income attributable to Winner Medical Group Inc. per share gives effect to all dilutive potential ordinary shares outstanding during the period. The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. For the three and nine months ended June 30, 2012 and 2011, the basic and diluted net income attributable to Winner Medical Group Inc. per share calculated in accordance with ASC 260, "Earnings Per Share", are reconciled as follows:

	Three months ended June 30,
	2012		2011
	US$		US$
Basic income per share

Net income attributable to Winner Medical Group Inc. for the period		2,327,284		3,424,525

Weighted average common stock outstanding		24,371,872		24,130,247

Net income attributable to Winner Medical Group Inc. per share		0.10		0.14

Diluted income per share

Net income attributable to Winner Medical Group Inc. for the period		2,327,284		3,424,525

Weighted average common stock outstanding		24,371,872		24,130,247

Effect of dilution

Restricted stock		412,235		470,841
Options		229,311		0

Weighted average common stock outstanding		25,013,418		24,601,088

Net income attributable to Winner Medical Group Inc. per share		0.09		0.14

	Nine months ended June 30,
	2012		2011
	US$		US$
Basic income per share

Net income attributable to Winner Medical Group Inc. for the period		6,715,421		8,988,705

Weighted average common stock outstanding		24,365,867		24,125,593

Net income attributable to Winner Medical Group Inc. per share		0.28		0.37

Diluted income per share

Net income attributable to Winner Medical Group Inc. for the period		6,715,421		8,988,705

Weighted average common stock outstanding		24,365,867		24,125,593

Effect of dilution

Restricted stock		343,397		496,304
Options		60,815		0

Weighted average common stock outstanding		24,770,079		24,621,897

Net income attributable to Winner Medical Group Inc. per share		0.27		0.37

The number of stock options excluded from the calculation of diluted earnings per share for each of the three months ended June 30, 2012 and 2011, was nil; the number of stock options excluded from the calculation of diluted earnings per share for the nine months ended June 30, 2012 and 2011, was 350,000 and nil, respectively, because their inclusion would have been anti-dilutive. As of June 30, 2011, there were no potential dilutive common shares relating to stock options in the Company.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities
Net income	$ 6,778,804	$ 9,032,807
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of property, plant and equipment	4,594,318	4,030,486
Amortization of intangible assets	26,267	20,789
Loss on disposal of property, plant and equipment	129,211	246,097
Impairment of property, plant and equipment	1,464,403	0
Change in fair value of financial instruments, net	(3,028)	(71,071)
Equity in earnings of 50 percent or less owned persons	(151,410)	(362,860)
Investment income from held-to-maturity investments	(197,441)	(55,835)
Stock-based compensation expenses	1,129,392	644,726
Gain on realized commodity financial instruments	(74,496)	0
Deferred tax	(73,436)	(589,145)
Changes in operating assets and liabilities:
Restricted bank deposits	1,575,114	193,677
Restricted broker margin account	(400,610)	(1,293,173)
Accounts receivable	(2,707,311)	(4,254,544)
Amounts due from affiliated companies	73,977	(7,208)
Inventories	29,048	(8,676,339)
Prepaid expenses and current assets	(3,438,644)	(3,949,729)
Income taxes recoverable	(87,298)	7,061
Accounts payable	2,682,207	2,582,464
Accrued payroll and employee benefits	351,598	458,738
Customer deposits	(21,467)	11,332
Accrued and other liabilities	1,978,259	309,727
Amounts due to affiliated companies	85,402	653
Income taxes payable	(537,882)	84,838
Net cash provided by/ (used in) operating activities	13,204,977	(1,636,509)
Cash flows from investing activities
Purchase of property, plant and equipment	(7,733,003)	(5,070,594)
Purchase of intangible assets	(47,031)	(23,904)
Proceeds from disposal of property, plant and equipment	40,585	39,139
Deposits paid for property, plant and equipment	(2,244,371)	(1,589,928)
Redemption of held-to-maturity investments	36,480,515	31,229,055
Purchase of held-to-maturity investments	(36,283,074)	(29,647,424)
Net cash used in investing activities	(9,786,379)	(5,063,656)
Cash flows from financing activities
Proceeds from bank borrowings	9,461,036	12,752,313
Repayment of bank borrowings	(9,461,036)	(4,390,219)
Purchase of noncontrolling interests	(425,747)	(211,490)
Restricted bank deposits	157,756	0
Net cash (used in)/provided by financing activities	(267,991)	8,150,604
Effect of exchange rate changes	129,938	723,033
Net increase in cash and cash equivalents	3,280,545	2,173,472
Cash and cash equivalents, beginning of period	21,945,105	14,818,179
Cash and cash equivalents, end of period	25,225,650	16,991,651
Cash paid during the period for:
Cash paid for interest, net of capitalized interest of US$183,875 and US$Nil during the nine months ended June 30, 2012 and 2011, respectively	228,701	227,978
Income taxes	$ 2,542,999	$ 1,864,125

CONDENSED CONSOLIDATED BALANCE SHEETS(USD ($))	Jun. 30, 2012	Sep. 30, 2011
Current assets:
Cash and cash equivalents	$ 25,225,650	$ 21,945,105
Restricted bank deposits	107,679	1,836,491
Restricted broker margin account	475,106	0
Accounts and notes receivable, less allowances for doubtful accounts of US$92,213 and US$159,485 at June 30, 2012 and September 30, 2011, respectively	23,789,096	20,982,263
Amounts due from affiliated companies	84,550	157,779
Inventories	25,500,169	25,408,700
Prepaid expenses and other current assets	11,805,719	8,334,504
Income taxes recoverable	234,400	146,408
Deferred tax assets	345,293	376,411
Total current assets	87,567,662	79,187,661
Property, plant and equipment, net	69,678,053	65,461,750
Investment in equity investees	2,573,325	2,421,915
Intangible assets, net	148,340	126,918
Prepaid expenses and other receivables	2,463,983	1,596,354
Deferred tax assets	1,190,522	1,124,089
Total assets	163,621,885	149,918,687
Current liabilities:
Short-term bank loans	6,324,211	6,294,356
Accounts payable	10,137,984	7,420,580
Accrued payroll and employee benefits	3,508,256	3,141,756
Customer deposits	1,099,714	1,115,887
Accrued and other liabilities	6,822,643	4,253,889
Amounts due to affiliated companies	85,402	0
Income taxes payable	1,437,598	1,970,710
Total current liabilities	29,415,808	24,197,178
Deferred tax liabilities	0	45,025
Total liabilities	29,415,808	24,242,203
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.001 per share; authorized 247,500,000, issued and outstanding June 30, 2012 -24,371,872 shares; September 30, 2011 -24,140,247 shares	24,373	24,141
Additional paid-in capital	43,559,598	42,490,464
Retained earnings	65,635,028	58,984,686
Statutory reserves	5,932,049	5,866,970
Accumulated other comprehensive income	18,790,415	18,169,505
Total Winner Medical Group Inc. stockholders' equity	133,941,463	125,535,766
Noncontrolling interests	264,614	140,718
Total stockholder's equity	134,206,077	125,676,484
Total liabilities and stockholder's equity	$ 163,621,885	$ 149,918,687