MICRONETICS INC

CIK:0000820097|SEC Filings

Earnings Per Share

3 Months Ended

Jun. 30, 2012

Basic earnings per share, or EPS, is computed based on the net income or loss for each period divided by the weighted average actual shares outstanding during the period. Diluted earnings per share is computed based on the net income or loss per period divided by the weighted average number of common shares and common equivalent shares outstanding during each period unless the effect would be anti-dilutive. Common stock equivalents represent the dilutive effect of the assumed exercise of certain outstanding stock options using the treasury stock method. The computations of basic and diluted EPS for the thirteen weeks ended June 30, 2012 and July 2, 2011 are:



	Thirteen Weeks Ended
	June 30, 2012			July 2, 2011
Net (loss) income	$	(168,941	)	$	564,372
Weighted average shares outstanding	4,575,663			4,558,447
Basic (loss) earnings per share	$	(0.04	)	$	0.12
Common stock equivalents	—			7,931
Weighted average common and common equivalent shares outstanding	4,575,663			4,566,378
Diluted (loss) earnings per share	$	(0.04	)	$	0.12

At June 30, 2012 and July 2, 2011, 457,000 and 126,000 stock options, respectively, were excluded from the diluted earnings per share calculation because the effect would have been anti-dilutive.

Consolidated Statements Of Cash Flows (USD $)	3 Months Ended
Consolidated Statements Of Cash Flows (USD $)	Jun. 30, 2012	Jul. 02, 2011
Cash flow from operating activities:
Net (loss) income	$ (168,941)	$ 564,372
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	367,295	384,063
Stock-based compensation	76,730	43,411
Change in fair value of interest rate swap	0	(34,597)
Provision (credit) for doubtful accounts	(6,837)	(23,283)
Provision for inventory obsolescence and losses	81,519	66,530
Changes in operating assets and liabilities:
Accounts receivable	1,386,894	567,180
Inventories	(67,938)	(1,647,287)
Other long term assets	2,061	2,061
Prepaid income taxes	(648,927)	272,449
Prepaid expenses, other current assets, and other assets	(154)	(15,186)
Accounts payable	265,500	(701,067)
Accrued expenses	30,329	1,100,219
Deferred revenue	(161,955)	255,442
Net cash provided by operating activities	1,155,576	834,307
Cash flows from investing activities:
Capital expenditures	(414,511)	(237,761)
Net cash used in investing activities	(414,511)	(237,761)
Cash flows from financing activities:
Net (payments) proceeds from line of credit	(668,893)	316,326
Repayments on term loan	(325,000)	(650,000)
Repayments of capital leases	0	(55,089)
Proceeds from exercise of stock options	0	11,250
Net cash used in financing activities	(993,893)	(377,513)
Net change in cash and cash equivalents	(252,828)	219,033
Cash and cash equivalents at beginning of period	856,931	745,116
Cash and cash equivalents at end of period	604,103	964,149
Supplemental disclosure of cash flow information:
Interest	24,528	109,558
Income taxes	$ 461,000	$ 55,000

Consolidated Balance Sheets (USD $)	Jun. 30, 2012	Mar. 31, 2012
ASSETS
Cash and cash equivalents	$ 604,103	$ 856,931
Accounts receivable, net of allowance for doubtful accounts of $533,929 and $540,766 at June 30, 2012 and March 31, 2012, respectively	5,521,624	6,901,681
Inventories, net	12,907,088	12,920,669
Deferred tax asset	1,860,106	1,860,106
Prepaid income taxes	672,640	23,713
Prepaid expenses and other current assets	300,084	299,930
Total current assets	21,865,645	22,863,030
Property, plant and equipment, net	4,848,496	4,746,162
Other assets:
Security deposits	79,226	79,226
Other long term assets	0	2,060
Intangible assets, net	706,729	761,848
Goodwill	1,117,197	1,117,197
Total other assets	1,903,152	1,960,331
TOTAL ASSETS	28,617,293	29,569,523
Current liabilities:
Current portion of long-term debt	0	325,000
Line of credit	3,551,151	4,220,045
Accounts payable	1,397,514	1,132,013
Accrued expenses and other current liabilities	3,675,883	3,645,554
Deferred revenue	138,873	300,828
Total current liabilities	8,763,421	9,623,440
Deferred tax liability	1,252,157	1,252,157
Total liabilities	10,015,578	10,875,597
Shareholders' equity:
Preferred stock, $0.10 par value; 100,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.01 par value; 10,000,000 shares authorized; 5,413,217 issued, 4,575,663 outstanding at June 30, 2012 and March 31, 2012, respectively	54,014	54,014
Additional paid-in capital	12,704,344	12,627,614
Retained earnings	8,823,752	8,992,693
Stockholders' equity before treasury stock	21,582,110	21,674,321
Treasury stock at cost, 837,554 shares at June 30, 2012 and March 31, 2012	(2,980,395)	(2,980,395)
Total shareholders' equity	18,601,715	18,693,926
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 28,617,293	$ 29,569,523