ZOLTEK COMPANIES INC

CIK:0000890923|SEC Filings

Note 4 - Earnings Per Share

3 Months Ended

Dec. 31, 2013

4. EARNINGS PER SHARE

In accordance with Accounting Standards Codification (“ASC”) 260, the Company has evaluated its diluted income per share calculation. The Company had outstanding stock compensation at December 31, 2013 and outstanding warrants and stock compensation at December 31, 2012 which were not included in the determination of diluted income per share because these shares were anti-dilutive.

The following is the diluted impact of the stock options on net income (loss) per share for the three months ended December 31, 2013 and 2012, respectively, (in thousands, except per share amounts):

	Three months ended December 31,
	2013			2012
Numerators:
Net (loss) income	$	(2,264	)	$	2,977

Denominators:
Average shares outstanding – basic		34,394			34,355
Impact of stock options		-			57
Average shares outstanding – diluted		34,394			34,412

Basic (loss) income per share	$	(0.07	)	$	0.09
Diluted (loss) income per share	$	(0.07	)	$	0.09

Consolidated Statement of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net (loss) income	$ (2,264)	$ 2,977
Adjustments to reconcile net (loss) income to net cash from operating activities:
Depreciation	5,025	4,658
Amortization of financing fees and debt discount	24	15
Reversal of uncertain tax positions	(481)
Foreign currency transaction loss	827	88
Stock compensation expense	19	240
Changes in assets and liabilities:
Decrease in accounts receivable	6,047	6,611
Decrease (increase) in inventories	2,064	(11,777)
Increase in other current assets and other assets	(381)	(4,660)
Increase (decrease) in trade accounts payable	2,604	(1,318)
Decrease in accrued expenses and other liabilities	(262)	(1,072)
Net cash provided (used) by operations	13,222	(4,238)
Cash flows from investing activities:
Purchases of property and equipment	(1,960)	(2,907)
Decrease in construction payables	(3)	(756)
Net cash used in investing activities	(1,963)	(3,663)
Cash flows from financing activities:
Payment of financing fees		(65)
Proceeds from exercise of stock options	32
Repayment of notes payable	(2,082)	(1,498)
Net cash used in financing activities	(2,050)	(1,563)
Effect of exchange rate changes on cash and cash equivalents	901	10
Net increase (decrease) in cash and cash equivalents	10,110	(9,454)
Cash and cash equivalents at beginning of period	32,291	29,935
Cash and cash equivalents at end of period	$ 42,401	$ 20,481

Consolidated Balance Sheet (Current Period Unaudited) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013
Current assets:
Cash and cash equivalents	$ 42,401	$ 32,291
Accounts receivable, less allowance for doubtful accounts of $182 and $177	26,164	31,722
Inventories, net	71,005	71,945
VAT receivable	4,075	3,527
Other current assets	3,284	3,336
Total current assets	146,929	142,821
Property and equipment, gross	378,588	371,988
Less: accumulated depreciation	(169,861)	(162,367)
Property and equipment, net	208,727	209,621
Other assets	395	423
Total assets	356,051	352,865
Current liabilities:
Current maturities of long-term debt	4,416	4,330
Trade accounts payable	9,054	6,270
Accrued expenses and other liabilities	8,057	8,133
Construction payables	847	850
Total current liabilities	22,374	19,583
Long-term debt	17,597	19,380
Hungarian grant liability	6,071	6,083
Other long-term liabilities		481
Liabilities carried at fair value	62	122
Total liabilities	46,104	45,649
Shareholders' equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $.01 par value, 50,000,000 shares authorized, 34,396,422 and 34,390,922 shares issued and outstanding at December 31, 2013 and September 30, 2013	344	344
Additional paid-in capital	482,476	482,425
Accumulated other comprehensive loss	(40,556)	(45,500)
Accumulated deficit	(132,317)	(130,053)
Total shareholders' equity	309,947	307,216
Total liabilities and shareholders' equity	$ 356,051	$ 352,865