KSW INC

CIK:0001004125|SEC Filings

7. Earnings per Share

6 Months Ended

Jun. 30, 2012

	Three Months Ended June 30, 2012		Three Months Ended June 30, 2011		Six Months Ended June 30, 2012		Six Months Ended June 30, 2011
Net income	$	619,000	$	425,000	$	1,303,000	$	36,000
Earnings per share – basic:
Weighted average shares outstanding during the period		6,376,625		6,366,625		6,372,339		6,366,625
Earnings per share - basic	$	.10	$	. 07	$	.20	$	.12
Earnings per share – diluted:
Weighted average shares outstanding during the period		6,376,625		6,366,625		6,372,339		6,366,625
Effect of stock option dilution		8,628		7,954		4,411		7,812
Total shares outstanding for purposes of calculating diluted earnings per share		6,385,253		6,374,579		6,376,750		6,374,437
Earnings per share – diluted	$	.10	$	.07	$	.20	$	.12

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net income	$ 1,303,000	$ 736,000
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	68,000	79,000
Deferred income taxes	(15,000)	(31,000)
Gain on sale or property and equipment	(7,000)
Tax benefits from exercise of stock options	(13,000)
Stock-based compensation expense related to stock option plan	11,000	4,000
Earnings from joint venture	(11,000)	(215,000)
Changes in operating assets and liabilities:
Accounts receivable	(4,290,000)	1,580,000
Retainage receivable	(2,348,000)	790,000
Costs and estimated earnings in excess of billings on uncompleted contracts	1,799,000	518,000
Prepaid income taxes	(137,000)	84,000
Prepaid expenses and other receivables	(426,000)	(73,000)
Accounts payable	520,000	1,442,000
Retainage payable	1,716,000	123,000
Accrued payroll and benefits	718,000	(235,000)
Accrued expenses	121,000	(306,000)
Billings in excess of costs and estimated earnings on uncompleted contract	2,233,000	(2,633,000)
Net cash provided by operating activities	1,242,000	1,863,000
Cash flows from investing activities:
Purchases of property and equipment	(55,000)	(1,000)
Proceeds from sale of property and equipment	11,000	(528,000)
Purchases of marketable securities	(14,000)	(213,000)
Repayment by / (Advances to) Joint Venture, net	41,000
Net cash used in investing activities	(17,000)	(742,000)
Cash flows from financing activities:
Proceeds from employee stock options exercised	52,000
Dividends paid	(1,277,000)
Repayment of mortgage payable	(29,000)	(29,000)
Tax benefits from employee stock options exercised	13,000
Net cash used in financing activities	(1,241,000)	(29,000)
Net increase (decrease) in cash and cash equivalents	(16,000)	1,092,000
Cash and cash equivalents, beginning of period	14,211,000	14,945,000
Cash and cash equivalents, end of period	14,195,000	16,037,000
Supplemental disclosure of cash flow information:
Cash paid during the period for Interest	29,000	29,000
Cash paid during the period for Income taxes	$ 1,076,000	$ 374,000

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 14,195	$ 14,211
Marketable securities	2,946	2,854
Accounts receivable	18,366	14,076
Retainage receivable	6,330	3,982
Costs and estimated earnings in excess of billings on uncompleted contracts	1,159	2,958
Prepaid expenses and other receivables	437	11
Prepaid income taxes	29
Advances to and earnings from joint venture (Note 5)	615	645
Deferred income taxes	115	150
Total current assets	44,192	38,887
Property and equipment, net of accumulated depreciation and amortization of $2,629 and $2,595 at 6/30/12 and 12/31/11, respectively	2,445	2,459
Deferred income taxes	133	118
Other	29	32
Total assets	46,799	41,496
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of mortgage payable	58	58
Accounts payable	13,290	12,770
Retainage payable	4,036	2,320
Accrued payroll and benefits	1,262	544
Accrued expenses	135	14
Billings in excess of costs and estimated earnings on uncompleted contracts	4,305	2,072
Income taxes payable		121
Total current liabilities	23,086	17,899
Mortgage payable, net of current portion	907	936
Total liabilities	23,993	18,835
Stockholders' equity:
Common stock, $.01 par value, 25,000,000 shares authorized; 6,439,325 and 6,419,325 shares issued and 6,386,625 and 6,366,625 shares outstanding at 6/30/12 and 12/31/11, respectively	64	64
Additional paid-in capital	13,718	13,642
Retained earnings	9,304	9,278
Accumulated other comprehensive loss:
Net unrealized holding losses on available - for-sale securities	(140)	(183)
Less treasury stock at cost, 52,700 shares	(140)	(140)
Total stockholders' equity	22,806	22,661
Total liabilities and stockholders' equity	$ 46,799	$ 41,496