SCHIFF NUTRITION INTERNATIONAL, INC.

CIK:0001022368|SEC Filings

Earnings Per Share

3 Months Ended

Aug. 31, 2012



10.	EARNINGS PER SHARE

The following is a reconciliation of the numerators and the denominators of basic and diluted earnings per share computations:



	Three Months Ended August 31,
	2012		2011
Income available to Class A and B common stockholders and vested restricted stock units (numerator):
Net income	$	6,029	$	4,703
Adjustments	—		—

Income on which basic and diluted earnings per share are calculated	$	6,029	$	4,703

Weighted-average number of common shares outstanding (denominator):
Basic	29,355,593		29,325,496
Add-incremental shares from restricted stock	77,129		39,871
Add-incremental shares from restricted stock units	3,594		1,899
Add-incremental shares from stock options	497,154		89,682

Diluted	29,933,470		29,456,948

Options to purchase 30,000 shares of Class A common stock at an exercise price of $19.41 per share and 891,000 shares of Class A common stock at exercise prices ranging from $11.05 to $11.31 per share were outstanding during the first quarters of fiscal 2013 and 2012, respectively, but were not included in the computation of diluted earnings per share because the options exercise prices were greater than the average market price of the common shares for the respective period.

The net income per share amounts are the same for Class A and Class B common stock and vested restricted stock units not yet issued because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation.

Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Aug. 31, 2012	Aug. 31, 2011
Cash flows from operating activities:
Net income	$ 6,029	$ 4,703
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	(1,783)	(256)
Depreciation and amortization	2,394	1,360
Amortization of financing fees	405	49
Stock-based compensation	1,125	525
Excess tax benefit from equity instruments	(84)	(54)
Changes in operating assets and liabilities:
Receivables	(9,086)	2,265
Inventories	6,654	(1,266)
Other assets	764	(123)
Deposits and other assets	7	0
Accounts payable	492	3,270
Other current liabilities	2,352	(443)
Other long-term liabilities	(95)	44
Net cash provided by operating activities	9,174	10,074
Cash flows from investing activities:
Purchase of business	0	(38,822)
Purchase of property and equipment	(443)	(1,059)
Purchase of available-for-sale securities	0	(1,205)
Proceeds from sale of available-for-sale securities	2,489	1,606
Net cash provided by (used in) investing activities	2,046	(39,480)
Cash flows from financing activities:
Proceeds from debt	0	40,000
Payments on debt	(2,350)	0
Dividends paid	(77)	(421)
Proceeds from stock options exercised	85	112
Purchase and retirement of common stock	(136)	(643)
Excess tax benefit from equity instruments	84	54
Contingent consideration settlement payments	(142)	0
Net cash provided by (used in) financing activities	(2,536)	39,102
Increase in cash and cash equivalents	8,684	9,696
Cash and cash equivalents, beginning of period	8,607	39,547
Cash and cash equivalents, end of period	$ 17,291	$ 49,243

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Aug. 31, 2012	May 31, 2012
Current assets:
Cash and cash equivalents	$ 17,291	$ 8,607
Available-for-sale securities	2,673	5,162
Receivables, net	38,864	29,778
Inventories	37,379	43,933
Prepaid expenses and other	1,614	2,378
Deferred taxes, net	3,243	2,297
Total current assets	101,064	92,155
Property and equipment, net	12,333	13,130
Other assets:
Goodwill	78,358	78,458
Intangible assets, net	142,277	143,563
Available-for-sale securities	584	659
Other assets	2,530	2,674
Total other assets	223,749	225,354
Total assets	337,146	330,639
Current liabilities:
Accounts payable	15,937	15,577
Accrued expenses	16,802	19,441
Current portion of long-term debt	1,400	3,400
Income taxes payable	4,781	16
Dividends payable	154	154
Total current liabilities	39,074	38,588
Long-term liabilities:
Long-term debt, net	132,280	132,362
Dividends payable	472	549
Deferred taxes, net	43,149	44,016
Other	2,141	2,236
Total long-term liabilities	178,042	179,163
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $.01 per share; shares authorized-10,000,000; no shares issued and outstanding
Additional paid-in capital	92,504	91,346
Accumulated other comprehensive loss	(130)	(85)
Retained earnings	27,363	21,334
Total stockholders' equity	120,030	112,888
Total liabilities and stockholders' equity	337,146	330,639
Class A Common Stock [Member]
Stockholders' equity:
Common stock value	218	218
Class B Common Stock [Member]
Stockholders' equity:
Common stock value	$ 75	$ 75