DIRECT MARKETS HOLDINGS CORP.

CIK:0001054303|SEC Filings

Earnings per Share (Detail) - Schedule of earnings per share basic and diluted (USD $)
In Thousands, except Per Share data, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2012

Jun. 30, 2011

Earnings (loss):

Earnings (loss) for basic earnings per share (in Dollars)

$ (8,990)

$ (7,883)

$ (7,012)

$ (8,069)

Addback: Convertible debt related interest (in Dollars)

Earnings (loss) for diluted earnings per share (in Dollars)

$ (8,990)

$ (7,883)

$ (7,012)

$ (8,069)

Shares:

Shares outstanding

32,749

^[1]

35,103

^[1]

33,009

^[1]

34,202

^[1]

Unearned restricted stock

^[2]

(23)

^[2]

Earned RSUs

3,711

^[3]

2,534

^[3]

3,431

^[3]

2,248

^[3]

Shares outstanding, basic

36,460

37,637

36,440

36,427

Convertible debt

^[4]

Unearned RSUs

^[5]

Shares outstanding, diluted

36,460

37,637

36,440

36,427

Earnings (loss) per share:

Basic (in Dollars per share)

$ (0.25)

$ (0.21)

$ (0.19)

$ (0.22)

Diluted (in Dollars per share)

$ (0.25)

$ (0.21)

$ (0.19)

$ (0.22)

[1]	Shares outstanding represents shares issued less shares repurchased in treasury stock.
[2]	As restricted stock is contingent upon a future service condition, unearned shares are removed from shares outstanding in the calculation of basic EPS as the Company's obligation to issue these shares remains contingent.
[3]	As earned RSUs are no longer contingent upon a future service condition and are issuable upon a certain date in the future, earned restricted stock units are added to shares outstanding in the calculation of basic EPS.
[4]	Calculated using the "if converted" method. The "if converted" method assumes the conversion of the outstanding convertible debt at the beginning of the period. Related interest expense is added back to the diluted EPS numerator.
[5]	Calculated under the treasury stock method. The treasury stock method assumes the issuance of only a net incremental number of shares as proceeds from issuance are assumed to be used to repurchase shares at the average stock price for the period.

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net loss	$ (7,012)	$ (8,069)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	1,101	794
Restricted cash	379	(620)
Stock based compensation	2,468	1,724
Changes in operating assets and liabilities:
Financial instruments owned, at fair value	9,256	2,152
Private placement and other fees receivable	689	(994)
Receivable from brokers, dealers & clearing agencies	(348)	2,934
Prepaid expenses	(4)	(288)
Other assets	239	(2,691)
Financial instruments sold not yet purchased, at fair value	(1,630)	3,942
Accrued compensation payable	(3,292)	(7,860)
Accounts payable and accrued expenses	(616)	9,484
Net cash provided by operating activities	1,230	508
Cash flows used in investing activities:
Purchases of property and equipment and capitalization of software development costs	(730)	(519)
Merchant banking investments	(200)	(622)
Acquisition	(250)	(336)
Net cash used in investing activities	(1,180)	(1,477)
Cash used in financing activities:
Extinquishment of convertible debt	(54)	0
Purchase of treasury stock	(813)	(1,681)
Net cash used in financing activities	(867)	(1,681)
Net decrease in cash and cash equivalents	(817)	(2,650)
Cash and cash equivalents – beginning of period	5,789	13,350
Cash and cash equivalents – end of period	4,972	10,700
Supplemental disclosures of cash flow information:
Income taxes paid	69	321
Interest paid	446	253
Supplemental non-cash information:
Share issuance for acquisition of Hudson Holding Corporation	$ 0	$ 5,263

Consolidated Statements of Financial Condition (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Cash and cash equivalents:
Unrestricted	$ 4,972	$ 5,789
Restricted	1,223	1,602
Total cash and cash equivalents	6,195	7,391
Financial instruments owned, at fair value:
Corporate equity securities	2,679	5,064
Merchant banking investments	4,645	9,559
Derivatives	3,824	4,767
Fixed income	326	1,093
Other investments	1,332	1,379
Total financial instruments owned, at fair value	12,806	21,862
Private placement and other fees receivable	1,077	1,766
Receivable from brokers, dealers & clearing agencies	2,176	1,828
Prepaid expenses	516	512
Property and equipment, net	2,347	3,027
Other assets	2,837	2,440
Other intangible assets, net	215	0
Total Assets	28,169	38,826
Liabilities and Stockholders’ Equity
Accrued compensation payable	2,632	5,924
Accounts payable and accrued expenses	4,219	4,610
Financial instruments sold, not yet purchased, at fair value
Corporate equity securities	267	1,643
Derivatives	71	0
Total financial instruments sold, not yet purchased, at fair value	338	1,643
Long term convertible debt	5,910	5,997
Total Liabilities	13,099	18,174
Commitments and contingencies (See Note 7)
Stockholders’ Equity
Common stock, $0.001, par value; 100,000,000 shares authorized; 32,582,499 and 33,672,699 issued as of June 30, 2012 and December 31, 2011, respectively	33	34
Preferred stock, $0.001 par value; 1,000,000 authorized; none issued	0	0
Additional paid-in capital	75,606	74,221
Treasury stock, no shares and 100,000 shares as of June 30, 2012 and December 31, 2011, respectively	0	(46)
Accumulated deficit	(60,569)	(53,557)
Total Stockholders’ Equity	15,070	20,652
Total Liabilities and Stockholders’ Equity	$ 28,169	$ 38,826