EDELMAN FINANCIAL GROUP INC.

CIK:0001071341|SEC Filings

EARNINGS (LOSS) PER COMMON SHARE

6 Months Ended

Jun. 30, 2012

10.

EARNINGS (LOSS) PER COMMON SHARE

Basic and diluted earnings (loss) per common share computations for the periods indicated were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(in thousands, except per share amounts)

Income from continuing operations, net of income taxes	$	1,792		$	4,218		$	1,930		$	7,646
Loss from discontinued operations, net of income taxes		(1,580	)		(377	)		(1,714	)		(967	)
Net income attributable to the Company	$	212		$	3,841		$	216		$	6,679
Basic earnings (loss) per common share:
Continuing operations	$	0.06		$	0.14		$	0.07		$	0.26
Discontinued operations		(0.05	)		(0.01	)		(0.06	)		(0.03	)
Net earnings	$	0.01		$	0.13		$	0.01		$	0.23
Diluted earnings (loss) per common share:
Continuing operations	$	0.06		$	0.14		$	0.06		$	0.25
Discontinued operations		(0.05	)		(0.01	)		(0.05	)		(0.03	)
Net earnings	$	0.01		$	0.13		$	0.01		$	0.22
Weighted average number of common shares outstanding:
Basic		29,331			29,150			29,282			29,159
Potential dilutive effect of stock-based awards		600			1,024			808			927
Diluted		29,931			30,174			30,090			30,086

Outstanding stock options of 215,000 and 285,000 for the three months ended June 30, 2012 and 2011, and 235,000 and 305,000 for the six months ended June 30, 2012 and 2011, have not been included in diluted earnings per common share because to do so would have been anti-dilutive for the periods presented. Warrants outstanding at June 30, 2011 to purchase shares of common stock in an aggregate value of up to $7.5 million at an exercise price of $5.75 per common share have been included in diluted earnings per common share for the three and six months ended June 30, 2011. These warrants were repurchased by the Company for $8.0 million on March 1, 2012; therefore, they are included in diluted earnings per common share for the six months ended June 30, 2012, but not in diluted earnings per common share for the three months ended June 30, 2012.

Participating restricted common stock is included in the basic and diluted shares. Restricted stock units are nonparticipating; therefore, they are only included in the diluted weighted average number of common shares for the three and six months ended June 30, 2012 and 2011.

SUPPLEMENTAL CASH FLOW INFORMATION

6 Months Ended

Jun. 30, 2012

SUPPLEMENTAL CASH FLOW INFORMATION

13.

SUPPLEMENTAL CASH FLOW INFORMATION

	Six Months Ended June 30,
	2012			2011
	(in thousands)

Cash paid for income taxes, net	$	935		$	1,121
Cash paid for interest		264			346

Noncash operating activities:
Notes, loans, and other receivables, net		1,447			-
Financial instruments, owned, at fair value		(3,524	)		-
Accounts payable and accrued liabilities		(2,452	)		-

Noncash investing activities:
Notes, loans, and other receivables, net		1,003			-
Receivables from customers, net		(769	)		-
Furniture, equipment, and leasehold improvements, net		(231	)		-
Other assets and prepaid expenses		(13	)		-
Accounts payable and accrued liabilities		489			-
Noncontrolling interest		(1,460	)		-

Noncash financing activities:
Treasury stock		4,529			-
Stock issued pursuant to contingent earnout agreement		1,500			-
Increase (decrease) in dividends declared not yet paid		23			(9	)

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 35,836	$ 48,605
Restricted cash	990	1,145
Receivables from customers, net	31,384	29,321
Notes, loans, and other receivables, net	63,379	67,297
Deposits with clearing organizations	1,301	1,301
Financial instruments, owned, at fair value	27,989	30,907
Other investments	1,696	1,690
Furniture, equipment, and leasehold improvements, net	10,243	11,731
Other assets and prepaid expenses	4,541	4,809
Goodwill, net	84,676	84,676
Other intangible assets, net	58,203	59,962
Total assets	320,238	341,444
Liabilities:
Accounts payable and accrued liabilities	38,723	47,580
Borrowings	16,173	19,114
Deferred tax liability, net	14,670	13,397
Total liabilities	69,566	80,091
Commitments and contingencies
Equity:
Preferred stock, $0.10 par value; 10,000,000 shares authorized; no shares issued and outstanding
Common stock, $0.01 par value; 100,000,000 shares authorized; 31,219,775 and 30,752,128 shares issued, respectively	312	308
Additional paid-in capital	241,867	246,485
Accumulated deficit	(10,764)	(8,020)
Treasury stock, at cost, 2,145,215 and 1,613,814 shares, respectively	(14,257)	(9,674)
Total The Edelman Financial Group Inc. shareholders' equity	217,158	229,099
Noncontrolling interest	33,514	32,254
Total equity	250,672	261,353
Total liabilities and equity	$ 320,238	$ 341,444