BAKERS FOOTWEAR GROUP INC

CIK:0001171032|SEC Filings

Earnings Per Share

3 Months Ended

Apr. 28, 2012

8. Earnings Per Share

Basic earnings (loss) per share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of common shares and potential dilutive securities that were outstanding during the period. Potential dilutive securities consist of outstanding stock options and warrants and shares underlying the subordinated convertible debentures.

The following table sets forth the components of the computation of basic and diluted earnings (loss) per share for the periods indicated.


	Thirteen Weeks Ended April 30, 2011			Thirteen Weeks Ended April 28, 2012
Numerator:
Net loss	$	(2,516,667	)	$	(1,051,042	)

Numerator for loss per share		(2,516,667	)		(1,051,042	)

Interest expense related to convertible debentures		—			—
Numerator for diluted loss per share	$	(2,516,667	)	$	(1,051,042	)

Denominator:
Denominator for basic earnings per share — weighted average shares		9,262,048			9,295,916
Effect of dilutive securities Stock options		—			—
Convertible debentures		—			—
Denominator for diluted earnings (loss) per share — adjusted weighted average shares and assumed conversions		9,262,048			9,295,916

The diluted earnings per share calculation for the thirteen weeks ended April 28, 2012 excludes 28,113 incremental shares related to outstanding stock options and 518,299 incremental shares underlying convertible debentures because they are antidilutive. The diluted earnings per share calculation for the thirteen weeks ended April 30, 2011 excludes 30,285 incremental shares related to outstanding stock options and 518,299 incremental shares underlying convertible debentures because they are antidilutive.

Condensed Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
Condensed Statements of Cash Flows (Unaudited) (USD $)	Apr. 28, 2012	Apr. 30, 2011
Operating activities
Net loss	$ (1,051,042)	$ (2,516,667)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,077,442	1,281,678
Accretion of debt discount	17,016	14,695
Stock-based compensation expense	72,538	90,129
Loss (gain) on disposal of property and equipment	(211,608)	3,349
Changes in operating assets and liabilities:
Accounts receivable	(299,232)	(355,855)
Inventories	(172,639)	(1,279,705)
Prepaid expenses and other current assets	(439,223)	46,358
Other assets	(41,670)	76,076
Accounts payable	1,529,597	(1,293,526)
Accrued expenses and deferred income	(267,120)	276,867
Accrued rent liabilities	(965,367)	(338,623)
Net cash used in operating activities	(751,308)	(3,995,224)
Investing activities
Purchase of property and equipment	(383,168)	(214,254)
Net cash used in investing activities	(383,168)	(214,254)
Financing activities
Net advances under revolving credit facility	859,012	4,276,970
Proceeds from disposition of property and equipment	259,243
Net cash provided by financing activities	1,118,255	4,276,970
Net increase (decrease) in cash and cash equivalents	(16,221)	67,492
Cash and cash equivalents at beginning of period	148,308	146,263
Cash and cash equivalents at end of period	132,087	213,755
Supplemental disclosures of cash flow information
Cash paid for interest	$ 328,995	$ 330,578

Condensed Balance Sheets (USD $)	Apr. 28, 2012	Jan. 28, 2012	Apr. 30, 2011
Current assets:
Cash and cash equivalents	$ 132,087	$ 148,308	$ 213,755
Accounts receivable	1,449,840	1,150,601	1,840,671
Inventories	24,570,829	24,398,190	27,191,213
Prepaid expenses and other current assets	1,564,161	1,124,938	924,525
Total current assets	27,716,917	26,822,037	30,170,164
Property and equipment, net	13,355,158	14,087,942	17,334,393
Other assets	833,612	801,074	1,010,982
Total assets	41,905,687	41,711,053	48,515,539
Current liabilities:
Accounts payable	22,313,051	20,783,454	14,716,321
Accrued expenses	8,838,429	8,879,369	8,823,179
Subordinated convertible debentures	1,000,000	0	0
Sales tax payable	988,524	989,096	1,122,984
Deferred income	159,991	385,599	1,092,757
Revolving credit facility	12,419,222	11,560,210	14,726,269
Total current liabilities	45,719,217	42,597,728	40,481,510
Accrued noncurrent rent liabilities	6,576,321	7,541,688	8,309,649
Subordinated convertible debentures	3,000,000	4,000,000	4,000,000
Subordinated debenture	4,202,499	4,185,483	4,138,022
Shareholders' deficit:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares outstanding
Common Stock, $0.0001 par value; 40,000,000 shares authorized, 9,295,916 shares outstanding at April 30, 2011, January 28, 2012, and April 28, 2012	930	930	930
Additional paid-in capital	40,846,858	40,774,320	40,534,017
Accumulated deficit	(58,440,138)	(57,389,096)	(48,948,589)
Total shareholders' deficit	(17,592,350)	(16,613,846)	(8,413,642)
Total liabilities and shareholders' deficit	$ 41,905,687	$ 41,711,053	$ 48,515,539