Maidenform Brands LLC

CIK:0001323531|SEC Filings

EARNINGS PER SHARE

6 Months Ended

Jun. 29, 2013

7. EARNINGS PER SHARE

The following is a reconciliation of the basic number of common shares outstanding to diluted common and common equivalent shares outstanding:

	Three Months Ended				Six Months Ended
	June 29,		June 30,		June 29,		June 30,
	2013		2012		2013		2012

Net income	$	7,970	$	11,384	$	6,736	$	17,229
Weighted average number of common and common equivalent shares outstanding:
Basic number of common shares outstanding	22,902,895		23,052,429		22,842,848		22,995,539

Impact of dilutive securities	199,769		346,938		272,876		394,155

Dilutive number of common and common equivalent shares outstanding	23,102,664		23,399,367		23,115,724		23,389,694

Basic earnings per common share	$	0.35	$	0.49	$	0.29	$	0.75
Diluted earnings per common share	$	0.34	$	0.49	$	0.29	$	0.74

For the three-month periods ended June 29, 2013 and June 30, 2012, approximately 167,000 and 260,000 shares, respectively, were not included in the computation of diluted earnings per share because of their anti-dilutive effect. For the six-month periods ended June 29, 2013 and June 30, 2012, approximately 243,000 and 210,000 shares, respectively, were not included in the computation of diluted earnings per share because of their anti-dilutive effect.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 29, 2013	Jun. 30, 2012
Cash flows from operating activities
Net income	$ 6,736	$ 17,229
Adjustments to reconcile net income to net cash used in operating activities
Depreciation and amortization	2,978	2,560
Amortization of intangible assets	554	546
Amortization of deferred financing costs	87	94
Stock-based compensation	1,929	2,301
Deferred income taxes	1,475	1,396
Excess tax benefits related to stock-based compensation	(495)	(843)
Bad debt expense	340	277
Other non-cash items	101	411
Net changes in operating assets and liabilities
Accounts receivable	(12,443)	(33,928)
Inventories	(6,252)	4,251
Prepaid expenses and other current and non-current assets	(3,068)	(454)
Accounts payable	(13,250)	686
Accrued expenses and other current and non-current liabilities	(680)	1,188
Income taxes payable	(3,173)	(778)
Net cash used in operating activities	(25,161)	(5,064)
Cash flows from investing activities
Capital expenditures	(2,178)	(2,835)
Net cash used in investing activities	(2,178)	(2,835)
Cash flows from financing activities
Term loan repayments	(825)	(550)
Proceeds from stock options exercised	56	636
Excess tax benefits related to stock-based compensation	495	843
Payments of employee withholding taxes related to equity awards	(1,578)	(1,566)
Payments of capital lease obligations	(110)	(152)
Financing fees paid		(250)
Net cash used in financing activities	(1,962)	(1,039)
Effects of exchange rate changes on cash and cash equivalents	75	(35)
Net decrease in cash and cash equivalents	(29,226)	(8,973)
Cash and cash equivalents
Beginning of period	83,747	68,041
End of period	54,521	59,068
Cash paid during the period
Interest	588	510
Income taxes	5,752	10,310
Supplemental schedule of non-cash financing activities
Treasury stock issued related to equity award activity	$ 4,624	$ 4,483

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 29, 2013	Dec. 29, 2012
Current assets
Cash and cash equivalents	$ 54,521	$ 83,747
Accounts receivable, net	84,551	72,538
Inventories	125,137	119,015
Deferred income taxes	15,081	15,081
Prepaid expenses and other current assets	21,548	15,089
Total current assets	300,838	305,470
Property and equipment, net	30,538	31,347
Goodwill	7,162	7,162
Intangible assets, net	91,235	91,789
Other non-current assets	138	183
Total assets	429,911	435,951
Current liabilities
Current portion of long-term debt	67,400	1,100
Accounts payable	39,788	53,050
Accrued expenses and other current liabilities	21,439	21,882
Total current liabilities	128,627	76,032
Long-term debt		67,125
Deferred income taxes	28,530	26,927
Other non-current liabilities	11,020	11,583
Total liabilities	168,177	181,667
Commitments and contingencies (Note 8)
Stockholders' equity
Preferred stock - $0.01 par value; 10,000,000 shares authorized and none issued and outstanding
Common stock - $0.01 par value; 100,000,000 shares authorized; 24,399,732 shares issued and 22,910,581 outstanding at June 29, 2013 and 24,399,732 shares issued and 22,754,212 outstanding at December 29, 2012	244	244
Additional paid-in capital	79,552	80,628
Retained earnings	218,865	213,423
Accumulated other comprehensive loss	(8,609)	(8,647)
Treasury stock, at cost (1,489,151 shares at June 29, 2013 and 1,645,520 shares at December 29, 2012)	(28,318)	(31,364)
Total stockholders' equity	261,734	254,284
Total liabilities and stockholders' equity	$ 429,911	$ 435,951