Coleman Cable, Inc.

CIK:0001323653|SEC Filings

Earnings Per Share

9 Months Ended

Sep. 30, 2013

9. EARNINGS PER SHARE

We compute earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Our participating securities are our grants of restricted stock, as such awards contain non-forfeitable rights to dividends. Security holders are not obligated to fund the Company’s losses, and therefore, participating securities are not allocated a portion of these losses in periods where a net loss is recorded. As of September 30, 2013 and 2012, the impact of participating securities on net income allocated to common shareholders and the dilutive effect of share-based awards outstanding on weighted average shares outstanding was as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
Components of Basic and Diluted Earnings per Share	2013			2012			2013			2012
Basic EPS Numerator:
Net income	$	784		$	5,454		$	13,375		$	16,810
Less: Earnings allocated to participating securities		(5	)		(50	)		(88	)		(153	)

Net income allocated to common shareholders	$	779		$	5,404		$	13,287		$	16,657

Basic EPS Denominator:
Weighted average shares outstanding		18,293			17,071			17,617			17,077
Basic earnings per common share	$	0.04		$	0.32		$	0.75		$	0.98
Diluted EPS Numerator:
Net income	$	784		$	5,454		$	13,375		$	16,810
Less: Earnings allocated to participating securities		(5	)		(49	)		(87	)		(151	)

Net income allocated to common shareholders	$	779		$	5,405		$	13,288		$	16,659

Diluted EPS Denominator:
Weighted average shares outstanding		18,293			17,071			17,617			17,077
Dilutive common shares issuable upon exercise of stock options		185			230			163			234

Diluted weighted average shares outstanding		18,478			17,301			17,780			17,311

Diluted earnings per common share	$	0.04		$	0.31		$	0.75		$	0.96

Options

Options with respect to 55 and 771 common shares were not included in the computation of diluted earnings per share for the three and nine months ended September 30, 2013 and 2012 because they were antidilutive.

Condensed Consolidating Statement of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOW FROM OPERATING ACTIVITIES:
NET INCOME (LOSS)	$ 13,375	$ 16,810
Adjustments to reconcile net income (loss) to net cash flow from operating activities:
Depreciation and amortization	17,757	17,241
Stock-based compensation	3,013	1,169
Foreign currency transaction gain (loss)	(131)	252
Excess tax benefits from stock-based compensation	(3,190)	(625)
ASSET IMPAIRMENT	6,584
Deferred taxes	2,496	1,865
Gain on disposal of fixed assets	64	(41)
Changes in operating assets and liabilities:
Accounts receivable	(2,459)	(14,792)
Inventories	(10,982)	(15,443)
Prepaid expenses and other assets	(2,559)	3,317
Accounts payable	2,700	8,721
Accrued liabilities	(4,712)	(5,128)
Net cash flow provided by operating activities	21,956	13,346
CASH FLOW FROM INVESTING ACTIVITIES:
Capital expenditures	(9,144)	(28,700)
Proceeds from sale of fixed assets	11	24
Acquisition of businesses, net of cash acquired		(33,090)
Net cash flow from (used in) investing activities	(9,133)	(61,766)
CASH FLOW FROM FINANCING ACTIVITIES:
Borrowings under revolving loan facilities	89,904	332,996
Repayments under revolving loan facilities	(112,334)	(288,626)
Payment of deferred financing fees
Repayment of long-term debt	(139)	(124)
Purchase of treasury stock	(772)	(657)
Excess tax benefits from stock-based compensation	3,190	625
Proceed from option exercises	9,611	14
Cash dividends paid	(1,842)	(704)
Net cash flow (used in) provided by financing activities	(12,382)	43,524
Effect of exchange rate on cash and cash equivalents	(258)	478
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	183	(4,418)
CASH AND CASH EQUIVALENTS - Beginning of period	9,562	9,746
CASH AND CASH EQUIVALENTS - End of period	9,745	5,328
NONCASH ACTIVITY
Unpaid capital expenditures	46	176
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid (refunded), net	5,966	1,918
Cash interest paid	25,854	26,074
Parent Company
CASH FLOW FROM OPERATING ACTIVITIES:
NET INCOME (LOSS)	13,375	16,810
Adjustments to reconcile net income (loss) to net cash flow from operating activities:
Depreciation and amortization	13,691	14,247
Stock-based compensation	3,013	1,169
Excess tax benefits from stock-based compensation	(3,190)	(625)
Deferred taxes	3,755	1,810
Gain on disposal of fixed assets	33	(31)
Equity in consolidated subsidiaries	7,145	(2,651)
Changes in operating assets and liabilities:
Accounts receivable	487	(11,138)
Inventories	(9,560)	(12,602)
Prepaid expenses and other assets	(4,091)	3,595
Accounts payable	2,663	9,815
Intercompany accounts	(57)	(2,696)
Accrued liabilities	(7,468)	(7,939)
Net cash flow provided by operating activities	19,796	9,764
CASH FLOW FROM INVESTING ACTIVITIES:
Capital expenditures	(8,780)	(23,250)
Proceeds from sale of fixed assets	11	24
Acquisition of businesses, net of cash acquired		(33,090)
Net cash flow from (used in) investing activities	(8,769)	(56,316)
CASH FLOW FROM FINANCING ACTIVITIES:
Borrowings under revolving loan facilities	89,904	332,996
Repayments under revolving loan facilities	(112,334)	(288,626)
Payment of deferred financing fees
Repayment of long-term debt	(139)	(124)
Purchase of treasury stock	(772)	(657)
Excess tax benefits from stock-based compensation	3,190	625
Proceed from option exercises	9,611	14
Cash dividends paid	(1,842)	(704)
Net cash flow (used in) provided by financing activities	(12,382)	43,524
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(1,355)	(3,028)
CASH AND CASH EQUIVALENTS - Beginning of period	3,417	4,086
CASH AND CASH EQUIVALENTS - End of period	2,062	1,058
NONCASH ACTIVITY
Unpaid capital expenditures	46	176
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid (refunded), net	6,347	1,735
Cash interest paid	25,817	26,074
Guarantor Subsidiaries
CASH FLOW FROM OPERATING ACTIVITIES:
NET INCOME (LOSS)	(9,321)	(319)
Adjustments to reconcile net income (loss) to net cash flow from operating activities:
Depreciation and amortization	3,811	2,756
ASSET IMPAIRMENT	6,584
Deferred taxes	(1,144)	(34)
Gain on disposal of fixed assets	19	(10)
Changes in operating assets and liabilities:
Accounts receivable	(2,241)	(2,787)
Inventories	(1,899)	(2,832)
Prepaid expenses and other assets	2,337	(345)
Accounts payable	309	1,450
Intercompany accounts	(987)	6,843
Accrued liabilities	2,589	1,405
Net cash flow provided by operating activities	57	6,127
CASH FLOW FROM INVESTING ACTIVITIES:
Capital expenditures	(334)	(5,048)
Net cash flow from (used in) investing activities	(334)	(5,048)
CASH FLOW FROM FINANCING ACTIVITIES:
Payment of deferred financing fees
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(277)	1,079
CASH AND CASH EQUIVALENTS - Beginning of period	1,709	724
CASH AND CASH EQUIVALENTS - End of period	1,432	1,803
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid (refunded), net	(1,171)	(207)
Non-Guarantor Subsidiaries
CASH FLOW FROM OPERATING ACTIVITIES:
NET INCOME (LOSS)	2,176	2,970
Adjustments to reconcile net income (loss) to net cash flow from operating activities:
Depreciation and amortization	255	238
Foreign currency transaction gain (loss)	(131)	252
Deferred taxes	(115)	89
Gain on disposal of fixed assets	12
Changes in operating assets and liabilities:
Accounts receivable	(705)	(867)
Inventories	477	(9)
Prepaid expenses and other assets	(805)	67
Accounts payable	(272)	(2,544)
Intercompany accounts	1,044	(4,147)
Accrued liabilities	167	1,406
Net cash flow provided by operating activities	2,103	(2,545)
CASH FLOW FROM INVESTING ACTIVITIES:
Capital expenditures	(30)	(402)
Net cash flow from (used in) investing activities	(30)	(402)
CASH FLOW FROM FINANCING ACTIVITIES:
Payment of deferred financing fees
Effect of exchange rate on cash and cash equivalents	(258)	478
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,815	(2,469)
CASH AND CASH EQUIVALENTS - Beginning of period	4,436	4,936
CASH AND CASH EQUIVALENTS - End of period	6,251	2,467
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid (refunded), net	790	390
Cash interest paid	37
Eliminations
CASH FLOW FROM OPERATING ACTIVITIES:
NET INCOME (LOSS)	7,145	(2,651)
Adjustments to reconcile net income (loss) to net cash flow from operating activities:
Equity in consolidated subsidiaries	(7,145)	2,651
CASH FLOW FROM FINANCING ACTIVITIES:
Payment of deferred financing fees

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
CURRENT ASSETS:
Cash and cash equivalents	$ 9,745	$ 9,562
Accounts receivable, net of allowances of $2,913 and $3,046, respectively	128,449	125,982
Inventories	123,572	112,590
Deferred income taxes	5,206	4,271
Assets held for sale	1,072	1,074
Prepaid expenses and other current assets	5,527	4,071
Total current assets	273,571	257,550
PROPERTY, PLANT AND EQUIPMENT, NET	77,442	78,914
GOODWILL	59,896	66,535
INTANGIBLE ASSETS, NET	31,278	37,417
DEFERRED INCOME TAXES	591	329
OTHER ASSETS	9,315	8,595
TOTAL ASSETS	452,093	449,340
CURRENT LIABILITIES:
Current portion of long-term debt	28,177	35,566
Accounts payable	28,177	25,748
Accrued liabilities	32,954	38,208
Total current liabilities	89,308	99,522
LONG-TERM DEBT	273,451	288,273
OTHER LONG-TERM LIABILITIES	4,231	3,693
DEFERRED INCOME TAXES	10,197	6,687
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock, par value $0.001; 75,000 authorized; 18,314 and 16,998 issued and outstanding on September 30, 2013 and December 31, 2012, respectively	18	17
Treasury stock, at cost: 485 and 443 shares, respectively	(4,690)	(3,918)
Additional paid-in capital	107,735	94,470
Accumulated deficit	(27,838)	(39,371)
Accumulated other comprehensive loss	(319)	(33)
Total shareholders' equity	74,906	51,165
TOTAL LIABILITIES AND EQUITY	$ 452,093	$ 449,340