ATS CORP

CIK:0001325460|SEC Filings

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2011

NOTE 7 ¾ EARNINGS PER SHARE

Basic and diluted net income per share information is presented in accordance with ASC 260, “Earnings Per Share” (ASC 260). Basic income per share is calculated by dividing the net income attributable to common stockholders by the weighted-average common shares outstanding during the period. Diluted net income per share is calculated by dividing net income attributable to common stockholders by the weighted average common shares outstanding, which includes common stock equivalents. Common stock equivalents are excluded from a calculation of diluted income per share if the impact would be anti-dilutive. The Company’s common stock equivalents include stock options and restricted shares. The diluted weighted average shares outstanding for the three months ended September 30, 2011 and 2010 excluded unvested restricted shares and stock options to purchase approximately 60,000 and 561,000 shares, respectively, of the Company’s common stock because such common stock equivalents had an exercise price in excess of the average market price of the Company’s common stock during the period, or would be anti-dilutive. The diluted weighted average shares outstanding for the nine months ended September 30, 2011 and 2010 excluded unvested restricted shares and stock options to purchase approximately 103,000 and 559,000 shares, respectively, because such common stock equivalents had an exercise price in excess of the average market price of the Company’s common stock during the period, or would be anti-dilutive.

The chart below shows the calculation of basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Net income	$	1,115,368	$	2,663,014	$	2,852,216	$	4,906,608

Weighted average number of basic shares outstanding during the period		22,951,897		22,540,904		22,870,974		22,516,813
Dilutive effect of stock options and restricted shares after application of the treasury stock method		216,011		86,819		228,158		88,913
Weighted average number of diluted shares outstanding during the period		23,167,908		22,627,723		23,099,132		22,605,726

Basic earnings per share	$	0.05	$	0.12	$	0.12	$	0.22
Diluted earnings per share	$	0.05	$	0.12	$	0.12	$	0.22

Shares outstanding during the nine months ended September 30, 2010 reflect the repurchase of 152,000 shares of ATSC common stock for approximately $455,000 pursuant to the share repurchase program approved by the Company’s Board of Directors on February 17, 2009. No stock was repurchased during the nine months ended September 30, 2011.

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities
Net income	$ 2,852,216	$ 4,906,608
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	1,898,221	1,903,680
Non-cash interest expense SWAP agreement	0	(354,020)
Stock-based compensation	652,823	560,863
Directors' fees paid in equity	0	103,094
Deferred income taxes	(206,060)	856,016
Deferred rent	(170,843)	(139,806)
Gain on disposal of equipment	0	(8,722)
Provision for bad debt	(109,700)	951,245
Changes in assets and liabilities:
Accounts receivable	7,258,270	763,187
Prepaid expenses	222,971	(2,505)
Restricted cash	(646)	(2,282)
Other assets	400	20,315
Accounts payable	(470,937)	1,136,436
Other accrued expenses and accrued liabilities	(1,012,829)	(3,177,887)
Accrued salaries and related taxes	(243,220)	(946,026)
Accrued vacation	(265,374)	136,893
Income taxes payable and receivable, net	86,626	(62,838)
Other current liabilities	(198,619)	(1,087,245)
Net cash provided by operating activities	10,293,299	5,557,006
Cash flows from investing activities
Purchase of property and equipment	(31,783)	(9,074)
Proceeds from disposals of equipment	0	10,000
Net cash (used in) provided by investing activities	(31,783)	926
Cash flows from financing activities
Borrowings on line of credit	36,680,507	51,366,004
Payments on line of credit	(47,117,268)	(54,594,279)
Payments on notes payable	0	(2,007,900)
Payments on capital leases	(91,293)	0
Proceeds from exercise of stock options	128,750	5,587
Proceeds from stock issued pursuant to Employee Stock Purchase Plan	138,031	151,438
Payments to repurchase treasury stock	0	(454,640)
Net cash used in financing activities	(10,261,273)	(5,533,790)
Net increase in cash	243	24,142
Cash, beginning of period	65,993	178,225
Cash, end of period	66,236	202,367
Supplemental disclosures:
Income taxes paid	2,006,100	1,669,146
Income tax refunds	59,895	2,258
Interest paid	223,780	1,789,871
Interest received	$ 10,777	$ 301,264

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 66,236	$ 65,993
Restricted cash	1,327,891	1,327,245
Accounts receivable, net	14,071,032	21,219,602
Prepaid expenses and other current assets	473,203	696,174
Income taxes receivable and prepaid, net	13,291	61,477
Other current assets	25,091	25,491
Deferred income taxes, current	863,412	698,521
Total current assets	16,840,156	24,094,503
Property and equipment, net	2,341,972	2,714,164
Goodwill	55,370,011	55,370,011
Intangible assets, net	2,616,225	4,110,470
Other assets	133,314	133,314
Deferred income taxes	1,475,950	1,407,545
Total assets	78,777,628	87,830,007
LIABILITIES AND STOCKHOLDERS' EQUITY
Capital leases - current portion	80,931	79,572
Accounts payable	3,955,062	4,457,781
Other accrued expenses and current liabilities	1,369,112	2,381,941
Accrued salaries and related taxes	2,674,074	2,917,294
Accrued vacation	1,702,852	1,968,226
Deferred revenue	315,034	513,653
Deferred rent - current portion	320,498	320,498
Total current liabilities	10,417,563	12,638,965
Long-term debt - net of current portion	3,963,239	14,400,000
Capital leases - net of current portion	82,779	143,648
Deferred rent - net of current portion	2,295,119	2,465,962
Total liabilities	16,758,700	29,648,575
Commitments and contingencies
Stockholders' equity:
Preferred stock $0.0001 par value, 1,000,000 shares authorized, and no shares issued and outstanding	0	0
Common stock $0.0001 par value, 100,000,000 shares authorized, 31,849,790 and 31,561,486 shares issued, and 22,951,897 and 22,663,593 shares outstanding	3,185	3,156
Additional paid-in capital	133,789,090	132,803,839
Treasury stock, at cost, 8,897,893 shares held	(31,663,758)	(31,663,758)
Accumulated deficit	(40,109,589)	(42,961,805)
Total stockholders' equity	62,018,928	58,181,432
Total liabilities and stockholders' equity	$ 78,777,628	$ 87,830,007