Clark Holdings Inc.

CIK:0001338401|SEC Filings

DISCONTINUED OPERATIONS

6 Months Ended

Jul. 02, 2011

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 11 – DISCONTINUED OPERATIONS

On August 9, 2010, management began implementing a Board approved plan (“Plan”) to discontinue the Company’s start-up brokerage operations. The decision to take this action resulted from an extensive evaluation of the division, which resulted in the conclusion that it was not achieving performance levels that warranted further investment. Employment of the brokerage division’s remaining personnel was terminated, with transitional agreements reached with several of the divisions key management personnel. Operations of the division ceased in the quarter ended October 2, 2010.

Refer to Note 9 to the Condensed Consolidated Financial Statements for additional information regarding the significant components of discontinued brokerage operations results of operations for the 13 and 26 weeks ended July 2, 2011 and July 3, 2010. Other than trade receivables, trade payables and accrued obligations, including those resulting from severance and of lease exit costs, the division had no other material assets or obligations. Other costs associated with exit or disposal activities are recorded when incurred.

The major classes of assets and liabilities included in Condensed Consolidated Balance Sheets for the discontinued brokerage division as of July 2, 2011 and January 1, 2011 were as follows:

($000s)	July 2, 2011		January 1, 2011
Current assets	$	–	$	39
Non-current assets		–		–
Total Assets	$	–	$	39

Current liabilities	$	254	$	454
Non-current liabilities		–		–
Total Liabilities	$	254	$	454

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands	6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (160)	$ (1,902)
Income (loss) from discontinued operations, net of tax	59	(715)
Loss from continuing operations	(219)	(1,187)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation	204	196
Amortization	634	624
Stock-based compensation expense	33	49
Impairment charges	0	594
Deferred income tax benefit	(131)	(1,425)
Loss on disposition of fixed assets	16	0
Provision for doubtful accounts and allowances	95	163
Changes in operating assets and liabilities:
Accounts receivable	172	(1,833)
Taxes receivable	0	(616)
Other receivables	8	206
Prepaid expenses	(54)	(455)
Accounts payable	22	2,046
Accrued expenses and other payables	(422)	(441)
Net cash provided by (used in) operating activities from continuing operations	358	(2,079)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(26)	(210)
Proceeds from disposal of assets	0	80
Net cash used in investing activities from continuing operations	(26)	(130)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of term loan	0	(2,895)
Net bank credit line (repayments) proceeds	(336)	3,428
Decrease in restricted cash	0	718
Net cash (used in) provided by financing activities from continuing operations	(336)	1,251
CASH FLOWS FROM DISCONTINUED OPERATIONS
Net cash used in operating activities	(111)	(808)
Net cash used in investing activities	0	0
Net cash provided by financing activities	0	0
Net cash used by discontinued operations	(111)	(808)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(115)	(1,766)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	146	2,879
CASH, END OF PERIOD	31	1,113
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid	88	80
Income taxes paid	$ 70	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands	Jul. 02, 2011	Jan. 01, 2011
ASSETS
Cash	$ 31	$ 146
Accounts receivable, net	4,711	4,953
Income tax receivable	389	389
Other receivables	76	141
Prepaid expenses	784	730
Deferred tax assets-current	537	537
Total Current Assets	6,528	6,896
PROPERTY AND EQUIPMENT, net of accumulated depreciation	1,484	1,678
INTANGIBLE ASSETS, net of accumulated amortization	12,356	12,990
TOTAL ASSETS	20,368	21,564
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long term debt	2,221	2,557
Accounts payable	5,521	5,687
Accrued expenses and other payables	3,876	4,312
Total Current Liabilities	11,618	12,556
DEFERRED TAX LIABILITIES-NON-CURRENT	2,765	2,896
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock-$.0001 par value; 1,000,000 shares authorized; none issued	0	0
Common stock-$.0001 par value; 40,000,000 shares authorized; 10,858,755 issued and outstanding at July 2, 2011 and January 1, 2011.	1	1
Additional paid-in capital	73,607	73,574
Accumulated deficit	(67,623)	(67,463)
Total Shareholders' Equity	5,985	6,112
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 20,368	$ 21,564