interCLICK, Inc.

CIK:0001378846|SEC Filings

Earnings per Share

9 Months Ended

Sep. 30, 2011

Net Earnings (Loss) per Share [Abstract]

Note 7. Earnings per Share

Components of basic and diluted earnings per share for the three and nine months ended September 30, 2011 and 2010 were as follows:

	For the Three Months Ended September 30, 2011
	Income (Numerator)		Shares (Denominator)		Per-Share Amount

Net income	$	792,159

Basic EPS
Income available to common stockholders	$	792,159		24,280,077	$	0.03

Effect of dilutive securities
Stock options				1,858,391
Stock warrants				352,576
Nonvested shares				93,157

Diluted EPS
Income available to common stockholders + assumed conversions	$	792,159		26,584,201	$	0.03

	For the Three Months Ended September 30, 2010
	Income (Numerator)		Shares (Denominator)		Per-Share Amount

Net income	$	1,245,531

Basic EPS
Income available to common stockholders	$	1,245,531		23,750,068	$	0.05

Effect of dilutive securities
Stock options		-		732,843
Stock warrants		-		129,860
Nonvested shares		-		7,997

Diluted EPS
Income available to common stockholders + assumed conversions	$	1,245,531		24,620,768	$	0.05

	For the Nine Months Ended September 30, 2011
	Income (Numerator)		Shares (Denominator)		Per-Share Amount

Net income	$	1,537,804

Basic EPS
Income available to common stockholders	$	1,537,804		24,156,483	$	0.06

Effect of dilutive securities
Stock options		-		1,786,971
Stock warrants		-		359,269
Nonvested shares		-		52,038

Diluted EPS
Income available to common stockholders + assumed conversions	$	1,537,804		26,354,761	$	0.06

	For the Nine Months Ended September 30, 2010
	Income (Numerator)		Shares (Denominator)		Per-Share Amount

Net income	$	1,371,315

Basic EPS
Income available to common stockholders	$	1,371,315		23,681,188	$	0.06

Effect of dilutive securities
Stock options		-		858,915
Stock warrants		-		197,099
Nonvested shares		-		10,906

Diluted EPS
Income available to common stockholders + assumed conversions	$	1,371,315		24,748,108	$	0.06

Options to purchase 725,500 and 766,500 shares of common stock were outstanding during the three and nine months ended September 30, 2011, respectively, but were not included in the computation of diluted earnings per share because the effects would have been anti-dilutive.

Options to purchase 2,797,500 and 2,053,750 shares of common stock and warrants to purchase 533,750 and 348,750 shares of common stock were outstanding during the three and nine months ended September 30, 2010, respectively, but were not included in the computation of diluted earnings per share because the effects would have been anti-dilutive. In addition, 46,300 nonvested common shares were not included in the computation of diluted earnings per share for the three and nine months ended September 30, 2010, because the number of shares assumed purchased (calculated using the compensation cost attributed to future services and not yet recognized) under the treasury stock method exceeds the number of shares that would be issued.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities:
Net income	$ 1,537,804	$ 1,371,315
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation	3,599,545	2,800,566
Other than temporary impairment of available-for-sale securities		584,618
Accrued interest income	(4,051)
Depreciation and amortization of property and equipment	722,079	502,726
Amortization of intangible assets	237,142	118,500
Provision for bad debts	222,434	103,241
Amortization of deferred line of credit costs	46,996	8,243
Deferred tax benefit	(274,411)	(412,327)
Change in warrant derivative liability		(21,413)
Excess tax benefits from stock-based compensation	(60,539)
Changes in cash and cash equivalents attributable to changes in operating assets and liabilities:
Accounts receivable	5,506,522	(8,607,026)
Prepaid expenses and other current assets	(1,616,571)	(9,903)
Other assets	49,011	(15,394)
Accounts payable	(3,618,047)	1,898,976
Accrued expenses	(77,936)	25,564
Deferred rent	(45,274)	548,141
Other liabilities	(48,813)
Income taxes payable		275,069
Net cash provided by (used in) operating activities	6,175,891	(829,104)
Cash flows from investing activities:
Proceeds from sale of available-for-sale securities		11,250
Transfers to restricted cash		(1,294,187)
Purchases of property and equipment	(381,063)	(659,425)
Costs incurred for development of internal-use software	(1,386,567)
Net cash used in investing activities	(1,767,630)	(1,942,362)
Cash flows from financing activities:
Proceeds from current line of credit		5,200,000
Repayments of current line of credit, net	(4,500,000)
Repayments of former line of credit, net		(4,208,667)
Proceeds from stock options and warrants exercised	632,902	336,707
Payments of deferred line of credit costs		(88,341)
Principal payments on capital leases	(540,662)	(130,178)
Excess tax benefits from stock-based compensation	60,539
Net cash provided by (used in) financing activities	(4,347,221)	1,109,521
Net increase (decrease) in cash and cash equivalents	61,040	(1,661,945)
Cash and cash equivalents at beginning of period	12,450,650	12,653,958
Cash and cash equivalents at end of period	12,511,690	10,992,013
Supplemental disclosure of cash flow information:
Interest paid	350,467	232,447
Income taxes paid	3,036,446	1,693,535
Non-cash investing and financing activities:
Property and equipment acquired through capital leases	1,552,260	495,600
Leasehold improvements increased for deferred rent		83,070
Reclassification of warrant derivative liability to equity upon expiration of price protection		47,846
Deferred line of credit costs included in accrued expenses		$ 37,500

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 12,511,690	$ 12,450,650
Short-term investment	500,208	498,132
Restricted cash	500,820	500,388
Accounts receivable, net of allowance for doubtful accounts of $512,538 and $563,512, respectively	38,788,478	44,517,434
Deferred taxes, current portion	476,109	457,185
Prepaid expenses and other current assets	2,739,963	763,680
Total current assets	55,517,268	59,187,469
Restricted cash	298,153	296,610
Property and equipment, net	3,494,966	2,283,721
Intangible assets, net	1,412,758	263,333
Goodwill	7,909,571	7,909,571
Deferred line of credit costs, net of accumulated amortization of $66,105 and $19,109, respectively	59,736	106,732
Deferred taxes, net of current portion	3,031,681	2,715,655
Other assets	518,577	208,182
Total assets	72,242,710	72,971,273
Current liabilities:
Accounts payable	16,529,082	20,147,129
Accrued expenses (includes accrued compensation of $3,145,759 and $3,274,004, respectively)	5,064,455	4,772,188
Line of credit payable	4,000,000	8,500,000
Obligations under capital leases, current portion	981,328	483,583
Deferred rent, current portion (includes cease-use liability of $87,410 and $78,193, respectively)	134,278	89,325
Total current liabilities	26,709,143	33,992,225
Obligations under capital leases, net of current portion	1,446,305	932,451
Deferred rent (includes cease-use liability of $242,691 and $306,578, respectively)	539,897	630,124
Other liabilities	300,102	0
Total liabilities	28,995,447	35,554,800
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized,zero shares issued and outstanding	0	0
Common stock, $0.001 par value; 140,000,000 shares authorized, 24,872,999 and 24,065,611 issued and outstanding, respectively	24,872	24,065
Additional paid-in capital	50,918,463	46,626,284
Accumulated deficit	(7,696,072)	(9,233,876)
Total stockholders' equity	43,247,263	37,416,473
Total liabilities and stockholders' equity	$ 72,242,710	$ 72,971,273