Annie's, Inc.

CIK:0001431897|SEC Filings

Earnings Per Share

3 Months Ended

Jun. 30, 2014

Net Income per Share of Common Stock attributable to Common Stockholders

Earnings Per Share

Basic earnings (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by giving effect to all potentially dilutive securities outstanding during the period. The Company utilizes the treasury stock method to calculate potentially dilutive common shares that underlie its stock options to purchase common stock and restricted stock units. Performance share units were excluded from potentially dilutive common shares since the performance condition had not been satisfied as of June 30, 2014 and March 31, 2014.

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted earnings (loss) per share of common stock for the periods presented, because including them would have been anti-dilutive:



	Three Months Ended June 30,
	2014	2013
Options to purchase common stock	927,761	132,737
Restricted stock units	174,244	7,640
Total	1,102,005	140,377

A reconciliation of the basic and diluted earnings (loss) per share attributable to common stockholders is as follows (in thousands, except share and per share amounts):



	Three Months Ended June 30,
	2014			2013
Earnings (loss) per share:
Net income (loss)	$	(1,220	)	$	2,172
Weighted average shares of common stock outstanding used in computing earnings (loss)—basic	17,059,147			16,869,557
Potential dilutive options	—			472,117
Potential dilutive restricted stock units	—			11,548
Weighted average shares of common stock outstanding used in computing earnings (loss)—diluted	17,059,147			17,353,222
Earnings (loss) per share
—Basic	$	(0.07	)	$	0.13
—Diluted	$	(0.07	)	$	0.13

Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (1,220)	$ 2,172
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	546	309
Stock-based compensation	1,223	293
Excess tax benefit from stock-based compensation	(321)	(370)
Accretion of imputed interest on purchase of intangible asset	36	36
Deferred taxes	(1,242)	144
Changes in operating assets and liabilities:
Accounts receivable	1,036	4,328
Inventory	(7,735)	(3,326)
Income tax receivable	(2,472)	588
Prepaid expenses, other current and non-current assets	(478)	1,418
Accounts payable	385	(1,867)
Accrued expenses and other non-current liabilities	1,982	(583)
Net cash provided by (used in) operating activities	(8,260)	3,142
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of Joplin Plant	(7,508)	0
Purchase of property and equipment	(1,221)	(272)
Purchase of intangible assets	(30)	0
Restricted cash	300	0
Net cash provided by (used in) investing activities	(8,459)	(272)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facility	2,877	4,449
Payments under credit facility	(2,877)	(11,449)
Excess tax benefit from stock-based compensation	321	370
Proceeds from exercises of stock options	734	392
Net cash provided by (used in) financing activities	1,055	(6,238)
NET INCREASE (DECREASE) IN CASH	(15,664)	(3,368)
CASH-Beginning of period	17,308	4,930
CASH-End of period	$ 1,644	$ 1,562

Balance Sheet Components (Tables)

3 Months Ended

Jun. 30, 2014

Supplemental Balance Sheet Disclosures [Abstract]

Inventory

Inventory is comprised of the following (in thousands):



	June 30, 2014		March 31, 2014
Raw materials	$	4,901	$	1,442
Work in process	815		616
Finished goods	22,003		16,431
Inventory	$	27,719	$	18,489

Components of property and equipment

Property and equipment, net are comprised of the following (in thousands):



	June 30, 2014			March 31, 2014
Equipment and automotive	$	8,807		$	4,004
Software	3,499			2,722
Leasehold improvements	1,408			1,381
Building and improvements	920			—
Plates and dies	501			402
Land	180			—
Construction in progress	1,378			1,058
Total property and equipment	16,693			9,567
Less: Accumulated depreciation and amortization	(3,478		)	(2,947		)
Property and equipment, net	$	13,215		$	6,620

Intangible assets, net

Intangible assets, net are comprised of the following (in thousands):



	June 30, 2014							March 31, 2014
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying		Useful
	Amount		Amortization			Amount		Amount		Amortization			Amount		Lives
Product formulas	$	1,053	$	(132	)	$	921	$	1,023	$	(119	)	$	904	5 - 25 years
Other intangible assets	189		(40		)	149		189		(38		)	151		5 - 25 years
Total	$	1,242	$	(172	)	$	1,070	$	1,212	$	(157	)	$	1,055

Components of accrued liabilities

The following table shows the components of accrued liabilities (in thousands):



	June 30, 2014		March 31, 2014
Payroll and employee-related expenses	$	3,244	$	2,907
Inventory received not invoiced	4,114		2,744
Accrued trade expenses	2,373		1,601
Accrued professional fees	1,413		566
Income tax payable	—		1,727
Other accrued liabilities	879		1,135
Total accrued liabilities	$	12,023	$	10,680