SAND HILLS, INC

CIK:0001468924|SEC Filings

EARNINGS PER SHARE

9 Months Ended

Mar. 31, 2012

NOTE 5 – EARNINGS PER SHARE

Basic earnings (loss) per common share is computed by dividing net earnings (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per common share include the potential dilution that would occur from the common shares issuable upon the exercise of outstanding stock options and warrants and the conversion of preferred stock. The following summarizes the computations of basic and diluted earnings (loss) per share:

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2012			2011			2012			2011
Net Income (Loss)	$	(403,431	)	$	(329,294	)	$	(426,495	)	$	(74,563	)
Basic earnings (loss) per share	$	(0.02	)	$	(0.01	)	$	(0.02	)	$	(0.00	)
Diluted earnings (loss) per share	$	(0.02	)	$	(0.01	)	$	(0.02	)	$	(0.00	)
Weighted average common shares outstanding for :
Basic earnings (loss) per share		23,414,263			23,414,263			23,414,263			23,656,030
Diluted earnings (loss) per share		23,414,263			23,414,263			23,414,263			23,656,030

For the three months ended March 31, 2012 and 2011, there were 13,694,995 and 8,098,804 antidilutive stock options respectively. There were 10,510,825 antidilutive stock options for the nine months ended March 31, 2012 and 8,527,873 for the nine months ended March 31, 2011.

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Mar. 31, 2012	Mar. 31, 2011
Cash Flows From Operating Activities:
Net loss	$ (426,495)	$ (74,563)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	128,803	124,709
Stock-based compensation	249,324
Bad debt expense	243,083	6,000
Changes in cash surrender value of life insurance	374,827	(113,900)
Changes in operating assets and liabilities:
Accounts receivable	(135,332)	1,289,643
Other receivable	(96,203)	16,031
Inventory	50,364	(157,432)
Income tax asset	(265,000)
Prepaid expenses	(8,390)	74,589
Accounts payable	602,875	(2,365,370)
Accrued expenses	250,899	(198,038)
Net cash provided by (used in) operating activities	968,755	(1,398,331)
Cash Flows From Investing Activities:
Purchases of property, plant & equipment	(80,474)	(14,508)
Net cash used in investing activities	(80,474)	(14,508)
Cash Flows From Financing Activities:
Net (payments on) proceeds from revolving line of credit	(468,365)	546,487
Payments for the repurchase of common stock		(97,620)
Net cash (used in) provided by financing activities	(468,365)	448,867
Increase (Decrease) In Cash and Cash Equivalents	419,916	(963,972)
Cash and Cash Equivalents at the Beginning of the Period	377,212	1,325,485
Cash and Cash Equivalents at the End of the Period	797,128	361,513
Cash paid during the year for:
Interest	110,919	60,204
Taxes		$ 3,456

CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2012	Jun. 30, 2011
CURRENT ASSETS:
Cash and cash equivalents	$ 797,128	$ 377,212
Accounts receivable, net of allowance for doubtful accounts of $255,000 at March 31, 2012 and June 30, 2011	14,354,175	14,461,926
Other Receivables	96,203
Inventory, net of allowance for obsolescence of $40,000 at March 31, 2012 and June 30, 2011	1,715,700	1,766,064
Prepaid expenses	108,685	100,295
Deferred tax assets	431,158	166,158
Total Current Assets	17,503,049	16,871,655
PROPERTY, PLANT AND EQUIPMENT:
Net of accumulated depreciation of $525,819 and $468,467 at March 2012 and June 30,2011, respectively	224,251	201,130
OTHER ASSETS:
Goodwill, net of accumulated amortization of $1,318,680 for March 31, 2012 and June 30, 2011	1,558,536	1,558,536
Non-compete agreement, net of accumulated amortization of $163,118 for March 31,2012 and $68,751 for June 30, 2011	111,882	183,333
Cash surrender value of life insurance		374,827
Other assets	11,912	11,912
Total Other Assets	1,682,330	2,128,608
Total Assets	19,409,630	19,201,393
CURRENT LIABILITIES
Accounts payable	11,713,351	11,110,476
Accrued expenses	533,610	282,712
Revolving line of credit	4,349,586	4,817,951
Total Current Liabilities	16,596,547	16,211,139
STOCKHOLDERS' EQUITY:
Additional paid in capital	2,303,116	2,034,519
Retained earnings	507,626	934,121
Total Stockholders' Equity	2,813,083	2,990,254
Total Liabilities and Stockholders' Equity	19,409,630	19,201,393
Series B convertible preferred stock
STOCKHOLDERS' EQUITY:
Preferred stock		492
Common Stock
STOCKHOLDERS' EQUITY:
Common stock	2,341	200
Common Stock Additional Series
STOCKHOLDERS' EQUITY:
Common stock		$ 20,922