HOTT » Topics » NOTE 3. Net Income Per Share

This excerpt taken from the HOTT 10-K filed Mar 22, 2006.

NOTE 7. Net Income Per Share

We compute net income per share pursuant to Statement of Financial Accounting Standards No. 128 “Earnings Per Share.” Basic net income per share is computed based on the weighted average number of common shares outstanding for the period. Diluted net income per share is computed based on the weighted average number of common shares outstanding for the period and potentially dilutive common stock equivalents outstanding for the period. Options to purchase 2,306,175, 1,279,350, and 13,750 shares of common stock were outstanding at January 28, 2006, January 29, 2005, and January 31, 2004, respectively, but were not included in the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of the shares and, therefore, the effect would be dilutive.

A reconciliation of the numerator and denominator of basic earnings per share and diluted earnings per share is as follows (all amounts in thousands except per share amounts):

 

     January 28,
2006
   January 29,
2005
   January 31,
2004

Basic Earnings Per Share Computation:

        

Numerator

   $ 22,419    $ 39,673    $ 47,589

Denominator:

        

Weighted average common shares outstanding

     44,924      46,379      47,479
                    

Total shares

     44,924      46,379      47,479
                    

Basic earnings per share

   $ 0.50    $ 0.86    $ 1.00
                    

Diluted Earnings Per Share Computation:

        

Numerator

   $ 22,419    $ 39,673    $ 47,589

Denominator:

        

Weighted average common shares outstanding

     44,924      46,379      47,479

Incremental shares from assumed exercise of options

     953      1,496      2,109
                    

Total shares

     45,877      47,875      49,588
                    

Diluted earnings per share

   $ 0.49    $ 0.83    $ 0.96
                    

 

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Table of Contents
This excerpt taken from the HOTT 10-Q filed May 27, 2005.

NOTE 3. Net Income Per Share

 

We compute net income per share pursuant to Statement of Financial Accounting Standards (“SFAS”) No. 128 “Earnings Per Share.” Basic net income per share is computed based on the weighted average number of common shares outstanding for the period. Diluted net income per share is computed

 

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based on the weighted average number of common shares outstanding for the period and potentially dilutive common stock equivalents outstanding for the period.

 

A reconciliation of the numerator and denominator of basic earnings per share and diluted earnings per share is as follows (all amounts in thousands except per share amounts):

 

     Three Months Ended

     April 30,
2005


   May 1, 2004
(As Restated)


Basic EPS Computation:

             

Numerator

   $ 4,999    $ 5,277

Denominator:

             

Weighted average common shares outstanding

     44,748      48,019
    

  

Total shares

     44,748      48,019
    

  

Basic EPS

   $ 0.11    $ 0.11
    

  

Diluted EPS Computation:

             

Numerator

   $ 4,999    $ 5,277

Denominator:

             

Weighted average common shares outstanding

     44,748      48,019

Incremental shares from assumed conversion of options

     1,427      2,112
    

  

Total shares

     46,175      50,131
    

  

Diluted EPS

   $ 0.11    $ 0.11
    

  

 

EXCERPTS ON THIS PAGE:

10-K
Mar 22, 2006
10-Q
May 27, 2005
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