Supercuts 2004 Annual Report Download - page 75

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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
The following table sets forth a reconciliation of shares used in the computation of basic and diluted earnings per share:
Stock options covering approximately 330,000 and 55,000 shares were excluded from the shares used in the computation of diluted earnings
per share for fiscal year 2003 and 2002, respectively, since they were anti-dilutive.
The following provides supplemental disclosures of cash flow activity:
Significant non-cash investing and financing activities include the following:
In fiscal years 2004, 2003 and 2002, the Company financed capital expenditures totaling $8.5, $7.0 and $0.1 million, respectively, through
capital leases.
In fiscal years 2004, 2003 and 2002, in connection with various acquisitions, the Company entered into seller-financed payables and non-
compete agreements as well as issuing 155,338, 613,249 and 962,933 shares, respectively, of the Company’s common stock (see Note 3).
During fiscal years 2004, 2003 and 2002, the Company made numerous acquisitions and the purchase prices have been allocated to assets
acquired and liabilities assumed based on their estimated fair values at the dates of acquisition. These acquisitions individually and in the
aggregate are not material to the Company’s operations. Operations of the acquired companies have been included in the operations of the
Company since the date of the respective acquisition. The most significant fiscal year 2004 acquisitions were Holiday Hair and Blaine
Beauty Career Schools. Of the fiscal year 2003 acquisitions, the most significant were BoRics, Vidal Sassoon and salons from Opal
Concepts. The most significant of the fiscal year 2002 acquisitions were the acquisition of the European franchise companies, St. Algue,
formerly known as Groupe Gerard Glemain (GGG), and Jean Louis David (JLD).
60
2004
2003
2002
Weighted average shares for basic earnings per share
44,014,126
43,291,609
42,283,308
Effect of dilutive securities:
Dilutive effect of stock options
2,103,803
1,782,252
1,867,038
Contingent shares issuable under contingent stock agreements
27,006
155,036
21,986
Weighted average shares for diluted earnings per share
46,144,935
45,228,897
44,172,332
(Dollars in thousands)
2004
2003
2002
Cash paid during the year for:
Interest
$
17,368
$
20,303
$
17,609
Income taxes, net of refunds
$
44,361
31,719
34,117
3.
ACQUISITIONS: