Supercuts 2005 Annual Report Download - page 77

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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:
Restricted stock awards of 141,650 shares were excluded from the computation of basic weighted average shares outstanding at June 30,
2005, because such shares were not yet vested at that date. Stock options covering approximately 112,500 and 330,000 were excluded from the
shares used in the computation of diluted earnings per share for fiscal year 2005 and 2003, respectively, since they were anti-dilutive.
Additionally, SARs covering 99,000 shares were excluded from the computation during fiscal year 2005 because they were anti-
dilutive. There
were no anti-dilutive shares for the year ending June 30, 2004.
The following provides supplemental disclosures of cash flow activity:
Significant non-cash investing and financing activities include the following:
In fiscal years 2005, 2004 and 2003, the Company financed capital expenditures totaling $10.7, $8.5 and $7.0 million, respectively,
through capital leases.
In fiscal years 2005, 2004 and 2003, in connection with various acquisitions, the Company entered into seller-financed payables and
non-compete agreements as well as issuing 75,177, 155,338 and 613,249 shares, respectively, of the Company’s common stock (see Note
3).
3. ACQUISITIONS:
During fiscal years 2005, 2004 and 2003, 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, with the exception of Hair Club for Men and Women. Operations of the acquired
companies have been included in the operations of the Company since the date of the respective acquisition.
76
2005
2004
2003
Weighted average shares for basic earnings per share
44,622,274
44,014,126
43,291,609
Effect of dilutive securities:
Dilutive effect of stock
-
based compensation
1,664,630
2,103,803
1,782,252
Contingent shares issuable under contingent stock
agreements
92,596
27,006
155,036
Weighted average shares for diluted earnings per share
46,379,500
46,144,935
45,228,897
2005
2004
2003
(Dollars in thousands)
Cash paid during the year for:
Interest
$
23,062
$
17,368
$
20,303
Income taxes, net of refunds
40,544
44,361
31,719