In the opinion of management, all adjustments consisting of normal recurring adjustments, considered necessary for a fair presentation of the Company's financial position, results of operations and cash flows have been included. Operating results for the interim period presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the full fiscal year ending April 30, 2010.
2. Adoption of New Accounting Standards
Effective May 1, 2009 the Company adopted the following new accounting standard issued by the Canadian Institute of Chartered Accountants.
Goodwill and intangible assets
In February 2008, the CICA issued Section 3064, Goodwill and Intangible Assets, replacing Section 3062, Goodwill and Other Intangible Assets and Section 3450, Research and Development Costs. Various changes have been made to other sections of the CICA Handbook for consistency purposes. The new Section will be applicable to financial statements relating to fiscal years beginning on or after October 1, 2008. Accordingly, the Company will adopt the new standards for its fiscal year beginning May 1, 2009. It establishes standards for the recognition, measurement, presentation and disclosure of goodwill subsequent to its initial recognition and of intangible assets by profit-oriented companies. Standards concerning goodwill are unchanged from the standards included in the previous Section 3062.
As a result of adoption of the above policy, there was no material impact on the Consolidated Statement of Income.
3. Shareholders' equity and other comprehensive income
The following are the changes in shareholders' equity for the three months ended July 31, 2009 and July 31, 2008:
Accumu-
Lated
Other
compre-
Common Common Contributed Retained hensive
shares shares surplus earnings income Total
(number) ($) ($) ($) ($) ($)
--------------------------------------------------------------------------
Balance
at April
30, 2009 10,184,323 $94,741 $3,753 $11,607 $446 $110,547
--------------------------------------------------------------------------
Net income 6,454 6,454
--------------------------------------------------------------------------
Dividends (2,561) (2,561)
--------------------------------------------------------------------------
Employee
Stock
Option
Program 44,950 715 (355)
--------------------------------------------------------------------------
Employee
Share
Purchase
Program 17,964 121 15
--------------------------------------------------------------------------
Stock-based
compensation 238
--------------------------------------------------------------------------
Unrealized
derivative
gains on
cash flow
hedges - net 862 862
--------------------------------------------------------------------------
Balance
at July
31, 2009 10,247,237 $95,577 $3,651 $15,500 $1,308 $116,036
--------------------------------------------------------------------------
4. Earnings per Share
The following is a reconciliation of the numerator and denominator of the
basic and diluted per share computations:
Quarter Ended July 31,
2009 2008
--------------------------------------------------------------------------
Income before discontinued operations $6,218 $1,192
Discontinued operations (net of tax) 236 168
--------------------------------------------------------------------------
Net income $6,454 $1,360
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Weighted average number of common
shares outstanding 10,215,130 10,688,327
Net effect of stock options 34,405 36,885
--------------------------------------------------------------------------
Weighted average diluted number of
common shares outstanding 10,249,535 10,725,212
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Earnings per share
Basic - before discontinued operations $0.61 $0.11
Diluted - before discontinued operations $0.61 $0.11
Basic - net income $0.63 $0.13
Diluted - net income $0.63 $0.13
For the quarters ended July 31, 2009 and July 31, 2008, 259,606 and 266,106 options, respectively, were excluded from the calculation of diluted earnings per share, as the exercise price of these options exceeded the average market price of the Company's common stock during this period and were therefore anti-dilutive.
