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NOTE 1: | ACCOUNTING PRINCIPLES AND PRACTICES |
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NOTE 2: | FAIR VALUE MEASUREMENT |
• | Level 1: Investments valued using quoted market prices in active markets for identical assets or liabilities |
• | Level 2: Investments valued using other observable market-based inputs or unobservable inputs that are corroborated by |
• | Level 3: Investments with no observable inputs and therefore, are valued using significant management judgment |
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NOTE 3: | RESTRICTED CASH AND INVESTMENTS |
April 1, 2011 | December 31, 2010 | ||||||
Cash collateral held by insurance carriers | $ | 25.6 | $ | 108.7 | |||
Cash held in trust | 86.0 | — | |||||
Investments held in trust | 3.1 | — | |||||
Cash-backed letters of credit | 4.1 | 4.1 | |||||
Cash-backed surety bonds | 3.0 | 3.0 | |||||
Other | 2.0 | 4.3 | |||||
Total Restricted cash and investments | $ | 123.8 | $ | 120.1 |
April 1, 2011 | |||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||
State government and agency securities | $ | 2.6 | — | — | $ | 2.6 | |||||||
Corporate bonds | 0.5 | — | — | 0.5 | |||||||||
$ | 3.1 | — | — | $ | 3.1 |
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NOTE 4: | PROPERTY AND EQUIPMENT, NET |
April 1, 2011 | December 31, 2010 | ||||||
Buildings and land | $ | 23.4 | $ | 23.5 | |||
Computers and software | 71.9 | 71.2 | |||||
Cash dispensing machines | 5.4 | 11.4 | |||||
Furniture and equipment | 8.5 | 8.6 | |||||
Construction in progress | 2.9 | 2.7 | |||||
112.1 | 117.4 | ||||||
Less accumulated depreciation and amortization | (59.7 | ) | (63.4 | ) | |||
$ | 52.4 | $ | 54.0 |
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NOTE 5: | INTANGIBLE ASSETS |
April 1, 2011 | December 31, 2010 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Amortizable intangible assets (1): | |||||||||||||||||||||||
Customer relationships | $ | 18.0 | $ | (6.7 | ) | $ | 11.3 | $ | 18.0 | $ | (6.2 | ) | $ | 11.8 | |||||||||
Trade name/trademarks | 3.0 | (1.0 | ) | 2.0 | 3.0 | (0.9 | ) | 2.1 | |||||||||||||||
Non-compete agreements | 2.1 | (1.4 | ) | 0.7 | 2.1 | (1.3 | ) | 0.8 | |||||||||||||||
$ | 23.1 | $ | (9.1 | ) | $ | 14.0 | $ | 23.1 | $ | (8.4 | ) | $ | 14.7 | ||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||
Trade name/trademarks | $ | 5.8 | $ -- | $ | 5.8 | $ | 5.8 | $ -- | $ | 5.8 |
Remainder of 2011 | $ | 2.0 | |
2012 | 2.7 | ||
2013 | 2.3 | ||
2014 | 2.3 | ||
2015 | 2.3 | ||
Thereafter | 2.4 | ||
$ | 14.0 |
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NOTE 6: | WORKERS’ COMPENSATION INSURANCE AND RESERVES |
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NOTE 7: | COMMITMENTS AND CONTINGENCIES |
April 1, 2011 | December 31, 2010 | ||||||
Cash collateral held by insurance carriers | $ | 25.6 | $ | 108.7 | |||
Cash held in trust (1) | 86.0 | — | |||||
Investments held in trust (1) | 3.1 | — | |||||
Letters of credit (2) | 15.0 | 15.1 | |||||
Surety bonds (3) | 16.9 | 16.8 | |||||
Total collateral commitments | $ | 146.6 | $ | 140.6 |
(1) | Effective March 11, 2011, we transferred $89.1 million from Chartis to the Trust. Of the amount transferred, we invested $2.6 million in state government and agency securities and $0.5 million in corporate bonds. |
(2) | We had $4.1 million of restricted cash collateralizing our letters of credit at both April 1, 2011 and December 31, 2010. |
(3) | We had $3.0 million of restricted cash collateralizing our surety bonds at both April 1, 2011 and December 31, 2010. |
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NOTE 8: | STOCK-BASED COMPENSATION |
Thirteen weeks ended | |||||||
April 1, 2011 | March 26, 2010 | ||||||
Restricted stock and performance share units expense | $ | 2.4 | $ | 1.9 | |||
Stock option expense | 0.1 | 0.4 | |||||
ESPP expense | 0.1 | 0.1 | |||||
Total stock-based compensation | $ | 2.6 | $ | 2.4 |
Thirteen weeks ended | ||||||
April 1, 2011 | ||||||
Shares | Price (1) | |||||
Non-vested at beginning of period | 882 | $ | 13.14 | |||
Granted | 396 | $ | 17.19 | |||
Vested | (298 | ) | $ | 13.42 | ||
Forfeited | (4 | ) | $ | 12.74 | ||
Non-vested at the end of the period | 976 | $ | 14.63 |
(1) | Weighted average market price on grant-date. |
Thirteen weeks ended | ||||||
April 1, 2011 | ||||||
Shares | Price (1) | |||||
Outstanding, December 31, 2010 | 1,119 | $ | 15.62 | |||
Granted | — | $ | — | |||
Exercised | (8 | ) | $ | 13.20 | ||
Expired/Forfeited | — | $ | — | |||
Outstanding, April 1, 2011 | 1,111 | $ | 15.64 | |||
Exercisable, April 1, 2011 | 813 | $ | 18.03 | |||
Options expected to vest, April 1, 2011 | 295 | $ | 9.14 |
(1) | Weighted average exercise price. |
Thirteen weeks ended | |||||||
April 1, 2011 | March 26, 2010 | ||||||
Expected life (in years) | — | 3.36 | |||||
Expected volatility | — | % | 59.6 | % | |||
Risk-free interest rate | — | % | 1.3 | % | |||
Expected dividend yield | — | % | — | % | |||
Weighted average fair value of options granted during the period | $ | — | $ | 6.24 |
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NOTE 9: | INCOME TAXES |
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NOTE 10: | NET INCOME (LOSS) PER SHARE |
Thirteen weeks ended | |||||||
April 1, 2011 | March 26, 2010 | ||||||
Net income (loss) | $ | 0.8 | $ | (2.3 | ) | ||
Weighted average number of common shares used in basic net income (loss) per common share | 43.5 | 43.1 | |||||
Dilutive effect of outstanding stock options and non-vested restricted stock | 0.4 | — | |||||
Weighted average number of common shares used in diluted net income (loss) per common share | 43.9 | 43.1 | |||||
Net income (loss) per common share: | |||||||
Basic | $ | 0.02 | $ | (0.05 | ) | ||
Diluted | $ | 0.02 | $ | (0.05 | ) | ||
Antidilutive stock options and other | 0.7 | 1.0 |