XML 52 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
EARNINGS PER SHARE ("EPS")
 9 Months Ended
Jun. 30, 2014
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
8.
EARNINGS PER SHARE (“EPS”)
 
The Company computes earnings per share in accordance with FASB ASC 260, Earnings Per Share. ASC 260 provides for the calculation of basic and diluted earnings per share. Basic earnings per share includes no dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company.
 
Potential common stock shares consist of shares that may arise from outstanding dilutive common stock warrants and options (the number of which is computed using the “treasury stock method”) and from outstanding convertible debentures (the number of which is computed using the “if converted method”).
 
Diluted EPS considers the potential dilution that could occur if the Company’s outstanding common stock options, warrants and convertible debentures were converted into common stock that then shared in the Company’s earnings (as adjusted for interest expense that would no longer occur if the debentures were converted).
 
 
 
FOR THE QUARTER
 
FOR THE NINE MONTHS
 
 
 
ENDED JUNE 30,
 
ENDED JUNE 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
Basic earnings per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to RCIH's shareholders
 
$
691
 
$
2,195
 
$
6,816
 
$
7,587
 
Average number of common shares outstanding
 
 
9,883
 
 
9,479
 
 
9,695
 
 
9,523
 
Basic earnings per share - net income attributable to RCIH's shareholders
 
$
0.07
 
$
0.23
 
$
0.70
 
$
0.80
 
Diluted earnings per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to RCIH's shareholders
 
$
691
 
$
2,195
 
$
6,816
 
$
7,587
 
Adustment. to net earnings from assumed conversion of debentures (1)
 
 
-
 
 
23
 
 
60
 
 
221
 
Adjusted net income attributable to RCIH's shareholders
 
$
691
 
$
2,218
 
$
6,876
 
$
7,808
 
Average number of common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares outstanding
 
 
9,883
 
 
9,479
 
 
9,695
 
 
9,523
 
Potential dilutive shares resulting from exercise of warrants and options (2)
 
 
85
 
 
22
 
 
96
 
 
22
 
Potential dilutive shares resulting from conversion of debentures (3)
 
 
-
 
 
146
 
 
131
 
 
326
 
Total average number of common shares outstanding used for dilution
 
 
9,968
 
 
9,647
 
 
9,922
 
 
9,871
 
Diluted earnings per share - net income attributable to RCIH's shareholders
 
$
0.07
 
$
0.23
 
$
0.69
 
$
0.79
 
 
(1) Represents interest expense on dilutive convertible debentures that would not occur if they were assumed converted.
(2) All outstanding warrants and options were considered for the EPS computation.
(3) Convertible debentures (principal and accrued interest) outstanding at June 30, 2014 and 2013 totaling $10.5 million and $5.3 million, respectively, were convertible into common stock at a price of $10.00 to $12.50 per share in 2014 and $10.00 to $10.25 per share in 2013. Potential dilutive shares amounting to $1.5 million and $1.4 million for the three and nine month periods ended June 30, 2014, respectively, have been excluded from earnings per share due to being anti-dilutive. Potential dilutive shares of 375,000 and zero for each of the three and nine month periods ended June 30, 2013, have been excluded from earnings per share due to being anti-dilutive.
 
* EPS may not foot due to rounding.