Note 6 - Equity

6 Months Ended

Dec. 31, 2011

Stockholders' Equity Note Disclosure [Text Block]

NOTE 6:EQUITY

Capital Stock

Common Stock shareholders are entitled to elect four of the nine members of the Board of Directors, while Preferred Stock shareholders are entitled to elect the remaining five members.  Common Stock shareholders are not entitled to vote with respect to a merger, dissolution, lease, exchange or sale of substantially all of the Company’s assets, or on an amendment to the Articles of Incorporation, unless such action would increase or decrease the authorized shares or par value of the Common or Preferred Stock, or change the powers, preferences or special rights of the Common or Preferred Stock so as to affect the Common Stock shareholders adversely.  Generally, Common Stock shareholders and Preferred Stock shareholders vote as separate classes on all other matters requiring shareholder approval.  A majority of the outstanding shares of the company’s preferred stock is held by the MGP Ingredients Voting Trust.  The beneficial interests in the voting trust are held by the Cray Family Trust.  The trustees of the MGP Ingredients Voting Trust and the Cray Family Trust are members of the Cray family and management.

On January 3, 2012, Processing reorganized into a holding company structure.  In connection with this transaction, the new holding company was similarly structured in terms of number of shares of Common Stock and Preferred Stock, the articles of incorporation and officer and directors as further described in Note 22 Subsequent Events.  This reorganization did not change the designations, rights, powers or preferences relative rights to holders of our Preferred or Common Stock as described above.

Earnings (Loss) Per Share

The computations of basic and diluted earnings (loss) per share from continuing operations are as follows:

	Six Months Ended			Year Ended June 30,
	December 31, 2011			2011			2010		2009
Net income (loss) from continuing operations attributable  to shareholders	$	10,635		$	(1,313	)	$	8,738	$	(69,123	)
Amounts allocated to participating securities (non-vested shares)		(707	)		(77	)	(i)		(i)
Net income (loss) from continuing operations attributable to common shareholders	$	9,928		$	(1,236	)	$	8,738	$	(69,123	)
Basic weighted average common shares(ii)		16,875,924			16,725,756			16,655,203		16,585,361
Additional weighted average shares attributable to:
Stock options		3,229		(iii)				8,350	(iii)
Restricted shares	(i)			(i)				418,570	(i)
Diluted weighted average common shares		16,879,153			16,725,756			17,082,123		16,585,361
Earnings (loss) per share from continuing operations attributable to common shareholders:
Basic	$	0.59		$	(0.07	)	$	0.52	$	(4.17	)
Diluted	$	0.59		$	(0.07	)	$	0.51	$	(4.17	)

(i)   The Company adopted ASC 260 10 Earnings Per Share (formerly FSP-EITF 03-6-1) – Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities effective July 1, 2009.  The impacts for the non-vested restricted shares, which constitute a separate class of stock for accounting purposes, did not have a material impact and the Company did not apply the two class method in fiscal 2010. Amounts allocated to participating securities prior to the six months ended December 31, 2011 were immaterial.           

(ii)   Shares listed reflect common stock outstanding after reducing this total for participating restricted stock.  The Company had non-vested participating securities of 1,199,661, 1,088,644 and 843,870 at December 31, 2011, June 30, 2011 and June 30, 2010, respectively.

(iii)   The stock options have not been included in the earnings (loss) per share computation due to the loss experienced this year.