Loss Per Share ("EPS")

12 Months Ended

Jun. 30, 2013

Text Block [Abstract]

LOSS PER SHARE ("EPS")

22.LOSS PER SHARE (“EPS”)

The following reconciles the weighted average shares outstanding used in the basic and diluted EPS computations for fiscal years 2013, 2012 and 2011 (in thousands, except share and per share amounts):

	2013	2012	2011
Net loss	$         (33,445)	$           (4,729)	$         (23,203)
Dividends on estimated forfeitures-restricted stock	-	-	2
Adjusted net loss	$         (33,445)	$           (4,729)	$         (23,201)
Weighted average shares outstanding – basic	32,870,003	32,649,544	32,514,945
Effect of dilutive securities	-	-	-
Weighted average shares outstanding – diluted	32,870,003	32,649,544	32,514,945
Loss per share – basic
Net loss	$             (1.02)	$             (0.14)	$             (0.71)
Loss per share – diluted
Net loss	$             (1.02)	$             (0.14)	$             (0.71)

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (paid or unpaid) are treated as participating securities and are factored into the calculation of EPS, except in periods with a net loss, when they are excluded.

As a result of the net loss for fiscal years 2013 and 2012, warrants to acquire 17,391,304 shares of common stock were excluded from the calculation of diluted weighted average shares outstanding and diluted EPS.

At June 29, 2012 and June 24, 2011, options to acquire approximately 98,000 and 198,000 shares of common stock were outstanding under SWS’s stock option plans, respectively, see Note 19, Employee Benefits.  As a result of the net loss in fiscal years 2012 and 2011, all options were anti-dilutive and were excluded from the calculation of diluted weighted average shares outstanding and diluted EPS.  As a result of the expiration of all options to acquire shares of common stock on August 22, 2012, there was no effect on the calculation of diluted weighted average shares outstanding or diluted EPS in fiscal year 2013.

The Company did not declare a dividend in fiscal years 2013 and 2012.  The Company declared dividends of $0.01 per share for the three-months ended June 24, 2011, March 25, 2011, and December 31, 2011 and $0.09 per share for the three-months ended September 24, 2010. 

The Board of Directors determines whether the Company will pay a cash dividend on a quarterly basis.   The payment and rate of dividends on the Company’s common stock is subject to several factors including limitations imposed by the terms of the Credit Agreement with Hilltop and Oak Hill, regulatory approval, operating results, the Company’s financial requirements, and the availability of funds from the Company’s subsidiaries, including the broker/dealer subsidiaries, which may be subject to restrictions under the net capital rules of the SEC and FINRA, and the Bank, which may be subject to restrictions by federal banking agencies. Specifically, the Credit Agreement with Hilltop and Oak Hill only allows the Company to pay a quarterly cash dividend of $0.01 per share and for as long as the Company is not in default of any terms of the Credit Agreement.  The Company currently intends to retain earnings to fund growth and does not plan to pay dividends on its common stock in the near future.