22.LOSS PER SHARE

The following reconciles the weighted average shares outstanding used in the basic and diluted EPS computations for fiscal years 2014, 2013 and 2012 (in thousands, except share and per share amounts):



	2014	2013	2012

Net loss	$ (7,078)	$ (33,445)	$ (4,729)

Weighted average shares outstanding – basic	32,996,779	32,870,003	32,649,544
Effect of dilutive securities	-	-	-
Weighted average shares outstanding – diluted	32,996,779	32,870,003	32,649,544

Loss per share – basic
Net loss	$ (0.21)	$ (1.02)	$ (0.14)

Loss per share – diluted
Net loss	$ (0.21)	$ (1.02)	$ (0.14)

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 the fiscal years 2014, 2013 and 2012, the warrants to acquire 17,391,304 shares of common stock were anti-dilutive and were excluded from the calculation of diluted weighted average shares outstanding and diluted EPS.

At June 29, 2012, options to acquire approximately 98,000 shares of common stock were outstanding under SWS’s stock option plans, see Note 19, Employee Benefits. As a result of the net loss in fiscal year 2012, 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 during the fiscal years 2014, 2013 and 2012.

On a quarterly basis, the Board of Directors determines whether the Company will pay a cash dividend. 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 when the Company is not in default of any terms of the Credit Agreement. The Company currently intends to retain earnings to fund operations and does not plan to pay dividends on its common stock in the near future.