Pallet-Management-Services - AFM

7. Earnings per share
The following reflects the income and share data used in the
basic and diluted earnings per share computations:
US $ in thousands As of December 31,
2006 2005
Net profit attributable to ordinary equity holders of the parent from continuing operations 37,952 44,556
Loss attributable to ordinary equity holders of the parent from discontinued operations (665) (3,651)
Net profit attributable to ordinary equity holders of the parent 37,287 40,905
As of December 31,
2006 2005
Weighted average number of ordinary shares for basic earnings per share 53,198,989 45,508,810
Effect of dilution:
Stock options 949,911 1,230,623
Warrant shares – 8,121,517
Weighted average number of ordinary shares adjusted for the effect of dilution 54,148,900 54,860,950
The potential issuance of new shares resulting from the exercise
of stock options and in prior year the exchange of warrants are
considered in the above calculation of dilutive shares.
There have been no other transactions involving ordinary shares
or potential ordinary shares between the reporting date and
the authorization date of the Company’s consolidated financial
statements.
8. Debt
Senior Secured Notes
On October 10, 2003, the Company issued 10 3/8%
Guaranteed Senior Secured Notes in the principal amount of
€110.0 million in a private placement. The Senior Secured Notes
mature on October 15, 2010, and are senior secured obligations
of IFCO SYSTEMS ranking equally with other existing or future
senior secured indebtedness in right of payment. Interest at the
rate of 10 3/8% per year from the date of issuance is payable
semi annually in arrears on each June 30 and December 31.
No principal payments are due under the Senior Secured Notes
until maturity on October 15, 2010. The Senior Secured Notes
are secured by a first priority lien on substantially all of the
Company’s assets, except the assets of IFCO SYSTEMS GmbH
and its subsidiaries. The Senior Secured Notes are guaranteed
by most of the Company’s subsidiaries. All of the subsidiary
guarantees of the Senior Secured Notes (other than that of
| FINANCIAL REPORTING | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
IFCO SYSTEMS GmbH, the guarantee of which is unsecured)
are secured by substantially all of the assets of such subsidiary
guarantors, including pledges of the stock of most of the
Company’s subsidiaries. The carrying amount of assets pledged
is US $167.1 million.
The Senior Secured Notes became redeemable on October 15,
2006 with a redemption price equal to the principal amount
thereof plus accrued and unpaid interest and a redemption
premium (initially 110.4%) and certain additional amounts. The
redemption price will decline to 105.2% on October 15, 2007,
102.6% on October 15, 2008 and will decline to 100.0% on
October 15, 2009 and thereafter until maturity.
The indenture governing the Senior Secured Notes allows the
Company to issue additional notes in an aggregate principal
amount of up to €50.0 million under the same security package
as the Senior Secured Notes, but only to the extent that the
Company meets certain interest coverage ratios on a pro
forma basis considering the issuance of the additional notes
and that no default or event of default will have occurred as a
consequence of the additional indebtedness being incurred.
If a change of control of greater than 50.0% of the Company’s
voting stock occurs, each holder of the Senior Secured Notes
may individually require the Company to purchase their notes
at a purchase price in cash equal to 101.0% of the principal
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