Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2015 |
Basis of Presentation | |
Cash and Cash Equivalents | |
Cash and Cash Equivalents |
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Cash and cash equivalents include cash and money market accounts with maturities at acquisition of three months or less. The majority of cash balances at March 31, 2015 are held in one bank in demand deposit accounts. |
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Supplemental Non-Cash Investing and Financing Activities | |
Supplemental Non-Cash Investing and Financing Activities |
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Accounts payable included $15.2 million and $13.3 million at March 31, 2015 and 2014, respectively, for additions to property, plant and equipment. |
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Taxes Collected from Customers | |
Taxes Collected from Customers |
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The Company presents taxes collected from customers and remitted to governmental authorities on a gross basis, including such amounts in the Company’s reported operating revenues. Such amounts represent primarily Hawaii state general excise taxes and Hawaii Public Utility Commission fees. Such taxes and fees amounted to $2.0 million and $1.8 million for the three months ended March 31, 2015 and 2014, respectively. |
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Earnings per Share | |
Earnings per Share |
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Basic earnings per share is based on the weighted effect of all common shares issued and outstanding, and is calculated by dividing earnings by the weighted average shares outstanding during the period. Diluted earnings per share is calculated by dividing earnings, adjusted for the effect, if any, from assumed conversion of all potentially dilutive common shares outstanding, by the weighted average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive common shares outstanding. The denominator used to compute basic and diluted earnings per share was as follows: |
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| | Three Months Ended | |
| | March 31, | |
| | 2015 | | 2014 | |
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Basic earnings per share - weighted average shares | | 10,692,198 | | 10,528,039 | |
Effect of dilutive securities: | | | | | |
Employee and director restricted stock units | | 73,457 | | 124,012 | |
Warrants | | 507,267 | | 619,776 | |
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Diluted earnings per share - weighted average shares | | 11,272,922 | | 11,271,827 | |
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The computation of weighted average dilutive shares outstanding excluded grants of restricted stock units convertible into 86,608 shares of common stock for the three month periods ended March 31, 2014. The unrecognized compensation on a per unit basis for these restricted stock units was greater than the average market price of the Company’s common stock for the period presented. Therefore, the effect would be anti-dilutive. For the three months ended March 31, 2015, there were no restricted stock units that were anti-dilutive to earnings per share. |
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Recent Accounting Pronouncement | |
Recent Accounting Pronouncements |
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In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard which provides guidance for revenue recognition. The new accounting standard will supersede the current revenue recognition requirements and most industry-specific guidance. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard will be effective for the Company in the first quarter of 2017 and either full retrospective or modified retrospective adoption is permitted. Early adoption is not permitted. The Company is currently evaluating the impact of the adoption of this accounting standard on the Company’s financial position, results of operations and cash flows. |
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In August 2014, the FASB issued an accounting standard with new guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related disclosures. Management must evaluate whether it is probable that known conditions or events, considered in the aggregate, would raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such conditions or events are identified, the standard requires management’s mitigation plans to alleviate the doubt or a statement of the substantial doubt about the entity’s ability to continue as a going concern to be disclosed in the financial statements. The standard is effective for fiscal years and interim periods beginning after December 15, 2016 with early adoption permitted. The Company is currently evaluating the impact of adoption of this accounting standard. |
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In April 2015, the FASB issued an accounting standard simplifying the presentation of debt issuance costs. The new standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability which is consistent with debt discounts. The standard requires retrospective adoption and will be effective beginning in the first quarter of 2017 for the Company. Early adoption is permitted. The Company is currently evaluating the impact and timing of adopting this new accounting standard. |
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