Note 2 - Acquisition of M.C. Healthcare Products Inc.
 12 Months Ended
Sep. 29, 2012
Business Combination Disclosure [Text Block]
2.    ACQUISITION OF M.C. HEALTHCARE PRODUCTS INC.

On December 9, 2011, we acquired, through a new wholly-owned subsidiary, substantially all of the assets of M.C. Healthcare Products Inc. (“MCHP” or "M.C. Healthcare") for approximately $9,800,000, including cash of approximately $7,980,000 at the time of closing and approximately $354,000 for the post-closing working capital adjustment, paid in January 2012, plus 100,000 shares of Span-America common stock valued at approximately $1,441,000.  MCHP manufactures medical bed frames and related products.  We funded the acquisition through a combination of cash on hand, proceeds from the sale of securities available for sale and proceeds of approximately $6,500,000 from our revolving credit facility.  No cash was acquired.  The excess of the consideration transferred over the net tangible and intangible assets was reflected as goodwill of $2,500,000.

The allocation of the total consideration to the fair value of the assets acquired and liabilities assumed in U.S. dollars as of December 9, 2011 is as follows:

Receivables
  $ 1,800,000  
Inventories
    2,210,000  
Intangibles
    3,980,000  
Other current assets
    60,000  
Equipment
    300,000  
Goodwill
    2,530,000  
Liabilities assumed
    (1,070,000 )
Contingent consideration
    (70,000 )
Deferred tax liability
    (50,000 )
    $ 9,690,000  

For the period from December 9, 2011, the date of the acquisition, through September 29, 2012, MCHP contributed net revenues of approximately $10,284,000 and operating income of approximately $964,000.  These results are included in the Consolidated Financial Statements.

Pro-forma information for the years ended September 29, 2012 and October 1, 2011 as if the purchase had occurred on October 2, 2010 are below.  See Form 8-K/A filed on February 24, 2012 for additional information.

   
2012
   
2011
 
Pro-forma net revenues
  $  78,540,000     $  64,890,000  
Pro-forma net income
    5,350,000       4,770,000  
Pro-forma net income per diluted share
  $ 1.81
 		    $ 1.62