|
9. EARNINGS PER SHARE
In calculating earnings per common share, we allocate our earnings between common shareholders and holders of unvested share-based payment awards (i.e. restricted stock) that contain rights to nonforfeitable dividends. This earnings allocation is referred to as the two-class method.
Under the two-class method undistributed earnings are allocated between common stock and participating securities (restricted stock) as if all of the net earnings for the period had been distributed. Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net earnings allocable to common shares by the weighted average number of common shares outstanding during the period, as adjusted for the potential dilutive effect of non-participating share-based awards such as stock options and RSUs. The following table reconciles earnings (loss) per common share for the three and nine months ended September 30, 2011 and 2010 (in thousands, except per share data):
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
Income (loss) from continuing operations |
|
$ |
(3,925 |
) |
$ |
10,040 |
|
$ |
19,461 |
|
$ |
26,748 |
|
|
Less income allocated to unvested share awards |
|
— |
|
(62 |
) |
(75 |
) |
(224 |
) |
|
Income (loss) from continuing operations attributable to common shares |
|
$ |
(3,925 |
) |
$ |
9,978 |
|
$ |
19,386 |
|
$ |
26,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic |
|
27,491 |
|
28,400 |
|
27,568 |
|
26,896 |
|
|
Dilutive securities |
|
— |
|
266 |
|
293 |
|
378 |
|
|
Weighted average common shares outstanding - diluted |
|
27,491 |
|
28,666 |
|
27,861 |
|
27,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
Continuing |
|
$ |
(0.14 |
) |
$ |
0.35 |
|
$ |
0.70 |
|
$ |
0.99 |
|
|
Discontinued |
|
(0.01 |
) |
— |
|
(0.02 |
) |
— |
|
|
Total |
|
$ |
(0.15 |
) |
$ |
0.35 |
|
$ |
0.68 |
|
$ |
0.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
Continuing |
|
$ |
(0.14 |
) |
$ |
0.35 |
|
$ |
0.70 |
|
$ |
0.97 |
|
|
Discontinued |
|
(0.01 |
) |
(0.01 |
) |
(0.03 |
) |
0.01 |
|
|
Total |
|
$ |
(0.15 |
) |
$ |
0.34 |
|
$ |
0.67 |
|
$ |
0.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Antidilutive securities not included: |
|
|
|
|
|
|
|
|
|
|
Options, warrants and RSUs |
|
1,992 |
|
208 |
|
1,977 |
|
152 |
| |