Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

 v2.3.0.11
Earnings Per Share
 6 Months Ended
Jun. 30, 2011
Earnings Per Share  
Earnings Per Share
12. Earnings Per Share

Net income per common share reflects the application of the two class method for 2010. Under the two class method, net income is allocated between common stock and other participating securities based on their respective participating rights. All classes of convertible preferred stock would participate pro rata in dividends and therefore are considered participating securities. Therefore, the two class method of calculating net income per common share has been applied. Basic net income per common share excludes dilution for potential common stock issuances and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, unless they are anti-dilutive. For the calculation of diluted net income per common share, the basic weighted average number of shares is increased by the dilutive effective of stock options and warrants using the treasury stock method. For the six months ended June 30, 2010, the convertible preferred securities are considered anti-dilutive as a result of such securities not having the contractual obligation to participate in losses of the Company.

 

The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income attributable to common stockholders per common share:

 

     Three Months Ended
June 30, 		     Six Months Ended
June 30, 		 
     2011      2010      2011      2010  

Basic income (loss) per share calculation:

            

Net income (loss)

    $ 2,447       $ 393       $ 3,851       $ (2,118 ) 

Less: Preferred stock dividends

      —           (179 )       —           (357 ) 

Less: Net income allocated to participating preferred stock

      —           (107 )       —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Net income (loss) attributable to common stockholders

    $ 2,447       $ 107       $ 3,851       $ (2,475 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Basic number of weighted-average shares outstanding

      31,591,412         13,068,492         31,502,139         13,017,943   
  

 

 

     

 

 

     

 

 

     

 

 

  

Basic net income (loss) per share attributable to common stockholders

    $ 0.08       $ 0.01       $ 0.12       $ (0.19 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted income (loss) per share calculation:

            

Net income (loss) attributable to common stockholders

    $ 2,447       $ 107       $ 3,851       $ (2,475 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Basic number of weighted-average shares outstanding

      31,591,412         13,068,492         31,502,139         13,017,943   

Effect of dilutive shares:

            

Options to purchase common stock

      1,082,818         1,013,086         1,112,797         —     

Common warrants

      295,594         —           297,980         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted number of weighted-average shares outstanding

      32,969,824         14,081,578         32,912,916         13,017,943   
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted net income (loss) per share attributable to common stockholders

    $ 0.07       $ 0.01       $ 0.12       $ (0.19 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share was as follows:

 

     Three Months Ended
June 30,		      Six Months Ended
June 30,		  
     2011      2010      2011      2010  

Options to purchase common stock

      —           —           —           3,149,746   

Convertible preferred securities

      —           12,977,566         —           12,977,566