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4 - NET (LOSS) INCOME PER COMMON AND CLASS B SHARES
The computation of net (loss) income per share of common stock and Class B shares is in accordance with the Accounting Standards Codification (“ASC”) 260 — “Earnings Per Share” (“ASC 260”), using the two-class method. Under these provisions, basic net (loss) income per share is computed using the weighted-average number of common shares and Class B shares outstanding during the year, except that it does not include nonvested stock awards subject to repurchase or cancellation. Diluted net (loss) income per share is computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of nonvested stock awards (see Note 11 — Nonvested Stock Awards) for the common shares, for which the assumed proceeds upon vesting are deemed to be the amount of compensation cost attributable to future services and not yet recognized using the treasury stock method, to the extent dilutive. Of the 467,000 nonvested shares outstanding at September 30, 2011 (see Note 11 — Nonvested Stock Awards), all are anti-dilutive. The computation of the diluted net (loss) income per share of common stock assumes the conversion of Class B shares, while the diluted net (loss) income per share of Class B stock does not assume the conversion of those shares.
The Company was formed with 100 shares of capital stock during October of 2009, and on March 3, 2010, Genco made an additional capital contribution of $75,000,000 and surrendered the 100 shares of capital stock for 5,699,088 shares of Class B stock. The net loss attributable to the period from January 1, 2010 to March 2, 2010 was insignificant and therefore the Company has not allocated any of the net loss during that period to the capital stock. The following table sets forth the computation of basic and diluted net (loss) income per share of capital stock, common stock and Class B stock:
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Three Months Ended September 30,
2011 |
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Common |
|
Class B |
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Basic net loss per share: |
|
|
|
|
|
|
Numerator: |
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|
|
|
|
|
Allocation of loss |
|
$ |
(144,956 |
) |
$ |
(50,284 |
) |
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
Weighted-average shares outstanding, basic |
|
16,429,000 |
|
5,699,088 |
|
|
|
|
|
|
|
|
|
Basic net loss per share |
|
$ |
(0.01 |
) |
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
Diluted net loss per share: |
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
Allocation of loss |
|
$ |
(144,956 |
) |
$ |
(50,284 |
) |
|
Reallocation of undistributed loss as a result of conversion of Class B to common shares |
|
(620,193 |
) |
— |
|
|
Reallocation of dividends paid as a result of conversion of Class B to common shares |
|
569,909 |
|
— |
|
|
Allocation of loss |
|
$ |
(195,240 |
) |
$ |
(50,284 |
) |
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
Weighted-average shares outstanding used in basic computation |
|
16,429,000 |
|
5,699,088 |
|
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Add: |
|
|
|
|
|
|
Conversion of Class B to common shares |
|
5,699,088 |
|
— |
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding, diluted |
|
22,128,088 |
|
5,699,088 |
|
|
|
|
|
|
|
|
|
Diluted net loss per share |
|
$ |
(0.01 |
) |
$ |
(0.01 |
) |
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Three Months Ended September 30, 2010 |
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|
Common |
|
Class B |
|
|
Basic net income per share: |
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|
|
|
|
|
Numerator: |
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|
|
|
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|
Allocation of undistributed earnings |
|
$ |
1,878,300 |
|
$ |
656,723 |
|
|
|
|
|
|
|
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Denominator: |
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|
|
|
|
|
Weighted-average shares outstanding, basic |
|
16,300,000 |
|
5,699,088 |
|
|
|
|
|
|
|
|
|
Basic net income per share |
|
$ |
0.12 |
|
$ |
0.12 |
|
|
|
|
|
|
|
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Diluted net income per share: |
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
Allocation of undistributed earnings |
|
$ |
1,878,300 |
|
$ |
656,723 |
|
|
Reallocation of undistributed earnings as a result of conversion of Class B to common shares |
|
(255,131 |
) |
— |
|
|
Reallocation of dividends paid as a result of conversion of Class B to common shares |
|
911,854 |
|
— |
|
|
Reallocation of undistributed earnings to Class B shares |
|
— |
|
(354 |
) |
|
Allocation of earnings |
|
$ |
2,535,023 |
|
$ |
656,369 |
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
Weighted-average shares outstanding used in basic computation |
|
16,300,000 |
|
5,699,088 |
|
|
Add: |
|
|
|
|
|
|
Conversion of Class B to common shares |
|
5,699,088 |
|
— |
|
|
Dilutive effect of nonvested stock awards |
|
11,875 |
|
— |
|
|
|
|
|
|
|
|
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Weighted-average shares outstanding, diluted |
|
22,010,963 |
|
5,699,088 |
|
|
|
|
|
|
|
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|
Diluted net income per share |
|
$ |
0.12 |
|
$ |
0.12 |
|
|
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|
Nine Months Ended September 30,
2011 |
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|
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|
Common |
|
Class B |
|
|
Basic net loss per share: |
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
Allocation of loss |
|
$ |
(1,663,074 |
) |
$ |
(578,121 |
) |
|
|
|
|
|
|
|
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Denominator: |
|
|
|
|
|
|
Weighted-average shares outstanding, basic |
|
16,394,505 |
|
5,699,088 |
|
|
|
|
|
|
|
|
|
Basic net loss per share |
|
$ |
(0.10 |
) |
$ |
(0.10 |
) |
|
|
|
|
|
|
|
|
Diluted net loss per share: |
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
Allocation of loss |
|
$ |
(1,663,074 |
) |
$ |
(578,121 |
) |
|
Reallocation of undistributed loss as a result of conversion of Class B to common shares |
|
(2,458,820 |
) |
— |
|
|
Reallocation of dividends paid as a result of conversion of Class B to common shares |
|
1,880,699 |
|
— |
|
|
Allocation of loss |
|
$ |
(2,241,195 |
) |
$ |
(578,121 |
) |
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
Weighted-average shares outstanding used in basic computation |
|
16,394,505 |
|
5,699,088 |
|
|
Add: |
|
|
|
|
|
|
Conversion of Class B to common shares |
|
5,699,088 |
|
— |
|
|
|
|
|
|
|
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|
Weighted-average shares outstanding, diluted |
|
22,093,593 |
|
5,699,088 |
|
|
|
|
|
|
|
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|
Diluted net loss per share |
|
$ |
(0.10 |
) |
$ |
(0.10 |
) |
|
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|
Nine Months Ended September 30, 2010 |
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|
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|
Capital Stock |
|
Common |
|
Class B |
|
|
Basic net income per share: |
|
|
|
|
|
|
|
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Numerator: |
|
|
|
|
|
|
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Allocation of undistributed earnings |
|
$ |
— |
|
$ |
3,398,044 |
|
$ |
1,228,651 |
|
|
|
|
|
|
|
|
|
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Denominator: |
|
|
|
|
|
|
|
|
Weighted-average shares outstanding, basic |
|
22 |
|
12,239,927 |
|
4,425,665 |
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share |
|
$ |
— |
|
$ |
0.28 |
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
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|
Diluted net income per share: |
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
Allocation of undistributed earnings |
|
$ |
— |
|
$ |
3,398,044 |
|
$ |
1,228,651 |
|
|
Reallocation of undistributed earnings as a result of conversion of Class B to common shares |
|
— |
|
316,797 |
|
— |
|
|
Reallocation of dividends paid as a result of conversion of Class B to common shares |
|
|
|
911,854 |
|
— |
|
|
Reallocation of undistributed earnings to Class B shares |
|
— |
|
— |
|
(473 |
) |
|
Allocation of earnings |
|
$ |
— |
|
$ |
4,626,695 |
|
$ |
1,228,178 |
|
|
|
|
|
|
|
|
|
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|
Denominator: |
|
|
|
|
|
|
|
|
Weighted-average shares outstanding used in basic computation |
|
22 |
|
12,239,927 |
|
4,425,665 |
|
|
Add: |
|
|
|
|
|
|
|
|
Conversion of Class B to common shares |
|
— |
|
4,425,665 |
|
— |
|
|
Dilutive effect of nonvested stock awards |
|
— |
|
6,416 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding, diluted |
|
22 |
|
16,672,008 |
|
4,425,665 |
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share |
|
$ |
— |
|
$ |
0.28 |
|
$ |
0.28 |
|
|