Note 12 - Net Income (Loss) per Share Attributable to Sterling Common Stockholders

6 Months Ended

Jun. 30, 2013

12.	Net Income (Loss) per Share Attributable to Sterling Common Stockholders

Basic net income (loss) per share attributable to Sterling common stockholders is computed by dividing net income (loss) attributable to Sterling common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share attributable to Sterling common stockholders is the same as basic net income (loss) per share attributable to Sterling common stockholders but includes dilutive stock options using the treasury stock method. The following table reconciles the numerators and denominators of the basic and diluted per common share computations for net income (loss) attributable to Sterling common stockholders (amounts in thousands, except per share data):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Numerator:
Net income (loss) attributable to Sterling common stockholders	$	(17,025	)	$	3,287		$	(21,602	)	$	(4,215	)
Revaluation of the of noncontrolling interest obligations reflected in retained earnings, net of tax		1,501			(777	)		(353	)		(476	)
	$	(15,524	)	$	2,510		$	(21,955	)	$	(4,691	)
Denominator:
Weighted average common shares outstanding — basic		16,630			16,360			16,613			16,341
Shares for dilutive stock options and warrants		--			84			--			--
Weighted average common shares outstanding and assumed conversions— diluted		16,630			16,444			16,613			16,341
Basic net income (loss) per share attributable to Sterling common stockholders	$	(0.93	)	$	0.15		$	(1.32	)	$	(0.29	)
Diluted net income (loss) per share attributable to Sterling common stockholders	$	(0.93	)	$	0.15		$	(1.32	)	$	(0.29	)

There were 2,800 weighted average options outstanding during the three and six months ended June 30, 2012 and none in 2013 which were considered antidilutive as the option exercise price exceeded the average share market price and were therefore excluded from the denominator used for computing diluted loss per share attributable to Sterling common stockholders. In addition, and in accordance with the treasury stock method, 60,898 and 109,636 shares of stock options and restricted stock were excluded from the diluted weighted average common shares outstanding for the three and six months ended June 30, 2013, respectively, and 86,544 for the six months ended June 30, 2012, as the Company incurred a loss during these periods and the impact of such shares would have been antidilutive.

- Definition

The entire disclosure for earnings per share.

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