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

9 Months Ended

Sep. 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 and restricted stock 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 September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Numerator:
Net income (loss) attributable to Sterling common stockholders	$	(189	)	$	990		$	(21,792	)	$	(3,223	)
Revaluation of the of noncontrolling interest obligations reflected in retained earnings or additional paid in capital, net of tax		(766	)		(762	)		(1,100	)		(1,239	)
	$	(955	)	$	228		$	(22,892	)	$	(4,462	)
Denominator:
Weighted average common shares outstanding — basic		16,652			16,405			16,626			16,362
Shares for dilutive stock options and warrants		-			99			-			-
Weighted average common shares outstanding and assumed conversions— diluted		16,652			16,504			16,626			16,362
Basic net income (loss) per share attributable to Sterling common stockholders	$	(0.06	)	$	0.01		$	(1.38	)	$	(0.27	)
Diluted net income (loss) per share attributable to Sterling common stockholders	$	(0.06	)	$	0.01		$	(1.38	)	$	(0.27	)

There were no weighted average options outstanding during the three and nine months ended September 30, 2013, and 2,800 in the three and nine months ended September 30, 2012, 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, 63,457 and 113,913 shares of stock options and restricted stock were excluded from the diluted weighted average common shares outstanding for the three and nine months ended September 30, 2013, respectively, and 119,673 for the nine months ended September 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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