Earnings Per Share

9 Months Ended

Jun. 30, 2011

5. EARNINGS PER SHARE

Our restricted shares granted under the 2006 Equity Incentive Plan participate in any dividends declared on our common stock. Accordingly, the restricted shares are considered participating securities under the two-class method, which is an earnings allocation formula that determines earnings for each class of common stock and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. Under the two-class method, net income is reduced by the amount of dividends declared in the current period for each class of stock and by the contractual amounts of dividends that must be paid for the current period. The remaining earnings are then allocated to common stock and participating securities to the extent that each security may share in earnings as if all of the earnings for the period had been distributed. Diluted earnings per share is calculated using the treasury stock and "if converted" methods for potential common stock. Basic earnings per share is calculated as income (loss) available to common stockholders, divided by the weighted average number of common shares outstanding during the period. If the effect is dilutive, participating securities are included in the computation of basic earnings per share. Our participating securities do not have a contractual obligation to share in the losses in any given period. As a result, these participating securities will not be allocated any losses in the periods of net losses, but will be allocated income in the periods of net income using the two-class method.

The tables that follow reconcile the components of the basic and diluted earnings per share for the three and nine months ended June 30, 2011 and 2010:


	Three Months Ended
	June 30,
	2011			2010
Numerator:

Net loss attributable to common shareholders	$	(10,165	)	$	(6,557	)
Net income attributable to restricted shareholders		—			—


Net loss	$	(10,165	)	$	(6,557	)


Denominator:
Weighted average common shares outstanding — basic		14,491,966			14,425,119
Effect of dilutive stock options and non-vested restricted stock		—			—


Weighted average common and common equivalent shares outstanding — diluted		14,491,966			14,425,119


Loss per share
Basic	$	(0.70	)	$	(0.45	)
Diluted	$	(0.70	)	$	(0.45	)


	Nine Months Ended
	June 30,
	2011			2010
Numerator:

Net loss attributable to common shareholders	$	(23,055	)	$	(20,593	)
Net income attributable to restricted shareholders		—			—


Net loss	$	(23,055	)	$	(20,593	)


Denominator:
Weighted average common shares outstanding — basic		14,472,441			14,403,925
Effect of dilutive stock options and non-vested restricted stock		—			—


Weighted average common and common equivalent shares outstanding — diluted		14,472,441			14,403,925


Loss per share
Basic	$	(1.59	)	$	(1.43	)
Diluted	$	(1.59	)	$	(1.43	)

- Definition

The entire disclosure for earnings per share.

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