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Earnings Per Share
 12 Months Ended
Dec. 31, 2011
Earnings Per Share  
Earnings Per Share

Note 22—Earnings Per Share

 

The table below presents the computation of basic and diluted earnings per share for the years ended December 31, 2011, 2010 and 2009:

 

 

 

2011

 

2010

 

2009

 

Numerator:

 

 

 

 

 

 

 

Income from continuing operations

 

$

58,559

 

$

33,616

 

$

29,761

 

Net income

 

$

58,559

 

$

33,616

 

$

25,912

 

 

 

 

 

 

 

 

 

Denominator (shares in thousands):

 

 

 

 

 

 

 

Weighted average shares for computation of basic earnings per share

 

50,707

 

42,694

 

31,937

 

Dilutive effect of warrants and units (1)

 

51

 

908

 

961

 

Dilutive effect of contingently issuable shares (2)

 

386

 

989

 

1,225

 

Dilutive effect of shares issued to independent directors

 

9

 

—

 

—

 

Dilutive effect of JCG convertible preferred shares (3)

 

—

 

2,287

 

295

 

Weighted average shares for computation of diluted earnings per share

 

51,153

 

46,878

 

34,418

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

Income from continuing operations per share

 

$

1.15

 

$

0.79

 

$

0.93

 

Earnings per share

 

$

1.15

 

$

0.79

 

$

0.81

 

Diluted:

 

 

 

 

 

 

 

Income from continuing operations per share

 

$

1.14

 

$

0.72

 

$

0.86

 

Earnings per share

 

$

1.14

 

$

0.72

 

$

0.75

 

 

 

(1)          Represents the dilutive effect of common stock warrants available under the Unit Purchase Option (“UPO”).  See Note 23 — “Stockholders’ Equity”.

 

(2)          Represents the dilutive effect of the following contingency arrangements which were met at the end of each year, but for which shares of common stock were not issued until the following year:

 

a)              A total of 5,000,000 shares of the Company’s common stock issued when certain financial targets were met in 2008 and 2009 under the merger agreement between Rhapsody and Former Primoris.  On March 27, 2009, a total of 2,500,025 shares were issued and an additional 2,499,975 shares were issued on March 25, 2010.

 

b)             The effect of 74,906 shares of common stock that were issued in March 2010 for attainment of certain financial targets per the merger agreement between Cravens and the Company.  The seller and the Company entered into an agreement during 2010 terminating all future earnout contingencies.

 

c)              A total of 1,095,646 shares were issued to JCG’s sellers in March 2011 as a result of JCG meeting its defined performance target per the merger agreement between JCG and the Company.

 

d)             A total of 494,095 shares were issued to Rockford’s former stockholders in March 2011 as a result of Rockford meeting a defined performance target in 2010.

 

e)              The Rockford purchase agreement provided for additional performance targets for 2011 and 2012.  The Company determined that the 2011 target was met as of September 30, 2011, which provided for a cash payment and a stock payout.  The stock component of the earnout was based on the Company’s average closing stock price (as defined in the purchase agreement) during December 31, 2011 of $14.83 per share and is anticipated to result in 232,637 shares issued in March 2012.  The 2012 contingent earnout will be paid in cash if the target is met.

 

(3)          Represents the dilutive effect of the conversion of preferred stock into 8,185,278 shares of common stock.  The conversion was approved at a special meeting of the stockholders held on April 12, 2010.