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Earnings per share
 3 Months Ended
Mar. 31, 2013
Earnings Per Share [Abstract]  
Earnings per share
Earnings per share
Basic earnings per share (“EPS”) amounts are calculated by dividing earnings available to common shareholders by the weighted average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive common shares outstanding. The following table shows the basic and diluted earnings per share for the three months ended March 31, 2013 and March 31, 2012:
 
For the three months ended March 31,
 
2013
 
2012
 
Income
Shares (000)
Per-Share
 
Loss
Shares (000)
Per-Share
Net Income (loss)
$
8,253

 
 
 
$
(4,401
)
 
 
Amount allocated to common shareholders (1)
91.69
%
 
 
 
100
%
 
 
Basic EPS:
 
 
 
 
 
 
 
Income (loss) allocable to common shareholders
7,567

88,555

$
0.09

 
(4,401
)
88,727

$
(0.05
)
Effect of Dilutive Securities:
 
 
 
 
 
 
 
Stock compensation plans
—

465

 
 
—

—

 
Diluted EPS:
 
 
 
 
 
 
 
Income (loss) applicable to common shareholders with assumed conversion
$
7,567

89,020

$
0.09

 
$
(4,401
)
88,727

$
(0.05
)

(1)
We have not allocated net losses between common and preferred shareholders, as the holders of our preferred shares do not have a contractual obligation to share in the loss.
Impact of our outstanding Series A Convertible Preferred Stock on EPS
Our Series A Convertible preferred stock has similar characteristics of a “participating security” as described by the Accounting Standards Codification Manual ("ASC") 260-10-45.  In accordance with the guidance in the ASC 260-10-45, we calculated basic EPS using the Two-Class Method, allocating undistributed income to our preferred shareholder consistent with their participation rights, and diluted EPS using the If-Converted Method when applicable.
ASC 260-10-50 does not require the presentation of basic and diluted EPS for securities other than common stock and the EPS amounts, as presented, only pertain to our common stock.
The Two-Class Method is an earnings allocation formula that determines earnings per share for common shares and participating securities according to dividends declared (or accumulated) and the participation rights in undistributed earnings.
The holders of our convertible preferred stock do not have a contractual obligation to share in the losses of Century. Thus, in periods where we report net losses, we will not allocate the net losses to the convertible preferred stock for the computation of basic or diluted EPS.
Calculation of EPS:
Three months ended March 31,
 
2013
2012
Options to purchase common stock
626,334

632,334

Weighted average service-based share awards outstanding
415,958

345,524

Excluded from the calculation of diluted EPS:
 
 
Stock options (1)
347,934

632,334

Service-based share award
—

345,524

(1)
These stock option awards were excluded from the calculation of diluted EPS because the exercise price of these options was greater than the average market price of the underlying common stock, except in periods when we had a net loss where all options were excluded because of their antidilutive effect on earnings per share.
During the three months ended March 31, 2012, we repurchased 400,000 shares of our common stock under a stock repurchase program. See Note 6 Shareholders’ equity for additional information about this program. Shares repurchased under the program are excluded from the calculation of weighted average shares of common stock outstanding.
Service-based share awards for which vesting is based upon continued service are not considered issued and outstanding shares of common stock until vested and issued. However, the service-based share awards are considered common stock equivalents and, therefore, the weighted average service-based share awards are included, using the treasury stock method, in common shares outstanding for diluted earnings per share computations if they have a dilutive effect on earnings per share.