Earnings per share

9 Months Ended

Sep. 30, 2015

5. Earnings per share

The Company computes earnings per share by applying the guidance stated in ASC 260, Earnings per Share. The treasury stock method has been used to compute earnings per share. The Company has issued warrants (“Private Placement Warrants”) that represent the right to purchase shares of the Company’s common stock, a stock appreciation right (“SAR”) and restricted stock, all of which have been evaluated for their potentially dilutive effect under the treasury stock method. Refer to Note 11, “Stockholders’ equity” for a further description of the Private Placement Warrants and Note 10, “2012 Incentive compensation plan” for a further description of the SAR and restricted stock.

Computation of dilutive common shares

The Company utilizes the treasury stock method described in ASC 260-10-55 to determine the number of treasury shares assumed to be purchased from the hypothetical proceeds of exercise, with any residual shares representing the incremental common shares to be issued and included in diluted earnings per share. As of September 30, 2015 and 2014, the Company’s Private Placement Warrants, SAR and restricted stock were evaluated for their potentially dilutive effect under the treasury stock method. See the table below for detail as to the dilutive effect of using the treasury stock method.

The computations of basic and diluted earnings per share for the three and nine months ended September 30, 2015 and 2014, were as follows:


	Three months ended September 30,						Nine months ended September 30,
	2015			2014			2015			2014
Numerator:
Net income	$	9,109		$	7,148		$	12,574		$	13,405
Change in the value of Private Placement Warrants		(8,750	)		(858	)		(8,040	)		(1,190	)


	$	359		$	6,290		$	4,534		$	12,215


Denominator:
Weighted average common shares outstanding-basic		10,814,765			10,794,229			10,804,720			10,676,792
Incremental shares from assumed exercise of Private Placement Warrants, SAR and restricted stock, if applicable		254,160			373,369			316,001			448,324


Weighted average common shares outstanding-diluted		11,068,925			11,167,598			11,120,721			11,125,116


Earnings per share of common stock – basic and diluted
Earnings per share of common stock – basic	$	0.84		$	0.66		$	1.16		$	1.26


Earnings per share of common stock – diluted	$	0.03		$	0.56		$	0.41		$	1.10