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Earnings Per Share
 9 Months Ended
Sep. 30, 2012
Earnings Per Share [Abstract]  
Earnings Per Share
12. Earnings per Share

Prior to the conversion of all of the outstanding Series B, net income per common share reflects application of the two-class method. The Company’s Series B shareholders were entitled to participate in any dividends paid on shares of the Company’s common stock on a pro rata basis with the holders of the Company’s common stock. Under the two-class method, during periods of net income, participating securities are allocated a proportional share of net income. During periods of net loss, no effect is given to participating securities since they do not share in the losses of the Company. Participating securities have the effect of diluting both basic and diluted earnings per share (“EPS”) during periods of net income. The application of the two-class method is no longer applicable to periods subsequent to the conversion of all of the outstanding Series B. See Note 6 for additional information.

 

Basic EPS excludes dilution for potential common stock issuances and is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted EPS, the basic weighted-average number of shares is increased by the dilutive effect of RSUs and common stock options using the treasury stock method.

The computation of basic and diluted EPS is as follows:

 

                                 
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2012     2011     2012     2011  
($ in thousands, except per share amounts)                        

Net Income (Loss)

   $ 11,642     ($ 2,778 )    $ 25,459     $ 4,755  

Preferred stockholder dividends

     0       (705 )      0       (2,113 ) 

Allocation of earnings to preferred stockholders

     0       0       (64 )      (476 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Net Income (Loss) Attributable to Common Stockholders

   $ 11,642     ($ 3,483 )    $ 25,395     $ 2,166  
   

 

 

    

 

 

    

 

 

    

 

 

  
         

Shares:

                                

Basic: Weighted-average number of shares outstanding

     7,843       6,219       7,692       6,222  

Plus: Incremental shares from assumed conversion of dilutive instruments

     274       0       363       673  
   

 

 

    

 

 

    

 

 

    

 

 

  

Diluted: Weighted-average number of shares outstanding

     8,117       6,219       8,055       6,895  
   

 

 

    

 

 

    

 

 

    

 

 

  
         

Earnings (Loss) per share - basic

   $ 1.48     ($ 0.56 )    $ 3.30     $ 0.35  

Earnings (Loss) per share - diluted

   $ 1.43     ($ 0.56 )    $ 3.15     $ 0.31  

For the three and nine months ended September 30, 2012, there were no non-participating securities excluded from the above computation of weighted-average shares for diluted EPS. For the three months ended September 30, 2011 non-participating securities (stock options) representing 248,909 shares of common stock were excluded from the above computations of weighted-average shares for diluted EPS because the effect would be antidilutive due to the net loss attributable to common stockholders for the period. For the nine months ended September 30, 2011, there were no non-participating securities (stock options) excluded from the above computations of weighted-average shares for diluted EPS.