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Earnings Per Share
 3 Months Ended
Mar. 31, 2014
Earnings Per Share [Abstract]  
Earnings Per Share

10. Earnings Per Share

Basic earnings per share (“EPS”) is based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from exercises of stock options, vesting of restricted stock and conversion of preferred stock.

The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings per share computations for the periods presented (in thousands, except per share data):

 

     Three Months Ended
March 31,		  
     2014     2013  

Numerator for EPS:

     

Net income

    $ 13,549      $ 11,959   

Less: Preferred stock dividends

      (5 )      (5 ) 
  

 

 

    

 

 

  

Income available to common stockholders

    $ 13,544      $ 11,954   
  

 

 

    

 

 

  

Denominator for EPS:

     

Weighted average common shares outstanding

      33,422        39,917   

Plus: Assumed conversion of stock-based compensation (1)

      2,140        793   

Assumed conversion of preferred stock

      79        489   
  

 

 

    

 

 

  

Weighted average diluted common shares outstanding

      35,641        41,199   
  

 

 

    

 

 

  

Basic earnings per common share

    $ 0.41      $ 0.30   

Diluted earnings per common share

    $ 0.38      $ 0.29   

 

(1) Represents the dilutive effect of unvested restricted stock and unexercised stock options.

The Company purchased 1.225 million of additional shares of UIH’s common stock during the three months ended March 31, 2014, which further decreased weighted average common shares outstanding and weighted average diluted common shares outstanding for the period. The effect of cumulative purchases since April 2013 was to increase diluted earnings per common share by $0.07 for the three month period ended March 31, 2014. There were no repurchases of UIH’s common stock during the three months ended March 31, 2013. See “—Note 7 (Stockholders’ Equity)” for details on the repurchases of UIH’s common stock.