| Earnings Per Share |
Effective January 1, 2009, the Company adopted ASC subtopic
260-10, Determining Whether Instruments Granted in Share-Based
Payments Transactions Are Participating Securities. ASC 260-10
provides that unvested share-based payment awards that contain
nonforfeitable rights to dividends or dividend equivalents, whether
paid or unpaid, are participating securities and are to be included
in the computation of earnings per share under the two-class
method. The Company’s unvested restricted shares contain
rights to receive nonforfeitable dividends and are participating
securities, requiring the two-class method of computing earnings
per share.
The following table is a summary of the elements used in
calculating basic and diluted earnings per share for the three
months ended March 31, 2012 and 2011:
| (Amounts in Thousands except per
share) |
|
2012 |
|
|
2011 |
|
| Basic earnings per share: |
|
|
|
|
|
|
|
|
| Net
income attributable to AmTrust Financial Services, Inc.
shareholders |
|
$ |
39,086 |
|
|
$ |
45,183 |
|
|
Less: Net income allocated to participating securities and
redeemable non-controlling interest |
|
|
58 |
|
|
|
25 |
|
| Net
income allocated to AmTrust Financial Services, Inc. common
shareholders |
|
$ |
39,028 |
|
|
$ |
45,158 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average common shares
outstanding – basic |
|
|
60,375 |
|
|
|
59,603 |
|
| Less: Weighted
average participating shares outstanding |
|
|
89 |
|
|
|
38 |
|
| Weighted
average common shares outstanding – basic |
|
|
60,286 |
|
|
|
59,565 |
|
| Net
income per AmTrust Financial Services, Inc. common shares -
basic |
|
$ |
0.65 |
|
|
$ |
0.76 |
|
| |
|
|
|
|
|
|
|
|
| Diluted earnings per share: |
|
|
|
|
|
|
|
|
| Net income
attributable to AmTrust Financial Services, Inc. shareholders |
|
$ |
39,086 |
|
|
$ |
45,183 |
|
|
Less: Net income allocated to participating securities and
redeemable non-controlling interest |
|
|
58 |
|
|
|
25 |
|
| Net
income allocated to AmTrust Financial Services, Inc. common
shareholders |
|
$ |
39,028 |
|
|
$ |
45,158 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average common shares
outstanding – basic |
|
|
60,286 |
|
|
|
59,565 |
|
| Plus:
Dilutive effect of stock options, other |
|
|
2,033 |
|
|
|
1,167 |
|
| Weighted
average common shares outstanding – dilutive |
|
|
62,319 |
|
|
|
60,732 |
|
| Net
income per AmTrust Financial Services, Inc. common shares -
diluted |
|
$ |
0.63 |
|
|
$ |
0.74 |
|
As of March 31, 2012, there were less than 100,000 anti-dilutive
securities excluded from diluted earnings per share.
|