| 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 and
six months ended June 30, 2012 and 2011:
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| (Amounts in Thousands except per share) |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| Basic earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to AmTrust Financial Services, Inc.
shareholders |
|
$ |
40,358 |
|
|
$ |
50,162 |
|
|
$ |
79,444 |
|
|
$ |
95,345 |
|
|
Less: Net income allocated to participating securities and
redeemable non-controlling interest |
|
|
182 |
|
|
|
39 |
|
|
|
197 |
|
|
|
64 |
|
|
Net income allocated to AmTrust Financial Services, Inc. common
shareholders |
|
$ |
40,176 |
|
|
$ |
50,123 |
|
|
$ |
79,247 |
|
|
$ |
95,281 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted
average common shares outstanding – basic |
|
|
60,649 |
|
|
|
59,880 |
|
|
|
60,345 |
|
|
|
59,766 |
|
|
Less: Weighted average participating shares outstanding |
|
|
273 |
|
|
|
36 |
|
|
|
150 |
|
|
|
42 |
|
|
Weighted average common shares outstanding - basic |
|
|
60,376 |
|
|
|
59,844 |
|
|
|
60,195 |
|
|
|
59,724 |
|
|
Net income per AmTrust Financial Services, Inc. common share -
basic |
|
$ |
0.67 |
|
|
$ |
0.84 |
|
|
$ |
1.32 |
|
|
$ |
1.60 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted
earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
income attributable to AmTrust Financial Services, Inc.
shareholders |
|
$ |
40,358 |
|
|
$ |
50,162 |
|
|
$ |
79,444 |
|
|
$ |
95,345 |
|
|
Less: Net income allocated to participating securities and
redeemable non-controlling interest |
|
|
182 |
|
|
|
39 |
|
|
|
197 |
|
|
|
64 |
|
|
Net income allocated to AmTrust Financial Services, Inc. common
shareholders |
|
$ |
40,176 |
|
|
$ |
50,123 |
|
|
$ |
79,247 |
|
|
$ |
95,281 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted
average common shares outstanding – basic |
|
|
60,376 |
|
|
|
59,844 |
|
|
|
60,195 |
|
|
|
59,724 |
|
|
Plus: Dilutive effect of stock options, other |
|
|
2,124 |
|
|
|
1,778 |
|
|
|
2,086 |
|
|
|
1,670 |
|
|
Weighted average common shares outstanding – dilutive |
|
|
62,500 |
|
|
|
61,622 |
|
|
|
62,281 |
|
|
|
61,394 |
|
|
Net income per AmTrust Financial Services, Inc. common shares
– diluted |
|
$ |
0.64 |
|
|
$ |
0.81 |
|
|
$ |
1.27 |
|
|
$ |
1.55 |
|
As of June 30, 2012, there were less than 100,000 anti-dilutive
securities excluded from diluted earnings per share.
|