COMPUTATION OF EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2013

COMPUTATION OF EARNINGS PER SHARE

COMPUTATION OF EARNINGS PER SHARE

NOTE 2 – COMPUTATION OF EARNINGS PER SHARE

The Company’s Series A 3% Redeemable Convertible Preferred Stock (the “Series A Preferred Stock”) has participation rights in dividends issued to common stockholders.  As a result, the Company calculates earnings per share using the two class method.  The following is a reconciliation of net income applicable to common stockholders and the number of shares used in the calculation of basic and diluted earnings per share applicable to common stockholders (in thousands, except per-share data):

	Three Months Ended
	March 31,
	2013		2012
Net income allocated to common stockholders, net of $1,753 and $2,098 attributable to Series A Preferred Stock, respectively	8,513		9,981
Basic:
Weighted-average common shares outstanding	28,055		27,614
Earnings per share allocated to common stockholders	$	0.30	$	0.36
Diluted:
Weighted-average shares outstanding used in basic calculation	28,055		27,614
Dilutive effect of options	308		120
Dilutive effect of unvested restricted stock	422		253
Weighted-average common stock and common stock equivalents	28,785		27,987
Earnings per share allocated to common stockholders	$	0.30	$	0.36
Stock issuable upon conversion of the Series A Preferred Stock	5,806		5,806
Stock awards excluded from calculation as their effect would be anti-dilutive	834		1,061

Awards approved under the Company’s Long Term Incentive Program are excluded from diluted shares as the market conditions and performance conditions of the awards have not been met.