4.	EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period.

For periods of net income, and when the effects are not anti-dilutive, we calculate diluted earnings per share by dividing net income available to common shareholders by the weighted-average number of shares outstanding plus the impact of all potential dilutive common shares, consisting primarily of common stock options, unvested restricted stock awards, stock purchase warrants, and any conversion gain on our Notes (see Note 3), using the treasury stock method. For periods of net loss, diluted loss per share is calculated similarly to basic loss per share.

Our unvested restricted shares contain non-forfeitable rights to dividends, and therefore are considered to be participating securities; in periods of net income, the calculation of basic and diluted earnings per share excludes from the numerator net income attributable to the unvested restricted shares, and excludes the impact of those shares from the denominator.

For purposes of determining diluted earnings per share, we have elected a policy to assume that the principal portion of the Notes (see Note 3) is settled in cash. As such, the principal portion of the Notes has no effect on either the numerator or denominator when determining diluted earnings per share. Any conversion gain is assumed to be settled in shares and is incorporated in diluted earnings per share using the treasury method. The warrants issued in conjunction with the issuance of the Notes (see Note 3) are considered to be dilutive when they are in-the-money relative to our average stock price during the period; the bond hedge purchased in conjunction with the issuance of the Notes is always considered to be anti-dilutive.

Earnings per share for the three and six-months ended June 30, 2015 and 2014 are calculated for basic and diluted earnings per share as follows:

	Basic				Diluted				Basic				Diluted
(in thousands, except per share amounts)	Three months ended June 30,				Three months ended June 30,				Six months ended June 30,				Six months ended June 30,
	2015		2014		2015		2014		2015		2014		2015		2014
Net income/(loss)	$	3,571	$	(2,363)	$	3,571	$	(2,363)	$	7,940	$	996	$	7,940	$	996
Net income allocated to warrants		-		-		-		-		-		(6)		-		(6)
Net income allocated to restricted stock		(24)		-		(23)		-		(53)		(5)		(52)		(5)
Net income/(loss) from continuing operations allocated to common shares	$	3,547	$	(2,363)	$	3,548	$	(2,363)	$	7,887	$	985	$	7,888	$	985


Basic Weighted-Average Shares Outstanding		11,344		11,233		11,344		11,233		11,335		10,612		11,335		10,612
Dilutive effect of stock options						205		-						221		28
Diluted Weighted-Average Shares Outstanding						11,549		11,233						11,556		10,640

Earnings/(Loss) Per Share	$	0.31	$	(0.21)	$	0.31	$	(0.21)	$	0.70	$	0.09	$	0.68	$	0.09

The number of anti-dilutive shares, which have been excluded from the computation of diluted earnings per share, including the shares underlying the Notes, was 4.6 million and 1.1 million for the three months ended June 30, 2015 and 2014, respectively, and was 4.6 million and 0.7 million for the six months ended June 30, 2015 and 2014, respectively. Anti-dilutive shares consist of out-of-the-money Class C Special stock, out-of-the-money common stock options, common stock options that are anti-dilutive when calculating the impact of the potential dilutive common shares using the treasury stock method, and out-of-the-money warrants exercisable for common stock.

As of June 30, 2015, we had 0.5 million options outstanding to purchase common stock, 76 thousand unvested restricted stock awards, and 2.4 million warrants to purchase common stock.