NET INCOME PER SHARE

6 Months Ended

Jun. 30, 2013

NET INCOME PER SHARE

NET INCOME PER SHARE

NOTE 4:   NET INCOME PER SHARE

Basic net income per share is computed on the basis of weighted average outstanding common shares.  We have determined that certain nonvested share awards (also referred to as restricted stock awards) issued by the company are participating securities because they have non-forfeitable rights to dividends. Accordingly, basic net income per share is calculated under the two-class method calculation.

Diluted net income per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect, if any, of outstanding stock options. The numerator of the diluted net income per share calculation is decreased by the allocation of net income and dividends declared to nonvested shares, if the impact is dilutive.

In determining diluted earnings per share, we use the more dilutive earnings per share result between two-class method calculation and the treasury stock method calculation applied to our outstanding nonvested share awards.

The computation of basic and diluted net income per share for the three and six months ended June 30, 2013 is as follows:

	Three Months Ended June 30, 2013						Six Months Ended June 30, 2013
	Net Income (Numerator)			Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount		Net Income (Numerator)			Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount
	(in thousands, except per share data)
Net income	$	2,842					$	6,779
Less: amounts allocated to nonvested shares	(28		)				(67		)
Basic net income available to common stockholders	2,814			35,933	$	0.08	6,712			35,765	$	0.18
Effect of dilutive securities:										937
Stock options	—			926			—
Add back: amounts allocated to nonvested shares	28			—			67			—
Less: amounts re-allocated to nonvested shares	(28		)	—			(67		)	—
Diluted net income available to common stockholders	$	2,814		36,859	$	0.08	$	6,712		36,702	$	0.18

The computation of basic and diluted net income per share for the three and six months ended June 30, 2012 is as follows:

	Three Months Ended June 30, 2012						Six Months Ended June 30, 2012
	Net Income (Numerator)			Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount		Net Income (Numerator)			Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount
	(in thousands, except per share data)
Net income	$	5,157					$	7,196
Less: amounts allocated to nonvested shares	(62		)				(76		)
Basic net income available to common stockholders	5,095			35,599	$	0.14	7,120			35,539	$	0.20
Effect of dilutive securities:
Stock options	—			889			—			929
Add back: amounts allocated to nonvested shares	62			—			76			—
Less: amounts re-allocated to nonvested shares	(62		)	—			(76		)	—
Diluted net income available to common stockholders	$	5,095		36,488	$	0.14	$	7,120		36,468	$	0.20

For the three months ended June 30, 2013 and 2012, weighted-average outstanding stock options totaling approximately 2.4 million and 3.2 million, respectively, were anti-dilutive and for the six months ended June 30, 2013 and 2012, weighted-average outstanding stock options totaling approximately 2.5 million and 3.2 million, respectively, were anti-dilutive and therefore not included in the computation of diluted net income per share.