Earnings Per Share

12 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The Company follows the provisions of ASC Topic 260, Earnings Per Share, which requires companies with complex capital structures, such as having two (or more) classes of securities that participate in declared dividends to calculate earnings (loss) per share (“EPS”) utilizing the two-class method. As the holders of the Preferred Stock are entitled to receive dividends with common stock on an as-converted basis, the Preferred Stock has the right to participate in undistributed earnings and must therefore be considered under the two-class method.

The following table sets forth the computation of basic and diluted EPS (share amounts in thousands):

	Year ended September 30,
	2013			2012			2011
Net (loss) income attributable to common and participating preferred stockholders	$	(94.2	)	$	29.9		$	22.2
Participating shares at end of period:
Common shares outstanding	138,876			139,357			139,346
Preferred shares (as-converted basis)	61,987			62,839			60,989
Total	200,863			202,196			200,335
Percentage of (loss) income allocated to:
Common shares	100.0		%	68.9		%	69.6		%
Preferred shares (a)	—		%	31.1		%	30.4		%
Net (loss) income attributable to common shares - basic	$	(94.2	)	$	20.6		$	15.4
Dilutive adjustments to (loss) income attributable to common shares from assumed conversion of preferred shares, net of tax:
Income allocated to preferred shares in basic calculation	—			—			6.8
Reversal of preferred stock dividends and accretion	—			—			19.8
Reversal of income related to fair value of preferred stock conversion feature	—			—			(27.9		)
Net adjustment	—			—			(1.3		)
Net (loss) income attributable to common shares - diluted	$	(94.2	)	$	20.6		$	14.1
Weighted-average common shares outstanding - basic	139,856			139,356			139,233
Dilutive effect of preferred stock	—			—			19,064
Dilutive effect of unvested restricted stock and restricted stock units	—			381			—
Dilutive effect of stock options	—			81			87
Weighted-average shares outstanding - diluted	139,856			139,818			158,384
Net (loss) income per common share attributable to controlling interest:
Basic	$	(0.67	)	$	0.15		$	0.11
Diluted	$	(0.67	)	$	0.15		$	0.09

(a) Losses are not allocated to the convertible participating preferred shares since they have no contractual obligation to share in such losses.

The number of shares of common stock outstanding used in calculating the weighted average thereof reflects the actual number of HGI common stock outstanding, excluding unvested restricted stock.

At September 30, 2013, there were 61,987 thousand shares issuable upon the conversion of the Preferred Stock, and 2,459 thousand and 640 thousand shares, respectively, of the unvested restricted stock and stock units and stock options that were excluded from the calculation of “Diluted net loss per common share attributable to controlling interest” because the as-converted effect of the Preferred Stock and unvested restricted stock and stock units and stock options would have been anti-dilutive for the year ended September 30, 2013. The Preferred Stock had a weighted average conversion price of $6.64.