Earnings / (Loss) Per Common Share

6 Months Ended

Jun. 30, 2012

Earnings / (Loss) Per Common Share [Abstract]

EARNINGS / (LOSS) PER COMMON SHARE

16. EARNINGS / (LOSS) PER COMMON SHARE

The following table presents a reconciliation of basic and diluted earnings / (loss) per common share for the periods indicated. Membership units that may be issued in connection with the vesting of a restricted unit issued pursuant to the Amended and Restated Cohen Brothers, LLC 2009 Equity Award Plan (the “2009 Equity Award Plan”) have been excluded from the diluted weighted average shares outstanding calculations because of the obligations of Mr. Daniel G. Cohen, the Company’s Chairman and Chief Executive Officer, under the Equity Plan Funding Agreement to transfer to (1) the Operating LLC the number of Operating LLC membership units or shares of the Company’s Common Stock equal to the number of Operating LLC membership units to be issued by the Operating LLC to the participants in the 2009 Equity Award Plan in connection with vesting of an Operating LLC restricted unit, or (2) the Company the number of shares of the Company’s Common Stock equal to the number of Operating LLC membership units to be issued by the Operating LLC to the participants in the 2009 Equity Award Plan in connection with the vesting of an Operating LLC restricted unit. See note 22 to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

EARNINGS / (LOSS) PER COMMON SHARE

(Dollars in Thousands, except share or per share information)

	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
Net income / (loss) attributable to IFMI	$	(2,078	)	$	(3,371	)	$	(5,937	)	$	(2,996	)
Add / (deduct): Income / (loss) attributable to the non-controlling interest attributable to Operating LLC membership units exchangeable into IFMI shares (1)		(981	)		(1,633	)		(2,883	)		(1,595	)
Add /(deduct): Adjustment for income tax benefit / (expense) (2)		(23	)		6			(39	)		150
Net income / (loss) on a fully converted basis	$	(3,082	)	$	(4,998	)	$	(8,859	)	$	(4,441	)
Weighted average common shares outstanding—Basic		10,756,257			10,901,448			10,600,004			10,860,702
Unrestricted Operating LLC membership units exchangeable into IFMI shares (1)		5,252,002			5,283,556			5,252,002			5,283,556
Weighted average common shares outstanding—Diluted (3)		16,008,259			16,185,004			15,852,006			16,144,258
Net income / (loss) per common share—Basic	$	(0.19	)	$	(0.31	)	$	(0.56	)	$	(0.28	)
Net income / (loss) per common share—Diluted	$	(0.19	)	$	(0.31	)	$	(0.56	)	$	(0.28	)

(1) The Operating LLC membership units not held by IFMI (that is, those held by the non-controlling interest for the three and six months ended June 30, 2012 and 2011) may be redeemed and exchanged into shares of the Company on a one-to-one basis. These units are not included in the computation of basic earnings per share. These units enter into the computation of diluted net income / (loss) per common share when the effect is dilutive using the if-converted method.

(2) If the Operating LLC membership units had been converted at the beginning of the period, the Company would have incurred a higher income tax expense or realized a higher income tax benefit, as applicable.

(3) Due to the net loss for the three and six months ended June 30, 2012, the weighted average shares calculation excluded (i) restricted Operating LLC membership units of 0 and 11,628 for the three and six months ended June 30, 2012, respectively; (ii) restricted shares of IFMI Common Stock of 21,879 and 17,412 for the three and six months ended June 30, 2012, respectively; and (iii) restricted units of IFMI’s Common Stock of 0 and 2,554 for the three and six months ended June 30, 2012 , respectively.

Due to the net loss for the three and six months ended June 30, 2011, the weighted average shares calculation excluded (i) restricted Operating LLC membership units of 0 and 3,613 for the three and six months ended June 30, 2011, respectively; and (ii) restricted shares of IFMI Common Stock of 37,288 and 25,852 for the three and six months ended June 30, 2011, respectively.