Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The computations of basic and diluted EPS are set forth below:

	For the Three Months Ended March 31,
	2013		2012
	(in thousands, except per share  amounts, unaudited)
Numerator for basic and diluted EPS — net income allocated to common stockholders	$	13,618	$	16,136
Denominator for basic EPS — weighted average number of shares	30,172		30,523
Add — dilutive effect of:
Weighted average number of incremental shares issuable from restricted stock units	89		9
Denominator for diluted EPS — weighted average number of shares and dilutive potential shares	30,261		30,532
Earnings per share:
Basic	$	0.45	$	0.53
Diluted	$	0.45	$	0.53

In connection with the acquisition of Caliburn, 1,099,877 shares of contingent convertible preferred stock ("Performance Stock") were issued. The Performance Stock may convert to shares of the Company’s common stock in tranches of 659,926 shares and 439,951 shares on the third and fifth anniversary of the closing of the acquisition, respectively, if certain separate revenue targets are achieved. If the revenue target for a tranche is not achieved, the Performance Stock in that tranche will be canceled. During the fourth quarter of 2012, the performance target related to the first tranche of Performance Stock was achieved. The weighted number of shares and dilutive potential shares for the three month period ended March 31, 2013 include the conversion of the first tranche of Performance Stock to common shares. The weighted number of shares for the three month period ended March 31, 2012 do not include the dilutive effect of the first tranche of Performance Stock since the revenue target was not achieved at that time. The weighted number of shares and dilutive potential shares for the three month periods ended March 31, 2013 and 2012 do not include the Performance Stock shares related to the second tranche, which will be included in the Company's share count at the time the revenue threshold is met. If the revenue target for the second tranche is not achieved, the contingent convertible preferred shares in that tranche will be canceled.