Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share

8. EARNINGS PER SHARE

Basic EPS is computed by dividing the net income applicable to common stockholders for the period by the weighted average number of shares of common stock outstanding during the same period. The Company’s Series A-1 Preferred, Series A-2 Preferred, and Series A-3 Preferred Stock, that had been outstanding and convertible into common stock until February 13, 2012, and its puttable common stock were considered participating securities since these securities had non-forfeitable rights to dividends or dividend equivalents during the contractual period and thus required the two-class method of computing EPS. When calculating diluted EPS, the numerator is computed by adding back the undistributed earnings allocated to the participating securities in arriving at the basic EPS and then reallocating such undistributed earnings among the Company’s common stock, participating securities and the potential common shares that result from the assumed exercise of all dilutive options. The denominator is increased to include the number of additional common shares that would have been outstanding had the options been issued.

No preferred stock was outstanding as of June 30, 2012, as a result of the Company’s initial public offering on February 13, 2012 when all convertible preferred stock was converted into common stock.

The following table sets forth the computation of basic and diluted earnings per share as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2012		2011			2012			2011
	(in thousands, except share and per share data)
Numerator for common earnings per share:
Operating expenses:
Net income	$	13,321	$	8,277		$	25,420		$	18,019
Accretion of preferred stock		—		(15,271	)		—			(17,563	)
Net income allocated to participating securities		—		—			(3,176	)		(4,188	)
Numerator for basic (common) earnings per share		13,321		(6,994	)		22,244			(3,732	)
Effect on income available from reallocation of options		—		3,629			264			3,946
Numerator for diluted (common) earnings per share	$	13,321	$	(3,365	)	$	22,508		$	214
Numerator for (puttable common) earnings per share:
Net income allocated to basic (puttable common)		—		—			—			11
Effect on income available from reallocation of options		—		—			—			(1	)
Numerator for diluted (puttable common) earnings per share		—		—			—			10
Denominator for basic (common) earnings per share:
Weighted average common shares outstanding		42,475		17,056			36,987			17,055
Effect of dilutive securities:
Stock options		3,907		3,244			3,833			3,244
Denominator for diluted (common) earnings per share		46,382		20,300			40,820			20,299
Denominator for basic and diluted (puttable common) earnings per share:
Weighted average puttable common shares outstanding		—		57			—			57
Earnings/(loss) per share:
Basic (common)	$	0.31	$	(0.41	)	$	0.60		$	(0.22	)
Basic (puttable common)		—		—			—		$	0.19
Diluted (common)	$	0.29	$	(0.41	)	$	0.55		$	(0.22	)
Diluted (puttable common)		—		—			—		$	0.18
Anti-dilutive options not included in the calculation		1,393		—			1,396			—