EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2013

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

9. 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 (the date of the Company’s initial public offering), 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 December 31, 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 of common stock as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
	(in thousands, except share and per share data)
Numerator for common earnings per share:
Net income	$	16,437	$	14,065	$	43,235	$	39,485
Net income allocated to participating securities		—		—		—		(3,259	)
Numerator for basic earnings per share		16,437		14,065		43,235		36,226
Effect on income available from reallocation of options		—		—		—		263
Numerator for diluted earnings per share	$	16,437	$	14,065	$	43,235	$	36,489
Denominator for basic earnings per share:
Weighted average common shares outstanding		46,162		42,952		45,492		38,990
Effect of dilutive securities:
Stock options		2,558		3,549		2,628		3,739
Denominator for diluted earnings per share		48,720		46,501		48,120		42,729
Net income per share:
Basic	$	0.36	$	0.33	$	0.95	$	0.93
Diluted	$	0.34	$	0.30	$	0.90	$	0.85
Anti-dilutive options not included in the calculation		1,873		1,953		1,399		1,582