Note 8 - Earnings per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Text Block]

Note 8 — Earnings per Share

Basic and diluted earnings per share are computed pursuant to the two-class method. Under this method, the Company attributes net income to two classes, common stock and unvested restricted stock awards. Unvested restricted stock awards granted to employees under the Company’s Long-Term Incentive Plan are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock.

Diluted net income per share is calculated using the more dilutive of two methods. Under both methods, the exercise of employee stock options and stock-settled stock appreciation rights are assumed using the treasury stock method. The assumption of vesting of restricted stock, however, differs:

1. Assume vesting of restricted stock using the treasury stock method.

2. Assume unvested restricted stock awards are not vested, and allocate earnings to common shares and unvested restricted stock awards using the two-class method.

For the three months ended March 31, 2013 and 2012, the second method above, which assumes unvested awards are not vested, was used in the computation because it was more dilutive than the first method above, which assumes vesting of awards using the treasury stock method. The following table sets forth the computation of net income per share, on a basic and diluted basis for the periods indicated (shares in table below in thousands):

	Three months ended March 31,
	2013			2012
Basic:
Net income attributable to Allegiant Travel Company	$	31,932		$	21,703
Less: Net income allocated to participating securities		(216	)		(161	)
Net income attributable to common stock	$	31,716		$	21,542
Net income per share, basic	$	1.66		$	1.13
Weighted-average shares outstanding		19,081			18,989
Diluted:
Net income attributable to Allegiant Travel Company	$	31,932		$	21,703
Less: Net income allocated to participating securities		(214	)		(159	)
Net income attributable to common stock	$	31,718		$	21,544
Net income per share, diluted	$	1.65		$	1.12
Weighted-average shares outstanding		19,081			18,989
Dilutive effect of stock options, restricted stock and stock-settled stock appreciation rights		172			246
Adjusted weighted-average shares outstanding under treasury stock method		19,253			19,235
Participating securities excluded under two-class method		(46	)		(35	)
Adjusted weighted-average shares outstanding under two-class method		19,207			19,200