Net Income Per Share

9 Months Ended

Sep. 30, 2012

Net Income Per Share [Abstract]

Net Income Per Share

11. Net Income Per Share

Basic and diluted earnings per share are computed pursuant to the two-class method. The two-class method determines earnings per share for each class of common stock and participating security according to their respective participation rights in undistributed earnings. Unvested restricted stock awards granted to employees are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. In accordance with ASC Topic No. 260, Earnings Per Share, diluted net income per share is calculated using the more dilutive of the following two approaches:

1. Assume exercise of stock options and vesting of restricted stock using the treasury stock method.

2. Assume exercise of stock options using the treasury stock method, but assume participating securities (unvested restricted stock) are not vested and allocate earnings to common shares and participating securities using the two-class method.

For all periods presented, the treasury stock method was used in the computation of diluted net income per share, as the result was more dilutive. The following presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share (in thousands, except share and per share data):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Numerator:
Net income, as reported	$	7,990		$	5,992		$	21,125		$	17,030
Less: net income attributable to participating securities		(133	)		(101	)		(346	)		(277	)
Net income available to common shareholders—basic and diluted	$	7,857		$	5,891		$	20,779		$	16,753
Denominator:
Basic:
Weighted-average shares of common stock outstanding		36,936,791			36,053,462			36,822,423			35,852,081
Less: weighted-average shares of unvested restricted common stock outstanding		(613,235	)		(605,978	)		(604,473	)		(584,489	)
Weighted-average number of common shares used in computing basic net income per common share		36,323,556			35,447,484			36,217,950			35,267,592
Net income per share applicable to common shareholders—basic	$	0.22		$	0.17		$	0.57		$	0.48

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Diluted:
Weighted-average shares of common stock outstanding		36,936,791			36,053,462			36,822,423			35,852,081
Less: weighted-average shares of unvested restricted common stock outstanding		(613,235	)		(605,978	)		(604,473	)		(584,489	)
Weighted-average number of common shares issuable upon exercise of outstanding stock options, based on the treasury stock method		1,169,883			1,262,393			1,252,747			1,317,987
Weighted-average number of restricted stock outstanding, based on the treasury stock method		126,830			119,641			129,751			117,719
Weighted-average number of common shares used in computing diluted net income per common share		37,620,269			36,829,518			37,600,448			36,703,298
Net income per share applicable to common shareholders—diluted	$	0.21		$	0.16		$	0.55		$	0.46

The following common share equivalents have been excluded from the computation of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Options		1,937,631		1,765,782		1,818,198		1,486,671
Unvested restricted stock		0		7,468		1,861		16,171