Earnings per Common Share

9 Months Ended

Sep. 30, 2012

Earnings per Common Share

9. Earnings per Common Share

Basic and diluted earnings per common share are computed by dividing net income by the weighted average number of shares of Common Stock outstanding during the period. Diluted earnings per share includes the number of outstanding shares of Common Stock used to determine basic net income per share and, in addition, gives effect to the potential dilution that would occur if securities or other contracts to issue Common Stock are exercised, vested or converted into Common Stock, unless they are anti-dilutive. Diluted weighted average common shares includes warrants, vested and unvested stock options and vested and unvested restricted stock units and unvested restricted stock awards. Approximately 0.6 million stock options were excluded from the calculation of diluted earnings per share for the three months and nine months ended September 30, 2012, respectively, as they were anti-dilutive. Approximately 0.4 million stock options were excluded from the calculation of diluted earnings per share for the three months and nine months ended September 30, 2011, as they were anti-dilutive.

The following table sets forth the computation of earnings per common share for the periods indicated:

	For the Three Months Ended September 30,				For the Nine Months  Ended September 30,
	2012		2011		2012		2011
Net income (in thousands)	$	3,221	$	7,618	$	6,409	$	19,034
Weighted average common shares outstanding:
Basic weighted average common shares outstanding		35,250,404		34,625,525		34,893,622		34,313,987
Effect of dilutive securities:
Warrants		—		—		—		214,871
Stock options		1,382,802		2,374,531		1,764,568		2,716,970
RSUs/RSAs		1,927,451		1,915,982		2,269,483		1,779,871
Diluted weighted average common shares outstanding		38,560,657		38,916,038		38,927,673		39,025,699
Earnings per common share:
Basic	$	0.09	$	0.22	$	0.18	$	0.55
Diluted	$	0.08	$	0.20	$	0.16	$	0.49