Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share

10. Earnings Per Share

Basic earnings (loss) per share is computed by dividing income (loss) applicable to common stockholders by the weighted average shares outstanding, as adjusted for the effect of participating securities. The Company’s unvested restricted share awards are participating securities as they contain non-forfeitable rights to dividends. The impact of unvested restricted share awards on earnings (loss) per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on dividends and the unvested restricted shares’ participation rights in undistributed earnings (losses).

The calculation of diluted earnings per share for the three months ended March 31, 2013 does not include 699,719 shares of unvested restricted common stock or 1,241,259 OP units as the effect of including these equity securities was anti-dilutive to net loss attributable to the common stockholders. The calculation of diluted earnings per share for the three months ended March 31, 2012 does not include 989,920 shares of unvested restricted common stock, 102,118 shares of contingently issuable common stock related to the 2011 Edwards Theatres acquisition, or 1,392,766 OP units as the effect of including these equity securities was anti-dilutive to net loss attributable to the common stockholders. In addition, 3,333,400 common shares issuable upon settlement of the conversion feature of the 7.00% Series A Cumulative Convertible Perpetual Preferred Stock (“Series A preferred stock”) were anti-dilutive and were not included in the calculation of diluted earnings per share based on the “if converted” method for the three months ended March 31, 2013 and 2012.

Computations of basic and diluted earnings per share for the three months ended March 31, 2013 and 2012 (in thousands, except share data) were as follows:

	Three Months Ended
	March 31, 2013			March 31, 2012
Basic earnings per share:
Net income	$	324		$	433
Preferred dividends		(2,744	)		(2,121	)
Allocation to participating securities		(121	)		(152	)
Loss from operations attributable to non-controlling interests		(28	)		5
Net loss applicable to the common stockholders	$	(2,569	)	$	(1,835	)
Net loss attributable to the common stockholders	$	(2,448	)	$	(1,683	)
Allocation to participating securities		(121	)		(152	)
Net loss applicable to the common stockholders	$	(2,569	)	$	(1,835	)
Weighted-average common shares outstanding:
Basic and diluted		45,352,489			37,761,446
Basic and diluted earnings per share:
Net loss per share attributable to the common stockholders	$	(0.06	)	$	(0.06	)