Earnings Per Ordinary Share

6 Months Ended

Jun. 30, 2011

Earnings Per Ordinary Share

Earnings Per Ordinary Share

Note 12 — Earnings Per Ordinary Share

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share data):

	Three Months Ended June 30,
	2011			2010
Numerator:
Net loss attributed to TBS International plc	$	(14,441	)	$	(9,677	)
Preference share liquidation preference		(71	)
Net loss attributable to ordinary shares	$	(14,512	)	$	(9,677	)
Denominator:
Weighted average ordinary shares outstanding — basic and diluted		30,451,341			29,973,420
Net loss per ordinary share -- basic and diluted	$	(0.48	)	$	(0.32	)

	Six Months Ended June 30,
	2011			2010
Numerator:
Net loss attributed to TBS International plc	$	(31,108	)	$	(17,520	)
Preference share liquidation preference		(71	)
Net loss attributable to ordinary shares	$	(31,179	)	$	(17,520	)
Denominator:
Weighted average ordinary shares outstanding — basic and diluted		30,433,962			29,930,634
Net loss per ordinary share -- basic and diluted	$	(1.02	)	$	(0.59	)

As outlined in sections of FASB ASC Topic 260 – Earnings per Share, unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities that should be included in the two-class method of computing earnings per share. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings (loss) per share for ordinary stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Our non-vested stock, consisting of time-vesting restricted shares, are considered participating securities because the share-based awards contain a non-forfeitable right to receive dividends irrespective of whether the awards ultimately vest.

The Company had 78,260 Series A Preference Shares and 30,000 Series B Preference Shares outstanding at June 30, 2011.  Such shares are convertible into ordinary shares at any time at the option of the holder and, hence, are considered ordinary share equivalents for the purpose of computing dilutive earnings per share.  The preference shares are convertible into 4,286,000 ordinary shares at June 30, 2011; however, they have been excluded from the computation of diluted earnings per share because their inclusion would be anti-dilutive.

In addition, at June 30, 2011 and 2010, there were outstanding exercisable warrants to purchase 151,734 and 108,525, respectively, Class A ordinary shares and 228,140 and 241,065, respectively, Class B ordinary shares.  The warrants are issuable for nominal consideration upon exercise, which would have caused the warrants to be treated as outstanding for purposes of computing basic earnings per share.  However, for the periods ended June 30, 2011 and 2010, the warrants have been excluded from the computation of basic and diluted earnings per share because their inclusion would be anti-dilutive.