XML 138 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8
Earnings Per Share
 6 Months Ended
Jun. 30, 2013
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share
Basic loss or earnings per common share (“EPS”) have been calculated by dividing net (loss) income from continuing operations attributable to common stockholders by the weighted average shares of Knight Common Stock outstanding during each respective period. Diluted EPS reflects the potential reduction in EPS using the treasury stock method to reflect the impact of common stock equivalents if stock options were exercised, restricted awards were to vest and preferred stock were to convert to Knight Common Stock.
The number of such options excluded was approximately 2.4 million and 1.7 million for the three months ended June 30, 2013 and 2012, respectively. The number of such options excluded was approximately 2.5 million and 1.7 million for the six months ended June 30, 2013 and 2012, respectively. The computation of diluted shares can vary among periods due in part to the change in the average price of Knight Common Stock.
The Series A Preferred Stock were participating securities and as a result the Company was required to calculate EPS under a two class method whereby earnings are allocated to Knight Common Stock and Series A Preferred Stock as if all of the earnings for the year had been distributed. Since the Company recorded a net loss for the three and six months ended June 30, 2013 the impact of the two class method would be antidilutive. The calculation of diluted EPS excludes the potential conversion of Series A Preferred Stock into Knight Common Stock for the period they were outstanding and excludes options, restricted awards and Series A Preferred Stock that could potentially dilute EPS in the future but were antidilutive for the periods presented. The number of such restricted awards and shares of Series A Preferred Stock (on an as converted basis) excluded was approximately 7.4 million and 60.2 million, respectively, for the three and six months ended June 30, 2013.
The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations from continuing operations for the three months ended June 30, 2013 and 2012 (in thousands):
 
 
For the three months ended June 30,
 
2013
 
2012
 
Numerator /
    
net loss
 
Denominator /
    
shares
 
Numerator /
net
income
 
Denominator /
    
shares
(Loss) Income from continuing operations and shares used in basic calculations
$
(23,629
)
 
359,955

 
$
4,756

 
89,624

Effect of dilutive stock based awards
—

 
—

 
—

 
3,058

(Loss) Income from continuing operations and shares used in diluted calculations
$
(23,629
)
 
359,955

 
$
4,756

 
92,682

Basic earnings per share from continuing operations
 
 
$
(0.07
)
 
 
 
$
0.05

Diluted earnings per share from continuing operations
 
 
$
(0.07
)
 
 
 
$
0.05

 
 
For the six months ended June 30,
 
2013
 
2012
 
Numerator /
    
net loss
 
Denominator /
    
shares
 
Numerator /
net
income
 
Denominator /
    
shares
(Loss) Income from continuing operations and shares used in basic calculations
$
(11,297
)
 
306,879

 
$
35,906

 
89,685

Effect of dilutive stock based awards
 
 
—

 
 
 
3,482

(Loss) Income from continuing operations and shares used in diluted calculations
$
(11,297
)
 
306,879

 
$
35,906

 
93,167

Basic earnings per share from continuing operations
 
 
$
(0.04
)
 
 
 
$
0.40

Diluted earnings per share from continuing operations
 
 
$
(0.04
)
 
 
 
$
0.39