Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share

2. Earnings per share

Basic earnings per share is calculated by dividing net income (loss) attributable to common stock by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share incorporates the treasury stock method to measure the dilutive impact of potential common stock equivalents by including the effect of outstanding vested and unvested stock options and unvested stock awards in the average number of shares of common stock outstanding during the period. Income attributable to common stock is calculated as net income less dividends paid on the Company’s Series A Preferred Stock. The Company declared and paid cash dividends of $931 ($0.5781 per share of preferred stock) for each of the three months ended March 31, 2014 and 2013.  

The following is the calculation of basic and diluted weighted average shares outstanding and earnings per share of common stock for the periods indicated:

	For the Three Months Ended March 31,
	2014			2013
Net loss	$	(4,386	)	$	(5,176	)
Preferred stock dividends		(931	)		(931	)
Loss attributable to common stock	$	(5,317	)	$	(6,107	)
Weighted average shares:
Weighted average shares - basic		11,719,549			11,305,881
Dilutive effect of stock options outstanding at the end of period		—			—
Weighted average shares - fully diluted		11,719,549			11,305,881
Net income (loss) per share:
Basic	$	(0.45	)	$	(0.54	)
Diluted	$	(0.45	)	$	(0.54	)

The following options and unvested restricted shares, which could be potentially dilutive in future periods, were not included in the computation of diluted net income per share because the effect would have been anti-dilutive for the periods indicated:

	For the Three Months Ended March 31,
	2014		2013
Potential common shares		26,731		36,185