Earnings Per Common Share

6 Months Ended

Dec. 31, 2012

Earnings Per Common Share

Earnings Per Common Share

Note 16.  Earnings Per Common Share

A dual presentation of basic and diluted earnings per common share is required on the face of the Company’s consolidated statement of operations as well as a reconciliation of the computation of basic earnings per common share to diluted earnings per common share.  Basic earnings per common share excludes the dilutive impact of common stock equivalents and is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the period.  Diluted earnings per common share include the effect of potential dilution from the exercise of outstanding common stock equivalents into common stock using the treasury stock method.  Dilutive shares have been excluded in the weighted average shares used for the calculation of earnings per share in periods of net loss because the effect of such securities would be anti-dilutive.  A reconciliation of the Company’s basic and diluted earnings per common share follows:

	For The Three Months Ended December 31,
(In thousands, except share and per share data)	2012		2011
Net Income attributable to Lannett common shareholders	$	2,881	$	609
Weighted average common shares outstanding (basic)	28,347,464		28,526,658
Effect of potentially dilutive options and restricted stock awards	103,133		246,819
Weighted average common shares outstanding (diluted)	28,450,597		28,773,477
Basic earnings per common share	$	0.10	$	0.02
Diluted earnings per common share	$	0.10	$	0.02
	For The Six Months Ended December 31,
(In thousands, except share and per share data)	2012		2011
Net Income attributable to Lannett common shareholders	$	5,807	$	815
Weighted average common shares outstanding (basic)	28,312,989		28,479,195
Effect of potentially dilutive options and restricted stock awards	111,038		254,240
Weighted average common shares outstanding (diluted)	28,424,027		28,733,435
Basic earnings per common share	$	0.21	$	0.03
Diluted earnings per common share	$	0.20	$	0.03

The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share for the three months ended December 31, 2012 and 2011 were 2,331 and 1,877, respectively.  The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share for the six months ended December 31, 2012 and 2011 were 2,323 and 1,560, respectively.