Earnings Per Common Share

9 Months Ended

Mar. 31, 2013

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 March 31,
(In thousands, except share and per share data)	2013		2012
Net Income attributable to Lannett common shareholders	$	3,947	$	1,718
Weighted average common shares outstanding (basic)	28,490,175		28,571,062
Effect of potentially dilutive options and restricted stock awards	625,766		148,607
Weighted average common shares outstanding (diluted)	29,115,941		28,719,669
Basic earnings per common share	$	0.14	$	0.06
Diluted earnings per common share	$	0.14	$	0.06

	For The Nine Months Ended March 31,
(In thousands, except share and per share data)	2013		2012
Net Income attributable to Lannett common shareholders	$	9,754	$	2,533
Basic weighted average common shares outstanding	28,371,189		28,509,595
Effect of potentially dilutive options and restricted stock awards	273,642		158,686
Diluted weighted average common shares outstanding	28,644,831		28,668,281
Basic earnings per common share	$	0.34	$	0.09
Diluted earnings per common share	$	0.34	$	0.09

The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share for the three months ended March 31, 2013 and 2012 were 265 and 2,307, respectively.  The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share for the nine months ended March 31, 2013 and 2012 were 1,488 and 2,307, respectively.