Earnings Per Common Share

9 Months Ended

Mar. 31, 2014

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 potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period.  Diluted earnings per common share includes the effect of potential dilution from the exercise of outstanding stock options and treats unvested restricted stock as if it were vested.  Potentially dilutive securities have been excluded in the weighted average number of common 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 was as follows:

	Three Months EndedMarch 31, 2014
(In thousands, except share and per share data)	2014		2013
Net Income Attributable to Lannett Company, Inc.	$	22,995	$	3,947
Basic weighted average common shares outstanding	35,025,968		28,490,175
Effect of potentially dilutive options and restricted stock awards	1,743,625		625,766
Diluted weighted average common shares outstanding	36,769,593		29,115,941
Earnings per common share attributable to Lannett Company, Inc.:
Basic	$	0.66	$	0.14
Diluted	$	0.63	$	0.14

	Nine Months EndedMarch 31, 2014
(In thousands, except share and per share data)	2014		2013
Net Income Attributable to Lannett Company, Inc.	$	33,566	$	9,754
Basic weighted average common shares outstanding	33,082,460		28,371,189
Effect of potentially dilutive options and restricted stock awards	1,503,547		273,642
Diluted weighted average common shares outstanding	34,586,007		28,644,831
Earnings per common share attributable to Lannett Company, Inc.:
Basic	$	1.01	$	0.34
Diluted	$	0.97	$	0.34

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, 2014 and 2013 were 3 thousand and 265 thousand, 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, 2014 and 2013 were 9 thousand and 1.5 million, respectively.