Earnings Per Common Share

12 Months Ended

Jun. 30, 2014

Earnings Per Common Share

Earnings Per Common Share

Note 14.  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 is computed using the treasury stock method and 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:

	For Fiscal Year Ended June 30,
(In thousands, except share and per share data)	2014		2013		2012
Net Income Attributable to Lannett Company, Inc.	$	57,101	$	13,317	$	3,948
Basic weighted average common shares outstanding	33,663,589		28,467,598		28,263,335
Effect of potentially dilutive options and restricted stock awards	1,529,787		475,335		145,097
Diluted weighted average common shares outstanding	35,193,376		28,942,933		28,408,432
Earnings per common share attributable to Lannett Company, Inc.:
Basic	$	1.70	$	0.47	$	0.14
Diluted	$	1.62	$	0.46	$	0.14

The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share for the fiscal years ended June 30, 2014, 2013 and 2012 were 18 thousand, 1.0 million, and 2.3 million, respectively.