Earnings Per Common Share

6 Months Ended

Dec. 31, 2014

Earnings Per Common Share

Earnings Per Common Share

Note 15.  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:

	Three Months Ended December 31, 2014
(In thousands, except share and per share data)	2014		2013
Net Income Attributable to Lannett Company, Inc.	$	44,811	$	16,566
Basic weighted average common shares outstanding	35,669,904		34,677,426
Effect of potentially dilutive stock options and restricted stock awards	1,404,120		1,598,900
Diluted weighted average common shares outstanding	37,074,024		36,276,326
Earnings per common share attributable to Lannett Company, Inc.:
Basic	$	1.26	$	0.48
Diluted	$	1.21	$	0.46

	Six Months Ended December 31, 2014
(In thousands, except share and per share data)	2014		2013
Net Income Attributable to Lannett Company, Inc.	$	79,743	$	10,571
Basic weighted average common shares outstanding	35,633,917		32,131,831
Effect of potentially dilutive stock options and restricted stock awards	1,391,750		1,429,623
Diluted weighted average common shares outstanding	37,025,667		33,561,454
Earnings per common share attributable to Lannett Company, Inc.:
Basic	$	2.24	$	0.33
Diluted	$	2.15	$	0.31

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, 2014 and 2013 were 507 thousand and 6 thousand, 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, 2014 and 2013 were 508 thousand and 6 thousand, respectively.