Earnings Per Common Share

6 Months Ended

Dec. 31, 2015

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 attributable to Lannett Company, Inc. 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 a warrant 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,
(In thousands, except share and per share data)	2015		2014
Net Income Attributable to Lannett Company, Inc.	$	13,520	$	44,811
Basic weighted average common shares outstanding	36,388,542		35,669,904
Effect of potentially dilutive stock options, warrants and restricted stock awards	999,908		1,404,120
Diluted weighted average common shares outstanding	37,388,450		37,074,024
Earnings per common share attributable to Lannett Company, Inc.:
Basic	$	0.37	$	1.26
Diluted	$	0.36	$	1.21

	Six Months Ended December 31, 2015
(In thousands, except share and per share data)	2015		2014
Net Income Attributable to Lannett Company, Inc.	$	46,701	$	79,743
Basic weighted average common shares outstanding	36,349,597		35,633,917
Effect of potentially dilutive stock options, warrants and restricted stock awards	1,052,281		1,391,750
Diluted weighted average common shares outstanding	37,401,878		37,025,667
Earnings per common share attributable to Lannett Company, Inc.:
Basic	$	1.28	$	2.24
Diluted	$	1.25	$	2.15

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, 2015 and 2014 were 2.6 million and 507 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, 2015 and 2014 were 2.6 million and 508 thousand, respectively.