Earnings Per Common Share

9 Months Ended

Mar. 31, 2016

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 (loss) 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 including 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 March 31,
(In thousands, except share and per share data)	2016			2015
Net income (loss) attributable to Lannett Company, Inc.	$	(5,490	)	$	36,233
Basic weighted average common shares outstanding	36,495,961			35,880,954
Effect of potentially dilutive stock options, warrants and restricted stock awards	—			1,329,184
Diluted weighted average common shares outstanding	36,495,961			37,210,138
Earnings (Loss) per common share attributable to Lannett Company, Inc.:
Basic	$	(0.15	)	$	1.01
Diluted	$	(0.15	)	$	0.97

	Nine months Ended March 31,
(In thousands, except share and per share data)	2016		2015
Net income attributable to Lannett Company, Inc.	$	41,211	$	115,976
Basic weighted average common shares outstanding	36,398,030		35,715,061
Effect of potentially dilutive stock options, warrants and restricted stock awards	985,712		1,367,077
Diluted weighted average common shares outstanding	37,383,742		37,082,138
Earnings per common share attributable to Lannett Company, Inc.:
Basic	$	1.13	$	3.25
Diluted	$	1.10	$	3.13

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, 2016 and 2015 were 4.4 million and 77 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, 2016 and 2015 were 2.6 million and 490 thousand, respectively.