Earnings per Share

9 Months Ended

Sep. 30, 2011

Note 2 — Earnings per Share

The following table presents the reconciliation of the numerator and denominator for calculating earnings per share:


	Third Quarter				First Nine Months
(In thousands, except per share data)	2011		2010		2011		2010

Basic EPS:
Net income	$	22,997	$	8,234	$	58,131	$	26,856


Weighted average number of common shares outstanding		90,212		89,334		89,877		88,938


Basic income per common share	$	0.25	$	0.09	$	0.65	$	0.30


Diluted EPS:
Net income	$	22,997	$	8,234	$	58,131	$	26,856
Assumed conversion of Senior Notes		1,236		—		3,674		—

Adjusted net income	$	24,233	$	8,234	$	61,805	$	26,856


Weighted average number of common shares outstanding-basic		90,212		89,334		89,877		88,938
Add: Dilutive effect of stock options and
restricted stock awards		1,025		1,223		883		697
Dilutive effect of Senior Notes		15,682		—		15,682		—


Diluted weighted average number of common shares outstanding		106,919		90,557		106,442		89,635


Diluted income per common share	$	0.23	$	0.09	$	0.58	$	0.30


Stock options and warrants excluded from calculation of diluted earnings per share because anti-dilutive for the period		2,862		2,167		3,913		3,941

Weighted average dilutive stock options and restricted stock outstanding totaled approximately 4.5 million and 5.0 million shares, for the third quarter of 2011 and 2010, respectively, and 3.1 million and 3.3 million shares for the first nine months of 2011 and 2010, respectively. The resulting net effect of stock options and restricted stock were used in calculating diluted earnings per share for the period.

In June 2000, we completed the sale of 120,000 shares of Series B Convertible Preferred Stock, $0.01 par value per share (the “Series B Preferred Stock”), and a warrant (the “Series B Warrant”) to purchase up to 1,900,000 shares of our common stock at an exercise price of $10.075 per share, subject to anti-dilution adjustments. As of September 30, 2011, the Series B Warrant, as adjusted for anti-dilution provisions, remains outstanding and provides for the right to purchase up to approximately 2.1 million shares of our common stock at an exercise price of $8.97, and expires in February 2012.