Note 13. Income (Loss) per Common Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Text Block]

Note 13: Income (Loss) per Common Share

We calculate basic earnings per share using, as the denominator, the weighted average number of common shares outstanding during the period. Diluted earnings per share uses, as its denominator, the weighted average number of common shares outstanding during the period plus the effect of potential dilutive common shares during the period using the treasury stock method for options, warrants, and restricted stock units, and if-converted method for convertible preferred shares.

Potential dilutive common shares include outstanding stock options, restricted stock awards, stock units, warrants and convertible preferred stock for periods in which we have reported net income. For periods in which we reported net losses, potential dilutive common shares are excluded, as their conversion and exercise would not reduce earnings per share. Under the if-converted method, preferred shares would not dilute earnings per share in any of the periods presented.

A total of 157,814 shares of preferred stock were outstanding at December 31, 2011.

The following table represents net income (loss) per common share – basic and diluted (in thousands, except earnings per share): 

	Year ended December 31,
	2011			2010			2009
Numerator
Net income	$	151,164		$	48,983		$	67,826
Preferred stock dividends		(552	)		(13,633	)		(13,633	)
Net income (loss) applicable to common shares	$	150,612		$	35,350		$	54,193
Denominator
Basic weighted average common shares		280,956			251,146			224,933
Dilutive stock options, restricted stock, and warrants		16,077			18,455			8,685
Diluted weighted average common shares		297,033			269,601			233,618
Basic earnings per common share	$	0.54		$	0.14		$	0.24
Diluted earnings per common share	$	0.51		$	0.13		$	0.23

For the years ended December 31, 2011, 2010 and 2009, we excluded options and warrants whose exercise prices exceeded the average prices of our stock during the periods, as their exercises would not have reduced earnings per share.  The following options and warrants were excluded:

	Year ended December 31,
	2011		2010		2009
Stock options		552,388		596,388		1,022,240
Warrants to purchase common shares		—		—		12,173,913
Total potential dilutive common shares		552,388		596,388		13,196,153