NOTE 3 — WEIGHTED AVERAGE COMMON SHARES

Earnings per share (“EPS”) under the two-class method is computed by dividing earnings allocated to common stockholders by the weighted-average number of common shares outstanding for the period. In determining the number of common shares outstanding, earnings are allocated to both common shares and participating securities based on the respective number of weighted-average shares outstanding for the period. Participating securities include unvested restricted stock awards where, like the Company’s restricted stock awards, such awards carry a right to receive non-forfeitable dividends, if declared. As a result of the foregoing, and in accordance with the applicable accounting standard, vested and unvested shares of restricted stock are also included in the calculation of basic earnings per share. With respect to RSUs, as the right to receive dividends or dividend equivalents is contingent upon vesting, in accordance with the applicable accounting standard, the Company does not include unvested RSUs in the calculation of basic earnings per share. To the extent such RSUs are settled in stock, upon settlement, such stock is included in the calculation of basic earnings per share. With respect to SARs and stock options, as the right to receive dividends or dividend equivalents is contingent upon vesting and exercise (with respect to SARs, to the extent they are settled in stock), in accordance with the applicable accounting standard, the Company does not include unexercised SARs or stock options in the calculation of basic earnings per share. To the extent such SARs and stock options have vested and are exercised (with respect to SARs, to the extent they are settled in stock), the stock received upon such exercise is included in the calculation of basic earnings per share.

The weighted average common shares outstanding included in the computation of basic and diluted net (loss)/income per share is set forth below (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Weighted average common shares outstanding-Basic		21,650		21,545		21,642		21,545
Dilutive effect of common shares issuable upon exercise of stock options, RSUs and SARs		—		483		—		375

Weighted average common shares outstanding assuming dilution		21,650		22,028		21,642		21,920

The computation of diluted net (loss) per common share for the three and six months ended June 30, 2011 did not include stock options and stock appreciation rights to purchase an aggregate of approximately 1.7 million and 1.8 million shares of common stock, respectively, because their inclusion would have been anti-dilutive due to the loss incurred during each respective period. The computation of diluted net income per common share for the three and six months ended June 30, 2010 did not include stock options and stock appreciation rights to purchase an aggregate of approximately 0.6 million and 0.7 million shares of common stock, respectively because their inclusion would have been anti-dilutive as their exercise price exceeded the average market price of the common stock during such period.