Earnings Per Share

The table below presents a reconciliation between basic and diluted weighted average shares outstanding, net income available to common shareholders and basic and diluted income per share for the three and nine months ended September 30, 2018 and 2017:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(In thousands, except per share amounts)	2018		2017			2018		2017
NUMERATOR
Net income	$	29,282	$	22,327		$	75,256	$	56,199
Preferred stock dividends ^(a)	—		(1,218		)	—		(3,656		)
Excess of fair value over book value of preferred shares subject to redemption	—		(2,257		)	—		(2,257		)
Net income available to common shareholders	29,282		18,852			75,256		50,286
Interest on 3.25% convertible senior subordinated notes due 2017 ^(b)	—		324			—		1,106
Interest on 3.00% convertible senior subordinated notes due 2018^(c)	—		530			408		1,586
Diluted income available to common shareholders	$	29,282	$	19,706		$	75,664	$	52,978
DENOMINATOR
Basic weighted average shares outstanding	28,469		25,581			28,389		25,106
Effect of dilutive securities:
Stock option awards	220		248			346		302
Deferred compensation awards	217		237			202		207
3.25% convertible senior subordinated notes due 2017^(b)	—		1,940			—		2,255
3.00% convertible senior subordinated notes due 2018 ^(c)	—		2,669			574		2,669
Diluted weighted average shares outstanding - adjusted for assumed conversions	28,906		30,675			29,511		30,539
Earnings per common share:
Basic	$	1.03	$	0.74		$	2.65	$	2.00
Diluted	$	1.01	$	0.64		$	2.56	$	1.73
Anti-dilutive equity awards not included in the calculation of diluted earnings per common share	437		—			363		31

(a)

The Company’s Articles of Incorporation authorize the issuance of up to 2,000,000 preferred shares, par value $.01 per share. On March 15, 2007, the Company issued 4,000,000 depositary shares, each representing 1/1000th of a 9.75% Series A Preferred Share of the Company (the “Series A Preferred Shares”), or 4,000 Series A Preferred Shares in the aggregate. On April 10, 2013, the Company redeemed 2,000 of its Series A Preferred Shares (and the 2,000,000 related depositary shares) for an aggregate redemption price of approximately $50.4 million in cash. On October 16, 2017, the Company redeemed the remaining 2,000 outstanding Series A Preferred Shares (and the 2,000,000 related depositary shares) for an aggregate redemption price of approximately $50.4 million in cash. The Company declared and paid a quarterly cash dividend of $609.375 per share on its then outstanding Series A Preferred Shares in each of the first, second and third quarter of 2017, for an aggregate dividend payment on the Series A Preferred Shares of $1.2 million and $3.7 million in the three and nine months ended September 30, 2017, respectively.

(b)

On September 11, 2012, the Company issued $57.5 million in aggregate principal amount of 3.25% Convertible Senior Subordinated Notes due 2017 (the “2017 Convertible Senior Subordinated Notes”). The 2017 Convertible Senior Subordinated Notes were scheduled to mature on September 15, 2017 and the deadline for holders to convert the 2017 Convertible Senior Subordinated Notes was September 13, 2017. As a result of conversion elections made by holders of the 2017 Convertible Senior Subordinated Notes, all $57.5 million in aggregate principal amount of the 2017 Convertible Senior Subordinated Notes were converted and settled through the issuance of our common shares. In total, we issued approximately 2.4 million common shares (at a conversion price per common share of $23.80).

(c)

On March 1, 2013, the Company issued $86.3 million in aggregate principal amount of 2018 Convertible Senior Subordinated Notes. The 2018 Convertible Senior Subordinated Notes were scheduled to mature on March 1, 2018 and the deadline for holders to convert the 2018 Convertible Senior Subordinated Notes was February 27, 2018. As a result of conversion elections made by holders of the 2018 Convertible Senior Subordinated Notes, (1) approximately $20.3 million in aggregate principal amount of the 2018 Convertible Senior Subordinated Notes were converted and settled through the issuance of approximately 0.629 million of our common shares (at a conversion price per common share of $32.31) and (2) the Company repaid in cash approximately $65.9 million in aggregate principal amount of the 2018 Convertible Senor Subordinated Notes at maturity.

For the nine months ended September 30, 2018 and the three and nine months ended September 30, 2017, the effect of our convertible debt then outstanding was included in the diluted earnings per share calculations.