Earnings Per Share

In the first quarter of 2012, the Company reassessed whether its Series B Preferred stock, which was issued in the third quarter of 2008, should qualify as a participating security for purposes of EPS calculations. It was determined that the Series B Preferred stock does qualify as a participating security. As a result of this reassessment, the two-class method of calculating EPS should be applied for periods when there is net income, both current and historical, since the issuance of the Series B Preferred stock.

For the three and nine months ended September 30, 2011, this calculation change identified immaterial errors in certain basic EPS amounts previously reported. There are no changes to diluted EPS amounts for these periods. Basic EPS from continuing operations for the three and nine months ended September 30, 2011 were previously reported as $0.13 and $0.28, respectively, as compared to the corrected amounts presented below of $0.12 and $0.25, respectively. Basic EPS attributable to common shareholders for the three and nine months ended September 30, 2011 were previously reported as $0.15 and $0.34 as compared to the corrected amounts presented below of $0.14 and $0.30, respectively. Basic EPS from discontinued operations was not impacted for these periods. Basic EPS from continuing operations for the three and six months ended June 30, 2011 were previously reported as $0.17 and $0.15, respectively, as compared to the corrected amounts of $0.15 and $0.13, respectively. Basic EPS attributable to common shareholders for the three and six months ended June 30, 2011 were previously reported as $0.19 and $0.19 as compared to the corrected amounts of $0.17 and $0.17, respectively. There was no impact on the loss per share for the three months ended March 31, 2011. The impact on EPS amounts for the remainder of 2011 is also immaterial. There was no impact on the loss per share amounts for other historical periods since the issuance of the Series B Preferred stock. The two class method of calculating EPS is presented below for the three and nine months ended September 30, 2012 and 2011.

The following tables present the computations of basic and diluted EPS:



	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
	(In thousands, except share and per share data)
Basic earnings/ (loss) per share - Numerator:
Net income/ (loss) from continuing operations	$	15,696		$	10,825		$	36,770		$	23,530
Less: Net income attributable to noncontrolling interests	855			740			2,407			2,265
Net income/ (loss) from continuing operations attributable to the Company	14,841			10,085			34,363			21,265
Decrease/ (increase) in noncontrolling interests' redemption values (1)	(344		)	(192		)	(267		)	(522		)
Dividends on participating securities	(91		)	(93		)	(275		)	(281		)
Total adjustments to income attributable to common shareholders	(435		)	(285		)	(542		)	(803		)
Net income/ (loss) from continuing operations attributable to common shareholders, before allocation to participating securities	14,406			9,800			33,821			20,462
Less: Amount allocated to participating securities	(1,454		)	(992		)	(3,411		)	(1,965		)
Net income/ (loss) from continuing operations attributable to common shareholders, after allocation to participating securities	$	12,952		$	8,808		$	30,410		$	18,497
Net income from discontinued operations, before allocation to participating securities	$	1,672		$	1,594		$	5,816		$	4,810
Less: Amount allocated to participating securities	(178		)	(175		)	(629		)	(519		)
Net income from discontinued operations, after allocation to participating securities	$	1,494		$	1,419		$	5,187		$	4,291
Net income/ (loss) attributable to common shareholders, before allocation to participating securities	$	16,078		$	11,394		$	39,637		$	25,272
Less: Amount allocated to participating securities	(1,632		)	(1,167		)	(4,040		)	(2,484		)
Net income/ (loss) attributable to common shareholders, after allocation to participating securities	$	14,446		$	10,227		$	35,597		$	22,788

Basic earnings/ (loss) per share - Denominator:
Weighted average basic common shares outstanding	76,290,382			75,378,923			75,911,520			75,083,976
Per share data - Basic earnings/ (loss) per share from:
Continuing operations	$	0.17		$	0.12		$	0.40		$	0.25
Discontinued operations	$	0.02		$	0.02		$	0.07		$	0.06
Total attributable to common shareholders	$	0.19		$	0.14		$	0.47		$	0.30



	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
	(In thousands, except share and per share data)
Diluted earnings/ (loss) per share - Numerator:
Net income/ (loss) from continuing operations attributable to common shareholders, after allocation to participating securities	$	12,952	$	8,808	$	30,410	$	18,497
Add back: income allocated to dilutive securities	—		—		—		—
Net income/ (loss) from continuing operations attributable to common shareholders, after allocation to participating securities, after assumed dilution	12,952		8,808		30,410		18,497
Net income from discontinued operations, after allocation to participating securities	1,494		1,419		5,187		4,291
Net income/ (loss) attributable to common shareholders, after allocation to participating securities, after assumed dilution	$	14,446	$	10,227	$	35,597	$	22,788
Diluted earnings/ (loss) per share - Denominator:
Weighted average basic common shares outstanding	76,290,382		75,378,923		75,911,520		75,083,976
Dilutive effect of:
Stock options and performance-based restricted stock(2)	621,308		201,954		531,523		175,295
Warrants to purchase common stock (2)	455,921		—		371,160		—
Dilutive common shares	1,077,229		201,954		902,683		175,295
Weighted average diluted common shares outstanding (2)	77,367,611		75,580,877		76,814,203		75,259,271
Per share data - Diluted earnings/ (loss) per share from:
Continuing operations	$	0.17	$	0.12	$	0.39	$	0.25
Discontinued operations	$	0.02	$	0.02	$	0.07	$	0.06
Total attributable to common shareholders	$	0.19	$	0.14	$	0.46	$	0.30
Dividends per share declared on common stock	$	0.01	$	0.01	$	0.03	$	0.03

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(1)

See Part II. Item 8. “Financial Statements and Supplementary Data—Note 16: Noncontrolling Interests” in the Company's Annual Report on Form 10-K for the year ended December 31, 2011 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”), an increase in redemption value from period to period reduces income attributable to common shareholders. Decreases in redemption value from period to period increase income attributable to common shareholders, but only to the extent that the cumulative change in redemption value remains a cumulative increase since adoption of this standard in the first quarter of 2009.


(2)	The diluted EPS computations for the three and nine months ended September 30, 2012 and 2011 do not assume the conversion, exercise, or contingent issuance of the following shares for these periods because the result would have been anti-dilutive for the periods indicated. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows:



	Three months ended September 30,		Nine months ended September 30,
	2012	2011	2012	2011
Shares excluded due to anti-dilution (treasury method):	(In thousands)
Potential common shares from:
Convertible trust preferred securities (a)	784	1,707	784	1,707
Total shares excluded due to anti-dilution	784	1,707	784	1,707



	Three months ended September 30,		Nine months ended September 30,
	2012	2011	2012	2011
Shares excluded due to exercise price exceeding the average market price of common shares during the period (total outstanding):	(In thousands)
Potential common shares from:
Stock options, performance-based restricted stock, or other dilutive securities (b)	2,102	3,967	2,180	3,834
Warrants (c)	—	2,888	—	2,888
Total shares excluded due to exercise price exceeding the average market price of common shares during the period	2,102	6,855	2,180	6,722

(a)

If the effect of the conversion of the trust preferred securities would have been dilutive, interest expense, net of tax, related to the convertible trust preferred securities of $0.2 million and $0.4 million for the three months ended September 30, 2012 and 2011, respectively, and of $0.8 million and $1.2 million for the nine months ended September 30, 2012 and 2011, respectively, would have been added back to net income/ (loss) attributable to common shareholders for diluted EPS computations for the periods presented.


(b)	Options to purchase shares of common stock, non-participating (performance-based) restricted stock, and other dilutive securities that were outstanding at period ends were not included in the computation of diluted EPS or in the above anti-dilution table because their exercise or conversion prices were greater than the average market price of the common shares during the respective periods.

(c)

Certain warrants to purchase shares of common stock that were outstanding at period ends were not included in the computations of diluted EPS because the warrants' exercise price was greater than the average market price of the common shares during the respective period. See Part II. Item 8. “Financial Statements and Supplementary Data—Note 27: Subsequent Events” in the Company's Annual Report on Form 10-K for the year ended December 31, 2011 for a discussion of the 2012 repurchase of the Carlyle warrants and the Director's warrants.