Earnings Per Share

The two class method of calculating earnings per share (“EPS”) is presented below for the three and six months ended June 30, 2014 and 2013. The following tables present the computations of basic and diluted EPS:



	Three months ended June 30,						Six months ended June 30,
	2014			2013			2014			2013
	(In thousands, except share and per share data)
Basic earnings per share - Numerator:
Net income from continuing operations	$	20,907		$	19,516		$	37,256		$	31,927
Less: Net income attributable to noncontrolling interests	1,025			969			2,261			1,899
Net income from continuing operations attributable to the Company	19,882			18,547			34,995			30,028
Decrease/ (increase) in noncontrolling interests’ redemption values (1)	(253		)	(97		)	(369		)	(112		)
Dividends on participating and preferred securities (2)	(942		)	(12,371		)	(1,887		)	(12,813		)
Total adjustments to income attributable to common shareholders	(1,195		)	(12,468		)	(2,256		)	(12,925		)
Net income from continuing operations attributable to common shareholders, before allocation to participating securities	18,687			6,079			32,739			17,103
Less: Amount allocated to participating securities	(118		)	(88		)	(218		)	(673		)
Net income from continuing operations attributable to common shareholders, after allocation to participating securities	$	18,569		$	5,991		$	32,521		$	16,430
Net income from discontinued operations, before allocation to participating securities	$	1,450		$	2,781		$	3,378		$	4,503
Less: Amount allocated to participating securities	(14		)	(111		)	(37		)	(325		)
Net income from discontinued operations, after allocation to participating securities	$	1,436		$	2,670		$	3,341		$	4,178
Net income attributable to common shareholders, before allocation to participating securities	$	20,137		$	8,860		$	36,117		$	21,606
Less: Amount allocated to participating securities	(132		)	(199		)	(255		)	(998		)
Net income attributable to common shareholders, after allocation to participating securities	$	20,005		$	8,661		$	35,862		$	20,608

Basic earnings per share - Denominator:
Weighted average basic common shares outstanding	78,438,636			77,250,998			78,292,721			77,035,998
Per share data - Basic earnings per share from:
Continuing operations	$	0.24		$	0.08		$	0.42		$	0.21
Discontinued operations	$	0.02		$	0.03		$	0.04		$	0.05
Total attributable to common shareholders	$	0.26		$	0.11		$	0.46		$	0.27



	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
	(In thousands, except share and per share data)
Diluted earnings per share - Numerator:
Net income from continuing operations attributable to common shareholders, after allocation to participating securities	$	18,569	$	5,991	$	32,521	$	16,430
Add back: income allocated to dilutive securities	—		—		—		—
Net income from continuing operations attributable to common shareholders, after allocation to participating securities, after assumed dilution	18,569		5,991		32,521		16,430
Net income from discontinued operations, after allocation to participating securities	1,436		2,670		3,341		4,178
Net income attributable to common shareholders, after allocation to participating securities, after assumed dilution	$	20,005	$	8,661	$	35,862	$	20,608
Diluted earnings per share - Denominator:
Weighted average basic common shares outstanding	78,438,636		77,250,998		78,292,721		77,035,998
Dilutive effect of:
Stock options and performance-based restricted stock (3)	685,683		570,355		693,420		560,157
Warrants to purchase common stock (3)	1,174,106		557,525		1,172,701		509,135
Dilutive common shares	1,859,789		1,127,880		1,866,121		1,069,292
Weighted average diluted common shares outstanding (3)	80,298,425		78,378,878		80,158,842		78,105,290
Per share data - Diluted earnings per share from:
Continuing operations	$	0.23	$	0.08	$	0.41	$	0.21
Discontinued operations	$	0.02	$	0.03	$	0.04	$	0.05
Total attributable to common shareholders	$	0.25	$	0.11	$	0.45	$	0.26
Dividends per share declared and paid on common stock	$	0.08	$	0.05	$	0.16	$	0.10

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(1)

See Part II. Item 8. “Financial Statements and Supplementary Data—Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 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)	Consideration paid in excess of carrying value for the repurchase of the Series B preferred stock of $11.7 million is considered a deemed dividend and, for purposes of calculating EPS, reduces net income attributable to common shareholders for the three and six months ended June 30, 2013.


(3)	The diluted EPS computations for the three and six months ended June 30, 2014 and 2013 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 June 30,		Six months ended June 30,
	2014	2013	2014	2013
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 or other dilutive securities (a)	780	1,398	865	1,511
Total shares excluded due to exercise price exceeding the average market price of common shares during the period	780	1,398	865	1,511


(a)	Options to purchase shares of common 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.