Earnings Per Share

The treasury stock method of calculating earnings per share (“EPS”) is presented below for the three and six months ended June 30, 2016 and 2015. The following tables present the computations of basic and diluted EPS:



	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
(In thousands, except share and per share data)
Basic earnings per share - Numerator:
Net income from continuing operations	$	16,142		$	17,327		$	33,029		$	35,245
Less: Net income attributable to noncontrolling interests	989			1,263			1,900			2,492
Net income from continuing operations attributable to the Company	15,153			16,064			31,129			32,753
Decrease/ (increase) in noncontrolling interests’ redemption values (1)	(101		)	(157		)	479			(251		)
Dividends on preferred stock	(869		)	(869		)	(1,738		)	(1,738		)
Total adjustments to income attributable to common shareholders (2)	(970		)	(1,026		)	(1,259		)	(1,989		)
Net income from continuing operations attributable to common shareholders, treasury stock method (2)	14,183			15,038			29,870			30,764
Net income from discontinued operations (2)	1,245			1,546			3,310			3,640
Net income attributable to common shareholders, treasury stock method (2)	$	15,428		$	16,584		$	33,180		$	34,404

Basic earnings per share - Denominator:
Weighted average basic common shares outstanding	81,236,809			80,778,562			81,269,154			80,647,191
Per share data - Basic earnings per share from:
Continuing operations	$	0.17		$	0.19		$	0.37		$	0.38
Discontinued operations	$	0.02		$	0.02		$	0.04		$	0.05
Total attributable to common shareholders	$	0.19		$	0.21		$	0.41		$	0.43



	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
(In thousands, except share and per share data)
Diluted earnings per share - Numerator:
Net income from continuing operations attributable to common shareholders, after assumed dilution (2)	$	14,183	$	15,038	$	29,870	$	30,764
Net income from discontinued operations	1,245		1,546		3,310		3,640
Net income attributable to common shareholders, after assumed dilution	$	15,428	$	16,584	$	33,180	$	34,404
Diluted earnings per share - Denominator:
Weighted average basic common shares outstanding	81,236,809		80,778,562		81,269,154		80,647,191
Dilutive effect of:
Stock options and performance-based and time-based restricted stock (2),(3)	1,058,425		1,231,478		1,019,488		1,249,729
Warrants to purchase common stock (3)	1,224,705		1,250,343		1,102,415		1,214,308
Dilutive common shares	2,283,130		2,481,821		2,121,903		2,464,037
Weighted average diluted common shares outstanding (2), (3)	83,519,939		83,260,383		83,391,057		83,111,228
Per share data - Diluted earnings per share from:
Continuing operations	$	0.17	$	0.18	$	0.36	$	0.37
Discontinued operations	$	0.01	$	0.02	$	0.04	$	0.04
Total attributable to common shareholders	$	0.18	$	0.20	$	0.40	$	0.41
Dividends per share declared and paid on common stock	$	0.10	$	0.09	$	0.20	$	0.18

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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, 2015 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 Company presents its EPS based on the treasury stock method. The Company reverted to the treasury stock presentation from the two-class presentation due to the immaterial number of participating shares outstanding as of March 31, 2016. If the EPS presentation had been based on the two-class method, the following adjustments would have been made to the presentation of EPS for the three and six months ended June 30, 2016. Net income attributable to common shareholders would have been reduced by an additional $4 thousand, for the six months ended June 30, 2016, and the allocation of net income to participating securities would have been $1 thousand and $6 thousand, for the three and six months ended June 30, 2016, respectively, reducing net income attributable to common shareholders by a total of $1 thousand and $10 thousand, for the three and six months ended June 30, 2016, respectively. Basic EPS would not change. Weighted average diluted shared outstanding would have been reduced by 3,847 shares and 19,522 shares for the three and six months ended June 30, 2016, respectively. Diluted EPS would not change.

If the EPS presentation had been based on the two-class method, the following adjustments would have been made to the presentation of EPS for the three and six months ended June 30, 2015. Net income attributable to common shareholders would have been reduced by an additional $38 thousand and $80 thousand, for the three and six months ended June 30, 2015, respectively, and the allocation of net income to participating securities would have been $33 thousand and $92 thousand, for the three and six months ended June 30, 2015, respectively, reducing net income attributable to common shareholders by a total of $71 thousand and $172 thousand, for the three and six months ended June 30, 2015, respectively. Basic EPS would decrease by $0.01 per share for both the three and six months ended June 30, 2015. Weighted average diluted shared outstanding would have been reduced by 221,902 shares and 282,399 shares, for the three and six months ended June 30, 2015, respectively. Diluted EPS would not change.


(3)	The diluted EPS computations for the three and six months ended June 30, 2016 and 2015 do not assume the conversion, exercise, or contingent issuance of the following shares for the following 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,
	2016	2015	2016	2015
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, restricted stock, or other dilutive securities	315	538	243	585
Total shares excluded due to exercise price exceeding the average market price of common shares during the period	315	538	243	585