Earnings per Common Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Earnings per Common Share

Earnings per Common Share

Earnings per common share, basic, is computed by dividing net income less preferred stock dividends (i.e., net income allocable to common shareholders) by the weighted-average number of common shares outstanding for the period.

Earnings per common share, diluted, is computed by dividing net income adjusted for the interest on the convertible notes by the weighted-average number of common shares – diluted. Dilutive securities are included in the calculation of diluted earnings per common share using the treasury stock method and the if-converted method in accordance with Accounting Standards Codification (“ASC”) Topic 260, “Earnings per Share.” Dilutive securities include the common stock equivalents of convertible preferred stock and convertible notes, options granted pursuant to the Company’s stock option plans and outstanding restricted stock units granted to employees and non-employee directors (see Note 14).

Weighted-average common shares outstanding—diluted is the same as weighted-average common shares outstanding—basic in periods when a net loss is reported or in periods when diluted earnings per share is higher than basic earnings per share.

The following table summarizes the computation of basic and diluted earnings per share (in thousands, except per share data):

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2013			2012			2013			2012
Earnings per common share—basic
Net income	$	10,071		$	2,799		$	51,731		$	34,601
Less: Preferred stock dividends	(783		)	(2,625		)	(1,566		)	(5,250		)
Net income allocable to common shareholders	$	9,288		$	174		$	50,165		$	29,351
Weighted-average common shares outstanding—basic	71,111			65,060			71,086			65,021
Basic earnings per common share	$	0.13		$	0.00		$	0.71		$	0.45
Earnings per common share—diluted
Net income	10,071			$	2,799		$	51,731		$	34,601
Less: Preferred stock dividends	(783		)	(2,625		)	—			—
Interest on convertible debt, net of tax	1,230			—			2,439			—
Net income including assumed conversions	$	10,518		$	174		$	54,170		$	34,601
Weighted-average common shares outstanding—basic	71,111			65,060			71,086			65,021
Convertible notes weighted-average shares outstanding	15,000			—			15,000			—
Preferred stock weighted-average shares outstanding	—			—			5,924			19,858
Options, restricted stock and other dilutive securities	238			52			225			71
Weighted-average common shares outstanding—diluted	86,349			65,112			92,235			84,950
Dilutive earnings per common share	$	0.12		$	0.00		$	0.59		$	0.41

Options with an exercise price in excess of the average market value of the Company’s common stock during the period have been excluded from the calculation of earnings per common share—diluted, as their effect would be antidilutive. For the three months ended June 30, 2013 and 2012, securities outstanding totaling approximately 6,162,000 and 29,100,000 (including preferred stock of 5,924,000 and 19,858,000), respectively, were excluded from the calculation as their effect would have been antidilutive. For the six months ended June 30, 2013 and 2012, securities outstanding totaling approximately 6,071,000 and 9,353,000, respectively, were excluded from the calculation as their effect would have been antidilutive.