Net Income (Loss) Per Share

6 Months Ended

Mar. 31, 2015

Net Income (Loss) Per Share

Net Income (Loss) Per Share

Note 9.Net Income (Loss) Per Share

The Company accounts for earnings per share using the two-class method. The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to participation rights in undistributed earnings. Non-vested restricted stock awards that include non-forfeitable rights to dividends are considered participating securities. Per share amounts are computed by dividing net income attributable to common stockholders by the weighted average shares outstanding during each period. Basic earnings per share is computed by dividing net income available to common stockholders for the period by the weighted average number of common shares outstanding for the period. The computation of diluted earnings per share is similar to basic earnings per share, except the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. As a result of the loss in the second quarter and first six months of fiscal 2014, no additional common shares or restricted stock awards are included because their effect is antidilutive.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended March 31,						Six Months Ended March 31,
(in thousands, except share and per share data)	2014			2015			2014			2015
Numerator: Basic and Diluted
Net income (loss)	$	(1,223	)	$	11,719		$	(4,715	)	$	18,100
Dividends paid	(2,725		)	(2,737		)	(5,445		)	(5,475		)
Undistributed income (loss)	$	(3,948	)	$	8,982		$	(10,160	)	$	12,625
Percentage allocated to common shares (a)	100.0		%	99.1		%	100.0		%	99.1		%
Undistributed income (loss) allocated to common shares	$	(3,948	)	$	8,901		$	(10,160	)	$	12,511
Dividends paid on common shares outstanding	2,725			2,712			5,445			5,426
Net income (loss) available to common shares	$	(1,223	)	$	11,613		$	(4,715	)	$	17,936
Denominator: Basic and Diluted
Weighted average common shares outstanding	12,287,907			12,333,550			12,267,463			12,329,716
Adjustment for dilutive potential common shares	—			11,886			—			12,395
Weighted average shares outstanding - Diluted	12,287,907			12,345,436			12,267,463			12,342,111
Per common share net income (loss)
Basic	$	(0.10	)	$	0.94		$	(0.38	)	$	1.45
Diluted	$	(0.10	)	$	0.94		$	(0.38	)	$	1.45
Number of stock option shares excluded as their effect would be anti-dilutive	221,270			290,255			229,996			290,255
Number of restrictive stock option shares as their effect would be anti-dilutive	97,600			112,450			97,600			112,450

(a)  Percentage allocated to common shares - weighted average

Common shares outstanding	12,287,907	12,333,550	12,267,463	12,329,716
Unvested participating shares	—	112,450	—	112,450
	12,287,907	12,446,000	12,267,463	12,442,166