10. EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Text Block]

10. EARNINGS PER SHARE

Basic and Diluted Net Income Per Share

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. The weighted-average number of common shares outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. These unvested restricted shares, although classified as issued and outstanding at December 31, 2011, 2010 and 2009 are considered contingently returnable until the restrictions lapse and will not be included in the basic earnings per share calculation until the shares are vested. Unvested shares of our restricted stock do not contain nonforfeitable rights to dividends and dividend equivalents.

Diluted earnings per share gives the effect of all potentially dilutive securities on earnings per share. Our outstanding stock options and unvested restricted shares are potentially dilutive securities. The difference between basic and diluted weighted-average shares outstanding in 2011, 2010 and 2009 was the dilutive effect of unvested restricted shares, stock options and warrants.

The following table represents a reconciliation of the basic and diluted earnings per share from continuing operations, or EPS, computations contained in our consolidated financial statements (in thousands):

	Years Ended December 31,
	2011		2010		2009
Net income from continuing operations	$	16,888	$	8,966	$	25,758
Weighted-average shares outstanding:
–Basic		49,619		58,009		58,823
Add dilutive unvested restricted shares		352		342		404
Add dilutive stock options		—		4		81
Add dilutive warrants		—		—		2
–Diluted		49,971		58,355		59,310

The weighted-average diluted common shares outstanding for the year ended December 31, 2011, 2010 and 2009 excludes the effect of 0.7 million, 0.9 million, and 0.7 million, respectively, of restricted shares, out-of-the-money options and warrants, because their effect would be anti-dilutive.