EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2012

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

8. EARNINGS PER SHARE

Basic and Diluted Earnings 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 March 31, 2012 and March 31, 2011, 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 or dividend equivalents.

Diluted earnings per share includes the effect of all potentially dilutive securities on earnings per share. Our unvested restricted shares and stock options are potentially dilutive securities. The difference between basic and diluted weighted-average shares outstanding was the dilutive effect of unvested restricted shares, stock options and warrants for the three months ended March 31, 2012 and 2011.

The following table represents a reconciliation of the shares used in the calculation of basic and diluted net income per share from continuing operations computations contained in our condensed consolidated financial statements (in thousands, except per share data):

	Three Months Ended March 31,
	2012		2011
Net income from continuing operations	$	6,226	$	2,932
Weighted-average shares outstanding - basic and diluted:
Weighted-average shares outstanding - basic		48,455		50,759
Add effect of dilutive securities:
Unvested restricted shares		455		312
Stock options		19		-
Weighted-average shares outstanding - diluted		48,929		51,071
Basic net income per share from continuing operations	$	0.13	$	0.06
Diluted net income per share from continuing operations	$	0.13	$	0.06

The weighted-average diluted common shares outstanding for the three months ended March 31, 2012 and 2011 excludes the effect of an aggregate of 182,749 and 1,055,484 restricted shares, out-of-the-money options and warrants, respectively, because their effect would be anti-dilutive.