EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2013

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, 2013 and March 31, 2012, 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 and stock options for the three months ended March 31, 2013 and 2012.

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,
	2013		2012
Net income from continuing operations	$	7,181	$	6,226
Weighted-average shares outstanding - basic and diluted:
Weighted-average shares outstanding - basic		46,087		48,455
Add effect of dilutive securities:
Unvested restricted shares		427		455
Stock options		1		19
Weighted-average shares outstanding - diluted		46,515		48,929
Basic net income per share from continuing operations	$	0.16	$	0.13
Diluted net income per share from continuing operations	$	0.15	$	0.13

The weighted-average diluted common shares outstanding for the three months ended March 31, 2013 and 2012 excludes the effect of an aggregate of 89,832 and 182,749 restricted shares and out-of-the-money options, respectively, because their effect would be anti-dilutive.