Earnings Per Share

9 Months Ended

Jun. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share

8. Earnings Per Share:

Basic earnings per share (“EPS”) is computed using the weighted average number of common _shares outstanding. Diluted EPS adjusts basic EPS for the effects of stock options and warrants only when such effect is dilutive. The Company uses the treasury stock method to calculate the effect of potential common shares, which require it to compute total assumed proceeds as the sum of (a) the amount the employee must pay upon exercise of the award, (b) the amount of unrecognized share-based compensation costs attributed to future services and (c) the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of the award. Share-based compensation awards for which total assumed proceeds exceed the average market price over the applicable period have an antidilutive effect on EPS and are excluded from the calculation of diluted EPS. At June 30, 2011 and 2010, the Company had outstanding stock options (including performance-based stock options) to purchase 1.4 million and 2.3 million shares, respectively, of common stock ranging in price from $2.11 to $6.20 and $2.11 to $6.20 per share, respectively, that were not included in the computation of diluted EPS either because the exercise price was greater than the average market price of the common shares or the conditions of the performance-based stock options have yet to be satisfied or such effect would have been anti-dilutive. Further, 0.6 million of contingently issuable shares related to the SARs issued to the CEO, as further described in Note 2, have not been included in the computation of diluted EPS at June 30, 2011 and 2010.

The weighted average number of shares used in the basic and diluted earnings per share computations for the three and nine months ended June 30, 2011 and 2010 are as follows (in thousands):

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Weighted average number of common shares outstanding as used in computation of basic EPS of common stock		43,571		45,045		43,571		45,102
Effect of dilutive securities — stock options		266		224		272		261
Shares used in computation of diluted EPS of common stock		43,837		45,269		43,843		45,363