EARNINGS (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2013

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

NOTE D—EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing net earnings (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is based on the assumption that stock options are converted into common shares using the treasury stock method and convertible bonds and preferred stock are converted using the if-converted method. Conversion is not assumed if the results are anti-dilutive.  Potential common shares for the three months ended March 31, 2013 and March 31, 2012 of 38,072 and 52,522 respectively, relating to convertible bonds and preferred stock, were excluded from the computation of diluted earnings (loss) per share because they are anti-dilutive. Potential common shares of 2,233,329 and 1,002,979 respectively, relating to stock options and restricted stock were excluded from the computation of diluted earnings (loss) per share for the three months ended March 31, 2013 and 2012, respectively, because they are anti-dilutive. At March 31, 2013 the convertible bonds may be converted from the date of issuance until maturity at 100% of principal amount into common stock of the Company at a price of $50.  The preferred stock may be converted at the discretion of the holder or upon meeting certain conditions at the discretion of the Company (see Note C).

Basic and diluted net earnings per share are computed based on the following information:

	Three Months Ended March 31, 2013		Three Months Ended March 31, 2012
	(in thousands, except for per share data)
Net earnings applicable to common shareholders	$	2,826	$	3,808
Weighted average shares outstanding - basic	71,991,863		71,025,089
Effect of dilutive securities — restricted stock	63,285		—
Effect of dilutive securities — stock options	630,291		1,169,211
Weighted average shares outstanding - diluted	72,685,439		72,194,300
Basic net earnings per share	$	0.04	$	0.05
Diluted net earnings per share	$	0.04	$	0.05