EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2013

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE D—EARNINGS PER SHARE

Basic earnings per share is computed by dividing net earnings applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is based on the assumption that stock options and warrants 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 six months ended June 30, 2013 and June 30, 2012 of 38,072 and 52,093 respectively, relating to convertible bonds and preferred stock, were excluded from the computation of diluted earnings per share because they are anti-dilutive. Potential common shares of 2,794,021 and 1,705,448 respectively, relating to stock options and restricted stock were excluded from the computation of diluted earnings per share for the six months ended June 30, 2013 and 2012, respectively, because they are anti-dilutive. Stock options have a weighted average exercise price of $2.22 and $2.90 at June 30, 2013 and June 30, 2012, respectively. At June 30, 2013 the convertible bonds may be converted at 100% of principal 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 June 30, 2013		Three Months Ended June 30,  2012		Six Months Ended June 30, 2013		Six Months Ended June 30, 2012
	(in thousands, except for per share data)				(in thousands, except for per share data)
Net earnings applicable to common shareholders	$	9,183	$	5,257	$	12,008	$	9,065
Weighted average shares outstanding — basic	72,283,896		71,062,658		72,138,686		71,043,874
Effect of dilutive securities — restricted stock	11,822		—		15,592		—
Effect of dilutive securities — stock options	557,159		895,656		569,175		1,050,449
Weighted average shares outstanding - diluted	72,852,877		71,958,314		72,723,453		72,094,323
Basic net earnings per share	$	0.13	$	0.07	$	0.17	$	0.13
Diluted net earnings per share	$	0.13	$	0.07	$	0.17	$	0.13