EARNINGS PER SHARE

9 Months Ended

Sep. 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 nine months ended September 30, 2013 and September 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 2,910,907 and 1,644,817 respectively, relating to stock options and restricted stock were excluded from the computation of diluted earnings per share for the nine months ended September 30, 2013 and 2012, respectively, because they are anti-dilutive. Stock options have a weighted average exercise price of $2.59 and $2.88 at September 30, 2013 and September 30, 2012, respectively. At September 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 September 30, 2013		Three Months Ended  September 30,  2012		Nine Months Ended September 30, 2013		Nine Months Ended September 30, 2012
	(in thousands, except for per  share data)				(in thousands, except for per share data)
Net earnings applicable to common shareholders	$	14,656	$	2,405	$	26,664	$	11,469
Weighted average shares outstanding — basic	72,424,626		71,178,903		72,235,047		71,089,212
Effect of dilutive securities — restricted stock	—		—		—		—
Effect of dilutive securities — stock options	194,107		861,490		190,803		937,933
Weighted average shares outstanding - diluted	72,618,733		72,040,393		72,425,850		72,027,145
Basic net earnings per share	$	0.20	$	0.03	$	0.37	$	0.16
Diluted net earnings per share	$	0.20	$	0.03	$	0.37	$	0.16