Note 2 – Earnings Per Share

The following table sets forth the calculation of basic and diluted weighted average shares outstanding and earnings per share for the indicated periods:


	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(In thousands, except per share data)
Income (numerator):
*Basic:*
Net income	$	4,444		$	39,022		$	30,387		$	79,780
Net income attributable to participating securities		(111	)		(1,015	)		(698	)		(1,794	)

Net income attributable to common stock - basic	$	4,333		$	38,007		$	29,689		$	77,986

*Diluted:*
Net income	$	4,444		$	39,022		$	30,387		$	79,780
Net income attributable to participating securities		(111	)		(1,015	)		(697	)		(1,793	)

Net income attributable to common stock - diluted	$	4,333		$	38,007		$	29,690		$	77,987

Weighted average shares (denominator):
Weighted average shares - basic		52,050			48,687			50,540			48,653
Dilutive effect of stock options		58			38			54			38
Dilutive effect of convertible notes		265			—			133			—

Weighted average shares - diluted		52,373			48,725			50,727			48,691

Basic earnings per share	$	0.08		$	0.78		$	0.59		$	1.60

Diluted earnings per share	$	0.08		$	0.78		$	0.59		$	1.60

Stock options that were considered antidilutive because the exercise price of the options exceeded the average price of our common stock for the applicable period totaled approximately 120,000 shares and 131,000 shares during the three and six months ended June 30, 2014, respectively, and 333,000 shares during the three and six months ended June 30, 2013.

During the three months ended June 30, 2014 and 2013, approximately 40,000 shares and 45,000 shares of our common stock, respectively, were issued from authorized shares upon the lapsing of forfeiture restrictions of restricted stock and the exercise of stock options by employees and nonemployee directors. During the six months ended June 30, 2014 and 2013, approximately 372,000 shares and 336,000 shares of common stock, respectively, were issued from authorized shares upon the lapsing of forfeiture restrictions of restricted stock and the exercise of stock options by employees and nonemployee directors. In May 2014, 5,750,000 shares of our common stock were issued in a public offering (see Note 3 – Common Stock Offering).

Because it is management’s stated intention to redeem the principal amount of our 1³⁄₄% Senior Convertible Notes due 2017 (the “2017 Convertible Notes”) (see Note 5 – Long-Term Debt) in cash, we have used the treasury method for determining dilution in the diluted earnings per share computation. During the three months ended June 30, 2014, the average price of our common stock exceeded the effective conversion price of the 2017 Convertible Notes, and therefore, such notes were dilutive for the three and six months ended June 30, 2014. For the prior year periods presented, the average price of our common stock was less than the effective conversion price for such notes, resulting in no dilutive effect on the diluted earnings per share computation for such periods. For all periods presented, the average price of our common stock was less than the strike price of the Sold Warrants (as defined in Note 5 – Long-Term Debt) and therefore, such warrants were not dilutive for such periods. Based on the terms of the Purchased Call Options (as defined in Note 5 – Long-Term Debt), such call options are antidilutive and therefore, were not included in the calculation of diluted earnings per share.