Earnings Per Share Computation

6 Months Ended

Jun. 30, 2012

Earnings Per Share Computation

Earnings Per Share Computation

Note 4 — Earnings Per Share Computation

We follow FASB ASC Topic 260, “Earnings Per Share,” which requires the computation and disclosure of two earnings per share (“EPS”) amounts, basic and diluted.  Basic EPS is computed based on the weighted average number of common shares actually outstanding during the period.  Diluted EPS is computed based on the weighted average number of common shares outstanding plus all potentially dilutive common shares outstanding during the period.  Potential common shares which have an anti-dilutive effect are excluded from diluted earnings per share.  The provisions of FASB ASC Topic 260 also provide that unvested share-based payment awards which contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method.  We determined our outstanding shares of non-vested restricted stock are participating securities.

The following table reflects the calculation of weighted average basic and fully diluted shares for the periods ended June 30.  Dollar amounts are in thousands, except share data:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Basic EPS:
Net income (loss)	$	(101,661)	$	(2,924)	$	(103,759)	$	(3,832)
Preferred stock dividends	(1,432)		(1,437)		(2,863)		(2,875)
	$	(103,093)	$	(4,361)	$	(106,622)	$	(6,707)
Income (loss) allocated to participating securities (1)	-		-		-		-
Net income (loss) available to common stockholders	$	(103,093)	$	(4,361)	$	(106,622)	$	(6,707)
Weighted average shares outstanding for basic earnings per common share	25,239,460		25,063,669		25,202,313		25,050,469
Basic earnings per share	$	(4.08)	$	(0.17)	$	(4.23)	$	(0.27)
Diluted EPS:
Net income (loss)	$	(101,661)	$	(2,924)	$	(103,759)	$	(3,832)
Preferred stock dividends	(1,432)		(1,437)		(2,863)		(2,875)
	$	(103,093)	$	(4,361)	$	(106,622)	$	(6,707)
Income (loss) allocated to participating securities (1)	-		-		-		-
Net income (loss) available to common stockholders	$	(103,093)	$	(4,361)	$	(106,622)	$	(6,707)
Weighted average shares outstanding for basic earnings per common share	25,239,460		25,063,669		25,202,313		25,050,469
Dilutive effect of potential shares (2)	N/A		N/A		N/A		N/A
Weighted average shares outstanding for diluted earnings per common share	25,239,460		25,063,669		25,202,313		25,050,469
Diluted earnings per share	$	(4.08)	$	(0.17)	$	(4.23)	$	(0.27)
Participating securities (1)	208,475		126,625		208,475		126,625
Potential dilutive common shares (2)	17,223,588		17,201,417		17,223,588		17,201,417

(1)For the three and six months ended June 30, 2012 and 2011, participating securities, which do not participate in losses, were not included in the calculations of earnings per share, as we were in a loss position and their inclusion would have been anti-dilutive.

(2)For the three and six months ended June 30, 2012 and 2011, potential dilutive common shares, which include stock options, unvested restricted stock, warrants and the conversion of preferred stock, were not included in the computation of diluted earnings per share, as we were in a loss position and their inclusion would have been anti-dilutive.