NET INCOME PER SHARE

6 Months Ended

Jun. 30, 2012

NET INCOME PER SHARE

12. NET INCOME PER SHARE

Certain of the Company’s restricted unvested share units contain rights to receive nonforfeitable dividends, and thus, are participating securities requiring the two-class method of computing earnings per share. The participating securities had an insignificant impact on the calculation of earnings per share (impacts the rounding by less than $0.01 per share) on all of the 2011 periods presented; therefore, the Company does not present the full calculation below.

Basic and diluted net income per share was as follows (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Basic net income per share:
Net income	$	8,514	$	699	$	15,207	$	12,186
Weighted average common shares outstanding		28,419		29,556		28,382		29,559
Basic net income per common share	$	0.30	$	0.02	$	0.54	$	0.41
Diluted net income per share:
Net income	$	8,514	$	699	$	15,207	$	12,186
Weighted average common shares outstanding — Basic		28,419		29,556		28,382		29,559
Effect of dilutive securities:
Stock options and restricted stock		190		622		167		595
Weighted average common shares for diluted earnings per share		28,609		30,178		28,549		30,154
Diluted net income per common share	$	0.30	$	0.02	$	0.53	$	0.40

At June 30, 2012 and 2011 the Company had 1.7 million and 1.5 million of outstanding stock options, respectively. The Company also has warrants outstanding relating to its 2016 Notes at June 30, 2012 and 2011. Stock options, restricted stock and warrants are included in the diluted earnings per share calculation using the treasury stock method, unless the effect of including the stock options would be anti-dilutive. For the three months ended June 30, 2012 and 2011, 1.2 million and 0.1 million anti-dilutive stock options, respectively, were excluded from the diluted earnings per share calculation. For the six months ended June 30, 2012 and 2011, 1.3 million and 0.2 million anti-dilutive stock options, respectively, were excluded from the diluted earnings per share calculation. As the strike price of the warrants exceeded the Company’s average stock price for the period, the warrants are anti-dilutive and the entire number of warrants was also excluded from the diluted earnings per share calculation.