NET INCOME PER SHARE

9 Months Ended

Sep. 30, 2011

NET INCOME PER SHARE

NET INCOME PER SHARE

NOTE 4:   NET INCOME PER SHARE

Basic net income per share is computed on the basis of weighted average outstanding common shares.  Diluted net income per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options and convertible debt (if applicable), if dilutive. The numerator of the diluted net income per share calculation is increased by the amount of interest expense, net of tax, related to outstanding convertible debt (if applicable), and the allocation of net income and dividends declared to nonvested shares, if the net impact is dilutive.

We have determined that certain nonvested share awards (also referred to as restricted stock awards) issued by us are participating securities because they have non-forfeitable rights to dividends. Accordingly, basic net income per share is calculated under the two-class method calculation. In determining the number of diluted shares outstanding, we are required to disclose the more dilutive earnings per share result between the treasury stock method calculation and the two-class method calculation as it relates to participating securities. For the three and nine months ended September 30, 2011, the treasury stock method was more dilutive, and for the three and nine months ended September 30, 2010, the two-class method calculation was more dilutive.

The computation of basic and diluted net income per share for the three and nine months ended September 30, 2011 is as follows (in thousands, except per share data):

	Three Months Ended September 30, 2011					Nine Months Ended September 30, 2011
	Net Income (Numerator)		Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount		Net Income (Numerator)			Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount
Net income	$	4,286				$	10,141
Less: net income allocated to nonvested shares (1)	—					(5		)
Basic net income available to common stockholders	4,286		35,268	$	0.12	10,136			35,145	$	0.29
Effect of dilutive securities:
Stock options	—		1,361			—			1,364
Nonvested shares	—		—			5			41
Diluted net income available to common stockholders	$	4,286	36,629	$	0.12	$	10,141		36,550	$	0.28

(1)   Amounts allocated to holders of nonvested shares are calculated based upon a weighted average percentage of nonvested shares that are participating securities in relation to total shares outstanding.

The computation of basic and diluted net income per share for the three and nine months ended September 30, 2010 is as follows (in thousands, except per share data):

	Three Months Ended September 30, 2010						Nine Months Ended September 30, 2010
	Net Income (Numerator)			Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount		Net Income (Numerator)			Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount
Net income	$	4,538					$	10,788
Less: amounts allocated to nonvested shares (1)	(12		)				(34		)
Basic net income available to common stockholders	4,526			37,063	$	0.12	10,754			36,646	$	0.29
Effect of dilutive securities:
Stock options	—			1,122			—			1,080
Convertible debt	—			—			537			2,589
Add-back: amounts allocated to nonvested shares(1)	12			—			34			—
Less: amounts re-allocated to nonvested shares	(12		)	—			(34		)	—
Diluted net income available to common stockholders	$	4,526		38,185	$	0.12	$	11,291		40,315	$	0.28

(1)Amounts allocated to holders of nonvested shares are calculated based upon a weighted average percentage of nonvested shares that are participating securities in relation to total shares outstanding.