NET INCOME PER SHARE

9 Months Ended

Sep. 30, 2013

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.  We have determined that certain nonvested share awards (also referred to as restricted stock awards) issued by the Company 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.

Diluted net income per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect, if any, of outstanding stock options. The numerator of the diluted net income per share calculation is decreased by the allocation of net income and dividends declared to nonvested shares, if the impact is dilutive.

In determining diluted earnings per share, we use the more dilutive earnings per share result between two-class method calculation and the treasury stock method calculation applied to our outstanding nonvested share awards.

The computation of basic and diluted net income per share for the three and nine months ended September 30, 2013 is as follows:

	Three Months Ended September 30, 2013						Nine Months Ended September 30, 2013
	Net Income (Numerator)			Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount		Net Income (Numerator)			Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount
	(in thousands, except per share data)
Net income	$	4,235					$	11,014
Less: amounts allocated to nonvested shares	(43		)				(111		)
Basic net income available to common stockholders	4,192			35,684	$	0.12	10,903			35,738	$	0.31
Effect of dilutive securities:
Stock options	—			813			—			896
Add back: amounts allocated to nonvested shares	43			—			111			—
Less: amounts re-allocated to nonvested shares	(43		)	—			(111		)	—
Diluted net income available to common stockholders	$	4,192		36,497	$	0.11	$	10,903		36,634	$	0.30

The computation of basic and diluted net income per share for the three and nine months ended September 30, 2012 is as follows:

	Three Months Ended September 30, 2012						Nine Months Ended September 30, 2012
	Net Income (Numerator)			Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount		Net Income (Numerator)			Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount
	(in thousands, except per share data)
Net income	$	11,266					$	18,462
Less: amounts allocated to nonvested shares	(135		)				(221		)
Basic net income available to common stockholders	11,131			35,438	$	0.31	18,241			35,505	$	0.51
Effect of dilutive securities:
Stock options	—			906			—			922
Add back: amounts allocated to nonvested shares	135			—			221			—
Less: amounts re-allocated to nonvested shares	(135		)	—			(221		)	—
Diluted net income available to common stockholders	$	11,131		36,344	$	0.31	$	18,241		36,427	$	0.50

For the three months ended September 30, 2013 and 2012, weighted-average outstanding stock options totaling approximately 2.3 million and 3.1 million, respectively, were anti-dilutive and for the nine months ended September 30, 2013 and 2012, weighted-average outstanding stock options totaling approximately 2.4 million and 3.1 million, respectively, were anti-dilutive and therefore not included in the computation of diluted net income per share.