Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share of the Company is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period. Except when the effect would be anti-dilutive, the diluted earnings per share calculation calculated using the treasury stock method includes the impact of stock units, shares of non-vested restricted stock and shares that could be issued under outstanding stock options.

The following table provides a reconciliation of the common shares used for basic earnings per share and diluted earnings per share (in thousands):

	Three Months Ended March 31,
	2013	2012
Weighted average number of common shares used for basic earnings per share (a)	26,147	25,931
Effect of potential dilutive shares (b)	—	—
Weighted average number of common shares and potential dilutive shares used for diluted earnings per share	26,147	25,931
Anti-dilutive shares outstanding at period-end that are excluded from the above reconciliation (c)	5,349	4,916

(a) Weighted average number of common shares used for basic earnings per share excludes 285,060 and 266,157 weighted average shares of non-vested restricted stock as of the three months ended March 31, 2013 and 2012, respectively. Non-vested restricted stock is included in common shares issued and outstanding in the condensed consolidated balance sheets.

(b) Since the Company incurred a loss for the three months ended March 31, 2013 and 2012, all potentially dilutive securities are anti-dilutive for these periods and, therefore, are excluded from the determination of diluted earnings per share.

(c) Anti-dilutive shares outstanding at period-end that are excluded from the above reconciliation include warrants, non-vested restricted stock and stock options issued under the FairPoint Communications, Inc. 2010 Long Term Incentive Plan.