Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earning Per Share [Abstract]

EARNINGS PER SHARE

5. EARNINGS PER SHARE

The Company calculates its basic income per share by dividing net income allocated to common shares outstanding by the weighted average number of common shares outstanding. Outstanding shares of restricted stock participate in dividends on the same basis as common shares. The unvested restricted stock contains non-forfeitable rights to dividends or dividend equivalents. As a result, these share-based awards meet the definition of participating securities and the Company applies the two-class method to compute earnings per share. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common stockholders. In periods in which the Company has net losses, the losses are not allowed to participating securities because the participating security holders are not obligated to share in such losses. The earnings allocated to participating securities for the three- and nine-month periods ended September 30, 2012 was approximately $0.3 million and $0.2 million, respectively.

Except when the effect would be anti-dilutive, the diluted earnings per share calculation includes the dilutive effect of the assumed exercise using the treasury stock method for both stock options and restricted stock units. The following table presents the number of common shares used in the calculation of net income per share from operations for the three- and nine-month periods ended September 30, 2012 ended September 30, 2011.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Weighted-Average Number of Common Shares-Basic		22,993,737		22,211,787		22,887,343		22,140,153
Dilutive Potential Common Shares		23,280		—		15,372		—
Weighted-Average Number of Common Shares-Dilutive		23,017,017		22,211,787		22,902,715		22,140,153

The calculation of diluted earnings per common share for the three- and nine-month periods ended September 30, 2012 excludes the impact of 259,909 and 267,817 shares (before application of the treasury stock method), respectively, related to antidilutive stock options, and restricted stock units. The calculation of diluted earnings per common share for both the three- and nine- month periods ended September 30, 2011 excludes the impact of 263,125 shares related to antidilutive stock options and restricted stock units.