Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share

Earnings Per Share

5. Earnings Per Share

Basic income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period.  Diluted income per share is calculated by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding during the period.  Our common share equivalents consist of stock options and restricted stock awards and units.

The following table reconciles the basic to diluted weighted average shares outstanding using the treasury stock method (shares in thousands):

	Three Months Ended March 31
	(in thousands, except per share data)
Basic and diluted	2014		2013
Net income	$	3,353	$	6,976
Net weighted average common shares outstanding, basic	87,436		87,138
Plus: net effect of dilutive stock options	336		1,485
Plus: net effect of dilutive restricted common shares	163		203
Weighted average common shares outstanding, diluted	87,935		88,826
Income per common share - Basic	$	0.04	$	0.08
Income per common share - Diluted	$	0.04	$	0.08

For the three months ended March 31, 2014 and 2013, 1,434,314 and 594,318 stock options, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.  For the three months ended March 31, 2014 and 2013, 25,541 and 64,054 restricted stock units were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.