Earnings per Share

9 Months Ended

Sep. 30, 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 dilutive common share equivalents consist of stock options and restricted stock awards and units.

The following table reconciles the basic to diluted weighted average common shares outstanding using the treasury stock method (in thousands, except per share data):

	Three months ended				Nine months ended
	September 30,				September 30,
Basic and diluted	2014		2013		2014		2013
Net income	$	6,950	$	11,508	$	16,341	$	28,904
Weighted average common shares outstanding, basic	87,736		87,830		87,660		87,551
Plus: net effect of dilutive stock options	272		1,146		293		1,268
Plus: net effect of dilutive restricted stock awards and units	225		191		192		179
Weighted average common shares outstanding, diluted	88,233		89,167		88,145		88,998
Income per common share - Basic	$	0.08	$	0.13	$	0.19	$	0.33
Income per common share - Diluted	$	0.08	$	0.13	$	0.19	$	0.32

For the three months ended September 30, 2014 and 2013, 2,251,303 and 1,249,399 stock options, respectively, and 2,367 and 178,421 restricted stock units, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive. For the nine months ended September 30, 2014 and 2013, 2,395,158 and 1,375,604 stock options, respectively, and 79,947 and 106,194 restricted stock units, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.