EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2013

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

9. EARNINGS PER SHARE

Basic EPS is computed by dividing the net income applicable to common stockholders for the period by the weighted average number of shares of common stock outstanding during the same period. The Company's Series A-1 Preferred, Series A-2 Preferred, and Series A-3 Preferred Stock, that had been outstanding and convertible into common stock until February 13, 2012 (the date of the Company's initial public offering), were considered participating securities since these securities had non-forfeitable rights to dividends or dividend equivalents during the contractual period and thus required the two-class method of computing EPS. When calculating diluted EPS, the numerator is computed by adding back the undistributed earnings allocated to the participating securities in arriving at the basic EPS and then reallocating such undistributed earnings among the Company's common stock, participating securities and the potential common shares that result from the assumed exercise of all dilutive options. The denominator is increased to include the number of additional common shares that would have been outstanding had the options been issued.

No preferred stock was outstanding as of December 31, 2012, as a result of the Company's initial public offering on February 13, 2012 when all convertible preferred stock was converted into common stock.

The following table sets forth the computation of basic and diluted earnings per share as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(in thousands, except share and per share data)
Numerator for common earnings per share:
Operating expenses:
Net income	$	14,118	$	13,321	$	26,798	$	25,420
Net income allocated to participating securities		-		-		-		(3,176	)
Numerator for basic earnings per share		14,118		13,321		26,798		22,244
Effect on income available from reallocation of options		-		-		-		264
Numerator for diluted earnings per share	$	14,118	$	13,321	$	26,798	$	22,508
Denominator for basic earnings per share:
Weighted average common shares outstanding		45,486		42,475		45,151		36,987
Effect of dilutive securities:
Stock options		2,491		3,907		2,662		3,833
Denominator for diluted earnings per share		47,977		46,382		47,813		40,820
Net income per share:
Basic (common)	$	0.31	$	0.31	$	0.59	$	0.60
Diluted (common)	$	0.29	$	0.29	$	0.56	$	0.55
Anti-dilutive options not included in the calculation		950		1,393		1,162		1,396