EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2013

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 16 — EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of all dilutive securities.

Basic and diluted EPS are calculated as follows for the three months ended March 31:

(in thousands, except per share data)	2013		2012
Net income attributable to Altisource	$	27,518	$	25,229
Weighted-average common shares outstanding, basic	23,374		23,381
Dilutive effect of stock options	1,684		1,463
Weighted-average common shares outstanding, diluted	25,058		24,844
Earnings per share
Basic	$	1.18	$	1.08
Diluted	$	1.10	$	1.02

For the three months ended March 31, 2013 and 2012, 0.1 million and less than 0.1 million options, respectively, that were anti-dilutive have been excluded from the computation of diluted EPS. These options were anti-dilutive because their exercise price was greater than the average market price of our common stock.  Also excluded from the computation of diluted EPS for the three months ended March 31, 2013 and 2012 are 0.1 million and 0.4 million options, respectively, granted for shares that are issuable upon the achievement of certain market and performance criteria related to our common stock price and an annualized rate of return to investors that have not been met.