EARNINGS PER SHARE

6 Months Ended

Jun. 30, 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 using the treasury stock method.

Basic and diluted EPS are calculated as follows:

	Three months ended				Six months ended
	June 30,				June 30,
(in thousands, except per share data)	2013		2012		2013		2012
Net income attributable to Altisource	$	30,931	$	28,081	$	58,449	$	53,310
Weighted-average common shares outstanding, basic	23,161		23,316		23,267		23,353
Dilutive effect of stock options	1,662		1,530		1,673		1,497
Weighted-average common shares outstanding, diluted	24,823		24,846		24,940		24,850
Earnings per share
Basic	$	1.34	$	1.20	$	2.51	$	2.28
Diluted	$	1.25	$	1.13	$	2.34	$	2.15

For the six months ended June 30, 2013 and 2012, 0.1 million and less than 0.1 million options, respectively (less than 0.1 million for the second quarter of 2013 and 2012), 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 six months ended June 30, 2013 and 2012 are 0.1 million and 0.3 million options, respectively (0.1 million and 0.3 million for the second quarter of 2013 and 2012, 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.