EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2014

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 17 — 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)	2014		2013		2014		2013
Net income attributable to Altisource	$	54,101	$	30,931	$	93,732	$	58,449
Weighted average common shares outstanding, basic	22,089		23,161		22,301		23,267
Dilutive effect of stock options	2,077		1,662		2,114		1,673
Weighted average common shares outstanding, diluted	24,166		24,823		24,415		24,940
Earnings per share:
Basic	$	2.45	$	1.34	$	4.20	$	2.51
Diluted	$	2.24	$	1.25	$	3.84	$	2.34

For the six months ended June 30, 2014 and 2013, less than 0.1 million and 0.1 million options, respectively, that were anti-dilutive, have been excluded from the computation of diluted EPS (less than 0.1 million options in each period for the second quarter of 2014 and 2013).  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, 2014 and 2013 are 0.1 million options in each period (0.1 million options in each period for the second quarter of 2014 and 2013), 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 yet been met.