Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

(3) Earnings Per Share

Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock plus common stock equivalents. Common stock equivalents consist of employee and director stock options, restricted stock awards, other share-based payment awards, and contingently issuable shares related to the Company’s convertible debt which are included in the calculation of weighted average shares outstanding using the treasury stock method, if dilutive. The following table is a reconciliation of the basic and diluted earnings per share calculations for the three and nine months ended September 30, 2012 and 2011:

	For the Three  Months Ended September 30,				For the Nine Months Ended September 30,
	2012		2011		2012			2011
Numerator:
Net (loss) income	$	3,173	$	3,803	$	(4,105	)	$	10,203
Denominator:
Denominator for basic (loss) earnings per share:
Weighted average common shares outstanding		23,019		22,840		22,982			22,816
Effect of dilutive securities:
Outstanding common stock equivalents		880		380		—			446
Denominator for diluted earnings per share		23,899		23,220		22,982			23,262
Basic (loss) earnings per share	$	0.14	$	0.17	$	(0.18	)	$	0.45
Diluted (loss) earnings per share	$	0.13	$	0.16	$	(0.18	)	$	0.44
Excluded outstanding shared-based awards having an anti-dilutive effect		222		62		222			20

The Convertible Notes are dilutive to the extent the Company generates net income and the average stock price during the period is greater than $10.28, the conversion price of the Convertible Notes (see Note 4). The Convertible Notes are only dilutive for the “in the money” portion of the Convertible Notes that could be settled with the Company’s stock. In future periods, absent a fundamental change, (as defined in the Convertible Notes agreement), the outstanding Convertible Notes could increase diluted average shares outstanding by a maximum of approximately 5,600 shares.

For the three and nine months ended September 30, 2012 and 2011, the participating securities, which represent certain non-vested shares granted by the Company, were less than one percent of total securities. These securities do not participate in the Company’s net (loss) income.