11. Net Income (Loss) per Share Attributable to Common Stock

Net income (loss) per share attributable to common stock is calculated using the two-class method. The two-class method is an allocation method of calculating earnings (loss) per share when a company’s capital structure includes participating securities that have rights to undistributed earnings. The Company’s employees and officers that hold unvested restricted stock would be entitled to dividends if the Company were to pay dividends.

The Company’s basic net income (loss) per share attributable to common stock is computed by reducing the Company’s net income by the net income allocable to unvested restricted stockholders that have a right to participate in undistributed earnings. The Company’s employees and officers that hold unvested restricted stock do not participate in losses because they are not contractually obligated to do so. Accordingly, no losses are allocated to these unvested restricted stockholders. The undistributed earnings are allocated based on the relative percentage of the weighted average shares of unvested restricted stock and the total of the weighted average common shares outstanding plus the weighted average unvested restricted stock shares. The basic net income (loss) per share attributable to common stock is computed by dividing the net income (loss) attributable to common stock by the weighted average shares outstanding. The Company’s dilutive net income (loss) per share attributable to common stock is computed by adjusting basic net income (loss) per share attributable to common stock by diluted income allocable to unvested restricted stock divided by weighted average diluted shares outstanding. A reconciliation of the basic and diluted earnings (loss) per share attributable to common stock is as follows:


	Year Ended September 30,
	2013			2012(a)			2011
				(in 000’s)
Net income (loss)	$	10,480		$	11,113		$	(3,246	)
Income allocable to unvested restricted stock		(136	)		(158	)		—

Basic income (loss) attributable to common stock	$	10,344		$	10,955		$	(3,246	)

Reallocation of participating earnings		1			—			—

Diluted income (loss) attributable to common stock	$	10,345		$	10,955		$	(3,246	)

Weighted average common shares outstanding:
Basic:		7,879,614			7,841,722			7,809,561
Dilutive common stock options and restricted stock units		40,751			35,385			—

Diluted:		7,920,365			7,877,107			7,809,561

Basic income (loss) attributable to a share of common stock	$	1.31		$	1.40		$	(0.42	)

Diluted income (loss) attributable to a share of common stock	$	1.31		$	1.39		$	(0.42	)

(a)

The 2012 earnings per share calculations have been adjusted for the two-class method to reflect restricted shares that were not reflected as participating in the prior period. Basic earnings per share as previously reported for year ended September 30, 2012 was $1.42. Diluted earnings per share as previously reported for the year-ended September 30, 2012 was $1.40. Basic weighted average shares outstanding as previously reported for the year ended September 30, 2012 was 7,841,722. Diluted weighted average shares outstanding as previously reported for the year ended September 30, 2012 was 7,931,593. The impact on all prior period financial statements is deemed immaterial.

The Company had a net loss in 2011. As a result, the numerator for diluted loss per share attributable to common stock is the same as for basic loss per share attributable to common stock and the denominator for diluted loss per share attributable to common stock is the same as the denominator for basic loss per share attributable to common stock for this period.

The following weighted average numbers of certain securities have been excluded from the calculation of diluted income (loss) per share attributable to common stock, as their effects would be anti-dilutive.


	Year Ended September 30,
	2013		2012		2011
Stock options		—		—		140,487
Restricted stock		—		46,273		105,655

Total		—		46,273		246,142