12.

Net (Loss) Income per Share Attributable to Common Stock

Net (loss) income 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 are entitled to dividends when the Company pays dividends.

The Company’s basic net (loss) income per share attributable to common stock is computed by reducing the Company’s net (loss) income by the net income allocable to unvested restricted stockholders that have a right to participate in 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. 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 (loss) income per share attributable to common stock is computed by dividing the net (loss) income attributable to common stock by the weighted average shares outstanding. The Company’s dilutive net (loss) income per share attributable to common stock is computed by adjusting basic net (loss) income 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,
	2014			2013			2012(a)
				(in 000’s)
Net (loss) income	$	(12,620	)	$	10,480		$	11,113
Income allocable to unvested restricted stock		(25	)		(136	)		(158	)

Basic (loss) income attributable to common stock	$	(12,645	)	$	10,344		$	10,955

Reallocation of participating earnings		—			1			—

Diluted (loss) income attributable to common stock	$	(12,645	)	$	10,345		$	10,955

Weighted average common shares outstanding:
Basic:		7,959,452			7,879,614			7,841,722
Dilutive common stock options and restricted stock units		—			40,751			35,385

Diluted:		7,959,452			7,920,365			7,877,107

Basic (loss) income attributable to a share of common stock	$	(1.59	)	$	1.31		$	1.40

Diluted (loss) income attributable to a share of common stock	$	(1.59	)	$	1.31		$	1.39

(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 the 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 2014. As a result, all stock options and restricted stock units were antidilutive and excluded from weighted average shares used in determining the loss attributable to a share of common stock for the period.

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


	Year Ended September 30,
	2014		2013		2012
Stock options		92,100		—		—
Restricted stock units		18,962		—		—

Total		111,062		—		—

Shares of 103,500, 103,500 and 184,600 unvested restricted stock at September 30, 2014, 2013 and 2012, respectively, are included in common stock outstanding as such shares have a nonforfeitable right to participate in any dividends that might be declared and have the right to vote. Weighted average shares of unvested restricted stock included in common stock outstanding were as follows:


	2014		2013		2012
Unvested restricted stock		103,500		169,649		113,426