Earnings Per Share

3 Months Ended

Sep. 30, 2012

Earnings Per Share

Note 7—Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income, adjusted for the effect of dilutive securities, by the weighted-average number of common and common equivalent shares outstanding during the period. The Company uses the treasury stock method to reflect the dilutive effect of outstanding stock options.

Earnings per basic and diluted share are calculated under the two-class method. Pursuant to the two-class method, the Company’s unvested restricted share awards with nonforfeitable rights to dividends are considered participating securities. The Company’s common shares outstanding consist of all shares issued and outstanding, including the unvested restricted shares. Dividends are paid on all common shares outstanding and at the same rate. Accordingly, the Company has evaluated the impact of earnings per share of all participating securities under the two-class method, noting no impact on earnings per share.

As of September 30, 2012 and 2011, the Company had 252,423 and 452,655 issued and outstanding employee stock options, respectively. The calculation of diluted EPS included all of the outstanding stock options for the three months ended September 30, 2012 and 2011.

The table below presents the computation of basic and diluted EPS for the three months ended September 30, 2012 and 2011, respectively (in thousands, except per share data):

	Three Months Ended September 30,
	2012		2011
Numerator:
Net income	$	7,894	$	4,418
Denominator:
Weighted-average common shares outstanding		23,679		23,355
Net common stock equivalents assuming the exercise of in-the-money stock options		119		182
Weighted-average common and common equivalent shares outstanding, assuming dilution		23,798		23,537
Earnings Per Share:
Basic	$	0.33	$	0.19
Diluted	$	0.33	$	0.19