Earnings Per Common Share

9 Months Ended

Mar. 31, 2015

Earnings Per Common Share

Earnings Per Common Share

Note 15.  Earnings Per Common Share

A dual presentation of basic and diluted earnings per common share is required on the face of the Company’s Consolidated Statement of Operations as well as a reconciliation of the computation of basic earnings per common share to diluted earnings per common share.  Basic earnings per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income attributable to Lannett Company, Inc. by the weighted average number of common shares outstanding for the period.  Diluted earnings per common share is computed using the treasury stock method and includes the effect of potential dilution from the exercise of outstanding stock options and treats unvested restricted stock as if it were vested.  Potentially dilutive securities have been excluded in the weighted average number of common shares used for the calculation of earnings per share in periods of net loss because the effect of such securities would be anti-dilutive.  A reconciliation of the Company’s basic and diluted earnings per common share was as follows:

	Three Months Ended March 31, 2015
(In thousands, except share and per share data)	2015		2014
Net Income Attributable to Lannett Company, Inc.	$	36,233	$	22,995
Basic weighted average common shares outstanding	35,880,954		35,025,968
Effect of potentially dilutive stock options and restricted stock awards	1,329,184		1,743,625
Diluted weighted average common shares outstanding	37,210,138		36,769,593
Earnings per common share attributable to Lannett Company, Inc.:
Basic	$	1.01	$	0.66
Diluted	$	0.97	$	0.63

	Nine Months Ended March 31, 2015
(In thousands, except share and per share data)	2015		2014
Net Income Attributable to Lannett Company, Inc.	$	115,976	$	33,566
Basic weighted average common shares outstanding	35,715,061		33,082,460
Effect of potentially dilutive stock options and restricted stock awards	1,367,077		1,503,547
Diluted weighted average common shares outstanding	37,082,138		34,586,007
Earnings per common share attributable to Lannett Company, Inc.:
Basic	$	3.25	$	1.01
Diluted	$	3.13	$	0.97

The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share for the three months ended March 31, 2015 and 2014 were 77 thousand and 3 thousand, respectively.  The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share for the nine months ended March 31, 2015 and 2014 were 490 thousand and 9 thousand, respectively.