Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

3—Earnings Per Share

We have two classes of common stock, which we refer to as our Class A common stock and our Class B common stock. Our certificate of incorporation provides that whenever our board of directors declares a dividend on our Class B common stock, our board of directors must also declare a dividend on our Class A common stock that is payable to the holders of our Class A common stock at the same time and as of the same record date at a rate that is at least 10% greater than the rate at which our board of directors declared a dividend on our Class B common stock. Accordingly, we use the two-class method to compute our earnings per common share. The two-class method is an earnings allocation formula that determines earnings per share separately for each class of common stock based on dividends we have declared and an allocation of our remaining undistributed earnings using a participation percentage that reflects the dividend rights of each class. The table below presents for the periods indicated a reconciliation of the numerators and denominators we used to compute basic and diluted net income per share for each class of our common stock:

	Three Months Ended March 31,
	2013				2012
	Class A		Class B		Class A		Class B
	(in thousands, except per share data)
Basic and diluted net income per share:
Numerator:
Allocation of net income	$	5,170	$	1,305	$	6,390	$	1,620
Denominator:
Weighted-average shares outstanding		20,066,755		5,576,775		19,996,285		5,576,775
Basic net income per share	$	0.26	$	0.23	$	0.32	$	0.29
Diluted net income per share:
Numerator:
Allocation of net income	$	5,170	$	1,305	$	6,390	$	1,620
Denominator:
Number of shares used in basic computation		20,066,755		5,576,775		19,996,285		5,576,775
Weighted-average shares effect of dilutive securities
Add: Director and employee stock options		291,477		—		364,836		—
Number of shares used in per share computations		20,358,232		5,576,775		20,361,121		5,576,775
Diluted net income per share	$	0.25	$	0.23	$	0.31	$	0.29

We did not include outstanding options to purchase the following number of shares of Class A common stock in our computation of diluted earnings per share because the exercise price of the options was greater than the average market price of our Class A common stock during the applicable period:

	Three Month Ended March 31,
	2013		2012
Number of Class A shares excluded		1,212,000		1,235,000