Earnings per Common Share

6 Months Ended

Jun. 30, 2011

Earnings per Common Share

Earnings per Common Share

(14)  Earnings per Common Share

Earnings per share (“EPS”) is presented for both basic EPS and diluted EPS. We compute basic EPS by dividing net earnings available to common stockholders by the weighted-average number of common shares outstanding during the year. Diluted EPS is computed by dividing net earnings available to common stockholders by the weighted-average number of common shares outstanding during the year, plus the dilutive effect of common stock equivalents such as stock options and warrants. We exclude these common stock equivalents from the computation of diluted EPS when the effect of inclusion would be anti-dilutive.

Basic and diluted net earnings per common share were computed as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
	(Dollars in thousands, except per share data)
Earnings from continuing operations	$	4,670	$	6,224	$	12,510	$	10,939
Income from discontinued operations	—		4,643		—		4,643
Net earnings	$	4,670	$	10,867	12,510		15,582
Less: net income attributable to the noncontrolling interest	2,242		2,802		6,357		7,416
Net earnings attributable to FirstCity	$	2,428	$	8,065	$	6,153	$	8,166
Weighted average outstanding shares of common stock (in thousands)	10,279		10,009		10,273		10,000
Dilutive effect of stock options	25		108		21		101
Weighted average outstanding shares of common stock and common stock equivalents	10,304		10,117		10,294		10,101
Earnings from continuing operations per share:
Basic	$	0.24	$	0.35	$	0.60	$	0.36
Diluted	$	0.24	$	0.34	$	0.60	$	0.35
Income from discontinued operations per share:
Basic	$	—	$	0.46	$	—	$	0.46
Diluted	$	—	$	0.46	$	—	$	0.46
Net earnings per share:
Basic	$	0.24	$	0.81	$	0.60	$	0.82
Diluted	$	0.24	$	0.80	$	0.60	$	0.81

For the three-month periods ended June 30, 2011 and 2010, stock options to purchase approximately 705,000 and 710,000 shares of common stock, respectively, were outstanding but not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock for the respective periods and, therefore, their inclusion would have been anti-dilutive.

For the six-month periods ended June 30, 2011 and 2010, stock options to purchase approximately 675,000 and 710,000 shares of common stock, respectively, were outstanding but not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock for the respective periods and, therefore, their inclusion would have been anti-dilutive.