Earnings per Common Share

3 Months Ended

Mar. 31, 2013

Earnings per Common Share

Earnings per Common Share

(12)  Earnings per Common Share

The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company’s participating securities consist of unvested restricted stock awards that contain a non-forfeitable right to receive dividends and, therefore, are considered to participate in undistributed earnings with common stockholders.

Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period, as adjusted for the potential dilutive effect of stock-based awards. We exclude potentially dilutive securities from the computation of diluted earnings per share when the effect of their inclusion would be anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per common share for the three-month month periods ended March 31, 2013 and 2012:

	Three Months Ended
	March 31,
(In thousands, except per share data)	2013			2012
Earnings (loss) from continuing operations	$	(2,083	)	$	9,260
Income from discontinued operations	111			213
Net earnings (loss)	$	(1,972	)	$	9,473
Less: Net income attributable to noncontrolling interests	536			1,108
Net earnings (loss) attributable to FirstCity	$	(2,508	)	$	8,365
Less: Net earnings (loss) allocable to participating securities	(48		)	82
Net earnings (loss) allocable to common shares	$	(2,460	)	$	8,283
Weighted-average common shares outstanding - basic	10,353			10,299
Dilutive effect of restricted stock shares	—			53
Dilutive effect of stock options	—			45
Weighted-average common shares outstanding - diluted	10,353			10,397
Earnings (loss) from continuing operations per share:
Basic	$	(0.25	)	$	0.78
Diluted	$	(0.25	)	$	0.78
Income from discontinued operations per share:
Basic	$	0.01		$	0.02
Diluted	$	0.01		$	0.02
Dilutive shares excluded from above as a result of the Company reporting a net loss during the period (in thousands):
Restrictive stock shares	99			—
Stock options	128			—

For the three-month periods ended March 31, 2013 and 2012, potentially dilutive securities representing approximately 210,000 and 654,000 shares of common stock, respectively, were excluded from the computation of diluted earnings per common share because their effect would have been anti-dilutive.