EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic earnings per share (“Basic EPS”) is computed using the weighted average number of common shares outstanding during the period, inclusive of nonvested share-based awards that are entitled to receive non-forfeitable dividends.  The diluted earnings (loss) per share (“Diluted EPS”) computation takes into account the effect of potential dilutive common shares.  Potential common shares, consisting primarily of outstanding stock options, warrants and director deferred shares, are calculated using the treasury stock method.

The following table presents a reconciliation of the shares used in the computation of Basic EPS and Diluted EPS (in thousands):

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2013	2012	2013	2012
Shares
Basic shares outstanding	20,342	20,102	20,255	19,786
Dilutive effect of outstanding stock options, warrants and director units	1,530	—	1,676	1,059
Dilutive shares outstanding	21,872	20,102	21,931	20,845

For the three months ended September 30, 2012, the Basic EPS and Diluted EPS shares were the same because the impact of potential dilutive securities would have been antidilutive.  Excluded from Diluted EPS for the three months ended September 30, 2012 were outstanding options to purchase 1.0 million shares of common stock at a weighted average exercise price of $16.26, as well as outstanding warrants to purchase 3.7 million shares of common stock at an average price of $5.10.