Earnings (Loss) per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 4 – Earnings (Loss) per Share

The Company is required, in periods in which it has net income, to calculate basic earnings per share (“basic EPS”) using the two-class method. The two-class method is required because the Company’s Class N preferred shares, each of which is convertible to 40 common shares, have the right to receive dividends or dividend equivalents should the Company declare dividends on its common stock. Under the two-class method, earnings for the period are allocated on a pro-rata basis to the common and preferred stockholders. The weighted-average number of common and preferred shares outstanding during the period is then used to calculate basic EPS for each class of shares.

In periods in which the Company has a net loss, basic loss per share is calculated by dividing the loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. The two-class method is not used, because the preferred stock does not participate in losses.

Options are included in the calculation of diluted earnings per share, since they are assumed to be exercised, except when their effect would be anti-dilutive. For the year ended December 31, 2012, all of the Company’s outstanding options were excluded due to the Company’s net loss. For the year ended December 31, 2011, 2,386,198 options were excluded.

Basic and diluted EPS were calculated using the following:

	Year ended December 31,
(In thousands, except per share amounts)	2012			2011
Net income (loss)	$	(1,813	)	$	30,713
Less:  income allocated to preferred stockholders		—			27
Net income (loss) allocated to common stockholders	$	(1,813	)	$	30,686
Weighted average shares for basic EPS		28,292			26,834
Add:  incremental shares from assumed conversions of stock options		—			262
Weighted average shares for diluted EPS		28,292			27,096
Basic earnings (loss) per share attributable to common stockholders	$	(0.06	)	$	1.14
Diluted earnings (loss) per share attributable to common stockholders	$	(0.06	)	$	1.13