NET INCOME PER COMMON SHARE

9 Months Ended

Sep. 30, 2011

Notes To Consolidated Financial Statement Abstract

18. NET INCOME PER COMMON SHARE

The following table sets forth the computation of basic and diluted net income per common share (in thousands, except per share amounts):

	Three Months Ended
	September 30, 2011							September 30, 2010
	Continuing			Discontinued		Net		Continuing		Discontinued		Net
	Operations			Operations		Income		Operations		Operations		Income

BASIC

Net income (loss)	$	22,950	$	(3,498)	$	19,452	$	33,506	$	(5,928)	$	27,578
Less: income (loss) allocated to
participating securities		702		-		583		980		-		802
Net income (loss) available to
common stockholders		22,248		(3,498)		18,869		32,526		(5,928)		26,776
Weighted average number of common
shares outstanding		61,336		61,336		61,336		58,509		58,509		58,509
Basic net income (loss) per
common share	$	0.36	$	(0.06)	$	0.31	$	0.56	$	(0.10)	$	0.46

DILUTED

Net income (loss)	$	22,950	$	(3,498)	$	19,452	$	33,506	$	(5,928)	$	27,578
Less: income (loss) allocated to
participating securities		702		-		583		980		-		802
Net income (loss) available to
common stockholders		22,248		(3,498)		18,869		32,526		(5,928)		26,776
Less:
Undistributed earnings allocated to
unvested stockholders		(579)		-		(466)		(899)		-		(721)
Add:
Undistributed earnings re-allocated to
unvested stockholders		572		-		460		894		-		717
Add:
Tax-effected interest expense
related to Old Notes		799		-		799		666		-		666
Net income (loss) assuming dilution	$	23,040	$	(3,498)	$	19,662	$	33,187	$	(5,928)	$	27,438

Weighted average number of common
shares outstanding		61,336		61,336		61,336		58,509		58,509		58,509
Effect of dilutive securities:
Old Notes		5,823		-		5,823		5,823		-		5,823
New Notes		4		-		4		4		-		4
Stock options		751		-		751		351		-		351
Weighted average number of common
shares assuming dilution		67,914		61,336		67,914		64,687		58,509		64,687
Diluted net income (loss) per
common share	$	0.34	$	(0.06)	$	0.29	$	0.51	$	(0.10)	$	0.42

	Nine Months Ended
	September 30, 2011							September 30, 2010
	Continuing			Discontinued		Net		Continuing		Discontinued		Net
	Operations			Operations		Income		Operations		Operations		Income

BASIC

Net income (loss)	$	84,146	$	(16,551)	$	67,595	$	114,452	$	(15,005)	$	99,447
Less: income (loss) allocated to
participating securities		2,645		-		2,097		3,698		-		3,204
Net income (loss) available to
common stockholders		81,501		(16,551)		65,498		110,754		(15,005)		96,243
Weighted average number of common
shares outstanding		60,264		60,264		60,264		58,278		58,278		58,278
Basic net income (loss) per
common share	$	1.35	$	(0.27)	$	1.09	$	1.90	$	(0.26)	$	1.65

DILUTED

Net income (loss)	$	84,146	$	(16,551)	$	67,595	$	114,452	$	(15,005)	$	99,447
Less: income (loss) allocated to
participating securities		2,645		-		2,097		3,698		-		3,204
Net income (loss) available to
common stockholders		81,501		(16,551)		65,498		110,754		(15,005)		96,243
Less:
Undistributed earnings allocated to
unvested stockholders		(2,244)		-		(1,709)		(3,413)		-		(2,919)
Add:
Undistributed earnings re-allocated to
unvested stockholders		2,213		-		1,685		3,395		-		2,903
Add:
Tax-effected interest expense
related to Old Notes		2,175		-		2,175		1,998		-		1,998
Tax-effected interest expense
related to New Notes		1		-		1		1		-		1
Net income (loss) assuming dilution	$	83,646	$	(16,551)	$	67,650	$	112,735	$	(15,005)	$	98,226

Weighted average number of common
shares outstanding		60,264		60,264		60,264		58,278		58,278		58,278
Effect of dilutive securities:
Old Notes		5,823		-		5,823		5,823		-		5,823
New Notes		4		-		4		4		-		4
Stock options		869		-		869		332		-		332
Weighted average number of common
shares assuming dilution		66,960		60,264		66,960		64,437		58,278		64,437
Diluted net income (loss) per
common share	$	1.25	$	(0.27)	$	1.01	$	1.75	$	(0.26)	$	1.52

Diluted net income per common share must be calculated using the “if-converted” method. Diluted net income per share using the “if-converted” method is calculated by adjusting net income for tax-effected net interest on the Old Notes and New Notes, divided by the weighted average number of common shares outstanding assuming conversion.

Unvested share-based payment awards that contain rights to receive nonforfeitable dividends or dividend equivalents (whether paid or unpaid) are participating securities, and thus, are included in the two-class method of computing earnings per share. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that would otherwise have been available to common stockholders. Restricted stock granted to certain employees by the Company (see Note 3) participate in dividends on the same basis as common shares, and these dividends are not forfeitable by the holders of the restricted stock. As a result, the restricted stock grants meet the definition of a participating security.

The diluted net income per common share computation for the three months ended September 30, 2011 and 2010 excludes 1,695,545 and 7,511,980 shares of stock, respectively, that represented outstanding stock options whose impact would be anti-dilutive. The diluted net income per common share computation for the nine months ended September 30, 2011 and 2010 excludes 2,581,316 and 9,969,349 shares of stock, respectively, that represented outstanding stock options whose impact would be anti-dilutive.

Due to the net loss from discontinued operations during the three and nine months ended September 30, 2011 and 2010, diluted earnings per share and basic earnings per share from discontinued operations are the same, as the effect of potentially dilutive securities would be anti-dilutive.