Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share

11. Earnings Per Share

Basic earnings per share (“EPS”) is based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from exercises of stock options, vesting of restricted stock and conversion of preferred stock.

The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings per share computations for the periods presented (in thousands, except per share data):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Numerator for EPS:
Net income	$	17,029		$	7,777		$	28,988		$	17,650
Less: Preferred stock dividends		(5	)		(5	)		(10	)		(259	)
Income available to common stockholders	$	17,024		$	7,772		$	28,978		$	17,391
Denominator for EPS:
Weighted average common shares outstanding		36,378			39,668			38,138			39,528
Plus: Assumed conversion of stock-based compensation (1)		1,448			221			1,134			444
Assumed conversion of preferred stock		488			488			488			488
Weighted average diluted common shares outstanding		38,314			40,377			39,760			40,460
Basic earnings per common share	$	0.47		$	0.20		$	0.76		$	0.44
Diluted earnings per common share	$	0.44		$	0.19		$	0.73		$	0.44

(1) Represents the dilutive effect of unvested restricted stock and unexercised stock options.

The Company purchased 6.666 million shares of UIH’s common stock during the three and six months ended June 30, 2013, which decreased weighted average common shares outstanding and weighted average diluted common shares outstanding for these periods. The impact was to increase diluted earnings per common share by $0.04 for the three and six month periods ended June 30, 2013. See “—Note 8 (Stockholders’ Equity)” for details on the repurchases of UIH’s common stock.