Note 2 – Earnings Per Share

The following table sets forth the calculation of basic and diluted weighted average shares outstanding and earnings per share for the indicated periods:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(In thousands, except per share data)
Income (numerator):
*Basic:*
Net income (loss)	($	29,415	)	$	36,102		$	972		$	115,882
Net income attributable to participating securities		—			(924	)		(22	)		(2,728	)

Net income (loss) attributable to common stock—basic	($	29,415	)	$	35,178		$	950		$	113,154

*Diluted:*
Net income (loss)	($	29,415	)	$	36,102		$	972		$	115,882
Net income attributable to participating securities		—			(923	)		(22	)		(2,726	)

Net income (loss) attributable to common stock—diluted	($	29,415	)	$	35,179		$	950		$	113,156

Weighted average shares (denominator):
Weighted average shares—basic		54,866			48,732			51,998			48,680
Dilutive effect of stock options		—			44			53			40
Dilutive effect of convertible notes		—			—			88			—

Weighted average shares—diluted		54,866			48,776			52,139			48,720

Basic earnings (loss) per share	($	0.54	)	$	0.72		$	0.02		$	2.32

Diluted earnings (loss) per share	($	0.54	)	$	0.72		$	0.02		$	2.32

All outstanding stock options were considered antidilutive during the three months ended September 30, 2014 (205,000 shares) because we had a net loss for such period. Stock options that were considered antidilutive because the exercise price of the options exceeded the average price of our common stock for the applicable period totaled approximately 116,000 shares during the nine months ended September 30, 2014 and 327,000 shares during the three and nine months ended September 30, 2013.

During the three months ended September 30, 2014 and 2013, approximately 10,000 shares and 22,000 shares of our common stock, respectively, were issued from authorized shares upon the lapsing of forfeiture restrictions of restricted stock by employees and nonemployee directors. During the nine months ended September 30, 2014 and 2013, approximately 382,000 shares and 358,000 shares of common stock, respectively, were issued from authorized shares upon the lapsing of forfeiture restrictions of restricted stock and the exercise of stock options by employees and nonemployee directors. In May 2014, 5,750,000 shares of our common stock were issued in a public offering (see Note 3 – Common Stock Offering).

Because it is management’s stated intention to redeem the principal amount of our 1³⁄₄% Senior Convertible Notes due 2017 (the “2017 Convertible Notes”) (see Note 5 – Long-Term Debt) in cash, we have used the treasury method for determining dilution in the diluted earnings per share computation. Since the average price of our common stock was less than the effective conversion price for such notes during the three months ended September 30, 2014, and because we had a net loss for such period, the 2017 Convertible Notes were not dilutive for such period. During the three months ended June 30, 2014, the average price of our common stock exceeded the effective conversion price of the 2017 Convertible Notes and had a dilutive impact on the diluted earnings per share computation for the nine months ended September 30, 2014. For the prior year periods presented, the average price of our common stock was less than the effective conversion price for such notes, resulting in no dilutive effect on the diluted earnings per share computation for such periods. For all periods presented, the average price of our common stock was less than the strike price of the Sold Warrants (as defined in Note 5 – Long-Term Debt) and therefore, such warrants were not dilutive for such periods. Based on the terms of the Purchased Call Options (as defined in Note 5 – Long-Term Debt), such call options are antidilutive and therefore, were not included in the calculation of diluted earnings per share.