Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Note 4 — Earnings Per Share

Basic earnings per common share is calculated by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net income attributable to common stockholders, as adjusted for the effect of assumed conversions of convertible notes and preferred stock, by the weighted average number of common shares outstanding combined with potentially dilutive common share equivalents outstanding, if the effect is dilutive.

In connection with the sale of the Convertible Senior Unsecured Note ("2008 Notes"), the Company entered into a Share Lending Agreement for 3,800,000 shares of the Company's common stock (see Note 8). At March 31, 2012, there were 3,098,898 Borrowed Shares outstanding. Contractual undertakings of the Borrower have the effect of substantially eliminating the economic dilution that otherwise would result from the issuance of the Borrowed Shares, and all shares outstanding under the Share Lending Agreement are contractually obligated to be returned to the Company. As a result, shares loaned under the Share Lending Agreement are not considered outstanding for the purpose of computing and reporting earnings or loss per share.

For the three months ended March 31, 2012 and 2011, the Company's convertible senior notes convertible into 3,169,235 shares and 4,879,291 shares of common stock, respectively, were not considered in the calculation of diluted earnings per common share, as inclusion was anti-dilutive. In addition, for the three months ended March 31, 2012 and 2011, approximately 0.1 million and 0.2 million stock options, respectively, with an exercise price in excess of the average market price of the Company's common stock were also excluded from the calculation of diluted earnings per common share.

Basic and diluted earnings per common share are as follows (in thousands, except per share data):

	Three Months Ended March 31,
	2012		2011
Net income attributable to common stockholders - Basic	$	3,606	$	5,506
Impact of assumed conversions:
Dividends on preferred stock		—		140
Net income attributable to common stockholders - Diluted	$	3,606	$	5,646
Weighted average common shares outstanding - Basic		47,669		37,571
Assumed conversions:
Incremental common shares from warrants		1,699		3,527
Incremental common shares from stock options		972		689
Incremental common shares from convertible preferred stock before conversion		—		1,761
Weighted average common shares outstanding - Diluted		50,340		43,548
Basic earnings per common share	$	0.08	$	0.15
Diluted earnings per common share	$	0.07	$	0.13