Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Note 9 — 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, adjusted for the effect of assumed conversions of convertible notes and preferred stock, by the weighted average number of common shares outstanding combined with dilutive common share equivalents outstanding, if the effect is dilutive.

In connection with the sale of the 2008 Notes, the Company entered into a Share Lending Agreement for 3,800,000 shares of the Company’s common stock (see Note 8 – Share Lending Agreement). At September 30, 2012, 2,439,558 Borrowed Shares remained 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 nine months ended September 30, 2012 and 2011, the Company’s convertible notes, convertible into 2,900,088 shares and 4,681,491 shares of common stock, respectively, were not considered in the calculation of diluted earnings per common share, as inclusion was anti-dilutive. In addition, approximately 0.1 million and 1.1 million stock options, with an exercise price in excess of the average market price of the Company’s common stock were excluded from the calculation of diluted earnings per common share for the 2012 and 2011 periods, respectively.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Net income attributable to common stockholders - Basic	$	9,806	$	17,917	$	26,590	$	25,549
Impact of assumed conversions:
Interest on convertible notes		414		867		—		—
Dividends on preferred stock		—		—		—		140
Net income attributable to common stockholders - Diluted	$	10,220	$	18,784	$	26,590	$	25,689
Weighted average common shares outstanding - Basic		48,384		47,178		48,054		43,201
Assumed conversions:
Incremental common shares from warrants		1,493		1,727		1,617		2,388
Incremental common shares from stock options		1,003		743		986		743
Incremental common shares from convertible preferred stock before conversion		—		—		—		581
Incremental common shares from restricted stock units		158		—		80		—
Incremental common shares from convertible senior notes		2,440		4,681		—		—
Weighted average common shares outstanding - Diluted		53,478		54,329		50,737		46,913
Basic earnings per common share	$	0.20	$	0.38	$	0.55	$	0.59
Diluted earnings per common share	$	0.19	$	0.35	$	0.52	$	0.55