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9. Earnings per Share
Basic earnings per share of common stock is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock is computed by dividing net income (loss) by the weighted average number of common shares and common stock equivalents related to the assumed exercise of stock options, using the two-class method. Stock options for which the exercise price exceeds the average fair value have an anti-dilutive effect on earnings per share and are excluded from the calculation. There were 89,270 and 186,857 shares excluded from diluted earnings per share for the three months ended March 31, 2012 and 2011, respectively, as the shares would be anti-dilutive for those periods as the Company incurred a net loss.
As restricted shares and restricted stock units both participate in dividends, in accordance with ASC 260, the Company has calculated earnings per share pursuant to the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends.
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|
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Three months ended
|
|
|
|
|
March 31, 2012
|
|
March 31, 2011
|
|
|
|
|
|
|
|
|
|
Basic loss per common share
|
|
|
|
|
|
|
Net loss
|
|
$
|
(4,268
|
)
|
$
|
(800
|
)
|
|
Less loss allocated to participating securities
|
|
(54
|
)
|
(10
|
)
|
|
Net loss allocated to common shareholders
|
|
$
|
(4,214
|
)
|
$
|
(790
|
)
|
|
Weighted average common shares outstanding
|
|
21,826,701
|
|
21,414,029
|
|
|
|
|
$
|
(0.19
|
)
|
$
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
Loss per common share assuming dilution
|
|
|
|
|
|
|
Net loss
|
|
$
|
(4,268
|
)
|
$
|
(800
|
)
|
|
Less loss allocated to participating securities
|
|
(54
|
)
|
(10
|
)
|
|
Net loss allocated to common shareholders
|
|
$
|
(4,214
|
)
|
$
|
(790
|
)
|
|
Weighted average common shares outstanding
|
|
21,826,701
|
|
21,414,029
|
|
|
Incremental shares applicable to stock based compensation
|
|
—
|
|
—
|
|
|
Weighted average common shares assuming dilution
|
|
21,826,701
|
|
21,414,029
|
|
|
|
|
$
|
(0.19
|
)
|
$
|
(0.04
|
)
|
|