Quarterly report pursuant to Section 13 or 15(d)

Earnings per Common Share

v2.4.0.8
Earnings per Common Share
9 Months Ended
Sep. 30, 2013
Earnings Per Share [Abstract]  
Earnings per Common Share
NOTE 9: EARNINGS PER COMMON SHARE

We determine “Basic earnings per share” using the two-class method as our unvested restricted share awards have non-forfeitable rights to dividends, and are therefore considered participating securities. We compute basic earnings per share by dividing net income attributable to the controlling interest less the allocation of undistributed earnings to unvested restricted share awards by the weighted-average number of common shares outstanding for the period.

We also determine “Diluted earnings per share” under the two-class method with respect to the unvested restricted share awards. We further evaluate any other potentially dilutive securities at the end of the period and adjust the basic earnings per share calculation for the impact of those securities that are dilutive. Our diluted earnings per share calculation includes the dilutive impact of employee stock options based on the treasury stock method and our incentive share awards with performance or market conditions under the contingently issuable method. The diluted earnings per share calculation also considers our operating partnership units under the if-converted method.

The computations of basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2012 were as follows (in thousands, except per share data):
 
Three Months Ended September 30,
 
Nine Months Ended 
 September 30,
 
2013
 
2012
 
2013
 
2012
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
1,709

 
$
2,604

 
$
4,104

 
$
7,384

Allocation of undistributed earnings to unvested restricted share awards
(32
)
 
(34
)
 
(83
)
 
(173
)
Adjusted income from continuing operations attributable to the controlling interests
1,677

 
2,570

 
4,021

 
7,211

Income from discontinued operations, including gain on sale of real estate, net of taxes
4,131

 
6,957

 
14,334

 
13,366

Allocation of undistributed earnings to unvested restricted share awards
(77
)
 
(91
)
 
(288
)
 
(312
)
Adjusted income from discontinuing operations attributable to the controlling interests
4,054

 
6,866

 
14,046

 
13,054

Adjusted net income attributable to the controlling interests
$
5,731

 
$
9,436

 
$
18,067

 
$
20,265

Denominator:
 
 
 
 

 

Weighted average shares outstanding – basic
66,410

 
66,246

 
66,403

 
66,227

Effect of dilutive securities:
 
 
 
 
 
 
 
Operating partnership units
117

 
117

 
117

 
117

Employee stock options and restricted share awards
34

 
16

 
25

 
19

Weighted average shares outstanding – diluted
66,561

 
66,379

 
66,545

 
66,363

Earnings per common share, basic:
 
 
 
 

 

Continuing operations
$
0.03

 
$
0.04

 
$
0.06

 
$
0.11

Discontinued operations
0.06

 
0.10

 
0.21

 
0.20

 
$
0.09

 
$
0.14

 
$
0.27

 
$
0.31

Earnings per common share, diluted:

 

 

 

Continuing operations
$
0.03

 
$
0.04

 
$
0.06

 
$
0.11

Discontinued operations
0.06

 
0.10

 
0.21

 
0.20

 
$
0.09

 
$
0.14

 
$
0.27

 
$
0.31