INTL FCStone 2005 Annual Report Download - page 51

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INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Notes to the Consolidated Financial Statements—(Continued)
September 30, 2005 and 2004
If the Company had determined compensation cost based on the fair value at the grant date for its stock
options under SFAS No. 123, the Company’s net income (loss) and earnings (loss) per share would be as
reflected in the pro forma amounts indicated below:
2005 2004
as restated
Netincome(loss) ......................... Asreported $2,613,635 $(118,207)
Pro forma option compensation expense ....... Proforma $ (462,000) $(532,758)
Netincome(loss) ......................... Proforma $2,151,635 $(650,965)
Basic earnings (loss) per share ............... Asreported
Pro forma
$0.36
$0.29
$ (0.02)
$ (0.13)
Diluted earnings (loss) per share ............. Asreported
Pro forma
$0.33
$0.27
$ (0.02)
$ (0.13)
(j) Basic and Diluted Earnings (loss) Per Share
Basic earnings (loss) per share have been computed by dividing net income (loss) by the weighted average
number of common shares outstanding.
Options to purchase 101,250 shares of common stock were excluded from the calculation of diluted
earnings per share for the year ended September 30, 2005, because the exercise prices of these options exceeded
the average market price of the common stock for the period (anti-dilutive).
Diluted loss per share is the same as basic loss per share because of the anti-dilutive impact of the potential
common shares, due to the net loss for the year ended September 30, 2004. No options or warrants to purchase
shares of common stock were considered in the calculation of diluted loss per share because of the anti-dilutive
impact of the potential common shares, due to the net loss for the year ended September 30, 2004.
Convertible subordinated notes convertible into 2,086,956 common shares were not included in the
calculation of diluted earnings per share for the weighted period March 26, 2004 through August 13, 2004
because their incremental inclusion would have been antidilutive. The Company’s restatement of its financial
statements for the fiscal year ended September 30, 2004, which is discussed in Note 2, included a change from
the treasury method to the if-converted method for calculation of the dilutive effect on earnings per share of the
convertible notes.
2005 2004
as restated
Diluted earnings (loss) per share
Numerator:
Netincome(loss) ........................................ $2,613,635 $ (118,207)
Denominator:
Weighted average number of:
Common shares outstanding ............................ 7,303,065 5,090,304
Dilutive potential common shares outstanding .............. 720,826
8,023,891 5,090,304
Diluted earnings (loss) per share ................................. $ 0.33 $ (0.02)
F-11