NetSpend 2010 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2010 NetSpend annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 127

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127

Table of Contents
NetSpend Holdings, Inc.
Notes to Consolidated Financial Statements (Continued)
December 31, 2008, 2009 and 2010
NOTE 14: EARNINGS PER SHARE (Continued)
common shares using the treasury stock method, which assumes that the Company will use proceeds from the exercise of stock options and
warrants to repurchase shares of common stock to hold in its treasury stock reserves.
The computation of diluted net loss per share for the year ended December 31, 2008 excludes the impact of options outstanding to
purchase 10.1 million shares of common stock and warrants outstanding to purchase 0.7 million shares of common stock because of the
Company's net loss available to common stockholders. During the years ended December 31, 2009 and 2010, the potential dilutive effect of
9.7 million and 0.6 million stock options, respectively, were excluded from the computation of diluted weighted average shares outstanding
because they were antidilutive. These excluded options could potentially dilute earnings per share in the future. The following is a
reconciliation of the numerator (net income) and the denominator (weighted average number of common shares) used in the calculation of
basic and diluted earnings (loss) per share for the years ended December 31, 2008, 2009 and 2010:
94
Years Ended December 31,
2008 2009 2010
Common
Stock
Class B
Common
Stock Common
Stock
Class B
Common
Stock Common
Stock
Class B
Common
Stock
(in thousands of dollars, except share and per share data)
Basic earnings (loss) per
share:
Net income (loss)
$
(9,680
)
$
(1,965
)
$
16,028
$
2,146
$
23,748
$
—
Less: Earnings distributed to
participating securities
(19,083
)
(3,873
)
(188
)
(25
)
(176
)
—
Less: Undistributed earnings
distributed to participating
securities
—
—
(
68
)
(10
)
(311
)
—
Undistributed earnings
available to common
stockholders
$
(28,763
)
$
(5,838
)
$
15,772
$
2,111
$
23,261
$
—
Weighted-average shares
outstanding used in basic
calculation
39,040
7,924
75,543
10,112
85,394
—
Basic earnings (loss) per
share
$
(0.74
)
$
(0.74
)
$
0.21
$
0.21
$
0.27
$
—
Diluted earnings (loss) per
share:
Undistributed earnings
available to common
stockholders
$
(28,763
)
$
(5,838
)
$
15,772
$
2,111
$
23,261
$
—
Add: Earnings distributed to
participating securities
—
—
213
—
176
—
Add: Undistributed earnings
allocated to participating
securities
—
—
78
—
311
—
Add: Reallocation of
undistributed earnings as a
result of conversion of
class B to common stock
—
—
2,111
—
—
—
Add: Reallocation of
undistributed earnings to
class B shares
—
—
—
27
—
—
Net income (loss)
$
(28,763
)
$
(5,838
)
$
18,174
$
2,138
$
23,748
$
—