Spirit Airlines 2011 Annual Report Download - page 93

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Notes to Financial Statements—(Continued)
The following table sets forth the computation of basic and diluted earnings per common share (in thousands, except for share and per
share amounts):
The Company has excluded 70,268 shares from its calculations of diluted earnings per common share in 2011 as they represented
antidilutive stock awards for the respective period. There were no shares excluded in 2010 or 2009.
As of December 31, 2011 and 2010 , the following amounts were due to related parties (in thousands):
In connection with the closing of the IPO, the Company consummated the transaction contemplated by the Recapitalization Agreement on
June 1, 2011, which resulted in the repayment or exchange for common stock of all of the Company’s notes and preferred stock (see Note 20).
All Tranche A and B notes were held by Indigo and Oaktree. Interest on these notes was not paid in cash but accrued on a periodic basis on
both the Tranche A and Tranche B notes at a rate of 17% per annum, compounded annually on December 31. All Tranche A and Tranche B
notes would have matured on April 30, 2012 except for $20.0 million of Tranche A notes which were due December 30, 2011.
Tranche A and B notes and approximately $3.2 million of other secured notes due to unrelated parties had a first-priority security interest
in substantially all assets of the company (the “Security Package”). Certain other secured notes held by unrelated parties, aggregating
approximately $12.0 million in principal amount, had a second-priority security interest in the Security Package. Pursuant to intercreditor and
other security agreements, the holders of Tranche A and B notes, and of the $3.2 million of other secured notes, agreed to:
82
10.
Net Income per Share
Year Ended December 31,
2011
2010
2009
(in thousands, except for share and per share amounts)
Numerator
Net income
$
76,448
$
72,481
$
83,693
Denominator
Weighted-average shares outstanding, basic
53,240,898
26,183,772
25,910,766
Effect of dilutive stock awards
274,450
506,083
404,355
Adjusted weighted-average shares outstanding, diluted
53,515,348
26,689,855
26,315,121
Net Income per Share
Basic earnings per common share
$
1.44
$
2.77
$
3.23
Diluted earnings per common share
$
1.43
$
2.72
$
3.18
11. Related-
Party Debt and Transactions
As of December 31,
2011
2010
Tranche A notes payable bearing interest at 17% due April 30, 2012, except for $20.0 million of Tranche
A notes which are due December 30, 2011. Secured*. Accrued interest at December 31, 2010 and 2011
was $0 and $0 million, respectively
$
—
$
137,360
Tranche B notes payable bearing interest at 17% due April 30, 2012. Secured*. Accrued interest at
December 31, 2010 and 2011 was $0 and $0 million, respectively —
128,261
Total due to related parties
$
—
$
265,621
*
Secured by accounts receivable, inventory, property and equipment, not including airframes or engines.