FairPoint Communications 2011 Annual Report Download - page 116
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Table of Contents
The following table provides a reconciliation of the common shares used for basic earnings per share and diluted earnings per share (in thousands):
Weighted average number of common shares used for basic
earnings per share 25,838 89,424 89,424 89,271
Effect of potential dilutive shares — 271 — —
Weighted average number of common shares and potential dilutive
shares used for diluted earnings per share 25,838 89,695 89,424 89,271
Anti-dilutive shares excluded from the above reconciliation 4,764
712 983 2,750
Weighted average number of common shares used for basic earnings per share excludes 355,383, 16,666, 369,941 and 401,658 shares of restricted
non-vested stock as of the 341 days ended December 31, 2011, the 24 days ended January 24, 2011 and the years ended December 31, 2010 and 2009,
respectively. Since the Company incurred a loss for the 341 days ended December 31, 2011 and the years ended December 31, 2010 and 2009, all potentially
dilutive securities are anti-dilutive for these periods and are, therefore, excluded from the determination of diluted earnings per share.
On the Effective Date, the Company issued 25,659,877 shares of Common Stock and 3,458,390 Warrants to purchase Common Stock and reserved
610,309 shares and 124,012 Warrants for satisfaction of certain pending claims related to the Chapter 11 Cases. During the 341 days ended December 31,
2011 the Company issued 541,115 shares and 6,069 Warrants from this reserve. At December 31, 2011, 26,197,142 shares of Common Stock and
3,464,459 Warrants to purchase common stock were outstanding and 69,194 shares and 117,943 Warrants remained reserved for satisfaction of pending
claims related to the Chapter 11 Cases.
The initial exercise price applicable to the Warrants is $48.81 per share of New Common Stock for which the Warrants may be exercised. The exercise
price applicable to the Warrants is subject to adjustment upon the occurrence of certain events described in the Warrant Agreement. The Warrants may be
exercised at any time on or before the seventh anniversary of the Effective Date.
Stock-based compensation expense recognized in the financial statements is as follows (in thousands):
Amounts charged against income, before income tax
benefit $3,810 $5,499 $ 468 $2,052
Amount of related income tax benefit recognized in income (1,552) (2,220) (188) (825)
Total net income impact $2,258 $3,279 $280 $1,227
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