FairPoint Communications 2013 Annual Report Download - page 94

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92
The following table provides a reconciliation of the common shares used for basic earnings per share and diluted earnings
per share:
Predecessor
Company
Year Ended
December 31, 2013
Year Ended
December 31, 2012
Three Hundred
Forty-One
Days Ended
December 31, 2011
Twenty-Four
Days Ended
January 24, 2011
Weighted average number of common shares
used for basic earnings per share (a) 26,189,668 25,987,483 25,837,992 89,423,668
Effect of potential dilutive shares (b) — — — 271,799
Weighted average number of common shares
and potential dilutive shares used for diluted
earnings per share 26,189,668 25,987,483 25,837,992 89,695,467
Anti-dilutive shares outstanding at period-end
that are excluded from the above reconciliation (c) 5,284,459 4,954,778 4,764,194 711,642
(a) Weighted average number of common shares used for basic earnings per share excludes 278,681, 245,602, 355,383
and 16,666 weighted average shares of non-vested restricted stock as of the year ended December 31, 2013, the year
ended December 31, 2012, the 341 days ended December 31, 2011 and the 24 days ended January 24, 2011, respectively.
Non-vested restricted stock is included in common shares issued and outstanding in the consolidated balance sheets.
(b) Since the Company incurred a loss for the year ended December 31, 2013, the year ended December 31, 2012 and the
341 days ended December 31, 2011, all potentially dilutive securities are anti-dilutive for these periods and, therefore,
are excluded from the determination of diluted earnings per share.
(c) Anti-dilutive shares outstanding at period-end that are excluded from the above reconciliation include warrants, non-
vested restricted stock and stock options issued under the Long Term Incentive Plan (as defined hereinafter in note
(16) "Stock-Based Compensation").
(15) Stockholders' Deficit
On the Effective Date, the Company issued 25,659,877 shares of common stock and 3,458,390 warrants to purchase common
stock and established a reserve which set aside 610,309 shares of common stock and 124,012 warrants for satisfaction of certain
pending claims related to the Chapter 11 Cases (the "Equity Claims Reserve"). During the year ended December 31, 2012, the
Company distributed 69,194 shares of common stock and 117,943 warrants from the Equity Claims Reserve in full satisfaction
of allowed claims, thereby completing the common stock and warrant distribution with respect to the Plan.
At December 31, 2013, 37,500,000 shares of common stock were authorized and 26,480,837 shares of common stock
(including shares of non-vested restricted stock) and 3,582,402 warrants, each eligible to purchase one share of common stock,
were outstanding.
The initial exercise price applicable to the warrants is $48.81 per share of common stock. 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.