Nautilus 2007 Annual Report Download - page 58

Table of Contents
employees while the Company focused on restructuring activities. The restricted stock grant has a two year cliff vesting period. In addition, the
Company hired an interim chief executive officer and issued a restricted stock grant for 4,000 shares per month during the interim agreement
which vested at the conclusion of the interim role on October 17, 2007.
The following table summarizes the restricted stock activity for the year ended December 31, 2007:
Restricted stock compensation expense for the year ended December 31, 2007 was $0.3 million. At December 31, 2007, unrecognized costs
related to restricted stock totaled approximately $1.0 million and are expected to be recognized over a weighted average period of 1.62 years.
The restricted stock had an intrinsic value of $1.3 million at December 31, 2007. There was not any restricted stock issued and outstanding at
December 31, 2006.
11. EARNINGS (LOSS) PER SHARE
Basic earnings (loss) per share is computed on the basis of the weighted average number of common shares outstanding. Diluted earnings (loss)
per share is computed on the basis of the weighted average number of common shares outstanding plus the effect of outstanding stock options
calculated using the treasury stock method. Net income (loss) for the calculation of both basic and diluted earnings per share is the same as
reported net income (loss) for all periods.
Calculation of the basic and diluted weighted-average number of outstanding shares and the corresponding amounts of earnings (loss) per share
for the three years ended December 31 is as follows:
55
(In thousands, except fair value amounts)
Number
of
Shares
Weighted Average
Grant Date Fair
Value
Outstanding at January 1, 2007
—
—
Awarded
297
$
9.22
Vested
(12
)
8.91
Forfeited
(19
)
9.23
Outstanding at December 31, 2007 (1)
266
$
9.23
(1)
Outstanding awards of restricted stock are all nonvested at December 31, 2007.
(In thousands, except per share amounts) 2007 2006 2005
Basic shares outstanding
31,538
32,300
33,303
Dilutive effect of stock options and restricted stock*
—
157
554
Diluted shares outstanding
31,538
32,457
33,857
Antidilutive stock options and restricted stock**
2,931
1,802
704
Net income (loss)
$
(55,613
)
$
29,100
$
23,000
Earnings (loss) per share:
Basic
$
(1.76
)
$
0.90
$
0.69
Diluted
$
(1.76
)
$
0.90
$
0.68
*
No stock options or restricted stock have been included in the calculation of diluted loss per share for the year ended December 31, 2007
because their inclusion would be antidilutive (i.e. reduce the loss per share).
**
Stock options and restricted stock not included in the calculation of diluted earnings per share because they would be antidilutive.