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BPFH » Topics » (2) Earnings Per Share

This excerpt taken from the BPFH 10-Q filed May 12, 2008.

(2) Earnings Per Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The dilutive effect of convertible securities are reflected in diluted EPS by application of the if-converted method. Under the if-converted method, the interest expense on the convertible securities, net of tax, is added back to net income and the convertible shares are assumed to have been converted at the beginning of the period. The if-converted method is only used if the effect is dilutive.

 

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The following table is a reconciliation of the components of basic and diluted EPS computations for the quarters ended March 31, 2008 and 2007.

 

     Three Months Ending March 31,
     2008     2007
     (In thousands, except share data)

Calculation of net (loss)/ income for EPS:

     

Net (loss)/ income as reported and for basic EPS

    $ (9,844 )   $ 13,134

Interest on convertible trust preferred securities, net of tax

      —         750
              

Net (loss)/ income for EPS calculation using the if-converted method

    $ (9,844 )   $ 13,884

Calculation of average shares outstanding:

     

Average basic common shares outstanding

      37,457,129       36,276,912

Dilutive effect of:

     

Stock options, stock grants and other

      —         1,674,309

Convertible trust preferred securities

      —         3,183,837
              

Dilutive potential common shares

      —         4,858,146
              

Average diluted common shares outstanding

      37,457,129       41,135,058
              

Per Share Data:

     

Basic (loss)/earnings per share

    $ (0.26 )   $ 0.36

Diluted (loss)/earnings per share

    $ (0.26 )   $ 0.34

Dilution due to outstanding stock options, stock grants and other of 895 thousand shares in the first quarter of 2008 was not included as it was anti-dilutive for the period. Dilution of 3.2 million shares due to convertible trust preferred debt was also not included as it would have been anti-dilutive.

This excerpt taken from the BPFH 10-K filed Mar 14, 2008.

Earnings Per Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The dilutive effect of convertible securities are reflected in diluted EPS by application of the if-converted method. Under the if-converted method, the interest expense on the convertible securities, net of tax, is added back to net income and the convertible shares are assumed to have been converted at the beginning of the period. The if-converted method is only used if the effect is dilutive.

The following table is a reconciliation of the components of basic and diluted EPS computations for the three years ended December 31:

 

(In thousands, except per share data)

    2007    2006    2005

Calculation of net income for EPS:

         

Net income as reported and for basic EPS

    $ 4,170    $ 54,373    $ 43,546

Interest on convertible trust preferred securities, net of tax(1)

      —        3,060      3,059
                    

Net income for EPS calculation using the if-converted method

    $ 4,170    $ 57,433    $ 46,605

Calculation of average shares outstanding:

         

Average basic common shares outstanding

      36,732      35,453      29,425

Dilutive effect of:

         

Stock options, stock grants, and other

      1,583      1,453      1,071

Forward agreement

      —        —        147

Convertible trust preferred securities(1)

      —        3,183      3,182
                    

Dilutive potential common shares

      1,583      4,636      4,400
                    

Average diluted common shares outstanding

      38,315      40,089      33,825
                    

Per Share Data:

         

Basic earnings per share

    $ 0.11    $ 1.53    $ 1.48

Diluted earnings per share

    $ 0.11    $ 1.43    $ 1.38

 

(1) 3,184,202 potential common shares from the convertible trust preferred securities were excluded from the diluted EPS computations in 2007 because the effect would be antidilutive. If the effect had been dilutive, interest expense, net of tax, related to the convertible trust preferred securities of $3.0 million would be added back to net income for diluted EPS computations.
This excerpt taken from the BPFH 10-Q filed May 10, 2007.

(2) Earnings Per Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The dilutive effect of convertible securities are reflected in diluted EPS by application of the if-converted method. Under the if-converted method, the interest expense on the convertible securities, net of tax, is added back to net income and the convertible shares are assumed to have been converted at the beginning of the period. The if-converted method is only used if the effect is dilutive.

The following table is a reconciliation of the components of basic and diluted EPS computations for the quarters ended March 31, 2007 and 2006.

 

     Three Months Ending March 31,
     2007    2006
     (In thousands, except share data)

Calculation of net income for EPS:

      

Net income as reported and for basic EPS

    $ 13,134    $ 12,828

Interest on convertible trust preferred securities, net of tax

      750      765
             

Net income for EPS calculation using the if-converted method

    $ 13,884    $ 13,593

Calculation of average shares outstanding:

      

Average basic common shares outstanding

      36,276,912      34,621,181

Dilutive effect of:

      

Stock options, stock grants and other

      1,674,309      1,424,956

Convertible trust preferred securities

      3,183,837      3,182,209
             

Dilutive potential common shares

      4,858,146      4,607,165
             

Average diluted common shares outstanding

      41,135,058      39,228,346
             

Per Share Data:

      

Basic earnings per share

    $ 0.36    $ 0.37

Diluted earnings per share

    $ 0.34    $ 0.35

 

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This excerpt taken from the BPFH 10-K filed Feb 28, 2007.

Earnings Per Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The dilutive effect of convertible securities are reflected in diluted EPS by application of the if-converted method. Under the if-converted method, the interest expense on the convertible securities, net of tax, is added back to net income and the convertible shares are assumed to have been converted at the beginning of the period. The if-converted method is only used if the effect is dilutive.

The following table is a reconciliation of the components of basic and diluted EPS computations for the three years ended December 31:

 

(In thousands, except per share data)

    2006    2005    2004

Calculation of net income for EPS:

         

Net income as reported and for basic EPS

    $ 54,373    $ 43,546    $ 31,233

Interest on convertible trust preferred securities, net of tax

      3,060      3,059      672
                    

Net income for EPS calculation using the if-converted method

    $ 57,433    $ 46,605    $ 31,905

Calculation of average shares outstanding:

         

Average basic common shares outstanding(1)

      35,453      29,425      27,313

Dilutive effect of:

         

Stock options, stock grants and other

      1,453      1,071      936

Forward agreement(1)

      —        147      119

Convertible trust preferred securities

      3,183      3,182      657
                    

Dilutive potential common shares

      4,636      4,400      1,712
                    

Average diluted common shares outstanding

      40,089      33,825      29,025
                    

Per Share Data:

         

Basic earnings per share

    $ 1.53    $ 1.48    $ 1.14

Diluted earnings per share

    $ 1.43    $ 1.38    $ 1.10

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

(1) On March 31, 2004, the FASB changed its interpretation of Statement of Financial Accounting Standards No. 128, Earnings Per Share, affecting the calculation of EPS for variable priced contracts. This interpretation applied to the Company’s Forward Stock Agreement (the “Agreement”). As a result, the Company amended this Agreement effective April 1, 2004, and such amendment eliminated the need to include the effect of the Agreement in basic shares after that date. The new interpretation required the Company to account for the original Agreement differently by including approximately 497 thousand and 132 thousand unissued shares in the calculation of basic EPS for the years ended December 31, 2004, and 2003, respectively.

On September 29, 2005, the Company exercised the Agreement. Under the settlement terms of the Agreement the Company received approximately $36.4 million in proceeds from the issuance of 1.6 million shares of the Company’s common stock.

This excerpt taken from the BPFH 8-K filed May 31, 2006.

Earnings Per Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The dilutive effect of convertible securities are reflected in diluted EPS by application of the if-converted method. Under the if-converted method, the interest expense on the convertible securities, net of tax, is added back to net income and the convertible shares are assumed to have been converted at the beginning of the period. The if-converted method is only used if the effect is dilutive.

The following table is a reconciliation of the components of basic and diluted EPS computations for the three years ended December 31:

 

(In thousands, except sharedatas)

    2005    2004    2003

Calculation of net income for EPS:

         

Net income as reported and for basic EPS

    $ 43,546    $ 31,233    $ 19,445

Interest on convertible trust preferred securities, net of tax

      3,059      672      —  
                    

Net income for EPS calculation using the if-converted method

    $ 46,605    $ 31,905    $ 19,445

Calculation of average shares outstanding:

         

Average basic common shares outstanding(1)

      29,425      27,313      22,954

Dilutive effect of:

         

Stock options and stock grants

      1,071      936      694

Forward agreement(1)

      147      119      132

Convertible trust preferred

      3,182      657      —  
                    

Dilutive potential common shares

      4,400      1,712      826
                    

Average diluted common shares outstanding

      33,825      29,025      23,780
                    

Per Share Data:

         

Basic earnings per share

    $ 1.48    $ 1.14    $ 0.85

Diluted earnings per share

    $ 1.38    $ 1.10    $ 0.82

 

(1) On March 31, 2004, the FASB changed its interpretation of Statement of Financial Accounting Standards No. 128, Earnings Per Share, affecting the calculation of EPS for variable priced contracts. This interpretation applied to the Company’s Forward Stock Agreement (the “Agreement”). As a result, the Company amended this Agreement effective April 1, 2004 and such amendment eliminated the need to include the effect of the Agreement in basic shares after that date. The new interpretation required the Company to account for the original Agreement differently by including approximately 497,000 and 132,000 unissued shares in the calculation of basic EPS for the years ended December 31, 2004 and 2003, respectively.

 

14

On September 29, 2005 the Company exercised the Agreement. Under the settlement terms of the Agreement the Company received approximately $36.4 million in proceeds from the issuance of 1.6 million shares of the Company’s common stock.

This excerpt taken from the BPFH 10-Q filed May 10, 2006.

(2) Earnings Per Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The dilutive effect of convertible securities are reflected in diluted EPS by application of the if-converted method. Under the if-converted method, the interest expense on the convertible securities, net of tax, is added back to net income and the convertible shares are assumed to have been converted at the beginning of the period. The if-converted method is only used if the effect is dilutive.

The following table is a reconciliation of the components of basic and diluted EPS computations for the quarters ended March 31, 2006 and 2005.

 

     Three Months Ending March 31,
     2006    2005
     (In thousands, except share data)

Calculation of net income for EPS:

      

Net income as reported and for basic EPS

    $ 12,828    $ 8,716

Interest on convertible trust preferred securities, net of tax

      765      765
             

Net income for EPS calculation using the if-converted method

    $ 13,593    $ 9,481

Calculation of average shares outstanding:

      

Average basic common shares outstanding

      34,621,181      27,521,902

Dilutive effect of:

      

Stock options, stock grants and other

      1,424,956      1,005,899

Forward agreement

      —        228,123

Convertible trust preferred securities

      3,182,209      3,182,017
             

Dilutive potential common shares

      4,607,165      4,416,039
             

Average diluted common shares outstanding

      39,228,346      31,937,941
             

Per Share Data:

      

Basic earnings per share

    $ 0.37    $ 0.32

Diluted earnings per share

    $ 0.35    $ 0.30

 

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Table of Contents
This excerpt taken from the BPFH 10-K filed Mar 10, 2006.

Earnings Per Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The dilutive effect of convertible securities are reflected in diluted EPS by application of the if-converted method. Under the if-converted method, the interest expense on the convertible securities, net of tax, is added back to net income and the convertible shares are assumed to have been converted at the beginning of the period. The if-converted method is only used if the effect is dilutive.

The following table is a reconciliation of the components of basic and diluted EPS computations for the three years ended December 31:

 

(In thousands, except sharedatas)

    2005    2004    2003

Calculation of net income for EPS:

         

Net income as reported and for basic EPS

    $ 46,318    $ 33,634    $ 21,823

Interest on convertible trust preferred securities, net of tax

      3,059      672      —  
                    

Net income for EPS calculation using the if-converted method

    $ 49,377    $ 34,306    $ 21,823

Calculation of average shares outstanding:

         

Average basic common shares outstanding(1)

      29,425      27,313      22,954

Dilutive effect of:

         

Stock options and stock grants

      912      875      893

Forward agreement(1)

      147      119      —  

Convertible trust preferred

      3,182      657      —  
                    

Dilutive potential common shares

      4,241      1,651      893
                    

Average diluted common shares outstanding

      33,666      28,964      23,847
                    

Per Share Data:

         

Basic earnings per share

    $ 1.57    $ 1.23    $ 0.95

Diluted earnings per share

    $ 1.47    $ 1.18    $ 0.92
(1) On March 31, 2004, the FASB changed its interpretation of Statement of Financial Accounting Standards No. 128, Earnings Per Share, affecting the calculation of EPS for variable priced contracts. This interpretation applied to the Company’s Forward Stock Agreement (the “Agreement”). As a result, the Company amended this Agreement effective April 1, 2004 and such amendment eliminated the need to include the effect of the Agreement in basic shares after that date. The new interpretation required the Company to account for the original Agreement differently by including approximately 497,000 and 132,000 unissued shares in the calculation of basic EPS for the years ended December 31, 2004 and 2003, respectively.

On September 29, 2005 the Company exercised the Agreement. Under the settlement terms of the Agreement the Company received approximately $36.4 million in proceeds from the issuance of 1.6 million shares of the Company’s common stock.

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

EXCERPTS ON THIS PAGE:

10-Q
May 12, 2008
10-K
Mar 14, 2008
10-Q
May 10, 2007
10-K
Feb 28, 2007
8-K
May 31, 2006
10-Q
May 10, 2006
10-K
Mar 10, 2006

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