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8-K - FORM 8-K - OWENS & MINOR INC/VA/d812405d8k.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

October 27, 2014

Owens & Minor Reports Financial Results for 3rd Quarter 2014

RICHMOND, VA….Owens & Minor, Inc. (NYSE-OMI) today reported financial results for the third quarter ended September 30, 2014, including the following highlights:

 

  Consolidated revenues increased 5.1% in the third quarter of 2014

 

  Adjusted diluted earnings per share were $0.42 for the third quarter

 

  Executed a recapitalization plan, providing funding for strategic investments and improving liquidity

For the quarter ended September 30, 2014, the company reported consolidated revenues of $2.39 billion, improved 5.1% over revenues in the third quarter of 2013. Quarterly net income was $7.2 million, or $0.11 per diluted share. Adjusted net income (non-GAAP) was $26.5 million, or $0.42 per diluted share, which excluded the following after-tax charges: $3.6 million for acquisition-related and $6.7 million for exit and realignment activities, as well as $9.1 million for the loss on early retirement of debt due to the company’s balance sheet recapitalization.

“We are very pleased with the strong growth we are seeing in our top line, which we believe is a result of our strategic approach to the market, as well as the improving healthcare environment,” said James L. Bierman, president & chief executive officer of Owens & Minor. “In the coming months, we will be fully engaged with the integration of the previously announced Medical Action acquisition, as well as the pending ArcRoyal acquisition. We are enthusiastic about the new and broader capabilities that these transactions will enable us to bring to our customers.”

Consolidated operating earnings for the third quarter of 2014 were $35.4 million, a decline of $13.8 million, when compared to the third quarter last year. Adjusted consolidated operating earnings (non-GAAP) for the third quarter of 2014 were $49.3 million, or 2.07% of revenues, a decline of $2.6 million when compared to the same period last year.

Third quarter 2014 results also included $0.9 million of additional interest expense from the balance sheet recapitalization, which reduced adjusted net income by approximately $0.01 per diluted share. In addition, third quarter results reflected the impact of International segment exit and realignment costs on foreign taxes, as well as certain non-deductible acquisition expenses. These factors increased the company’s effective tax rate for the quarter to 55.8%, reducing adjusted net income by approximately $0.01 per diluted share.

Year-to-Date Results

For the nine months ended September 30, 2014, consolidated revenues were $6.95 billion, increased approximately $195.4 million, or 2.9%, when compared to consolidated revenues for the same period of 2013. Net income for the period was $52.5 million, or $0.84 per diluted share. Adjusted net income

 

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(non-GAAP) was $79.2 million, or $1.26 per diluted share, excluding after-tax charges of: $6.6 million for acquisition-related activities, $11.0 million for exit and realignment activities, and the $9.1 million loss on early retirement of debt. Year-to-date results include the first quarter recovery of $5.3 million from the settlement of a direct purchaser anti-trust class action lawsuit, which was included in other operating income.

Consolidated operating earnings for the year-to-date period of 2014 were $118.8 million, or 1.71% of revenues. Adjusted consolidated operating earnings (non-GAAP) for the year-to-date period were $143.6 million, or 2.07% of revenues, compared to $152.5 million, or 2.26% of revenues, for the same period last year.

The year-to-date tax rate increased to 43.5%, as a result of the factors that affected the third quarter tax rate.

Acquisitions Update

Effective October 1, 2014, Owens & Minor completed the acquisition of Medical Action Industries, Inc. and immediately launched a comprehensive integration plan. During the third quarter of 2014, Owens & Minor announced plans to acquire privately held ArcRoyal, a surgical kitting company based in Ireland, and expects the transaction will close during the fourth quarter of 2014. Together, these two transactions provide Owens & Minor with capabilities that are highly complementary to its strategic goals for developing unitized delivery services for the healthcare industry. Due to the timing of these two transactions, Owens & Minor does not expect the acquisitions to make a material contribution to operational results in the fourth quarter of 2014.

Balance Sheet Recapitalization

During the quarter, Owens & Minor issued $275 million of 3.875% Senior Notes due 2021 and $275 million of 4.375% Senior Notes due 2024. As part of the recapitalization, the company accrued a $14.9 million pre-tax loss on the early retirement of its 2016 Senior Notes. Also during the third quarter, Owens & Minor amended its existing Credit Agreement (dated June 12, 2012), increasing the borrowing capacity to $450 million and extending the term to 2019.

In the fourth quarter, proceeds of approximately $446 million were used to purchase the outstanding shares of Medical Action Industries on October 1, 2014, and to fund the early retirement of the company’s 2016 Senior Notes on October 16, 2014.

Asset Management

The balance of cash and cash equivalents was $610 million at September 30, 2014, reflecting the company’s balance sheet recapitalization. As noted above, the cash balance was reduced in the fourth quarter of 2014 by redemption of the 2016 Senior Notes and completion of the Medical Action Industries transaction. For the first nine months of 2014, the company reported cash provided by operating activities of $81 million. Asset management metrics for the quarter were positive with consolidated days sales outstanding (DSO) of 21.8 days as of September 30, 2014, and consolidated inventory turns of 10.0 for the third quarter of 2014.

Segment Results

Domestic segment revenues for the third quarter of 2014 were $2.26 billion, an increase of $86.4 million, or 4.0%, when compared to the prior year’s third quarter revenues of $2.18 billion. For the year-to-date period, Domestic segment revenues were $6.60 billion, improved $124.5 million, or 1.9% when

 

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compared to revenues of $6.47 billion for the same period last year. In both the quarterly and year-to-date periods, revenue gains resulted primarily from growth among larger healthcare provider customer accounts.

For the third quarter of 2014, Domestic segment operating earnings were $50.8 million, or 2.25% of segment revenues, essentially unchanged when compared to the same period of 2013. The quarterly results were negatively affected by increases in legal expenses. For the year-to-date period, Domestic segment operating earnings declined $3.5 million to $151.8 million, or 2.30% of segment revenues, when compared to the prior year period. For the year-to-date period, the decline resulted from lower benefits from manufacturer product price changes and increased legal expenses, as well as lower margin on new and renewed customer contracts. These negative factors were offset by cost benefits realized from ongoing strategic initiatives focused on achieving gains in productivity and efficiency.

The International segment contributed revenues of $124.0 million, improved 30.7%, for the third quarter of 2014 and had an operating loss of $1.5 million, when compared to the same period last year. However, on a sequential basis, quarterly operating losses for the International segment and the U.K. division were reduced by more than 50%, as a result of significant remediation efforts. For the year-to-date period, the International segment reported $349.8 million in revenues, improved 25.4%, along with year-to-date operating losses of $8.3 million. For the year-to-date period, the company attributed the International segment operating losses to operations in the United Kingdom, including a combination of increased costs associated with integrating a significant new customer and reduced customer activity.

Highlights & Upcoming Events

 

    The Owens & Minor board of directors declared a fourth quarter 2014 dividend of $0.25 per diluted share. The dividend is payable on December 31, 2014, to shareholders of record on December 15, 2014.

 

    Owens & Minor is scheduled to participate in the 2014 Credit Suisse Healthcare Conference on November 12, 2014 in Phoenix. The presentation, which will be webcast, is scheduled for 11:00 a.m. Mountain Time.

 

    Owens & Minor has scheduled its Annual Investor Day for Friday, December 5, 2014, in New York. Owens & Minor executives will provide an operational and strategic overview, as well as the company’s financial outlook for 2015. The event will take place at The New York Palace Hotel, beginning at 8:00 a.m. EST and concluding at approximately 10:30 a.m. EST. A live, listen-only webcast of the briefing will be available on the company website at www.owens-minor.com under the Investor Relations Section. Registration is available via: http://investors.owens-minor.com/registration.cfm

Investors Conference Call & Supplemental Material

Owens & Minor’s management team will conduct a conference call to discuss the third quarter financial results on Tuesday, October 28, at 8:30 a.m. EST. The access code for this event is #20117288. The dial-in number for the live conference call is 866-393-1604; the international dial-in number is 224-357-2191; a replay of the call will be available for one week by calling 855-859-2056. A webcast of the event, along with supplemental financial information, will be available on www.owens-minor.com under the Investor Relations section.

Owens & Minor uses its website, www.owens-minor.com, as a channel of distribution for material company information, including news releases, investor presentations and financial information. This information is routinely posted and accessible under the Investor Relations section.

 

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Included with the press release financial tables are reconciliations of the differences between the non-GAAP financial measures presented in this news release, which exclude acquisition-related, exit and realignment charges, and the loss on early retirement of debt, and their most directly comparable GAAP financial measures.

Safe Harbor Statement

Except for historical information, the matters discussed in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These risk factors are discussed in reports filed by the company with the Securities & Exchange Commission. All of this information is available at www.owens-minor.com. The company assumes no obligation, and expressly disclaims any such obligation, to update or alter information, whether as a result of new information, future events, or otherwise.

Owens & Minor, Inc. (NYSE: OMI) is a leading healthcare logistics company dedicated to Connecting the World of Medical Products to the Point of CareTM by providing vital supply chain services to healthcare providers and manufacturers of healthcare products. Owens & Minor provides logistics services across the spectrum of medical products from disposable medical supplies to devices and implants. With logistics platforms strategically located in the United States and Europe, Owens & Minor serves markets where three quarters of global healthcare spending occurs. Owens & Minor’s customers span the healthcare market from independent hospitals to large integrated healthcare networks, as well as group purchasing organizations, healthcare products manufacturers, and the federal government. A FORTUNE 500 company, Owens & Minor is headquartered in Richmond, Virginia, and has annualized revenues exceeding $9 billion. For more information about Owens & Minor, visit the company website at owens-minor.com.

CONTACTS:

Trudi Allcott, Director, Investor & Media Relations, 804-723-7555; truitt.allcott@owens-minor.com

Chuck Graves, Director, Finance & Investor Relations, 804-723-7556; chuck.graves@owens-minor.com

Source: Owens & Minor

 

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Owens & Minor, Inc.

Consolidated Statements of Income (unaudited)

(in thousands, except per share data)

 

     Three Months Ended September 30,  
     2014     2013  

Net revenue

   $ 2,386,126      $ 2,270,547   

Cost of goods sold

     2,093,643        1,997,218   
  

 

 

   

 

 

 

Gross margin

     292,483        273,329   

Selling, general and administrative expenses

     231,377        211,344   

Acquisition-related and exit and realignment charges

     13,957        2,747   

Depreciation and amortization

     13,841        12,441   

Other operating income, net

     (2,069     (2,418
  

 

 

   

 

 

 

Operating earnings

     35,377        49,215   

Interest expense, net

     4,304        3,389   

Loss on early retirement of debt

     14,890        —     
  

 

 

   

 

 

 

Income before income taxes

     16,183        45,826   

Income tax provision

     9,028        17,856   
  

 

 

   

 

 

 

Net income

   $ 7,155      $ 27,970   
  

 

 

   

 

 

 

Net income per common share:

    

Basic

   $ 0.11      $ 0.44   

Diluted

   $ 0.11      $ 0.44   
     Nine Months Ended September 30,  
     2014     2013  

Net revenue

   $ 6,948,365      $ 6,753,008   

Cost of goods sold

     6,092,413        5,927,196   
  

 

 

   

 

 

 

Gross margin

     855,952        825,812   

Selling, general and administrative expenses

     682,825        641,613   

Acquisition-related and exit and realignment charges

     24,813        5,395   

Depreciation and amortization

     41,597        37,347   

Other operating income, net

     (12,046     (5,693
  

 

 

   

 

 

 

Operating earnings

     118,763        147,150   

Interest expense, net

     10,893        9,835   

Loss on early retirement of debt

     14,890        —     
  

 

 

   

 

 

 

Income before income taxes

     92,980        137,315   

Income tax provision

     40,464        54,374   
  

 

 

   

 

 

 

Net income

   $ 52,516      $ 82,941   
  

 

 

   

 

 

 

Net income per common share:

    

Basic

   $ 0.84      $ 1.31   

Diluted

   $ 0.84      $ 1.31   

 

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Owens & Minor, Inc.

Condensed Consolidated Balance Sheets (unaudited)

(in thousands)

 

     September 30,
2014
     December 31,
2013
 

Assets

     

Current assets

     

Cash and cash equivalents

   $ 610,147       $ 101,905   

Accounts and notes receivable, net

     590,140         572,854   

Merchandise inventories

     834,476         771,663   

Other current assets

     295,441         279,510   
  

 

 

    

 

 

 

Total current assets

     2,330,204         1,725,932   

Property and equipment, net

     203,955         191,961   

Goodwill

     274,533         275,439   

Intangible assets, net

     36,457         40,406   

Other assets, net

     98,749         90,304   
  

 

 

    

 

 

 

Total assets

   $ 2,943,898       $ 2,324,042   
  

 

 

    

 

 

 

Liabilities and equity

     

Current liabilities

     

Current portion of long-term debt

   $ 202,401       $ 2,428   

Accounts payable

     692,616         643,872   

Accrued payroll and related liabilities

     28,709         23,296   

Deferred income taxes

     39,406         41,613   

Other accrued liabilities

     315,581         277,970   
  

 

 

    

 

 

 

Total current liabilities

     1,278,713         989,179   

Long-term debt, excluding current portion

     563,882         213,815   

Deferred income taxes

     41,725         43,727   

Other liabilities

     52,054         52,278   
  

 

 

    

 

 

 

Total liabilities

     1,936,374         1,298,999   

Total equity

     1,007,524         1,025,043   
  

 

 

    

 

 

 

Total liabilities and equity

   $ 2,943,898       $ 2,324,042   
  

 

 

    

 

 

 

 

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Owens & Minor, Inc.

Consolidated Statements of Cash Flows (unaudited)

(in thousands)

 

     Nine Months Ended September 30,  
     2014     2013  

Operating activities:

    

Net income

   $ 52,516      $ 82,941   

Adjustments to reconcile net income to cash provided by operating activities:

    

Depreciation and amortization

     41,597        37,347   

Loss on early retirement of debt

     14,890        —     

Share-based compensation expense

     6,136        5,162   

Provision for losses on accounts and notes receivable

     (356     179   

Deferred income tax (benefit) expense

     (7,387     8,424   

Changes in operating assets and liabilities:

    

Accounts and notes receivable

     (21,456     (20,703

Merchandise inventories

     (63,883     (23,690

Accounts payable

     54,634        93,950   

Net change in other assets and liabilities

     3,131        (21,285

Other, net

     1,322        (1,159
  

 

 

   

 

 

 

Cash provided by operating activities

     81,144        161,166   
  

 

 

   

 

 

 

Investing activities:

    

Additions to property and equipment

     (36,169     (25,144

Additions to computer software and intangible assets

     (17,988     (20,361

Proceeds from sale of investment

     1,937        —     

Proceeds from sale of property and equipment

     151        2,020   
  

 

 

   

 

 

 

Cash used for investing activities

     (52,069     (43,485
  

 

 

   

 

 

 

Financing activities:

    

Long-term debt borrowings

     547,693        —     

Cash dividends paid

     (47,335     (45,587

Repurchases of common stock

     (9,934     (15,701

Excess tax benefits related to share-based compensation

     514        733   

Proceeds from exercise of stock options

     1,180        4,821   

Purchase of noncontrolling interest

     (1,500     —     

Debt issuance costs

     (4,178     —     

Other, net

     (5,671     (6,769
  

 

 

   

 

 

 

Cash provided by (used for) financing activities

     480,769        (62,503
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (1,602     723   
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     508,242        55,901   

Cash and cash equivalents at beginning of period

     101,905        97,888   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 610,147      $ 153,789   
  

 

 

   

 

 

 

 

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Owens & Minor, Inc.

Financial Statistics and GAAP/Non-GAAP Reconciliations (unaudited)

 

    Quarter Ended  

(in thousands, except ratios and per share data)

  9/30/2014     6/30/2014     3/31/2014     12/31/2013     9/30/2013  

Consolidated operating results:

         

Domestic

  $ 2,262,081      $ 2,187,535      $ 2,148,915      $ 2,213,949      $ 2,175,663   

International

    124,045        118,323        107,465        104,575        94,884   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net revenue

  $ 2,386,126      $ 2,305,858      $ 2,256,380      $ 2,318,524      $ 2,270,547   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

  $ 292,483      $ 282,272      $ 281,195      $ 291,263      $ 273,329   

Gross margin as a percent of revenue

    12.26     12.24     12.46     12.56     12.04
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

SG&A expenses

  $ 231,377      $ 225,838      $ 225,610      $ 222,043      $ 211,344   

SG&A expenses as a percent of revenue

    9.70     9.79     10.00     9.58     9.31
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating earnings, as reported (GAAP)

  $ 35,377      $ 37,101      $ 46,284      $ 50,934      $ 49,215   

Acquisition-related and exit and realignment charges

    13,957        7,593        3,262        7,049        2,747   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating earnings, adjusted (Non-GAAP)

  $ 49,334      $ 44,694      $ 49,546      $ 57,983      $ 51,962   

Operating earnings as a percent of revenue, adjusted (Non-GAAP)

    2.07     1.94     2.20     2.50     2.29
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income, as reported (GAAP)

  $ 7,155      $ 19,876      $ 25,485      $ 27,942      $ 27,970   

Acquisition-related and exit and realignment charges, after-tax

    10,297        5,095        2,222        5,024        1,899   

Loss on early retirement of debt, after tax

    9,092        —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income, adjusted (Non-GAAP)

  $ 26,544      $ 24,971      $ 27,707      $ 32,966      $ 29,869   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income per diluted common share, as reported (GAAP)

  $ 0.11      $ 0.32      $ 0.41      $ 0.44      $ 0.44   

Acquisition-related and exit and realignment charges

    0.17        0.08        0.03        0.08        0.03   

Loss on early retirement of debt

    0.14        —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income per diluted common share, adjusted (Non-GAAP)

  $ 0.42      $ 0.40      $ 0.44      $ 0.52      $ 0.47   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Financing:

         

Cash and cash equivalents

  $ 610,147      $ 92,027      $ 182,373      $ 101,905      $ 153,789   

Total interest-bearing debt

  $ 766,283      $ 221,496      $ 217,261      $ 216,243      $ 216,850   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stock information:

         

Cash dividends per common share

  $ 0.25      $ 0.25      $ 0.25      $ 0.24      $ 0.24   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stock price at quarter-end

  $ 32.74      $ 33.98      $ 35.03      $ 36.56      $ 34.59   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Use of Non-GAAP Measures

This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). In general, the measures exclude items and charges that (i) management does not believe reflect Owens & Minor, Inc.’s (the “Company”) core business and relate more to strategic, multi-year corporate activities; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate the Company’s performance, evaluate the balance sheet, engage in financial and operational planning and determine incentive compensation.

Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on its financial and operating results and in comparing the Company’s performance to that of its competitors. However, the non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated.

 

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Owens & Minor, Inc.

Summary Segment Information (unaudited)

(in thousands)

 

    Three Months Ended September 30,  
    2014     2013  
    Amount     % of
consolidated
net revenue
    Amount     % of
consolidated
net revenue
 

Net revenue:

       

Domestic

  $ 2,262,081        94.80   $ 2,175,663        95.82

International

    124,045        5.20     94,884        4.18
 

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated net revenue

  $ 2,386,126        100.00   $ 2,270,547        100.00
 

 

 

   

 

 

   

 

 

   

 

 

 
          % of segment
net revenue
          % of segment
net revenue
 

Operating earnings (loss):

       

Domestic

  $ 50,797        2.25   $ 51,213        2.35

International

    (1,463     (1.18 )%      749        0.79

Acquisition-related and exit and realignment charges

    (13,957     N/A        (2,747     N/A   
 

 

 

     

 

 

   

Consolidated operating earnings

  $ 35,377        1.48   $ 49,215        2.17
 

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation and amortization:

       

Domestic

  $ 8,986        $ 8,805     

International

    4,855          3,636     
 

 

 

     

 

 

   

Consolidated depreciation and amortization

  $ 13,841        $ 12,441     
 

 

 

     

 

 

   

Capital expenditures: (1)

       

Domestic

  $ 11,077        $ 10,032     

International

    4,257          4,426     
 

 

 

     

 

 

   

Consolidated capital expenditures

  $ 15,334        $ 14,458     
 

 

 

     

 

 

   

 

(1) Represents additions to property and equipment and additions to computer software and separately acquired intangible assets.

 

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Owens & Minor, Inc.

Summary Segment Information (unaudited)

(in thousands)

 

    Nine Months Ended September 30,  
    2014     2013  
    Amount     % of
consolidated
net revenue
    Amount     % of
consolidated
net revenue
 

Net revenue:

       

Domestic

  $ 6,598,531        94.97   $ 6,474,069        95.87

International

    349,834        5.03     278,939        4.13
 

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated net revenue

  $ 6,948,365        100.00   $ 6,753,008        100.00
 

 

 

   

 

 

   

 

 

   

 

 

 
          % of segment
net revenue
          % of segment
net revenue
 

Operating earnings (loss):

       

Domestic

  $ 151,849        2.30   $ 155,364        2.40

International

    (8,273     (2.36 )%      (2,819     (1.01 )% 

Acquisition-related and exit and realignment charges

    (24,813     N/A        (5,395     N/A   
 

 

 

     

 

 

   

Consolidated operating earnings

  $ 118,763        1.71   $ 147,150        2.18
 

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation and amortization:

       

Domestic

  $ 26,772        $ 26,775     

International

    14,825          10,572     
 

 

 

     

 

 

   

Consolidated depreciation and amortization

  $ 41,597        $ 37,347     
 

 

 

     

 

 

   

Capital expenditures: (1)

       

Domestic

  $ 40,110        $ 34,506     

International

    14,047          10,999     
 

 

 

     

 

 

   

Consolidated capital expenditures

  $ 54,157        $ 45,505     
 

 

 

     

 

 

   
    September 30, 2014           December 31, 2013        

Total assets:

       

Domestic

  $ 1,834,169        $ 1,747,572     

International

    499,582          474,565     
 

 

 

     

 

 

   

Segment assets

    2,333,751          2,222,137     

Cash and cash equivalents

    610,147          101,905     
 

 

 

     

 

 

   

Consolidated total assets

  $ 2,943,898        $ 2,324,042     
 

 

 

     

 

 

   

 

Page 10


Owens & Minor, Inc.

Net Income Per Common Share (unaudited)

(in thousands, except per share data)

 

    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2014     2013     2014     2013  

Numerator:

       

Net income

  $ 7,155      $ 27,970      $ 52,516      $ 82,941   

Less: income allocated to unvested restricted shares

    (150     (186     (453     (541
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to common shareholders - basic

    7,005        27,784        52,063        82,400   

Add: undistributed income attributable to unvested restricted shares –basic

    —          59        26        185   

Less: undistributed income attributable to unvested restricted shares –diluted

    —          (59     (26     (185
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to common shareholders - diluted

  $ 7,005      $ 27,784      $ 52,063      $ 82,400   
 

 

 

   

 

 

   

 

 

   

 

 

 

Denominator:

       

Weighted average shares outstanding — basic

    62,175        62,605        62,238        62,678   

Dilutive shares - stock options

    4        26        7        41   
 

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding — diluted

    62,179        62,631        62,245        62,719   
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share attributable to common shareholders:

       

Basic

  $ 0.11      $ 0.44      $ 0.84      $ 1.31   

Diluted

  $ 0.11      $ 0.44      $ 0.84      $ 1.31   

 

Page 11