14 STOCK OPTIONS AND RESTRICTED STOCK 13 EARNINGS (LOSS) PER SHARE The Company has stock plans, which provide for the granting of restricted stock and options to employees and directors to purchase its Common Shares. These plans provide for nonqualified and incentive stock options. Stock options are granted to employees at an exercise price equal to the fair market value of the Company’s Common Shares at the date of grant. Options expire 10 years from the date of grant. Vesting periods are established by the Compensation Committee of the Board of Directors and vary. Restricted Stock — During 2000, restricted stock awards for 723,798 shares of the Company’s common stock were granted at a market value of $13.50 per share to certain officers under the 1999 Restricted Stock Plan. All eligible shares under this plan have been granted and, subject to certain terms and conditions, vest over a three-year period commencing upon termination of employment. Unvested shares are restricted as to disposi- tion and subject to forfeiture under certain circumstances. The cost of these awards, determined as the market value of the shares at the date of grant, is being amortized over the restriction periods. In Fiscal 2003, 2002 and For the three years ended March 31, 2003, 2002 and 2001, 3,464,832, 3,861,534 and 3,137,821 stock options, respectively, that could potentially dilute earnings per share in the future were not included in the computation of diluted earnings per share because to do so would have been antidilutive. Due to the application of the treasury stock method, shares subscribed for by the Trust, which is more fully described in Note 12 to the Consolidated Financial Statements, have no effect on earnings per share until they are released from the Trust. For the three years ended March 31, 2003, 2002 and 2001, 9,122,222, 9,123,396 and 9,126,984 Common Shares issuable upon conversion of the Trust preferred securities, respectively, that could potentially dilute earnings per share in the future were not included in the computation of diluted earnings per share because to do so would have been antidilutive. The following table sets forth the computation of basic and diluted earnings (loss) per share: Year Ended March 31 (Dollars in Thousands, Except Per Share Data) 2003 2002 2001 Weighted average number of shares Basic 27,292 27,040 26,793 Common Shares issuable upon conversion of Trust  preferred securities — — — Common equivalent shares — — — Diluted 27,292 27,040 26,793 Loss from Continuing Operations $(26,060) $ (2,911) $(18,316) Income (Loss) from Discontinued Operations, net of taxes (See Note 2) 18,777 (4,136) 52,892 Income (Loss) Before Cumulative Effect of Change in Accounting Principle (7,283) (7,047) 34,576 Cumulative Effect of Change in Accounting Principle, net of $1.9 million tax benefit (34,795) — — Net income (loss) on which basic and diluted earnings (loss)  per share is calculated $(42,078) $ (7,047) $ 34,576 Earnings (loss) per share Loss from Continuing Operations — Basic and Diluted $ (0.96) $ (0.11) $ (0.68) Income (Loss) from Discontinued Operations 0.69 (0.15) 1.97 Income (Loss) Before Cumulative Effect of Change in Accounting Principle (0.27) (0.26) 1.29 Cumulative Effect of Change in Accounting Principle (1.27) — — Net Income (Loss) — Basic and Diluted $ (1.54) $ (0.26) $ 1.29 47