Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Matthew Fassler with Goldman Sachs.
Matthew Fassler - Goldman Sachs
-- but I actually want the first question to be a financial one related to the EPS calculation. If you could talk to us about how you get to the weighted average shares that you deploy and just any moving pieces in the EPS calculation, given the financings that you just did, that would be great.
David P. Cosper
I’m going to let Greg handle that. It’s fairly technical accounting.
Matthew Fassler - Goldman Sachs
Good. Thanks. Then I’ll have an operational follow-up, thanks.
Greg Young
We talked a little bit about this on last quarter as we tried to lay out for everybody some of the impacts that we could start to quantify at that point in time. And we were fully expecting that we would have some fairly significant dilution from the conversion feature on the 6% notes. But when you go through the if converted method and you add back the interest and then add in the share count, the interest add back more than offsets the impact of the share count. So for the quarter, it was actually anti-dilutive so you do not add it back. So that’s why we ended up at the 40 million shares versus the high 50 million that everyone was expecting.
But as Dave said in his comments, I would model going forward somewhere in the mid 60 million shares because in a full quarter, it’s going to -- if it is dilutive, it will amount to about 21.5 million shares on top of our 40 million shares already.
Matthew Fassler - Goldman Sachs
And we can follow-up offline but just the moving pieces that will determine whether it’s dilutive or anti-dilutive in a given quarter would relate to the level of earnings or does the stock price have any impact on that?
Greg Young
I think it’s really related to the level of earnings. The stock price really would not impact that calculation at all.
Matthew Fassler - Goldman Sachs
Okay. I guess the second question I have relates to the -- to your used car business. Clearly you are really cleaning up from a revenue perspective. From an aggregate gross profit perspective, maybe a little bit less so as you look at your used car gross margin rate, you know, in a market where we -- I think a lot of your competition probably has been showing higher margins year-on-year. If you could just talk to us about how you think you are positioning yourselves competitively on pricing, because it does seem like there are some margin tailwinds, maybe some headwinds on the LTV side but generally some margin tailwinds, so any insight you could give us there would be great.
- To read the full transcript on Seeking Alpha, click here »
