Computation of Earnings per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Computation of Earnings per Share

D) Computation of Earnings per Share. Basic earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding.  Diluted earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued.  For the purposes of this calculation, stock options are considered common stock equivalents in periods in which they have a dilutive effect.  Stock options that are anti-dilutive are excluded from the calculation.

Net income per share is calculated as follows (in thousands, except per share data):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014		2013
Net income:
Income from continuing operations	$	2,599	$	790		$	4,344	$	3,227
Loss from discontinued operations		-		(1,943	)		-		(2,216	)
Net income (loss)	$	2,599	$	(1,153	)	$	4,344	$	1,011
Shares outstanding:
Weighted-average common shares outstanding		22,804		22,571			22,687		22,533
Additional dilutive common stock equivalents		89		-			94		90
Diluted shares outstanding		22,893		22,571			22,781		22,623
Basic net income (loss) per share:
Basic net income per share from continuing operations	$	0.11	$	0.04		$	0.19	$	0.14
Basic net loss per share from discontinued operations		0.00		(0.09	)		0.00		(0.10	)
Basic net income (loss) per share	$	0.11	$	(0.05	)	$	0.19	$	0.04
Diluted net income (loss) per share:
Diluted net income per share from continuing operations	$	0.11	$	0.04		$	0.19	$	0.14
Diluted net loss per share from discontinued operations		0.00		(0.09	)		0.00		(0.10	)
Diluted net income (loss) per share	$	0.11	$	(0.05	)	$	0.19	$	0.04

For the three month period ended September 30, 2013, common stock equivalents of 111,349 were not included in the per share calculation for diluted EPS, because we had a net loss and the effect of their inclusion would be anti-dilutive.

For the three month periods ended September 30, 2014 and 2013, options to purchase 40,834 and 825,338 shares of common stock, respectively, were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock and thus would be anti-dilutive.

For the nine month periods ended September 30, 2014 and 2013, options to purchase 40,834 and 825,338 shares of common stock, respectively, were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock and thus would be anti-dilutive.