15. Earnings per share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Text Block]

15. Earnings per share

For 2011, 2010 and 2009, earnings per share were computed as follows (in thousands, except per share amounts):

	Year Ended December 31,
	2011		2010		2009
Net income	$	4,676	$	3,904	$	2,140
Shares:
Basic:  Weighted average common shares outstanding		9,443		9,390		9,289
Add:  Dilutive effect of outstanding options as determined by the treasury stock method		160		200		88
Diluted:  Weighted average common and common equivalent shares outstanding		9,603		9,590		9,377
Net income per common share:
Basic	$	0.50	$	0.42	$	0.23
Diluted		0.49		0.41		0.23

We compute earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities.  Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends.

Certain stock-based awards were not included in the full year computation of earnings per diluted share because the effect would be anti-dilutive.  Anti-dilutive stock options, restricted shares and deferred stock units excluded from the computation of earnings per dilutive share were 309,250, 367,750, and 525,500, at December 31, 2011, 2010 and 2009 respectively.