Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2013

Earnings (Loss) Per Share [Abstract]

Earnings (Loss) Per Share

NOTE 5: EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares adjusted to include the effect of potentially dilutive securities. Potentially dilutive securities include incremental shares issuable upon exercise of outstanding stock options and shares of unvested restricted stock. Diluted earnings (loss) per share exclude all dilutive securities if their effect is anti-dilutive.

The Company's restricted stock awards are considered "participating securities" because they contain non-forfeitable rights to dividends. Under the two-class method, EPS is computed by dividing earnings allocated to common shareholders by the weighted-average number of common shares outstanding for the period. In applying the two-class method, earnings are allocated to both common stock shares and participating securities based on their respective weighted-average shares outstanding for the period. Due to the Company's net loss for the periods, the effect of participating securities was excluded from the computation of basic and diluted EPS. The net losses are not allocated because the restricted stock holders are not required to fund losses.

Basic and diluted weighted average shares were the same for the three months ended March 31, 2013 and 2012 because the effects of the potentially dilutive securities were antidilutive and were excluded from the calculation. Such securities included 425,248 and 87,139 of nonvested restricted stock and 535,726 and 303,106 common stock options at March 31, 2013 and March 31, 2012, respectively.