Net Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2014

Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

7. Net Income (Loss) Per Common Share

Basic net income per share is computed by dividing net income by the weighted daily average number of shares of common stock outstanding during the period. Diluted net income per share is based upon the weighted daily average number of shares of common stock outstanding for the period plus dilutive potential common shares, including stock options and restricted stock units using the treasury-stock method. A reconciliation of the weighted average basic common shares outstanding to the weighted average diluted common shares outstanding is as follows (unaudited):

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	2014		2013		2014		2013
Weighted average common basic shares outstanding	21,997,394		21,911,574		21,989,131		21,890,861
Effect of dilutive stock options and restricted stock units	429,393		374,149		403,441		335,169
Weighted average common diluted shares outstanding	22,426,787		22,285,723		22,392,572		22,226,030
Net income (loss) per share:
Basic	$	0.20	$	0.17	$	0.63	$	0.32
Diluted	$	0.19	$	0.17	$	0.62	$	0.31

For the three and nine-months ended September 30, 2014 performance-based restricted stock was excluded in the computation of weighted average diluted common share outstanding because the number of shares ultimately issuable is contingent on the Company’s performance goals, which were not achieved as of September 30, 2014.   There was no performance-based incentive program in place during 2013.

There are no additional securities that could dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share, other than those disclosed.