Earnings Per Share

6 Months Ended

Jun. 30, 2016

Basic earnings per share of the Company is computed by dividing net income/(loss) by the weighted average number of shares of common stock outstanding for the period. Except when the effect would be anti-dilutive, the diluted earnings per share calculation calculated using the treasury stock method includes the impact of stock units, shares of non-vested restricted stock and shares that could be issued under outstanding stock options.

Weighted average number of common shares used for basic earnings per share excludes weighted average shares of non-vested restricted stock of 198,459 and 235,981 for the three months ended June 30, 2016 and 2015, respectively and 206,276 and 238,168 for the six months ended June 30, 2016 and 2015, respectively. Non-vested restricted stock is included in common shares issued and outstanding in the condensed consolidated balance sheets.

Potentially dilutive shares exclude warrants and stock options in accordance with the treasury stock method primarily due to exercise prices exceeding the average market value. Since the Company incurred a loss for the six months ended June 30, 2015, all potentially dilutive securities are anti-dilutive and, therefore, are excluded from the determination of diluted earnings per share.

The following table provides a reconciliation of the common shares used for basic earnings per share and diluted earnings per share:



	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
Weighted average number of common shares used for basic earnings per share	26,858,029	26,654,518	26,834,863	26,621,662
Effect of potential dilutive shares	225,483	370,843	235,815	—
Weighted average number of common shares and potential dilutive shares used for diluted earnings per share	27,083,512	27,025,361	27,070,678	26,621,662
Weighted average number of anti-dilutive shares outstanding at period-end that are excluded from the above reconciliation	5,764,994	4,246,924	5,837,675	4,487,876