Net Income per Weighted-Average Common Share

9 Months Ended

Sep. 30, 2012

Net Income per Weighted-Average Common Share

5. Net Income per Weighted-Average Common Share

The computations of basic and diluted net income per weighted-average common share for the three and nine-month periods ended September 30, 2012 and 2011, are based on the Company’s weighted-average shares of common stock and potentially dilutive securities outstanding. Potentially dilutive securities are calculated in accordance with the treasury stock method, which assumes the proceeds from the exercise of all stock options are used to repurchase the Company’s common stock at the average market price for the period.

As of September 30, 2012, and 2011, there were stock options to purchase 2,089,125 shares, and 2,094,214 shares of the Company’s common stock outstanding, respectively, of which stock options to purchase 1,399,252 shares, and 1,102,228 shares of the Company’s common stock, respectively, were excluded from the computation of the diluted net income per weighted-average common share for the three-month periods ended September 30, 2012, and 2011, respectively, either because the stock options’ exercise prices were greater than the average market price of the Company’s common shares or assumed repurchases from proceeds from the stock options’ exercise were antidilutive.