Earnings Per Share

12 Months Ended

Sep. 30, 2013

Earnings Per Share

Earnings Per Share

3. Earnings Per Share

Basic earnings per share excludes dilution and is computed by dividing net income attributable to Natural Grocers by Vitamin Cottage, Inc. stockholders by the weighted average shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if the Company’s granted but unvested restricted stock units were to vest, resulting in the issuance of common stock that would then share in the earnings of the Company. Presented below is basic and diluted earnings per share for the years ended September 30, 2013, 2012 and 2011, dollars in thousands, except share and per share data:

	Year ended September 30,
	2013		2012	2011
Net income attributable to Natural Grocers by Vitamin Cottage, Inc.	$	10,552	6,649	3,504
Weighted average common shares outstanding	22,399,346		22,372,184	22,372,184
Effect of dilutive securities	42,036		90,909	89,221
Weighted average common shares outstanding including effect of dilutive securities	22,441,382		22,463,093	22,461,405
Basic earnings per share	$	0.47	0.30	0.16
Diluted earnings per share	$	0.47	0.30	0.16

The Company did not declare any dividends in the years ended September 30, 2013, 2012 and 2011.

As of September 30, 2013, the Company had 50,000,000 shares of common stock authorized and 22,441,253 shares issued and outstanding, as well as 10,000,000 shares of preferred common stock authorized with none issued and outstanding.