EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 11. EARNINGS PER SHARE

For the three and nine months ended September 30, 2012 and 2011, basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Unexercised stock options and unvested restricted shares are excluded from this calculation but are included in the diluted earnings per share calculation using the treasury stock method so long as their effect is not anti-dilutive.

For the three and nine months ended September 30 2012, the diluted effect of stock options and restricted stock grants of approximately 235,500 and 244,900 shares, respectively, were not included in the computation of diluted loss per share as the net loss would have made their effect anti-dilutive.  For the three and nine months ended September 30, 2011, diluted earnings per share are determined by using the weighted average number of common and dilutive common equivalent shares outstanding during the period.  Due to the anti-dilutive effect, approximately 105,400 and 86,200 options to purchase common stock and restricted stock awards were excluded from the calculation of diluted earnings per share for the three and nine months ended September 30, 2011, respectively.

The following table illustrates the reconciliation of the weighted average shares outstanding:

	Three Months Ended				Nine months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Weighted average shares outstanding - Basic		10,360,203		10,244,868		10,356,334		10,060,585
Diluted effect of stock options and restricted stock grants		-		69,545		-		145,018
Weighted average shares outstanding - Diluted		10,360,203		10,314,413		10,356,334		10,205,603