Note 11 - Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 11. EARNINGS PER SHARE

For the three and nine months ended September 30, 2013 and 2012, basic earnings per share are computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Unexercised stock options 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.  In the first quarter of 2013, the Company re-evaluated its accounting for the treatment of restricted stock awards in computing earnings per share. As a result the Company concluded that the shares are participating securities and accordingly have included them in the calculation of weighted average shares outstanding in the current period.  The effects on prior period presentation of earnings per share are immaterial.

For the three and nine months ended September 30, 2013 and 2012, 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 108,000 and 134,200 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, 2013, respectively.  For the three and nine months ended September 30, 2012, the diluted effect of stock options and restricted stock awards 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.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Weighted average shares outstanding - Basic		10,510,218		10,360,203		10,503,919		10,356,334
Diluted effect of stock options and restricted stock grants		18,164		-		18,164		-
Weighted average shares outstanding - Diluted		10,528,382		10,360,203		10,522,083		10,356,334