Note 4 - Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Text Block]

 Note 4 – Earnings Per Share

The Company’s calculation of weighted average shares outstanding for the three and nine months ended September 30, 2012 and 2011 is set forth below:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Basic earnings per common share:
Net income	$	118,484		$	892		$	12,751		$	17,405
Portion allocable to common shareholders		99.2	%		99.2	%		99.2	%		99.2	%
Net income allocable to common shareholders		117,536			885			12,649			17,266
Weighted average basic shares outstanding		31,782,786			31,766,753			31,772,136			31,766,753
Basic income per common share	$	-		$	-		$	-		$	-
Dilutive earnings per common share:
Net income allocable to common shareholders		117,536			885			12,649			17,266
Add: undistributed earnings allocated to participating securities		948			7			102			139
Numerator for diluted earnings per common share		118,484			892			12,751			17,405
Weighted average shares outstanding - basic		31,782,786			31,766,753			31,772,136			31,766,753
Diluted effect:
Stock options		-			-			-			-
Conversion equivalent of dilutive Series B Convertible Preferred Stock		3,307,299			3,307,299			3,307,299			3,307,299
Conversion equivalent of dilutive Convertible Preferred Stock		255,000			255,000			255,000			255,000
Weighted average dilutive shares outstanding		35,345,085			35,329,052			35,334,435			35,329,052
Dilutive income per common share	$	-		$	-		$	-		$	-

The table below sets forth the calculation of the percentage of net earnings allocable to common shareholders under the two-class method:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Numerator:
Weighted average participating common shares		31,782,786			31,766,753			31,772,136			31,766,753
Denominator:
Weighted average participating common shares		31,782,786			31,766,753			31,772,136			31,766,753
Add: Weighted average shares of Convertible Preferred Stock		255,000			255,000			255,000			255,000
Weighted average participating shares		32,037,786			32,021,753			32,027,136			32,021,753
Portion allocable to common shareholders		99.2	%		99.2	%		99.2	%		99.2	%

As of September 30, 2012 and 2011, there were 690,000 shares issuable upon exercise of options and 186,000 unvested restricted shares excluded from the computation of dilutive earnings per share due to their anti-dilutive effect.