12) Capital Stock

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

12) Capital Stock

12)       Capital Stock

The Company has one class of preferred stock of $1.00 par value, 5,000,000 shares authorized, of which none are issued. The preferred stock is non-voting.

The Company has two classes of common stock with shares outstanding, Class A common shares and Class C common shares. Class C shares have 10 votes per share on all matters except for the election of one third of the directors who are elected solely by the Class A shares. Class C shares are convertible into Class A shares at any time on a one to one ratio. The decrease in treasury stock was the result of treasury stock being used to fund the company’s 401(k) Plans.

Stockholders of both Class A and Class C common stock have received 5% stock dividends in the years 1990 through 2019, and a 7.5% stock dividend in the year 2020, as authorized by the Company’s Board of Directors.

The Company has Class B common stock of $1.00 par value, 5,000,000 shares authorized, of which none are issued. Class B shares are non-voting stock except to any proposed amendment to the Articles of Incorporation which would affect Class B common stock.

The following table summarizes the activity in shares of capital stock for the two-year period ended December 31, 2020:

	Class A	Class C
Outstanding shares at December 31, 2018	15,304,798	2,193,643
Exercise of stock options	32,517	191,443
Stock dividends	767,178	119,087
Conversion of Class C to Class A	3,286	(3,286)
Outstanding shares at December 31, 2019	16,107,779	2,500,887
Exercise of stock options	68,970	130,820
Stock dividends	405,210	61,720
Conversion of Class C to Class A	13,824	(13,824)
Outstanding shares at December 31, 2020	16,595,783	2,679,603

Earnings per share amounts have been retroactively adjusted for the effect of annual stock dividends. In accordance with GAAP, the basic and diluted earnings per share amounts were calculated as follows:

	2020	2019
Numerator:
Net earnings	$   55,596,613	$   10,893,519
Denominator:
Denominator for basic earnings
per share-weighted-average shares	18,831,991	18,562,056
Effect of dilutive securities
Employee stock options	443,260	127,608
Dilutive potential common shares	443,260	127,608
Denominator for diluted earnings
per share-adjusted weighted-average
shares and assumed conversions	19,275,251	18,689,664
Basic earnings per share	$2.95	$0.59
Diluted earnings per share	$2.88	$0.58

For the years ended December 31, 2020 and 2019, there were -0- and 382,289 of anti-dilutive employee stock option shares, respectively, that were not included in the computation of diluted net earnings per common share as their effect would be anti-dilutive.