Earnings and Dividends per Share

6 Months Ended

Jun. 30, 2012

Earnings and Dividends per Share

Earnings and Dividends per Share

5.Earnings and Dividends per Share

Basic income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding.  Diluted income per share is determined by dividing the net income by the sum of (1) the weighted average number of common shares outstanding and (2) if not anti-dilutive, the effect of stock options and warrants determined utilizing the treasury stock method.  During 2012, no stock options or warrants are outstanding.  As such, there is no dilutive effect on earnings per share for 2012.  The dilutive effect of outstanding stock option awards for the quarter and six months ended June 30, 2011 was 46,000 and 165,000 shares, respectively.

The Company declared and paid two quarterly dividends of $0.025 per share in the first six months of 2012. Total dividends paid were $418,000.  The Company began paying quarterly dividends in the third quarter of 2011.  As such, no dividends were declared or paid in the first six months of 2011.