Earnings Per Share

9 Months Ended

Sep. 30, 2011

Earnings per share are calculated in accordance with ASC Topic 260, which specifies the computation, presentation and disclosure requirements for earnings per share (EPS). It requires the presentation of basic and diluted EPS. Basic EPS excludes all dilution and is based upon the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the three and nine months ended September 30, 2011, 728,000 and 602,000, respectively, of incremental shares from the assumed exercise of stock options were not included in the computation of diluted earnings per share because of the anti-dilutive effect on earnings per share.

The following is a reconciliation of the weighted average shares outstanding for the basic and diluted EPS computations (in thousands, except per share data):

	For the three months ended September 30,
	2011		2010
Net income	$	1,202	$	538

Basic:
Shares outstanding at beginning of period		15,009		14,838
Weighted average shares issued during the period, net		22		41
Weighted average common shares, basic		15,031		14,879
Earnings per common share, basic	$	.08	$	.04
Diluted:
Weighted average common shares, basic		15,031		14,879
Dilutive impact of stock options and restricted stock awards		87		169
Weighted average common shares, diluted		15,118		15,048
Earnings per common share, diluted	$	.08	$	.04

	For the nine months ended September 30,
	2011			2010
Net income (loss)	$	(16,242	)	$	1,969

Basic:
Shares outstanding at beginning of period		14,909			14,677
Weighted average shares issued during the period, net		75			117
Weighted average common shares, basic		14,984			14,794
Earnings (loss) per common share, basic	$	(1.08	)	$	.13
Diluted:
Weighted average common shares, basic		14,984			14,794
Dilutive impact of stock options and restricted stock awards	-				215
Weighted average common shares, diluted		14,984			15,009
Earnings (loss) per common share, diluted	$	(1.08	)	$	.13