Earnings Per Share

9 Months Ended

Sep. 30, 2011

Basic earnings per share for each period are computed using the weighted average number of common shares outstanding during such period. Unvested restricted shares are excluded from outstanding shares for purposes of this calculation. Diluted earnings per share are computed using the weighted average number of common and potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of the incremental common shares issuable upon the exercise of outstanding stock options (using the treasury stock method). Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive. For the three months ended September 30, 2011, options to purchase 407,000 shares of common stock and 232,501 restricted shares were excluded from the computation of diluted earnings per share. For the nine months ended September 30, 2011, options to purchase 373,000 shares of common stock and 232,501 restricted shares were excluded from the computation of diluted earnings per share. For both the three and nine months ended September 30, 2010, options to purchase 422,000 shares of common stock and 177,000 restricted shares were excluded from the computation of diluted earnings per share. These options and restricted shares were excluded from the computation of diluted earnings per share because (i) their respective exercise prices were greater than the average market price of the Company’s common stock during these periods, or (ii) the inclusion, in the calculation of common stock equivalents under the Treasury method, of the unvested compensation expense attributable to those options or restricted shares would have been anti-dilutive.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
	(In thousands)
Numerator
Net earnings	$	612	$	659	$	553	$	1,865

Denominator
Weighted average shares outstanding		4,548		4,481		4,530		4,473
Dilutive effect of stock options		78		91		91		99

Denominator for diluted net income per share		4,626		4,572		4,621		4,572