Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share

3. Basic earnings (loss) per share for each period are computed using the weighted average number of common shares outstanding during such period. Nonvested 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 stock options and unvested restricted shares (using the treasury stock method). Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive. For the three months ended June 30, 2012, options to purchase 255,000 shares of common stock and 319,001 restricted shares were excluded from the computation of diluted earnings per share. These options and restricted shares were excluded because either (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. All of the Company’s common shares issuable on exercise of stock options and all unvested restricted shares were excluded from the computation of diluted earnings per share for the first six months of 2012 and 2011 because the Company incurred losses in those periods and, as a result, the inclusion of those securities would have been anti-dilutive.

The table which follows sets forth the manner in which diluted earnings (loss) per common share for the three and six month periods ended June 30, 2012 and 2011 were calculated.

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012			2011
	(In thousands)
Numerator:
Net earnings (loss)	$	504	$	980	$	(841	)	$	(59	)
Denominator:
Weighted average shares outstanding		4,605		4,547		4,582			4,521
Dilutive effect of stock options and non-vested restricted shares		66		89		—			—
Denominator for diluted net earnings (loss) per share		4,671		4,636		4,582			4,521