Earnings Per Share

9 Months Ended

Sep. 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 (“option shares”) and unvested restricted shares (using the treasury stock method). Potentially dilutive securities are excluded from the computation of diluted earnings per share if their exercise prices are greater than the average market price of the Company’s common stock or if their inclusion, in the calculation of common stock equivalents under the Treasury method, of the unvested compensation expense attributable to the option shares or restricted shares would have been antidilutive. A total of 263,000 option shares and 317,001 restricted shares were excluded from the computation of diluted earnings per share for the three months ended September 30, 2012, as compared to 407,000 option shares and 232,501 restricted shares for the same three months of 2011. All option shares and restricted shares were excluded from the computation of diluted earnings per share for the nine months ended September 30, 2012, because the Company incurred a loss in that period and, as a result, the inclusion of those securities would have been anti-dilutive. For the same nine months of 2011, 373,000 option shares and 232,501 restricted shares were excluded from the computation of diluted earnings per share.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012			2011
	(In thousands)
Numerator:
Net earnings (loss)	$	307	$	612	$	(534	)	$	553
Denominator:
Weighted average shares outstanding		4,607		4,548		4,590			4,530
Dilutive effect of stock options and non-vested restricted shares		57		78		—			91
Denominator for diluted net earnings (loss) per share		4,664		4,626		4,590			4,621