Earnings Per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share

3. Earnings Per Share. Basic earnings (loss) per share for each period are computed using the weighted average number of common shares outstanding during the 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 of diluted earnings per share if their exercise prices are greater than the average market price of the Company’s common stock or if the 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 anti-dilutive. All of the Company’s common shares issuable on exercise of outstanding stock options and all unvested restricted shares were excluded from the computation of diluted loss per share in the quarters ended March 31, 2015 and 2014, 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 loss per common share for the three months ended March 31, 2015 and 2014 was calculated.

	Three Months Ended March 31,
	2015			2014
	(In thousands)
Numerator:
Net loss	$	(475	)	$	(738	)
Denominator:
Weighted average shares outstanding		4,949			4,815
Dilutive effect of stock options and unvested restricted shares		—			—
Denominator for diluted net loss per share		4,949			4,815