Income (Loss) per Common Share

9 Months Ended

Sep. 30, 2011

Income (Loss) per Common Share [Abstract]

Income (Loss) per Common Share

8. Income (Loss) per Common Share:

Basic income (loss) per common share is computed using the weighted-average number of common shares outstanding during each period. Diluted income (loss) per common share reflects the effect of the Company’s outstanding convertible preferred stock and stock options except where such items would be antidilutive.

A reconciliation of weighted-average shares used for the basic computation and that used for the diluted computation is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Weighted-average shares for basic		4,828,286		4,818,312		4,826,126		4,816,276
Dilutive effect of convertible preferred stock and stock options		69,615		70,205		72,316		—
Weighted-average shares for diluted		4,897,901		4,888,517		4,898,442		4,816,276

Options to purchase 59,244 shares of common stock were outstanding for the three and nine-month periods ended September 30, 2011. Options to purchase 55,952 shares of common stock were outstanding for the three and nine-month periods ended September 30, 2010. For the three month periods ended September 30, 2011 and 2010, 5,615 and 6,205 of outstanding options to purchase common shares were included in the computation of diluted earnings per share (EPS). The remaining outstanding options to purchase common stock were not included in the computation of diluted EPS because the options exercise price was greater than the average market prices of the Company’s common stock.

For the nine month period ended September 30, 2011, 8,316 of outstanding options to purchase common shares were included in the computation of diluted earnings per share (EPS). The remaining outstanding options to purchase common stock were not included in the computation of diluted EPS because the options exercise price was greater than the average market prices of the Company’s common stock. The options, which expire at various times, were still outstanding at September 30, 2011.

Preferred stock convertible into 64,000 shares of common stock was outstanding for the three and nine-month periods ended September 30, 2011 and 2010. For the three month periods ended September 30, 2011 and 2010 and for the nine month period ended September 30, 2011, 64,000 shares of the Company’s common stock were included in the diluted EPS. For the nine month period ended September 30, 2010, the 64,000 shares of the Company’s common stock were not included as the effect would be anitdilutive.