Provision For Income Taxes (Benefit)

6 Months Ended

Jun. 30, 2012

Provision For Income Taxes (Benefit) [Abstract]

Provision For Income Taxes (Benefit)

10. Provision for Income Taxes (Benefit):

The income tax benefit for the three and six months of 2012 is equal to (1%) and (33%) of the pre-tax income, respectively. This effective rate reflects the federal income tax rate adjusted by the effect of non deductible expenses and state taxes. The estimated annual rate (35.5%) does not agree with expected amounts due to changes in the valuation allowance the Company had previously established against its deferred tax assets. During the second quarter the Company reversed $1.2 million of previously reserved deferred tax assets based upon the Company’s analysis of the Company’s reversal pattern of taxable temporary differences.