Income (Loss) per Common Share

9 Months Ended

Sep. 30, 2012

Income (Loss) per Common Share [Abstract]

Income (Loss) per Common Share

6. 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 September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Weighted-average shares for basic		4,837,987		4,828,286		4,834,485		4,826,126
Dilutive effect of convertible preferred stock and stock options		—		69,615		68,944		72,316
Weighted-average shares for diluted		4,837,987		4,897,901		4,903,430		4,898,442

Options to purchase 65,508 shares of common stock were outstanding at September 30, 2012. Options to purchase 59,244 shares of common stock were outstanding at September 30, 2011. For the three month period ended September 20, 2012, 4,085 of outstanding options to purchase common stock were not included in the diluted earnings per share (EPS) as the effect would antidilutive. For the three month period ended September 30, 2011, 5,615 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, 2012 and 2011, 4,944 and 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

Preferred Stock, convertible into 64,000 shares of common stock at the rate of 100 shares of common stock for each one share of Preferred Stock, was outstanding for the three and nine-month periods ended September 30, 2012 and 2011. For the three month period ended September 30, 2012, the 64,000 shares of the Company’s common stock were not included as the effect would be antidilutive. For the three month period ended September 30, 2011 and for the nine month period ended September 30, 2012, 64,000 shares of the Company’s common stock were included in the diluted EPS.