EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2015

NOTE 13 - EARNINGS PER SHARE

Basic earnings per share (“Basic EPS”) is computed using the weighted average number of common shares outstanding during the period, inclusive of nonvested share-based awards that are entitled to receive non-forfeitable dividends. The diluted earnings per share (“Diluted EPS”) computation takes into account the effect of potential dilutive common shares. Potential dilutive common shares, consisting primarily of outstanding stock options, warrants and director deferred shares, are calculated using the treasury stock method.

The following table presents a reconciliation of the shares used in the computation of Basic EPS and Diluted EPS (in thousands):



	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2015	2014	2015	2014
Shares
Basic shares outstanding	22,867	20,386	22,915	20,320
Dilutive effect of outstanding director units and stock options⁽¹⁾	—	1,646	—	1,711
Diluted shares outstanding	22,867	22,032	22,915	22,031

(1)

Due to the losses for the three and six months ended June 30, 2015, director units and stock options outstanding were antidilutive and, therefore, excluded from the Diluted EPS computation. As a result, Basic EPS and Diluted EPS shares were the same. Excluded from the Diluted EPS calculation were outstanding options to purchase 565,000 shares of common stock at a weighted average exercise price of $17.62 per share.