EARNINGS PER SHARE

9 Months Ended

Sep. 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		Nine Months Ended
	September 30,		September 30,
	2015	2014	2015	2014
Shares
Basic shares outstanding	22,067	21,109	22,629	20,586
Dilutive effect of outstanding director units and stock options⁽¹⁾	—	1,192	—	1,538
Diluted shares outstanding	22,067	22,301	22,629	22,124

(1)

Due to the losses for the three and nine months ended September 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 270,000 unissued director units and outstanding out-of-the-money options to purchase 140,000 shares of common stock (weighted average exercise price of $16.21 per share).