Calculation of Basic and Diluted Earnings per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Calculation of Basic and Diluted Earnings per Share

Note 5.   Calculation of Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share:

(in thousands, except per share amounts)		Three Months Ended June 30,				Six Months Ended June 30,
		2012		2011		2012		2011
Numerator:
Net Income	$	1,559	$	981	$	2,955	$	1,656
Preferred Stock Dividends		-		-		-		(15)
Numerator for basic earnings per share - income available to common shareholders		1,559		981		2,955		1,641
Effect of dilutive securities:
6% Convertible Debenture Interest Expense		14		22		36		44
Preferred Stock Dividends		-		-		-		15
Numerator for diluted income per share - income available to common shareholders after assumed conversions	$	1,573	$	1,003	$	2,991	$	1,700
Denominator:
Denominator for basic income per share - weighted-average shares		2,769		2,091		2,585		2,017
Effect of dilutive securities:
Employee stock options		40		46		39		40
Detachable warrants		461		577		457		536
6% Convertible Debenture		192		547		370		552
Preferred Stock		-		32		-		71
Dilutive potential common shares		693		1,202		866		1,199
Denominator for diluted income per share - weighted-average shares and assumed conversions		3,462		3,293		3,451		3,216
Basic income per common share	$	0.56	$	0.47	$	1.14	$	0.81
Diluted income per common share	$	0.45	$	0.30	$	0.87	$	0.53

For the three and six month periods ended June 30, 2012 and 2011, approximately 42,000 and 21,000, respectively, of shares issuable upon exercise of employee stock options were excluded from the calculation of diluted earnings per share as the exercise price was greater than the average market price of the common shares and, therefore, the effect would be antidilutive.