Calculation of Basic and Diluted Earnings per Share

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
		2012		2011		2012		2011
Numerator:
Net Income	$	1,837	$	1,067	$	4,792	$	2,723
Preferred Stock Dividends		-		-		-		(15)
Numerator for basic earnings per share -  income available to common shareholders		1,837		1,067		4,792		2,708
Effect of dilutive securities:
6% Convertible Debenture Interest Expense		-		22		36		66
Preferred Stock Dividends		-		-		-		15
Numerator for diluted income per share -  income available to common shareholders  after assumed conversions	$	1,837	$	1,089	$	4,828	$	2,789
Denominator:
Denominator for basic income per share -  weighted-average shares		2,968		2,122		2,714		2,052
Effect of dilutive securities:
Employee stock options		(180)		37		(158)		40
Detachable warrants		461		555		457		542
6% Convertible Debenture		192		547		370		552
Preferred Stock		-		3		-		48
Dilutive potential common shares		473		1,142		669		1,182
Denominator for diluted income per share - weighted-average shares and assumed conversions		3,441		3,264		3,383		3,234
Basic income per common share	$	0.62	$	0.50	$	1.77	$	1.32
Diluted income per common share	$	0.53	$	0.33	$	1.43	$	0.86

For the three and nine month periods ended September 30, 2012 and 2011, approximately 45,000 and 24,000, 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.