Earnings Per Share

9 Months Ended

Sep. 30, 2011

12. Earnings Per Share

Basic earnings per share is calculated by dividing net income by the weighted average shares outstanding during the period, which includes restricted stock that is fully vested. Diluted earnings per share is computed similarly to basic earnings per share, except that the weighted average shares outstanding are increased to include equivalents, when their effect is dilutive. In periods of net loss, all dilutive shares are considered anti-dilutive.

For the three months ended September 30, 2011 and 2010, dilutive employee stock options and SARs totaling 0 and 1,483 weighted-shares, respectively, were included in the calculation. Weighted unvested restricted stock awards totaling 13,820 and 12,702 shares, respectively, have been included for the three months ended September 30, 2011 and 2010.

For the nine months ended September 30, 2011 and 2010, dilutive employee stock options and SARs totaling 163 and 26,856 weighted-shares, respectively, were included in the calculation. Weighted unvested restricted stock awards totaling 22,612 and 30,735 shares, respectively, have been included for the nine months ended September 30, 2011 and 2010.

The following table sets forth the computation of basic and diluted loss per share (in thousands except per share data):


	Three months ended				Nine months ended
	September 30,				September 30,
	2011		2010		2011		2010
Basic earnings per share
Net income	$	4,265	$	5,934	$	139	$	110
Weighted average shares outstanding		9,676		9,603		9,655		9,604

Basic earnings per share	$	0.44	$	0.62	$	0.01	$	0.01


Diluted earnings per share:
Net income	$	4,265	$	5,934	$	139	$	110
Weighted average shares outstanding		9,676		9,603		9,655		9,604
Incremental shares attributable to the assumed exercise of outstanding stock options		14		26		22		49

Weighted average shares and equivalents		9,690		9,629		9,677		9,653

Diluted earnings per share	$	0.44	$	0.62	$	0.01	$	0.01