Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings per share

Note 2. Earnings per Share

We present basic and diluted earnings or loss per share in accordance with authoritative guidance which establishes standards for computing and presenting basic and diluted earnings per share. Per share data is determined by using the weighted average number of common shares outstanding. Common equivalent shares are considered only for diluted earnings per share, unless considered anti-dilutive. Common equivalent shares, determined using the treasury stock method, result from stock options with exercise prices that are below the average market price of the common stock.

The potentially dilutive securities are comprised of outstanding stock options of 1,433,350 and 1,933,550 at June 30, 2012 and 2011, respectively, a decrease of 500,200 or 25.9%. This decrease is due primarily to stock options expiring as well as a more limited number of stock options being exercised. At June 30, 2012, potentially dilutive securities were excluded from the computation of weighted average shares outstanding due to their anti-dilutive effect.

The following is a reconciliation of the weighted average number of common shares outstanding for the three and six months ended June 30, 2012 and 2011:

	2012
	Three Months		Six Months
Common shares outstanding, beginning of the period		10,937,000		10,907,000
Weighted average common shares issued		0		25,856
Weighted average number of common shares outstanding		10,937,000		10,932,856
Dilutive effect of common share equivalents		0		0
Diluted weighted average number of common shares outstanding		10,937,000		10,932,856

	2011
	Three Months		Six Months
Common shares outstanding, beginning of the period		10,898,500		10,898,500
Weighted average common shares issued		0		0
Weighted average number of common shares outstanding		10,898,500		10,898,500
Dilutive effect of common share equivalents		1,309,250		1,309,250
Diluted weighted average number of common shares outstanding		12,207,750		12,207,750

We have authorized 20,000,000 shares of preferred stock issuable in one or more series, none of which are issued or outstanding as of June 30, 2012.