Earnings per Share ("EPS")

12 Months Ended

Dec. 31, 2012

Earnings per Share ("EPS")

3. Earnings per Share (“EPS”)

Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not considered outstanding for purposes of calculating basic earnings per share. Diluted EPS is calculated by dividing net income by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, stock appreciation rights (“SAR’s”), restricted shares and restricted stock units (collectively “RSA’s”) using the treasury stock method.

The following table provides share information used in the calculation of the Company's basic and diluted earnings per share:

	Year ended December 31,
	2012		2011		2010
Shares used in the calculation of Basic earnings per share		13,260,739		13,064,051		12,624,495
Effect of dilutive securities:   Stock options, SAR's, RSA's, and shares held in escrow		1,083,838		683,762		1,022,038
Diluted shares used in the calculation of earnings per share		14,344,577		13,747,813		13,646,533

Stock options to purchase 131,273, 1,142,840 and 1,210,970 shares for 2012, 2011 and 2010, respectively, were excluded from the computation of diluted EPS as their effect would have been anti-dilutive.

At December 31, 2012, 2011 and 2010, 54,124, 59,196 and 20,630 shares of issued and outstanding unvested restricted stock, respectively, were excluded from the basic earnings per share calculation in accordance with ASC 260.