EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2013

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 3. EARNINGS PER SHARE

Basic earnings per share is computed by dividing reported net earnings by the weighted-average number of common shares outstanding during the period.  Diluted earnings per share reflect the additional dilution for all potentially dilutive securities such as stock options.  The following is a reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations:

Shares in thousands

	Three months ended September 30,
	2013				2012
	Shares	Per Share Amount			Shares	Per Share Amount
Basic	16,389	$	0.34		16,141	$	0.26
Effect of dilutive stock options	791	(0.02		)	93	(0.01		)
Diluted	17,180	$	0.32		16,234	$	0.25

	Nine months ended September 30,
	2013				2012
	Shares	Per Share Amount			Shares	Per Share Amount
Basic	16,244	$	0.98		16,140	$	0.47
Effect of dilutive stock options	555	(0.03		)	109	—
Diluted	16,799	$	0.95		16,249	$	0.47

Excluded from the computation of diluted earnings per share are options where the exercise prices are greater than the market price as their effects would be anti-dilutive in the computation of diluted earnings per share.  For the calculation of earnings per share for the three and nine months ended September 30, 2013, approximately 308,000 and 540,000 shares, respectively, were excluded.  For the calculation of earnings per share for the three and nine months ended September 30, 2012, approximately 2,391,000 and 2,198,000 shares respectively, were excluded.