EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2014

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 June 30,
	2014			2013
	Shares	Per Share Amount		Shares	Per Share Amount
Basic	16,788	$	0.18	16,192	$	0.38
Effect of dilutive stock options	316	—		510	(0.01		)
Diluted	17,104	$	0.18	16,702	$	0.37

	Six months ended June 30,
	2014				2013
	Shares	Per Share Amount			Shares	Per Share Amount
Basic	16,663	$	0.38		16,170	$	0.64
Effect of dilutive stock options	502	(0.01		)	367	(0.01		)
Diluted	17,165	$	0.37		16,537	$	0.63

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 three and six months ended June 30, 2014 options for 625,779 shares and 644,491 shares were excluded from the computation. For the three and six months ended June 30, 2013, 548,488 and 865,025 shares were excluded from the computation.