Note 11 - Basic and Diluted Earnings Per Common Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

11. BASIC AND DILUTED EARNINGS PER COMMON SHARE:

Basic earnings per common share has been calculated by dividing net income for the period by the weighted average number of common shares outstanding during each period. Diluted earnings per share has been calculated by dividing net income for the period by the weighted average number of common shares and potentially dilutive common shares outstanding during the period. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common shares equivalents or the proceeds of option exercises.

The following table is a summary of the basic and diluted earnings per common share:

	Three months ended June 30, 2015		Three months ended June 30, 2014		Six months ended June 30, 2015		Six months ended June 30, 2014
Numerator for basic and diluted earnings per common share:
Net income for the period	$	2,284,995	$	1,347,182	$	5,118,938	$	1,824,021
Denominator for basic and diluted earnings per common share:
Basic weighted average number of common shares outstanding		11,047,136		11,219,101		11,094,618		11,124,357
Effect of outstanding stock options		409,534		510,446		423,487		560,172
Diluted weighted average number of shares outstanding		11,456,670		11,729,547		11,518,105		11,684,529
Basic earnings per common share	$	0.21	$	0.12	$	0.46	$	0.16
Diluted earnings per common share	$	0.20	$	0.11	$	0.44	$	0.16

For the three months ended June 30, 2015, outstanding options to purchase 45,000 common shares were not included in the computation of diluted income per common share because all such options had exercise prices greater than the average market price of the common shares.

For the six months ended June 30, 2015, outstanding options to purchase 114,400 common shares were not included in the computation of diluted income per common share because all such options had exercise prices greater than the average market price of the common shares.

During the six months ended June 30, 2015, 193,907 common shares were repurchased and cancelled under the terms of the Tender Offer announced in December 2014.

During the three and six months ended June 30, 2015, 25,413 and 239,502 common shares respectively were repurchased and cancelled under the terms of our stock repurchase program announced in February 2015.

During the six months ended June 30, 2014, 6,092 common shares were repurchased and cancelled under the terms of our stock repurchase program announced in March 2014, none of which occurred during the quarter ended June 30, 2014.

The computation of earnings per share and diluted earnings per share for the three and six months ended June 30, 2015 and 2014 include reductions in the number of shares outstanding due to these repurchases.