Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share

Earnings Per Share

8. Earnings Per Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the reported periods. Diluted EPS reflects the potential dilution that could occur under the treasury stock method if stock options and other commitments to issue common stock were exercised, except in loss periods where the effect would be antidilutive. As such, potential common shares of approximately 1,810,000 and 520,000 for the three months ended June 30, 2012 and 2011, and approximately 1,799,000 and 521,000 for the six months ended June 30, 2012 and 2011 have been excluded from the calculation of diluted EPS because the effect of their inclusion would be antidilutive.

The reconciliation of the amounts used in the basic and diluted EPS computation was as follows (in thousands, except per share amounts):

	Net Income		Shares	Per Share Amounts
Three Months Ended June 30, 2012:
Basic EPS
Net income	$	1,431	12,032	$	0.12
Effect of dilutive securities
Dilutive effect of stock options		—	134
Diluted EPS
Adjusted net income	$	1,431	12,166	$	0.12
Three Months Ended June 30, 2011:
Basic EPS
Net income	$	1,036	12,405	$	0.08
Effect of dilutive securities
Dilutive effect of stock options		—	345
Diluted EPS
Adjusted net income	$	1,036	12,750	$	0.08
Six Months Ended June 30, 2012:
Basic EPS
Net income	$	961	12,016	$	0.08
Effect of dilutive securities
Dilutive effect of stock options		—	205
Diluted EPS
Adjusted net income	$	961	12,221	$	0.08
Six Months Ended June 30, 2011:
Basic EPS
Net income	$	1,763	12,318	$	0.14
Effect of dilutive securities
Dilutive effect of stock options		—	361
Diluted EPS
Adjusted net income	$	1,763	12,679	$	0.14