Earnings Per Share

6 Months Ended

Jun. 30, 2015

NOTE K – Earnings Per Share

We report our earnings per share using the two-class method. The income per share for each class of common stock is calculated assuming 100% of our earnings are distributed as dividends to each class of common stock based on their contractual rights.

The Common Stock of the Company has a preferential dividend rate of at least 105% of the dividend paid on the Class A Common Stock. The Class A Common Stock, which has ten votes per share as opposed to one vote per share for the Common Stock (on all matters other than the election of directors), may be converted at any time on a one-for-one basis into Common Stock at the option of the holder of the Class A Common Stock.

The following is a reconciliation of the earnings and number of shares used in calculating the diluted earnings per share for Common Stock and Class A Common Stock (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Numerator:
Common:
Distributed earnings	$	1,651	$	1,642	$	3,297	$	3,253
Undistributed earnings		2,761		2,748		6,698		6,659
Basic		4,412		4,390		9,995		9,912
Class A Common earnings		421		439		957		1,046
Diluted	$	4,833	$	4,829	$	10,952	$	10,958

Class A Common:
Distributed earnings	$	156	$	162	$	312	$	340
Undistributed earnings		265		277		645		706
	$	421	$	439	$	957	$	1,046
Denominator:
Common:
Weighted average shares outstanding - basic		20,600		20,454		20,585		20,307
Assumed conversion of Class A Common Stock		2,079		2,162		2,080		2,259
Dilutive options, awards and common stock equivalents		276		324		302		368

Total weighted-average diluted Common Stock		22,955		22,940		22,967		22,934

Class A Common:
Weighted average shares outstanding		2,079		2,162		2,080		2,259