Earnings Per Share

6 Months Ended

Jun. 30, 2014

5.	Earnings Per Share

Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted earnings per share are calculated using the treasury stock method and includes the effect of all dilutive securities, including stock options, restricted stock and Class B common shares. For those periods in which the Company incurred a net loss, the inclusion of the potentially dilutive shares in the computation of diluted weighted average shares outstanding would have been anti-dilutive to the Company’s loss per share, and, accordingly, all potentially dilutive shares have been excluded from the computation of diluted weighted average shares outstanding in those periods.

For both the three and six months ended June 30, 2014, 60,494 shares issuable upon the exercise of stock options were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. For both the three and six months ended June 30, 2013, 65,481shares issuable upon the exercise of stock options were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive.

A summary of the reconciliation of basic weighted average shares outstanding to diluted weighted average shares outstanding follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Weighted average common shares outstanding – basic		5,443,061		5,342,064		5,442,585		5,325,206
Potentially dilutive common stock equivalents
Class B common shares		794,522		795,479		794,998		795,479
Restricted stock		—		101,228		—		118,086
		794,522		896,707		794,998		913,565
		6,237,583		6,238,771		6,237,583		6,238,771
Less anti-dilutive common stock equivalents		(794,522)		(896,707)		(794,998)		(913,565)
Weighted average common shares outstanding – diluted		5,443,061		5,342,064		5,442,585		5,325,206

- Definition

The entire disclosure for earnings per share.

+ References+ Details