7.	(Loss) Earnings and Dividends per Share

The computational components of basic and diluted (loss) earnings per share for the three month periods ended September 30, 2013 and 2012 and for the nine month periods ended September 30, 2013 and 2012 are below (shares and dollars in thousands except per share amounts).


	For the three month period ended September 30, 2013
	Numerator (Income)			Denominator (Shares)		Per Share Amount
Basic net loss and loss per share	$	(1,461	)		19,965	$	(0.07	)
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—			—		—

Diluted loss and loss per share	$	(1,461	)		19,965	$	(0.07	)


	For the three month period ended September 30, 2012
	Numerator (Income)			Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	3,268			14,630	$	0.22
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—			371
Subordinated convertible promissory notes		82			2,257		(0.03	)

Diluted earnings and earnings per share	$	3,350			17,258	$	0.19


	For the nine month period ended September 30, 2013
	Numerator (Income)			Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	3,790			18,275	$	0.21
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—			607		(0.01	)

Diluted earnings and earnings per share	$	3,790			18,882	$	0.20


	For the nine month period ended September 30, 2012
	Numerator (Income)		Denominator (Shares)		Per Share Amount
Basic net income and earnings per share	$	7,798		14,591	$	0.53
Effect of dilutive securities and notes:
Common stock equivalents arising from stock options and employee stock purchase plan		—		290
Subordinated convertible promissory notes		250		2,318		(0.06	)

Diluted earnings and earnings per share	$	8,048		17,199	$	0.47

Options and warrants included in the computation of diluted earnings per share are so included on the treasury stock method. For the nine month period ended September 30, 2013, 40,000 outstanding options and warrants were excluded from the computation of diluted earnings per share due to their having an anti-dilutive effect. For each of the three month and nine month periods ended September 30, 2012, 322,500, outstanding options and warrants were excluded from the computation of diluted earnings per share due to their having an anti-dilutive effect. Diluted earnings per share for the three month period ended September 30, 2012 includes an $82 after tax addback of interest expense and 2.3 million additional shares related to the assumed conversion of convertible investor notes. Diluted earnings per share for the nine month period ended September 30, 2012 includes a $250 after tax addback of interest expense and 2.3 million additional shares related to the assumed conversion of convertible investor notes.

Holders of restricted stock awards participate in nonforfeitable dividend rights on a one-for-one basis with holders of common stock. Holders of these awards are not obligated to share in losses of the Company. Therefore, these share awards are included in the computation of basic earnings per share during periods of net income using the two-class method, but are excluded from such computation in periods of net loss. Should the Company declare a dividend on its common stock, the related dividend on shares of unvested restricted stock that are not expected to vest would be recorded as additional compensation expense and therefore excluded from the two-class method computations; however, there were no non-vested restricted share awards outstanding for the three months and nine months periods ended September 30, 2013 or September 30, 2012. Undistributed earnings included in the two-class method computations are allocated equally to each share of common stock outstanding, including all shares of unvested restricted common shares.

Once a restricted stock award vests, it is included in the computation of weighted average shares outstanding for purposes of basic and diluted earnings (loss) per share.

Dividends

The Company declared and on September 30, 2013 paid to common stockholders a quarterly dividend of $0.05 per share compared with $0.045 in the same period in 2012. The dividend policy and the payment of cash dividends under that policy are subject to the Board of Director’s continuing determination that the dividend policy and the declaration of dividends are in the best interest of the Company’s shareholders. Future dividends and the dividend policy may be changed or cancelled at the Company’s discretion at any time. Payment of dividends is also subject to the continuing compliance with our financial covenants under our Credit Facility.


Dividend Per share	Record Date	Payment Date	Payments
$0.035	March 20, 2012	March 30, 2012	$	512
$0.035	June 15, 2012	June 29, 2012	$	512
$0.045	September 14, 2012	September 28, 2012	$	664
$0.050	March 18, 2013	March 28, 2013	$	886
$0.050	June 14, 2013	June 28, 2013	$	881
$0.050	September 16, 2013	September 30, 2013	$	1,272