Income Per Share

9 Months Ended

Sep. 30, 2013

(7) Income Per Share

Basic income per share is based on the weighted average number of shares of common stock outstanding. Diluted income per share is based upon the weighted average of common shares and dilutive common stock equivalent shares outstanding during each period.

The weighted average number of shares used to compute basic and diluted net income per share consisted of the following:

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2013	2012	2013	2012
Weighted average common shares outstanding, basic	6,839,556	6,720,756	6,802,245	6,667,895
Weighted average common equivalent shares due to stock options and RSUs	272,293	353,875	293,606	387,502
Weighted average common shares outstanding, diluted	7,111,849	7,074,631	7,095,851	7,055,397

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options, when the average market price of the common stock is lower than the exercise price of the related options during the period. These outstanding stock awards are not included in the computation of diluted income per share because the effect would have been antidilutive. For the three- and nine-month periods ended September 30, 2013, the number of stock awards excluded from the computation was 71,546 and 88,908, respectively. For the same three- and nine-month periods in 2012, the number of stock awards excluded from the computation was 10,000 and 17,700, respectively.

- Definition

The entire disclosure for earnings per share.

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