Earnings Per Share

3 Months Ended

Mar. 31, 2014

Note 3 – Earnings per Share

Basic earnings per common share are computed by dividing net income by the weighted average number of shares of stock outstanding during the period. The Company’s diluted earnings per share give effect to all potential common shares outstanding during a period that do not have an anti-dilutive impact to the calculation. In computing the diluted earnings per share, the treasury stock method is used in determining the number of shares assumed to be purchased from the conversion of Common Stock equivalents.

The following summarizes the common shares included in the basic and diluted shares, as disclosed on the face of the consolidated condensed statements of income:

	Three Months Ended March 31,
	2014		2013
Weighted average number of shares for calculation of basic EPS – Common Stock		35,063,671		31,606,986
Stock option under the 2006 and 2011 Equity Incentive Plans		528,356		476,563
Weighted average number of shares for calculation of diluted EPS		35,592,026		32,083,549

Note 3 – Earnings per Share – Continued

The accompanying table represents Common Stock issuable upon the exercise of certain stock options and Series C Convertible Preferred Stock that have been excluded from the diluted earnings calculation because the effect of their inclusion would be anti-dilutive. There were no issued and outstanding Series C Convertible Preferred Stock during the three months ended March 31, 2014.

	Three Months Ended March 31,
	2014		2013
Stock options outstanding under the 2006 and 2011 Equity Incentive Plans		—		124,000
Series C Convertible Preferred Stock		—		910,021
		—		1,034,021

- Definition

The entire disclosure for earnings per share.

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