Earnings per share

9 Months Ended

Sep. 30, 2013

5. Earnings per share

Earnings per share (“EPS”) are computed on a basic and diluted basis. Basic EPS is computed by dividing net income (less preferred stock dividends) available to common stockholders by the weighted average number of common shares outstanding during the period. The computation of diluted EPS assumes the issuance of common shares for all potential common shares outstanding during the reporting period and, if dilutive, the effect of stock options as computed under the treasury stock method.

The following summarizes information related to the computation of basic and diluted EPS for the three and nine months ended September 30, 2013 and 2012.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Net income attributable to Consolidated Water Co. Ltd. Common stockholders	$	908,690	$	1,304,843	$	7,504,542	$	5,605,001
Less: preferred stock dividends		(2,885)		(2,270)		(8,655)		(6,810)

Net income available to common shares in the determination of basic earnings per common share	$	905,805	$	1,302,573	$	7,495,887	$	5,598,191

Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,644,740		14,580,946		14,626,755		14,576,790
Plus:
Weighted average number of preferred shares outstanding during the period		39,680		31,504		33,888		25,980
Potential dilutive effect of unexercised options		50,496		4,745		21,543		1,628

Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,734,916		14,617,195		14,682,186		14,604,398

- Definition

The entire disclosure for earnings per share.

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