Earnings per share

9 Months Ended

Sep. 30, 2015

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, 2015 and 2014.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Net income attributable to Consolidated Water Co. Ltd. common stockholders	$	1,775,500	$	1,882,692	$	5,924,861	$	5,297,294
Less: preferred stock dividends		(2,937)		(2,777)		(9,118)		(8,722)
Net income available to common shares in the determination of basic earnings per common share	$	1,772,563	$	1,879,915	$	5,915,743	$	5,288,572

Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,749,249		14,700,939		14,734,799		14,695,446
Plus:
Weighted average number of preferred shares outstanding during the period		40,194		39,348		38,510		38,256
Potential dilutive effect of unexercised options		12,879		23,627		14,595		30,425
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,802,322		14,763,914		14,787,904		14,764,127