Diluted EPS considers the potential dilution that could occur if the Company’s outstanding common stock options, warrants and convertible debentures were converted into common stock that then shared in the Company’s earnings (as adjusted for interest expense) that would no longer occur if the debentures were converted).

	FOR THE QUARTER				FOR THE SIX MONTHS
	ENDED MARCH 31,				ENDED MARCH 31,
	2015		2014		2015		2014
Basic earnings per share:
Net income (loss) attributable to RCIHH’s shareholders	$	(2,841)	$	3,722	$	519	$	6,125
Average number of common shares outstanding		10,275		9,661		10,269		9,604
Basic earnings (loss) per share - net income attributable to RCIHH’s shareholders	$	(0.28)	$	0.39	$	0.05	$	0.64
Diluted earnings per share:
Net income (loss) attributable to RCIHH’s shareholders	$	(2,841)	$	3,722	$	519	$	6,125
Adustment. to net earnings from assumed conversion of debentures (1)		-		250		-		490
Adjusted net income (loss) attributable to RCIHH’s shareholders	$	(2,841)	$	3,972	$	519	$	6,615
Average number of common shares outstanding:
Common shares outstanding		10,275		9,661		10,269		9,604
Potential dilutive shares resulting from exercise of warrants and options (2)		-		176		4		173
Potential dilutive shares resulting from conversion of debentures (3)		-		1,016		-		986
Total average number of common shares outstanding used for dilution		10,275		10,853		10,273		10,763
Diluted earnings (loss) per share - net income attributable to RCIHH’s shareholders	$	(0.28)	$	0.37	$	0.05	$	0.62

(1) Represents interest expense on dilutive convertible debentures that would not occur if they were assumed converted.

(2) All outstanding warrants and options were considered for the EPS computation.

(3) Convertible debentures (principal and accrued interest) outstanding at March 31, 2015 and 2014 totaling $6.0 million and $11.3 million, respectively, were convertible into common stock at a price of $10.00 to $12.50 per share each year. No potential dilutive shares for each of the three and six month periods ended March 31, 2014 have been excluded from earnings per share due to being anti-dilutive. During the three and six month periods ended March 31, 2015, 524,194 shares have been excluded from earnings per share due to being anti-dilutive each period.