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 NINE MONTHS
	ENDED JUNE 30,				ENDED JUNE 30,

	2015		2014		2015		2014
Basic earnings per share:
Net income attributable to RCIHH shareholders	$	8,267	$	691	$	8,786	$	6,816
Average number of common shares outstanding		10,245		9,883		10,262		9,695
Basic earnings per share - net income attributable to RCIHH shareholders	$	0.81	$	0.07	$	0.86	$	0.70
Diluted earnings per share:
Net income attributable to RCIHH shareholders	$	8,267	$	691	$	8,786	$	6,816
Adustment to net earnings from assumed conversion of debentures (1)		118		-		356		60
Adjusted net income attributable to RCIHH shareholders	$	8,385	$	691	$	9,142	$	6,876
Average number of common shares outstanding:
Common shares outstanding		10,245		9,883		10,262		9,695
Potential dilutive shares resulting from exercise of warrants and options (2)		-		85		-		96
Potential dilutive shares resulting from conversion of debentures (3)		462		-		462		131
Total average number of common shares outstanding used for dilution		10,707		9,968		10,724		9,922
Diluted earnings per share - net income attributable to RCIHH shareholders	$	0.78	$	0.07	$	0.85	$	0.69

(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 June 30, 2015 and 2014 totaling $5.3 million and $10.5 million, respectively, were convertible into common stock at a price of $10.00 to $12.50 per share each year. Potential dilutive shares amounting to 462,000 for each of the three and nine month periods ended June 30, 2015 have been excluded from earnings per share due to being anti-dilutive. Potential dilutive shares of 1.5 million for each of the three and nine month periods ended June 30, 2014, have been excluded from earnings per share due to being anti-dilutive.

* EPS may not foot due to rounding.