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12) Capital Stock

12 Months Ended

Dec. 31, 2017

Notes

12) Capital Stock

12) Capital Stock

The Company has one class of preferred stock of $1.00 par value, 5,000,000 shares authorized, of which none are issued. The preferred stock is non-voting.

The Company has two classes of common stock with shares outstanding, Class A common shares and Class C common shares. Class C shares have 10 votes per share on all matters except for the election of one third of the directors who are elected solely by the Class A shares. Class C shares are convertible into Class A shares at any time on a one to one ratio. The decrease in treasury stock was the result of treasury stock being used to fund the company’s 401(k) Plans.

Stockholders of both Class A and Class C common stock have received 5% stock dividends in the years 1990 through 2017, as authorized by the Company’s Board of Directors.

The Company has Class B common stock of $1.00 par value, 5,000,000 shares authorized, of which none are issued. Class B shares are non-voting stock except to any proposed amendment to the Articles of Incorporation which would affect Class B common stock.

The following table summarizes the activity in shares of capital stock for the two-year period ended December 31, 2017:

		Class A		Class C
Balance at December 31, 2015		13,109,100		1,709,640

Exercise of stock options		42,634		104,975
Stock dividends		657,919		96,967
Conversion of Class C to Class A		9,353		(9,353)

Balance at December 31, 2016		13,819,006		1,902,229

Exercise of stock options		8,183		103,402
Stock dividends		692,635		99,496
Conversion of Class C to Class A		15,753		(15,753)

Balance at December 31, 2017		14,535,577		2,089,374

Earnings per share amounts have been retroactively adjusted for the effect of annual stock dividends. In accordance with GAAP, the basic and diluted earnings per share amounts were calculated as follows:

		2017		2016
Numerator:
Net earnings		$ 14,112,934		$ 12,188,627

Denominator:
Denominator for basic earnings
per share-weighted-average shares		15,972,329		15,575,632

Effect of dilutive securities
Employee stock options		313,601		336,960
Dilutive potential common shares		313,601		336,960

Denominator for diluted earnings
per share-adjusted weighted-average
shares and assumed conversions		16,285,930		15,912,592

Basic earnings per share		$0.88		$0.78
Diluted earnings per share		$0.87		$0.77

For the years ended December 31, 2017 and 2016, there were 589,822 and 334,425 of anti-dilutive employee stock option shares, respectively, that were not included in the computation of diluted net earnings per common share as their effect would be anti-dilutive.