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12) Capital Stock

12 Months Ended

Dec. 31, 2018

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 2018, 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, 2018:

		Class A		Class C
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

Exercise of stock options		38,473		-
Stock dividends		730,560		104,457
Conversion of Class C to Class A		188		(188)

Balance at December 31, 2018		15,304,798		2,193,643

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:

		2018		2017
Numerator:
Net earnings		$ 21,686,079		$ 14,112,934

Denominator:
Denominator for basic earnings
per share-weighted-average shares		17,105,308		16,794,146

Effect of dilutive securities
Employee stock options		210,098		329,281
Dilutive potential common shares		210,098		329,281

Denominator for diluted earnings
per share-adjusted weighted-average
shares and assumed conversions		17,315,406		17,123,427

Basic earnings per share		$1.27		$0.84
Diluted earnings per share		$1.25		$0.82

For the years ended December 31, 2018 and 2017, there were 862,915 and 589,822 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.