Net Income Per Share

9 Months Ended

Sep. 30, 2013

(6) Net Income Per Share

Basic net income per share was computed by dividing net income by the weighted average number of Common Shares outstanding for each respective period. Diluted net income per share was calculated by dividing net income attributable to Stoneridge, Inc. by the weighted-average of all potentially dilutive Common Shares that were outstanding during the periods presented.

Actual weighted-average Common Shares outstanding used in calculating basic and diluted net income per share were as follows:


	Three months ended				Nine months ended
	September 30,				September 30,
	2013		2012		2013		2012

Basic weighted-average shares outstanding		26,691,996		26,430,300		26,663,335		26,358,285
Effect of dilutive shares		484,788		713,517		572,468		651,184
Diluted weighted-average shares outstanding		27,176,784		27,143,817		27,235,803		27,009,469

Options not included in the computation of diluted net income per share to purchase 20,000 and 64,000 Common Shares at an average price of $15.73 and $12.05 per share, respectively, were outstanding at September 30, 2013 and 2012, respectively. These outstanding options were not included in the computation of diluted net income per share because their respective exercise prices were greater than the average closing market price of Company Common Shares.

There were 663,750 and 635,850 performance-based restricted Common Shares outstanding at September 30, 2013 and 2012, respectively. Substantially all of these performance-based restricted Common Shares were not included in the computation of diluted net income per share because the performance-based vesting conditions have not been achieved as of September 30, 2013 and 2012. These performance-based restricted Common Shares may or may not become dilutive based on the Company's ability to meet or exceed future performance targets.

- Definition

The entire disclosure for earnings per share.

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