Net Income Per Share

3 Months Ended

Mar. 31, 2014

(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.

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




Three months ended March 31	2014		2013

Basic weighted-average Common Shares outstanding		26,854,017		26,601,282
Effect of dilutive shares		554,764		793,759
Diluted weighted-average Common Shares outstanding		27,408,781		27,395,041

Options not included in the computation of diluted net income per share to purchase 20,000 Common Shares at an average price of $15.73 per share were outstanding at March 31, 2014 and 2013. 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 and the effect would be anti-dilutive.

There were 466,650 and 663,750 performance-based restricted Common Shares outstanding at March 31, 2014 and 2013, respectively. There were also 374,400 performance-based right to receive Common Shares outstanding at March 31, 2014. These shares were not included in the computation of diluted net income per share because all vesting conditions have not been achieved as of March 31, 2014 and 2013. These shares may 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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