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Note 9 - Earnings Per Share
 9 Months Ended
Sep. 30, 2012
Earnings Per Share [Text Block]
9.  EARNINGS PER SHARE

On January 1, 2009, we adopted the provisions of FASB’s guidance for determining whether instruments granted in share-based payment transactions are participating securities.  The guidance requires that all outstanding unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (such as restricted stock awards granted by us) be considered participating securities.  Because restricted stock awards are participating securities, we are required to apply the two-class method of computing basic and diluted earnings per share (the “Two-Class Method”).

Basic earnings per share (“EPS”) is determined using the Two-Class Method and is computed by dividing earnings attributable to Ultralife common shareholders by the weighted-average shares outstanding during the period.  The Two-Class Method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings.  Diluted EPS includes the dilutive effect of securities, if any, and reflects the more dilutive EPS amount calculated using the treasury stock method or the Two-Class Method.  For the three- and nine-month periods ended September 30, 2012 and October 2, 2011, both the Two-Class Method and the treasury stock method calculations for diluted EPS yielded the same result.

The computation of basic and diluted earnings per share is summarized as follows:

   
Three-Month Period Ended
   
Nine-Month Period Ended
 
   
September 30,
 2012
   
October 2,
2011
   
September 30,
 2012
   
October 2,
2011
 
 
                       
Net Income (Loss) from continuing operations attributable to Ultralife
  $ 1,479     $ 1,359     $ (3,169 )   $ 286  
Net Income (Loss) from continuing operations attributable to participating securities (unvested restricted stock awards) (-0-, 1,000, -0- and -0- shares, respectively)
    -       -       -       -  
Net Income (Loss) from continuing operations attributable to Ultralife common shareholders (a)
    1,479       1,359       (3,169 )     286  
Effect of Dilutive Securities
    -       -       -       -  
Net Income (Loss) from continuing operations attributable to Ultralife common shareholders - Adjusted (b)
  $ 1,479     $ 1,359     $ (3,169 )   $ 286  
                                 
Net Income (Loss) from discontinued operations attributable to Ultralife common shareholders (c)
  $ 200     $ 4     $ 178     $ (4,174 )
Effect of Dilutive Securities
    -       -       -       -  
Net Income (Loss) from discontinued operations attributable to Ultralife common shareholders - Adjusted (d)
  $ 200     $ 4     $ 178     $ (4,174 )

Average Common Shares Outstanding – Basic (e)
    17,418,000       17,313,000       17,390,000       17,295,000  
Effect of Dilutive Securities:
                               
     Stock Options / Warrants
    -       28,000       -       -  
Average Common Shares Outstanding – Diluted (f)
    17,418,000       17,341,000       17,390,000       17,295,000  
                                 
EPS – Basic (a/e) - continuing operations
  $ 0.09     $ 0.08     $ (0.18 )   $ 0.02  
EPS – Basic (c/e) - discontinued operations
  $ 0.01     $ 0.00     $ 0.01     $ (0.24 )
EPS – Diluted (b/f) - continuing operations
  $ 0.09     $ 0.08     $ (0.18 )   $ 0.02  
EPS – Diluted (d/f) - discontinued operations
  $ 0.01     $ 0.00     $ 0.01     $ (0.24 )

There were 2,342,722 and 2,060,802 outstanding stock options, warrants and restricted stock awards for the three-month periods ended September 30, 2012 and October 2, 2011, respectively, that were not included in EPS as the effect would be anti-dilutive.  The dilutive effect of -0- and 259,552 outstanding stock options, warrants and restricted stock awards were included in the dilution computation for the three-month periods ended September 30, 2012 and October 2, 2011, respectively.

There were 2,342,722 and 2,320,354 outstanding stock options, warrants and restricted stock awards for the nine-month periods ended September 30, 2012 and October 2, 2011, respectively, that were not included in EPS as the effect would be anti-dilutive.