INCOME PER COMMON SHARE

9 Months Ended

Sep. 30, 2011

NOTE F — INCOME PER COMMON SHARE

Basic income per common share has been computed by dividing net income by the weighted-average number of shares of the Company’s common stock outstanding. Diluted income per common share adjusts net income and basic income per common share for the effect of all potentially dilutive shares of the Company’s common stock. The calculations of basic and diluted income per common share for the three and nine month periods ended September 30, 2011 and 2010 are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
	(in thousands, except per share amounts)

Net income – basic	$	7,533	$	6,585	$	8,647	$	6,333

Net interest expense, 4.75% Convertible Senior Notes		83		330		—		—

Net income - diluted	$	7,616	$	6,915	$	8,647	$	6,333


Weighted-average shares outstanding – basic		12,089		12,048		12,075		12,030
Effect of dilutive securities:
Stock options		413		366		422		320
4.75% Convertible Senior Notes		140		861		—		—

Weighted-average shares outstanding – diluted		12,642		13,275		12,497		12,350


Basic income per common share	$	0.62	$	0.55	$	0.72	$	0.53


Diluted income per common share	$	0.60	$	0.52	$	0.69	$	0.51

The computation of diluted income per common share for the three months ended September 30, 2011 and 2010 excludes options to purchase 1,550,500 shares and 628,500 shares, respectively. The computation of diluted income per common share for the nine months ended September 30, 2011 and 2010 excludes: (i) options to purchase 1,687,550 shares and 1,212,217 shares, respectively, and (ii) 617,949 shares and 1,974,817 shares of the Company’s common stock issuable upon the conversion of the Company’s Notes and related interest expense, respectively. The above shares were excluded due to their antidilutive effects.