Note 5 – Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing the net income (loss) attributable to Reading International, Inc. common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net income (loss) attributable to Reading International, Inc. common shareholders by the weighted average number of common shares outstanding during the period after giving effect to all potentially dilutive common shares that would have been outstanding if the dilutive common shares had been issued. Stock options and non-vested stock awards give rise to potentially dilutive common shares. In accordance with FASB ASC 260-10 - Earnings Per Share, these shares are included in the diluted earnings per share calculation under the treasury stock method. The following is a calculation of earnings (loss) per share (dollars in thousands, except share data):



		Three Months Ended June 30,				Six Months Ended June 30,
		2014		2013		2014		2013
Net income from continuing operations	$	4,759	$	4,135	$	4,542	$	3,468
Net income attributable to Reading International, Inc. common shareholders		4,759		4,135		4,542		3,468
Basic earnings per share attributable to Reading International, Inc. shareholders	$	0.20	$	0.18	$	0.19	$	0.15
Diluted earnings per share attributable to Reading International, Inc. shareholders	$	0.20	$	0.18	$	0.19	$	0.15
Weighted average shares of common stock – basic		23,471,776		23,344,057		23,480,429		23,305,466
Weighted average shares of common stock – diluted		23,775,923		23,447,250		23,784,576		23,408,659

For the three and six months ended June 30, 2014, the weighted average common stock – diluted included 304,147 of common stock compensation and in-the-money incremental stock options and for the three and six months ended June 30, 2013, the weighted average common stock – diluted included 103,193 of common stock compensation and in-the-money incremental stock options. In addition, 695,946 of out-of-the-money stock options were excluded from the computation of diluted earnings (loss) per share for the three and six months ended June 30, 2014, and 741,861 of out-of-the-money stock options were excluded from the computation of diluted earnings (loss) per share for the three and six months ended June 30, 2013.