Earnings per Share

9 Months Ended

Jul. 31, 2011

Notes to Financial Statements

Earnings per Share

NOTE   11  -  EARNINGS PER SHARE:

The Company presents “basic” and “diluted” earnings per common share pursuant to the provisions included in the authoritative guidance issued by FASB, “Earnings per Share,” and certain other financial accounting pronouncements.  Basic earnings per common share were computed by dividing net income by the sum of the weighted-average number of common shares outstanding.   Diluted earnings per common share is computed by dividing the net income by the weighted-average number of common shares outstanding plus the dilutive effect of common shares issuable upon exercise of potential sources of dilution.

The weighted average common shares outstanding used in the computation of basic earnings per share were 5,490,823 for the nine and three months ended July 31, 2011 and 5,454,742 and 5,482,127 for the nine and three months ended July 31, 2010.  The weighted average common shares outstanding used in the computation of diluted earnings per share were 5,500,823 for the nine and three months ended July 31, 2011 and 5,464,742 and 5,492,127 for the nine and three  months ended July 31, 2010. The additional 10,000 contingent shares issuable in connection with the First Supplemental Common Stock Payment and the Second Supplemental Common Stock Payment have been included in the diluted earnings per share calculation because of their dilutive impact.