NOTE 11: EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing net income (loss) applicable to common stock by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) applicable to common stock by the weighted average number of shares of common stock adjusted to include the effect of potentially dilutive securities. Potentially dilutive securities include incremental shares issuable upon exercise of outstanding stock options and shares of unvested restricted stock. Diluted earnings (loss) per share excludes all dilutive securities if their effect is anti-dilutive.

The Companys restricted stock awards are considered participating securities because they contain non-forfeitable rights to dividends. Under the two-class method, earnings per share (EPS) is computed by dividing earnings allocated to common shareholders by the weighted-average number of common shares outstanding for the period. In applying the two-class method,

earnings are allocated to both shares of common stock and participating securities based on their respective weighted-average shares outstanding for the period.

For the three months ended September 30, 2014 and nine months ended September 30, 2013, the Company experienced a net loss. As a result, the effect of participating securities was excluded from the computation of basic and diluted EPS. The net losses were not allocated because the restricted stockholders are not required to fund losses

The weighted average number of shares of common stock used in basic and diluted earnings per share for the three and nine months ended September 30, 2014 and 2013 is as follows:


		For the three months ended September 30,
(amounts in thousands, except for per share)		2014			2013

NUMERATOR:
Net income (loss) applicable to common stock and participating securities	$	(1,336	)	$	337
Less: income applicable to participating securities (1)		-			(22	)
Net income (loss) applicable to common stock	$	(1,336	)	$	315

DENOMINATOR:
Weighted average shares outstanding - Basic and Diluted (2)		5,826			5,776

EPS:
Net income (loss) per share - Basic and Diluted	$	(0.23	)	$	0.06

(1) For the three months ended September 30, 2014 and 2013, the Company had 0.2 million and 0.4 million in nonvested participating securities, respectively. As the participating securities do not participate in losses, there was no allocation of loss for the three months ended September 30, 2014.

(2) For the three months ended September 30, 2014 and 2013, potentially dilutive shares related to out of the money common stock options that were excluded from EPS, as their effect was anti-dilutive, were 0.3 million and 0.2 million, respectively.


		For the nine months ended September 30,
(amounts in thousands, except for per share)		2014			2013

NUMERATOR:
Net income (loss) applicable to common stock and participating securities	$	29,939		$	(356	)
Less: income applicable to participating securities (1)		(1,174	)		-
Net income (loss) applicable to common stock	$	28,765		$	(356	)

DENOMINATOR:
Weighted average shares outstanding - Basic and Diluted (2)		5,802			5,765

EPS:
Net income (loss) per share - Basic and Diluted	$	4.96		$	(0.06	)

(1) For the nine months ended September 30, 2014 and 2013, the Company had 0.2 million and 0.3 million in nonvested participating securities, respectively. As the participating securities do not participate in losses, there was no allocation of loss for the nine months ended September 30, 2013.

(2) For the nine months ended September 30, 2014 and 2013, potentially dilutive shares related to out of the money common stock options that were excluded from EPS, as their effect was anti-dilutive, were 0.2 million and 0.1 million, respectively.