Earnings Per Share

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 4. Earnings Per Share

Basic earnings per share are computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per share are computed similarly to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential additional common shares that were dilutive had been issued. Common share equivalents are excluded from the computation if their effect is anti-dilutive. The Company’s common share equivalents consist of stock options.

Common shares from the potential exercise of certain options are excluded from the computation of diluted earnings (loss) per share if their exercise prices are greater than the Company’s average stock price for the period. For the three month periods ended March 31, 2017 and 2016, the numbers of such shares excluded were 1,075,000 and 315,000, respectively. In addition, because their effect would have been anti-dilutive, common shares from exercise of 942,000 in-the-money options for the three month period ended March 31, 2016 were excluded from the computation of net loss per share. No such shares were excluded for the three month period ended March 31, 2017.