WEIGHTED AVERAGE COMMON SHARES

9 Months Ended

Sep. 30, 2011

WEIGHTED AVERAGE COMMON SHARES [Abstract]

2. WEIGHTED AVERAGE COMMON SHARES

The weighted average number of common shares used to compute basic and diluted (loss) income per share for the three and nine months ended September 30, 2011 and 2010 was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Basic shares outstanding		22,045,104		24,491,967		21,995,977		25,272,749
Dilutive effect of stock options		-		492,352		157,301		646,977
Diluted shares outstanding		22,045,104		24,984,319		22,153,278		25,919,726

For the three months ended September 30, 2011 and 2010, options to acquire 414,583 and 328,333 shares, respectively, and for the nine months ended September 30, 2011 and 2010, options to acquire 293,333 and 64,500 shares, respectively, were excluded from the above table because they have an exercise price that is greater than the average market price of the Company's common stock and therefore their impact on reported earnings per share would have been antidilutive. For the three months ended September 30, 2011, options to acquire 110,978 shares were excluded from the above table because the Company reported a net loss for the quarter and therefore their impact on reported earnings per share would have been antidilutive.

Certain performance conditions have not been met with respect to the Company's performance shares. As a result, the Company has determined these shares to be contingently issuable on April 29, 2011. Accordingly, 134,131 shares of outstanding performance shares have been excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2011.