WEIGHTED AVERAGE COMMON SHARES

6 Months Ended

Jun. 30, 2012

WEIGHTED AVERAGE COMMON SHARES [Abstract]

WEIGHTED AVERAGE COMMON SHARES

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 six months ended June 30, 2012 and 2011 was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Basic shares outstanding		22,183,043		21,989,756		22,160,053		21,966,466
Dilutive effect of stock options		-		571,582		-		523,226
Diluted shares outstanding		22,183,043		22,561,338		22,160,053		22,489,692

For the three and six months ended June 30, 2012, options to acquire 27,995 and 19,858 shares, respectively, were excluded from the above table because the Company reported a net loss for the quarter and the six months and therefore their impact on reported earnings per share would have been antidilutive.  For the three and six months ended June 30, 2011, options to acquire 304,333 shares 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.

On April 29, 2011, the Company issued certain employees performance shares that vest when certain performance conditions are met.  These performance conditions were not met as of December 31, 2011 with respect to the Company's performance shares.  As a result, the Company has determined these shares to be contingently issuable.  Accordingly, 134,131 shares of outstanding performance shares have been excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2012.  Refer to Note 6 for more information on performance shares.