WEIGHTED AVERAGE COMMON SHARES

9 Months Ended

Sep. 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 nine months ended September 30, 2012 and 2011 was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Basic shares outstanding		22,194,731		22,045,104		22,171,757		21,995,977
Dilutive effect of stock options		-		-		-		157,301
Diluted shares outstanding		22,194,731		22,045,104		22,171,757		22,153,278

For the three months ended September 30, 2012 and 2011, options to acquire 27,995 and 414,583 shares, respectively, 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.  For the nine months ended September 30, 2012, options to acquire 304,333 shares were excluded from the above table because the Company reported a net loss and therefore their impact on reported earnings per share would have been antidilutive.  For the nine months ended September 30, 2011, options to acquire 293,333 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 nine months ended September 30, 2012 and 2011.  Refer to Note 6 for more information on performance shares.