WEIGHTED AVERAGE COMMON SHARES

12 Months Ended

Dec. 31, 2012

WEIGHTED AVERAGE COMMON SHARES [Abstract]

WEIGHTED AVERAGE COMMON SHARES

3. WEIGHTED AVERAGE COMMON SHARES

The weighted average numbers of common shares used to compute basic and diluted income per share for the years ended December 31, 2012, 2011 and 2010, respectively were as follows:

	Year Ended December 31,
	2012		2011		2010
Basic shares outstanding		22,195,407		22,019,563		24,418,460
Dilutive effect of stock options		-		135,437		605,713
Diluted shares outstanding		22,195,407		22,155,000		25,024,173

For the year ended December 31, 2012, options to acquire 71,989 shares were excluded from the above table because the Company reported a net loss for the year and therefore their impact on reported loss per share would have been antidilutive.  For the years ended December 31, 2012, 2011 and 2010, options to acquire 216,908, 399,583, and 201,500 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 (loss) earnings per share would have been antidilutive.

In 2011, the Company issued certain members of management performance shares that vest when certain performance conditions are met.  These performance conditions have not been met in 2012 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 year ended December 31, 2012.  Refer to Note 10 for more information on performance shares.