WEIGHTED AVERAGE COMMON SHARES

12 Months Ended

Dec. 31, 2013

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, 2013, 2012 and 2011, respectively were as follows:

	Year Ended December 31,
	2013		2012		2011
Basic shares outstanding		22,513,391		22,195,407		22,019,563
Dilutive effect of stock options		-		-		135,437
Diluted shares outstanding		22,513,391		22,195,407		22,155,000

For the year ended December 31, 2013 and 2012, options to acquire 222,707 and 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, 2013, 2012 and 2011, options to acquire 657,083; 216,908; and 399,583 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 and 2013, the Company issued certain members of management performance shares that vest when certain performance conditions are met.  As of December 31, 2013, these performance conditions were not met.  Accordingly, 441,552 and 134,131 shares of outstanding performance shares have been excluded from the computation of diluted earnings per share for the year ended December 31, 2013 and 2012, respectively.  Refer to Note 10 for more information on performance shares.