Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2016

Basic earnings (loss) per share are based on the weighted average number of common shares outstanding during each period. Diluted earnings per share are based on the weighted average number of common shares outstanding and the effect of all dilutive common stock equivalents during each period. The exercise price for certain stock options awarded by the Company exceeds the average market price of the Company's common stock. Such stock options are antidilutive and are not included in the computation of earnings (loss) per share. For the year ended December 31, 2016 and 2015 no potential common stock equivalents were included in the computation and in 2014 incremental shares of 801,441 were included in the computation of diluted earnings per share. For the years ended December 31, 2016, 2015 and 2014, the Company had 2,381,926, 2,043,375, and 1,994,818, securities, respectively, that were potentially dilutive in future earnings per share calculations. Such dilution will be dependent on the excess of the market price of our stock over the exercise price and other components of the treasury stock method.

The following table reconciles the denominators used in the computations of both basic and diluted (loss) earnings per share:



	Year ended December 31,
	2016	2015	2014
Basic:
Weighted average shares outstanding	27,536,967	27,366,528	27,421,441
Diluted:
Total basic weighted average shares outstanding	27,536,967	27,366,528	27,421,441
Effect of dilutive securities:
Common stock options	—	—	366,172
Total weighted average shares outstanding assuming dilution	27,536,967	27,366,528	27,787,613
Anti-dilutive stock options	—	—	801,441
Shares of common stock issued from the exercise of stock options	13,850	3,970	143,282