Common Stock and Earnings Per Share

6 Months Ended

Jun. 30, 2016

NOTE 10. COMMON STOCK AND EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is based on the assumption of the conversion of stock options and vesting of restricted stock at the beginning of each period using the treasury stock method at average cost for the periods.

	Three Months Ended				Six Months Ended
	June 30, 2016		June 30, 2015		June 30, 2016		June 30, 2015
Income Available to Common Shareholders:
Net Income Attributable to Consolidated-Tomoka Land Co.	$	1,570,443	$	224,617	$	2,995,161	$	577,973
Weighted Average Shares Outstanding		5,703,542		5,822,815		5,719,213		5,824,717
Common Shares Applicable to Stock
Options Using the Treasury Stock Method		-		22,719		-		27,356
Total Shares Applicable to Diluted Earnings Per Share		5,703,542		5,845,534		5,719,213		5,852,073
Per Share Information:
Basic and Diluted net Income Per Share
Net Income Attributable to Consolidated-Tomoka Land Co.	$	0.28	$	0.04	$	0.52	$	0.10

The effect of 81,250 and 87,500 potentially dilutive securities were not included for the three and six months ended June 30, 2016, respectively, as the effect would be antidilutive. The effect of 25,000 and 40,200 potentially dilutive securities were not included for the three and six months ended June 30, 2015, respectively, as the effect would be antidilutive.

The Company intends to settle its 4.50% Convertible Senior Notes due 2020 (the “Notes”) in cash upon conversion with any excess conversion value to be settled in shares of our common stock. Therefore, only the amount in excess of the par value of the Notes will be included in our calculation of diluted net income per share using the treasury stock method. As such, the Notes have no impact on diluted net income per share until the price of our common stock exceeds the conversion price of $68.90. The average price of our common stock during the three and six months ended June 30, 2016 and 2015 did not exceed the conversion price which resulted in no additional diluted outstanding shares.