Earnings Per Share

9 Months Ended

Sep. 30, 2011

2. Earnings Per Share

Basic earnings per common share is computed using the weighted average number of common shares outstanding during each period. Diluted earnings per common share is computed using the weighted average number of common shares outstanding during the year and includes the effect of our outstanding stock options and unvested stock (using the treasury stock method), except where such stock options or unvested stock would be antidilutive.

A reconciliation of weighted average shares used for the basic and diluted computations for the three and nine months ended September 30, 2011 and 2010 is as follows:


	Three Months Ended		Three Months Ended
	September 30,		September 30,
	2011		2010
Weighted average shares for basic		17,678,213		17,378,804
Dilutive effect of stock options and unvested restricted stock		—		359,289

Weighted average shares for diluted		17,678,213		17,738,093


	Nine Months Ended		Nine Months Ended
	September 30,		September 30,
	2011		2010
Weighted average shares for basic		17,601,996		17,330,533
Dilutive effect of stock options and unvested restricted stock		—		—

Weighted average shares for diluted		17,601,996		17,330,533

Because of the net losses reported for the three and nine months ended September 30, 2011 and the nine months ended September 30, 2010, all shares of stock issuable pursuant to stock options and unvested stock have not been considered for dilution as their effect would be antidilutive. For the three and nine months ended September 30, 2011, 2,375,047 stock options and 717,014 shares of restricted stock were excluded from the computation of diluted net loss per share. For the three months ended September 30, 2010, 2,353,618 stock options and 127,901 shares of restricted stock were excluded from the computation of diluted net loss per share because the effect of including such shares would be antidilutive. For the nine months ended September 30, 2010, 2,353,618 stock options and 890,038 shares of restricted stock were excluded from the computation of diluted net loss per share. Performance shares totaling 51,589 and 128,625 were excluded from the computation of earnings per share for the three and nine months ended September 30, 2011 and 2010, respectively, because the performance conditions had not been achieved at the respective balance sheet dates.