EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2011

NOTE 3 — EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per common share is based only on the weighted average number of shares of common stock outstanding for the periods. Diluted earnings (loss) per common share reflect the effect of shares of weighted common stock issuable upon the exercise of options, unless the effect on earnings is antidilutive.

Diluted earnings (loss) per common share is computed using the treasury stock method. Under this method, the aggregate number of shares of common stock outstanding reflects the assumed use of proceeds from the hypothetical exercise of any outstanding options to purchase shares of the Company’s Class A Common Stock. The average market value for the period is used as the assumed purchase price.

The following table sets forth the computation of basic and diluted earnings (loss) per common share:

	Three months ended					Nine months ended
	September 30,					September 30,
	2011		2010			2011		2010
Numerator:
For basic and diluted earnings (loss) per common share:
Income from continuing operations	$	561,000	$	632,000		$	1,868,000	$	194,000
Income (loss) from discontinued operations		667,000		(49,000	)		639,000		338,000
Net income for basic and diluted earnings per share	$	1,228,000	$	583,000		$	2,507,000	$	532,000

Denominator:
For basic earnings (loss) per share weighted average common shares outstanding		3,615,000		3,615,000			3,615,000		3,615,000
Dilutive securities (1)		108,000		—			86,000		—
Denominator for diluted earnings (loss) per share weighted average common shares outstanding		3,723,000		3,615,000			3,701,000		3,615,000

(1)

Dilutive securities consist of “in the money options”.

During the three and nine-month periods ended September 30, 2011 and 2010, there were outstanding stock options whose exercise prices were higher than the average market values of the underlying Class A Common Stock for the period. These options are antidilutive and are excluded from the computation of earnings (loss) per share. The weighted average antidilutive stock options outstanding were as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2011		2010		2011		2010
Weighted average antidilutive stock options outstanding		340,000		517,000		421,000		515,000