EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2015

NOTE 3 — EARNINGS PER SHARE

Basic earnings per common share is based on the average number of shares of the Company’s Class A Common Stock (“Common Stock”) outstanding for the periods presented. Diluted earnings per common share reflects the effect of shares of the common stock issuable upon the exercise of options, unless the effect on earnings is antidilutive.

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

The following table sets forth the elements of basic and diluted earnings per common share:

	Three months ended				Six months ended
	June 30,				June 30,
	2015		2014		2015		2014
Numerator for basic and diluted earnings per common share:

Net income	$	1,312,000	$	572,000	$	2,093,000	$	1,034,000

Denominator:
For basic earnings per share - weighted average common shares outstanding		3,606,000		3,724,000		3,598,000		3,709,000
Dilutive securities (1)		148,000		181,000		153,000		182,000
For diluted earnings per share - weighted average common shares outstanding		3,754,000		3,905,000		3,751,000		3,891,000

(1) Dilutive securities consist of “in the money” stock options.

At June 30, 2015 and 2014 and during the six-month periods ended June 30, 2015 and 2014, there were outstanding stock options whose exercise prices were higher than the average market values of the underlying common stock for the period. These options are anti-dilutive and are excluded from the computation of diluted earnings per share. The weighted average of anti-dilutive stock options outstanding was as follows:

	Three months ended		Six months ended
	June 30,		June 30,
	2015	2014	2015	2014
Weighted average antidilutive stock options outstanding	182,000	214,000	182,000	257,000