Earnings and Cash Dividends per Common Share

6 Months Ended

Jun. 30, 2011

Earnings and Cash Dividends per Common Share [Abstract]

Earnings and Cash Dividends per Common Share

Note 2.  Earnings and Cash Dividends per Common Share

Basic earnings per share (EPS) are computed by dividing net income by the weighted average number of shares of common stock outstanding during the applicable period. Shares used in the EPS dilution calculation are based on the weighted average number of shares of common stock outstanding during the period increased by potentially dilutive common shares. Potentially dilutive common shares include stock options and stock subscribed under the HickoryTech Corporation Amended and Restated Employee Stock Purchase Plan (ESPP). Dilution is determined using the treasury stock method.

	Three Months Ended June 30				Six Months Ended June 30
	2011		2010		2011		2010
(Dollars in thousands, except share and earnings per share amounts)
Net Income	$	2,694	$	3,510	$	4,836	$	4,937
Weighted average shares outstanding		13,367,083		13,225,561		13,348,447		13,190,366
Stock options (dilutive only)		13,103		1,571		12,502		2,488
Stock subscribed (ESPP)		-		3,729		-		4,812
Total dilutive shares outstanding		13,380,186		13,230,861		13,360,949		13,197,666
Earnings per share:
Basic and Diluted	$	0.20	$	0.27	$	0.36	$	0.37
Dividends per share	$	0.135	$	0.13	$	0.27	$	0.26

Options to purchase 195,250 for the three and six months ended June 30, 2011 and 351,700 for the three and six months ended June 30, 2010 were not included in the computation of diluted EPS, because their effect on diluted EPS would have been anti-dilutive.

Cash dividends are based on the number of common shares outstanding at their respective record dates. The number of shares outstanding as of the record date for the first and second quarters of 2011 and 2010, respectively, are as follows:

Shares outstanding on record date	2011		2010
First quarter (Feb. 15)		13,311,817		13,120,514
Second quarter (May 15)		13,358,971		13,223,197

Dividends per share are based on the quarterly dividend per share as declared by the HickoryTech Board of Directors. HickoryTech paid dividends of $0.135 and $0.13 per share in the second quarter of 2011 and 2010, respectively. During the first six months of 2011 and 2010, shareholders have elected to reinvest $135,000 and $119,000, respectively, of dividends into HickoryTech common stock pursuant to the HickoryTech Corporation Dividend Reinvestment Plan.