Earnings and Cash Dividends per Common Share

9 Months Ended

Sep. 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 September 30				Nine Months Ended September 30
(Dollars in thousands, except share and earnings per share amounts)	2011		2010		2011		2010
Net Income	$	2,971	$	5,043	$	7,807	$	9,980
Weighted average shares outstanding		13,394,225		13,263,600		13,363,874		13,215,046
Stock options (dilutive only)		13,310		1,396		11,272		2,279
Stock subscribed (ESPP)		1,879		-		1,115		-
Total dilutive shares outstanding		13,409,414		13,264,996		13,376,261		13,217,325
Earnings per share:
Basic and Diluted	$	0.22	$	0.38	$	0.58	$	0.76
Dividends per share	$	0.135	$	0.13	$	0.405	$	0.39

Options to purchase 179,250 and 316,700 for the three months ended September 30, 2011 and 2010, respectively and 195,250 and 316,700 for the nine months ended September 30, 2011 and 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 three 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
Third quarter (August 15)	13,383,012	13,244,504

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 third quarter of 2011 and 2010, respectively. During the first nine months of 2011 and 2010, shareholders have elected to reinvest $204,000 and $181,000, respectively, of dividends into HickoryTech common stock pursuant to the HickoryTech Corporation Dividend Reinvestment Plan.

In September 2011, we did acquire and retire 36,248 shares. Details of the transactions can be found in Part II, Item II.