Earnings and Cash Dividends per Common Share

6 Months Ended

Jun. 30, 2012

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
(Dollars in thousands, except share and earnings per share amounts)	2012		2011		2012		2011
Net Income	$	1,809	$	2,694	$	4,131	$	4,836
Weighted average shares outstanding		13,487,553		13,367,083		13,469,303		13,348,447
Stock options (dilutive only)		12,493		13,103		14,664		12,502
Stock subscribed (ESPP)		-		-		-		-
Total dilutive shares outstanding		13,500,046		13,380,186		13,483,967		13,360,949
Earnings per share:
Basic and Diluted	$	0.13	$	0.20	$	0.31	$	0.36
Dividends per share	$	0.14	$	0.135	$	0.28	$	0.27

Options to purchase 83,900 and 195,250 for the three months ended June 30, 2012 and 2011, respectively and 78,900 and 195,250 for the six months ended June 30, 2012 and 2011, respectively 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 2012 and 2011, respectively, are as follows:

Shares outstanding on record date	2012		2011
First quarter (February 15)		13,409,941		13,311,817
Second quarter (May 15)		13,479,677		13,358,971

Dividends per share are based on the quarterly dividend per share as declared by the HickoryTech Board of Directors. HickoryTech paid dividends of $0.14 and $0.135 per share in the second quarter of 2012 and 2011, respectively. During the first six months of 2012 and 2011, shareholders have elected to reinvest $147,000 and $135,000, respectively, of dividends into HickoryTech common stock pursuant to the HickoryTech Corporation Dividend Reinvestment Plan.