Restatement

3 Months Ended

Mar. 31, 2012

Restatement [Abstract]

Restatement

Note 2.   Restatement

We are restating our previously reported financial information for the quarters ended March 31, 2012 and 2011 to change our accounting for interest rate swap agreements under ASC 815, "Derivatives and Hedging."

ASC 815 requires that all derivative instruments be recorded on the balance sheet as either an asset or a liability measured at its fair value, and that changes in the derivatives fair value be recognized in earnings unless specific hedge accounting criteria are met. We had applied the method of cash flow hedge accounting under ASC 815 to account for the interest rate swap agreements that allowed us to record changes in the instruments' fair value in other comprehensive income (the "cash flow" method). We recently concluded that the interest rate swap agreements did not qualify for the cash flow method because the documentation was not in place at the inception of the hedge as well as on an ongoing basis. This change reverses the fair value adjustments that were made in other comprehensive income to be recognized in earnings.

Although the swaps do not qualify for the cash flow method under ASC 815, there is no effect on cash flows from operating, investing, or financing activities for these changes. The change in the accounting treatment has not impacted the economics of the interest rate swap agreements.

The following table details the impact of the restatement on the Company's Statement of Operations and Balance Sheets for the periods ended March 31, 2012 and 2011.

(Dollars in thousands, except share data)	Three Months Ended March 31, 2012									Three Months Ended March 31, 2011
Statement of Operations Data:	As Reported			Restatement			Restated			As Reported			Restatement			Restated
Operating income	$	5,252		$	-		$	5,252		$	4,666		$	-		$	4,666
Other income and expense:
Interest and other income		20			-			20			10			-			10
Interest expense		(1,364	)		(47	)		(1,411	)		(1,068	)		339			(729	)
Total other (expense)		(1,344	)		(47	)		(1,391	)		(1,058	)		339			(719	)
Income before income taxes		3,908			(47	)		3,861			3,608			339			3,947
Income tax provision		1,586			(19	)		1,567			1,466			135			1,601
Net income	$	2,322		$	(28	)	$	2,294		$	2,142		$	204		$	2,346
Other comprehensive income, net of taxes	$	51		$	28		$	79		$	269		$	(204	)	$	65
Total comprehensive income	$	2,373		$	-		$	2,373		$	2,411		$	-		$	2,411
EPS	$	0.17		$	-		$	0.17		$	0.16		$	0.02		$	0.18
Diluted EPS	$	0.17		$	-		$	0.17		$	0.16		$	0.02		$	0.18

	As of March 31, 2012									As of December 31, 2011
Balance Sheet Data:	As Reported			Restatement			Restated			As Reported			Restatement			Restated
Shareholders' equity:
Common stock	$	1,349		$	-		$	1,349		$	1,340		$	-		$	1,340
Additional paid-in capital		15,875			-			15,875			15,683			-			15,683
Retained earnings		32,241			(1,516	)		30,725			31,797			(1,488	)		30,309
Accumulated other comprehensive income (loss)		(5,572	)		1,516			(4,056	)		(5,623	)		1,488			(4,135	)
Total shareholders' equity	$	43,893		$	-		$	43,893		$	43,197		$	-		$	43,197