Earnings and Cash Dividends per Common Share

3 Months Ended

Mar. 31, 2012

Earnings and Cash Dividends per Common Share [Abstract]

Earnings and Cash Dividends per Common Share

Note 3.  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 March 31
	2012		2011
(Dollars in thousands, except share and earnings per share amounts)	(Restated)		(Restated)
Net Income	$	2,294	$	2,346
Weighted average shares outstanding		13,450,850		13,329,603
Stock options (dilutive only)		16,737		10,667
Stock subscribed (ESPP)		1,162		1,601
Total dilutive shares outstanding		13,468,749		13,341,871
Earnings per share:
Basic and Diluted	$	0.17	$	0.18
Dividends per share	$	0.14	$	0.135

Options to purchase 87,950 and 238,250 for the three months ended March 31, 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 quarter 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

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 first quarter of 2012 and 2011, respectively. During the first three months of 2012 and 2011, shareholders have elected to reinvest $71,000 and $66,000, respectively, of dividends into HickoryTech common stock pursuant to the HickoryTech Corporation Dividend Reinvestment Plan.