Note 9 - Net Income Per Common Share

9 Months Ended

May 31, 2012

Earnings Per Share [Text Block]

9.           NET INCOME PER COMMON SHARE

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding.  Diluted net income per share assumes the exercise of stock options using the treasury stock method, if dilutive.

Options to purchase shares of common stock of 26,000 were excluded from the computation of common share equivalents for the three and nine months ended May 31, 2012, as the exercise prices of such options were greater than market price of a share of common stock.  No options to purchase shares of common stock were excluded from the computation of common share equivalents for both the three and nine months ended May 31, 2011.

The following is a reconciliation of the earnings per share computation for the three and nine months ended May 31, 2012 and 2011:

	Three Months Ended				Nine Months Ended
Numerator:	May 31, 2012		May 31, 2011		May 31, 2012		May 31, 2011
Net income attributable to NTIC	$	1,454,037	$	1,023,549	$	3,018,987	$	2,872,369
Denominator:
Basic – weighted shares outstanding		4,399,290		4,343,601		4,379,175		4,303,892
Weighted shares assumed upon exercise of stock options		61,754		83,496		65,297		74,350
Diluted – weighted shares outstanding		4,461,044		4,427,097		4,448,472		4,378,242
Basic earnings per share:	$	0.33	$	0.24	$	0.69	$	0.67
Diluted earnings per share:	$	0.33	$	0.23	$	0.68	$	0.66

The dilutive impact summarized above relates to the periods when the average market price of the Company’s common stock exceeded the exercise price of the potentially dilutive option securities granted.  Earnings per common share were based on the weighted average number of common shares outstanding during the periods when computing the basic earnings per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted earnings per share.