Note 11 - Other Comprehensive Loss

6 Months Ended

Jun. 30, 2011

Comprehensive Income (Loss) Note [Text Block]

NOTE 11 – OTHER COMPREHENSIVE LOSS:

The Company is exposed to the risk that its earnings and cash flows could be adversely impacted by market driven fluctuations in the level of interest rates. It is our policy to manage these risks by using a mix of fixed and floating rate debt and derivative instruments. After the expiration of an existing interest rate swap agreement in the third quarter of 2010, we entered into another interest rate swap agreement, with a nominal value of $10 million and maturity of May 2013, which is designed to help manage the interest rate risk associated with our long term debt. As a result of the swap agreement entered into during the third quarter of 2010, our net income for the three and six months ended June 30, 2011 includes additional financing costs of approximately $22,000 and $44,000, respectively. In addition to the costs included in our reported net income, the interest rate swap is accounted for as a cash flow hedge and has also generated a non-recognized after-tax loss of approximately $58,000 as of June 30, 2011 which is reported as part of our comprehensive income.

The fair value of this hedge was calculated in accordance with ASC 820, utilizing Level 2 inputs of quoted prices for similar liabilities in active markets.

We deem this hedge to be highly effective as it shares the same amortization schedule as the underlying debt subject to the hedge and any change in fair value inversely mimics the appropriate portion of the hedged item.  As of June 30, 2011, we had no other hedge or derivative transactions.

The following table summarizes total comprehensive income for the applicable periods (000’s omitted):

	For the three-month period Ended June 30,						For the six-month period Ended June 30,
	2011			2010			2011			2010
Net income as reported	$	348		$	1,616		$	1,306		$	2,736
Unrealized gain (loss) on hedging transaction		(25	)		105			(5	)		210
Related Tax Benefit		9			(40	)		2			(81	)
Total comprehensive income	$	332		$	1,681		$	1,303		$	2,865