Note 6 - Earnings Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

6. Earnings Per Share

The Company reports earnings per share in accordance with ASC 260, Earnings Per Share, which establishes standards for computing and presenting earnings per share. Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding and the number of dilutive potential common share equivalents during the period. Under the treasury stock method, unexercised “in-the-money” stock options are assumed to be exercised at the beginning of the period or at issuance, if later. The assumed proceeds are then used to purchase common shares at the average market price during the period.

Basic and diluted earnings per share for the three and nine-month periods ended September 30, 2014 and 2013 are as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Shares used in the calculation of basic earnings per share		14,758,781		13,682,449		14,626,933		13,534,334
Effect of dilutive securities:
Stock options, SARs, and RSAs		676,094		1,276,516		842,304		1,139,545
Diluted shares used in the calculation of earnings per share		15,434,875		14,958,965		15,469,237		14,673,879

Equity awards of 122,967 and 118,725 shares were outstanding for the three and nine-month periods ended September 30, 2014, respectively, and were not included in the computation of diluted earnings per share because the awards’ impact on earnings per share was anti-dilutive. There were no anti-dilutive equity awards for the three month period ended September 30, 2013. Equity awards of 88,278 shares were outstanding for the nine-month period ended September 30, 2013, and were not included in the computation of diluted earnings per share because the awards’ impact on earnings per share was anti-dilutive.