Earnings per Common Share

3 Months Ended

Mar. 31, 2013

Earnings per Common Share

Earnings per Common Share

(3)           Earnings per Common Share

We compute earnings per share using the weighted-average number of common shares outstanding during each period. Diluted earnings per common share reflects the dilutive impact of shares subscribed under the Employee Stock Purchase Plan (“Purchase Plan”) and effect of our outstanding options and restricted stock using the treasury stock method, except when such items would be antidilutive.

The following table presents the calculation of basic and diluted earnings per share:

	Three Months Ended March 31,
	2013		2012
Numerator:
Net income:	$	2,690	$	590
Denominator:
Weighted-average common shares outstanding - basic	12,458,614		12,367,914
Dilutive effect of stock-based compensation plans	81,258		137,955
Weighted-average common shares outstanding - diluted	12,539,872		12,505,869
Net income per share - basic	$	0.22	$	0.05
Net income per share - diluted	$	0.21	$	0.05

We did not include 427,800 or 372,000 of the outstanding options to purchase shares of common stock in the computation of diluted earnings per share for the three months ended March 31, 2013 and 2012, respectively, because generally their exercise prices were more than the average market price of our common shares, and therefore antidilutive.