Earnings per share

6 Months Ended

Jun. 30, 2011

Earnings per share

6. Earnings per share

Earnings per share (“EPS”) are computed on a basic and diluted basis. Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. The computation of diluted EPS assumes the issuance of common shares for all potential common shares outstanding during the reporting period and, if dilutive, the effect of stock options using the treasury stock method.

The following summarizes information related to the computation of basic and diluted EPS for the three and six months ended June 30, 2011 and 2010.

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Net income attributable to Consolidated Water Co. Ltd. common stockholders	$	1,929,662		$	1,033,075		$	3,922,672		$	4,110,011
Less: Dividends paid on and earnings attributable to preferred stock		(1,921	)		(1,661	)		(3,851	)		(3,749	)
Net income available to common shares in the determination of basic earnings per common share	$	1,927,741		$	1,031,414		$	3,918,821		$	4,106,262
Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,558,937			14,545,517			14,557,606			14,543,707
Plus:
Weighted average number of preferred shares outstanding during the year		17,725			18,100			17,174			17,618
Potential dilutive effect of unexercised stock options		18,423			40,621			22,263			41,255
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,595,085			14,604,238			14,597,043			14,602,580