Earnings per share

6 Months Ended

Jun. 30, 2015

5. Earnings per share

Earnings per share (“EPS”) are computed on a basic and diluted basis. Basic EPS is computed by dividing net income (less preferred stock dividends) 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 as computed under 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, 2015 and 2014.

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Net income attributable to Consolidated Water Co. Ltd. common stockholders	$	2,228,100	$	2,759,693	$	4,149,361	$	3,414,602
Less: preferred stock dividends		(3,418)		(3,139)		(6,181)		(6,278)
Net income available to common shares in the determination of basic earnings per common share	$	2,224,682	$	2,756,554	$	4,143,180	$	3,408,324

Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,736,057		14,698,499		14,727,455		14,692,654
Plus:
Weighted average number of preferred shares outstanding during the period		38,459		37,990		37,654		37,701
Potential dilutive effect of unexercised options		18,782		23,670		15,160		33,703
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,793,298		14,760,159		14,780,269		14,764,058