Earnings per share

3 Months Ended

Mar. 31, 2016

6. 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 months ended March 31, 2016 and 2015.

	Three Months Ended March 31,
	2016		2015
Net income attributable to Consolidated Water Co. Ltd. stockholders	$	2,054,641	$	1,921,261
Less: preferred stock dividends		(2,850)		(2,763)
Net income available to common shares in the determination of basic earnings per common share	$	2,051,791	$	1,918,498

Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,783,380		14,718,757
Plus:
Weighted average number of preferred shares outstanding during the period		38,584		36,840
Potential dilutive effect of unexercised options		42,161		8,572
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,864,125		14,764,169