EARNINGS/LOSS PER SHARE

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

EARNINGS/LOSS PER SHARE

NOTE 9. EARNINGS/LOSS PER SHARE

Basic loss per share is computed based upon the weighted average number of common shares outstanding. Diluted loss per share is computed based upon the weighted average number of common shares outstanding and any potentially dilutive securities. Potentially dilutive securities outstanding during the periods presented include stock options, warrants, restricted stock, preferred stock and convertible debt.

The following table sets forth the components of basic and diluted earnings/loss per share calculation for the quarter ending March 31, 2012 (in thousands, except per share amount):

	For the three months ended March 31, 2012
	Income	Shares	Per-Share Amount
Net income	$ 2,156
Less: Preferred stock dividends	(32)
Basic EPS
Net income applicable to common stockholders	2,124	48,008	$  0.04
Effect of Dilutive Securities
Stock based compensation	40	616
Warrants	--	27
Restricted stock	--	549
Convertible preferred stock	32	11,942
5% Convertible debentures	26	12,140
Diluted EPS
Net Income available to common stockholders + assumed conversions	$  2,222	73,283	$  0.03

Options and warrants to purchase shares of common stock are excluded from the calculation of diluted earnings per share when their inclusion would have an anti-dilutive effect on the calculation. No options and warrants were included for the three months ended March 31, 2011, respectively. The weighted average number of common shares is increased by the number of dilutive potential common shares issuable on the exercise of options less the number of common shares assumed to have been purchased with the proceeds from the exercise of the options pursuant to the treasury stock method; those purchases are assumed to have been made at the average price of the common stock during the respective period.