Note 3 - Earnings (Loss) Per Common Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

3. Earnings (Loss) Per Common Share

Basic earnings (loss) per share have been computed on the basis of the weighted average number of shares of common stock outstanding. Diluted earnings (loss) per share has been computed on the basis of the weighted average number of shares of common stock outstanding after giving effect to potential common shares from dilutive stock options and certain non-vested shares of restricted stock. The following table provides the reconciliation between basic and diluted earnings (loss) per share:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014			2013
(In thousands, except per share data)
Basic earnings per share:
Earnings (loss) applicable to common stock	$	381	$	1,277	$	(213	)	$	1,841
Basic weighted average common shares outstanding		14,060		13,997		14,043			13,988
Basic earnings (loss) per share	$	0.03	$	0.09	$	(0.02	)	$	0.13
Diluted earnings per share:
Earnings (loss) applicable to common stock	$	381	$	1,277	$	(213	)	$	1,841
Basic weighted average common shares outstanding		14,060		13,997		14,043			13,988
Dilutive effect of stock options and restricted stock awards		46		48		—			47
Dilutive weighted average common shares outstanding		14,106		14,045		14,043			14,035
Diluted earnings (loss) per share	$	0.03	$	0.09	$	(0.02	)	$	0.13

     For the three and six month periods ended June 30, 2014, options to purchase 211,500 shares of common stock were outstanding but were not included in the computation of diluted earnings per share as the option’s exercise price was greater than the average market price of the common shares for the respective periods.  An additional 64,553 options were excluded from the six month period ended June 30, 2014 as their inclusion would be anti-dilutive, thereby decreasing the net loss per share. For the three and six month periods ended June 30, 2013, options to purchase 253,500 and 255,700 shares of common stock were outstanding but were not included in the computation of diluted earnings per share as the option’s exercise price was greater than the average market price of the common shares for the respective periods.