NOTE 13 – NET INCOME (LOSS) PER SHARE



Basic net income per common share is based on the weighted average number of common shares outstanding during each year. Diluted net income per common share takes into effect the dilutive effect of potential common shares outstanding.  The Company’s only potential common shares outstanding are stock options and shares associated with the long-term incentive compensation plans, which resulted in no dilutive effect for the three and nine-month periods ended September 30, 2016. The Company calculates the dilutive effect of outstanding options using the treasury stock method. Due to the net losses in the first three and nine-month periods of 2015, there was no dilutive impact from stock options or unvested shares. Options totaling 964,563 and 846,584 were excluded from the calculation of diluted earnings per share for the three and nine-month periods ended September 30, 2016 because the exercise price was greater than the average market price of common stock during the period and deferred stock awards totaling 159,689 shares would not have been included for the three and nine-month periods ended September 30, 2016 because of unmet performance conditions. Options totaling 625,812 would have been excluded from the calculation of diluted earnings per share for the three and nine-month periods ended September 30, 2015, because the exercise price was greater than the average market price of common stock during the period and deferred stock awards totaling 192,061 shares would not have been included for the three and nine-months ended September 30, 2015 because of unmet performance conditions.