EXHIBIT 11.1
Computation of Earnings Per Share
Basic earnings per share (EPS) excludes dilution and is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reported periods. Diluted EPS reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised using the treasury stock method.
The computation of Basic and Diluted EPS is as follows:
2001 | 2002 | 2003 | ||||||||
Net income (loss) | $ | (314 | ) | $ | 147 | $ | 6,211 | |||
Weighted average shares – Basic | 10,000,000 | 10,000,000 | 10,000,000 | |||||||
Effect of dilutive stock options | — | 277,119 | 226,976 | |||||||
Weighted average shares – Diluted | 10,000,000 | 10,277,119 | 10,226,976 | |||||||
Basic earnings (loss) per share: | $ | (0.03 | ) | $ | 0.01 | $ | 0.62 | |||
Diluted earnings (loss) per share: | $ | (0.03 | ) | $ | 0.01 | $ | 0.61 | |||
Potential common shares of 362,000, 0 and 0 for 2001, 2002 and 2003, respectively, have been excluded from the earnings (loss) per share computations because the effect of their inclusion would be anti-dilutive.