STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE

The Company is authorized to issue up to 100 million shares of common stock. Basic earnings per share (“EPS”) is calculated using the average number of shares of common stock outstanding during each period. Diluted EPS assumes the restricted stock is outstanding on the date of the grant and the exercise of all stock options having exercise prices less than the average market price of the common stock using the treasury stock method.

A reconciliation of diluted shares consists of the following:

A total of 3,508,865, 1,018,900, and 1,169,064 shares under option were not included because they were anti-dilutive during the years ended December 31, 2013, 2012 and 2011, respectively.