Primary EPS was computed by dividing net income after preferred dividends have been subtracted by the weighted average number of shares of common stock and common stock equivalents outstanding.

Stock options and warrants were considered common stock equivalents. However, they only entered into the EPS calculation if they had a dilutive effect on a period's earnings per share.

Convertible securities were common stock equivalents if, at time of issue, the effective yield was less than two-thirds of the average yield on Aa corporate bonds. This determination was made at time of issue and did not change.

If a security was considered a common stock equivalent, then the effects of dilution related to that security were included in the primary earnings per share calculation.

Fully diluted earnings per share represented the maximum dilution possible as a result of the present capital structure. Options and warrants were assumed to have been exercised and convertibles were assumed to have been converted into common shares.