Totals Class B shares 52 TORSTAR 2004 (c) The company commenced a normal course issuer bid on May 7, 2004, effective for one year, to repurchase for cancellation up to 2 million Class B shares,  representing approximately 2.9% of the company’s outstanding Class B shares. As at December 31, 2004 1,440,800 Class B shares were repurchased and  cancelled at an average repurchase price of $24.28 for a total consideration of $34,976,000. Retained earnings were reduced by $27,287,000 representing the excess of the cost of the shares repurchased over their stated value. (d) Earnings per share Registration of the transfer of any of the company ’s shares may jeopardize either the ability of the company to engage in broadcasting or its status as a Canadian newspaper publisher. The total Class A and Class B shares outstanding at December 31 were: The only changes in the Class A shares were the  conversion to Class B shares of 5,700 shares (with a  stated value of $1,000) in 2004 and 24,660 shares (with a stated value of $7,000) in 2003. Total Class A  shares outstanding at December 31 were: The changes in the Class B shares were: (b) Summary of changes in the company’s share capital: Class A (voting) and Class B (non-voting) shares Class A shares An unlimited number of Class B shares is authorized. While the number of authorized Class A shares is unlimited, the issuance of further Class A shares, may under certain circumstances, require unanimous board approval. Shares Amount 2003 78,554,834 $349,921 2004 78,452,227 $369,140 Shares Amount 2003 9,924,175 $2,696 2004 9,918,475 $2,695 Shares Amount January 1, 2003 66,827,434 $314,987 Converted from Class A 24,660 7 Issued under Employee Share Purchase Plan 176,679 3,264 Stock options exercised 1,521,342 26,687 Dividend reinvestment plan  79,004 2,240 Other 1,540 40 December 31, 2003 68,630,659 347,225 Converted from Class A 5,700 1 Issued under Employee Share Purchase Plan 153,047 3,639 Stock options exercised 1,139,167 22,138 Purchased for cancellation (1,440,800) (7,689) Dividend reinvestment plan 43,608 1,068 Other 2,371 63 December 31, 2004 68,533,752 $366,445 (thousands of shares) 2004 2003 Weighted average  number of shares  outstanding, basic 79,168 77,645 Effect of dilutive securities – stock options 645 1,101 – employee share purchase plan 17 Weighted average number  of shares outstanding, diluted 79,813 78,763 (iii) Restrictions on transfer TORSTAR CORPORATION Basic per share amounts have been determined by dividing income by the weighted average number of Class A and Class B shares outstanding during the year. The treasury stock method is used for the calculation of the dilutive effect of stock options and other  dilutive securities. In calculating diluted per share amounts under the treasury stock method, the numerator remains unchanged from the basic  per share calculation as the assumed exercise of  the company’s stock options and employee share purchase plan does not result in an adjustment to income. The reconciliation of the denominator in  calculating diluted per share amounts is as follows: