NOTE 10 Earnings Per Share

Basic earnings per common share is computed based on the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed based on the combination of dilutive common share equivalents, comprised of shares issuable under the Corporation’s Stock Incentive Plan and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money options to purchase shares, which is calculated based on the average share price for each period using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except per share amounts):


	Three-Months Ended
	September 3, 2017		August 31, 2016
	(Unaudited)
Net income	$	1,607	$	744

Weighted average share outstanding:
Basic		8,391,244		8,391,244
Common stock equivalents - treasury stock method		92,691		106,948

Diluted		8,483,935		8,498,192
Net income per share:
Basic	$	.19	$	.09

Diluted	$	.19	$	.09

There were 95,754 and 13,716 anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share for the three months ended September 3, 2017 and August 31, 2016, respectively.