EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2015

NOTE 3. EARNINGS PER SHARE

Basic earnings per share is computed by dividing reported net earnings by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect the additional dilution for all potentially dilutive securities such as stock options. The following is a reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations (shares in thousands):

	Three months ended June 30,
	2015				2014
	Shares	Per Share Amount			Shares	Per Share Amount
Basic	16,894	$	0.30		16,788	$	0.18
Effect of dilutive stock options	408	(0.01		)	316	—

Diluted	17,302	$	0.29		17,104	$	0.18


	Six months ended June 30,

	2015				2014

	Shares	Per Share Amount			Shares	Per Share Amount

Basic	16,858	$	0.54		16,663	$	0.38
Effect of dilutive stock options	392	(0.01		)	502	(0.01		)


Diluted	17,250	$	0.53		17,165	$	0.37

Excluded from the computation of diluted earnings per share are options where the exercise prices are greater than the market price as their effects would be anti-dilutive in the computation of diluted earnings per share. For the three and six months ended June 30, 2015, options for 610 thousand and 655 thousand shares, respectively, were excluded from the computation. For the three and six months ended June 30, 2014, 626 thousand and 644 thousand shares were excluded from the computation.