Earnings Per Share

6 Months Ended

Jun. 30, 2017

Basic earnings per share (“basic EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share (“diluted EPS”) gives effect to all dilutive potential shares outstanding resulting from employee stock options, restricted stock units, performance share units and stock appreciation rights ("SARs") during the period. The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2017 and 2016:



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016

Net income	$	6,139	$	2,884	$	1,594	$	619

Basic – weighted average shares outstanding	27,891		27,776		27,894		27,753

Effect of dilutive potential securities	248		165		192		173

Diluted – weighted average shares outstanding	28,139		27,941		28,086		27,926

Net income (per share)
Basic	$	0.22	$	0.10	$	0.06	$	0.02
Diluted	0.22		0.10		0.06		0.02

The shares used in the calculation of diluted EPS exclude options and SARs to purchase shares where the exercise price was greater than the average market price of common shares for the period and the effect of the inclusion would be anti-dilutive. Such shares aggregated approximately 1.4 million and 2.0 million for the three and six months ended June 30, 2017, respectively, and approximately 1.7 million and 1.3 million for the three and six months ended June 30, 2016, respectively.