Computation of Earnings Per Share

9 Months Ended

Sep. 30, 2016

NOTE E – COMPUTATION OF EARNINGS PER SHARE

Basic earnings per share were computed by dividing Net income by the weighted-average number of common shares outstanding for each respective period. Diluted earnings per share were calculated by dividing Net income by the weighted-average of all potentially dilutive common stock that was outstanding during the periods presented.

The calculation of basic and diluted earnings per share for the three and nine months ended September 30, 2016 and 2015 was as follows:


	Three Months Ended September 30				Nine Months Ended September 30
	2016		2015		2016		2015
Numerator
Net income	$	4,742	$	206	$	10,154	$	3,630

Denominator
Determination of shares
Weighted-average common shares outstanding		5,146		5,356		5,180		5,381
Dilutive effect - share-based awards		23		16		20		16

Diluted weighted-average common shares outstanding		5,169		5,372		5,200		5,397

Earnings per common share
Basic	$	0.92	$	0.04	$	1.96	$	0.67

Diluted	$	0.92	$	0.04	$	1.95	$	0.67

For the three and nine months ended September 30, 2016, 47,850 and 55,350 stock options, respectively, were excluded from the calculation of diluted earnings per share as the effect would have been anti-dilutive. For the three and nine months ended September 30, 2015, 59,750 and 51,850 stock options, respectively, were excluded from the calculation of diluted loss per share as the effect would have been anti-dilutive.

For the three and nine months ended September 30, 2016 and September 30, 2015, there were no restricted share units excluded from the calculation of diluted earnings per share.