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 six months ended June 30, 2017 and 2016 was as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2017		2016		2017		2016
Numerator
Net income	$	4,156	$	2,755	$	5,674	$	5,413
Denominator
Determination of shares
Weighted-average common shares outstanding		5,116		5,186		5,117		5,198
Dilutive effect - share-based awards		11		22		15		20
Diluted weighted-average common shares outstanding		5,127		5,208		5,132		5,218
Earnings per common share
Basic	$	0.81	$	0.53	$	1.11	$	1.04
Diluted	$	0.81	$	0.53	$	1.11	$	1.04

For the three and six-month periods ended June 30, 2017, 48,498 and 47,679 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 six-month periods ended June 30, 2016, 60,350 and 61,800, respectively, stock options were excluded from the calculation of diluted earnings per share as the effect would have been anti-dilutive.