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, 2017 and 2016 was as follows:

	Three Months Ended September 30				Nine Months Ended September 30
	2017		2016		2017		2016
Numerator
Net income	$	6,278	$	4,742	$	11,952	$	10,154
Denominator
Determination of shares
Weighted-average common shares outstanding		5,104		5,146		5,113		5,180
Dilutive effect - share-based awards		16		23		16		20
Diluted weighted-average common shares outstanding		5,120		5,169		5,129		5,200
Earnings per common share
Basic	$	1.23	$	0.92	$	2.34	$	1.96
Diluted	$	1.23	$	0.92	$	2.33	$	1.95

For the three and nine-month periods ended September 30, 2017, 27,000 and 35,584 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-month periods ended September 30, 2016, 47,850 and 55,350, respectively, stock options were excluded from the calculation of diluted earnings per share as the effect would have been anti-dilutive.