Computation of Earnings Per Share

9 Months Ended

Sep. 30, 2021

NOTE G – 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-month periods ended September 30, 2021 and 2020 was as follows:


	Three Months Ended September 30				Nine Months Ended September 30
	2021		2020		2021		2020
Numerator
Net income	$	10,708	$	12,954	$	26,755	$	27,133
Denominator
Determination of shares
Weighted-average common shares outstanding		4,900		4,917		4,909		4,963
Dilutive effect - share-based awards		75		94		41		35
Diluted weighted-average common shares outstanding		4,975		5,011		4,950		4,998
Earnings per common share
Basic	$	2.19	$	2.63	$	5.45	$	5.47
Diluted	$	2.15	$	2.59	$	5.40	$	5.43

For both the three and nine-month periods ended September 30, 2021, 13,000 stock options 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, 2020, 45,500 and 35,364 stock options, respectively, were excluded from the calculation of diluted earnings per share as the effect would have been anti-dilutive.