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Earnings Per Share
 6 Months Ended
Mar. 31, 2014
Earnings Per Share  
Earnings Per Share

5. Earnings Per Share

 

 

 

Three months ended March 31,

 

Six Months Ended March 31,

 

 

 

2014

 

2013

 

2014

 

2013

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$

784,217

 

$

1,107,128

 

$

1,792,813

 

$

1,424,715

 

Denominator:

 

 

 

 

 

 

 

 

 

Basic weighted average shares

 

16,915,823

 

16,776,924

 

16,901,955

 

16,692,715

 

Dilutive effect of share-based awards

 

236,855

 

4,832

 

221,557

 

2,420

 

Diluted weighted average shares

 

17,152,678

 

16,781,756

 

17,123,512

 

16,695,135

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

Basic EPS

 

$

0.05

 

$

0.07

 

$

0.11

 

$

0.09

 

Diluted EPS

 

$

0.05

 

$

0.07

 

$

0.10

 

$

0.09

 

 

Earnings per share (“EPS”) is calculated pursuant to FASB ASC Topic 260, Earnings Per Share (“ASC Topic 260”).  Basic EPS excludes potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period.  Diluted EPS is computed assuming the conversion or exercise of all dilutive securities such as employee stock options.

 

The number of incremental shares from the assumed exercise of stock options is calculated by using the treasury stock method. As of March 31, 2014 and 2013, there were 719,668 and 901,300 options to purchase common stock outstanding, respectively.  The average outstanding diluted shares calculation excludes options with an exercise price that exceeds the average market price of shares during the period.

 

For the three months ended March 31, 2014 and 2013, respectively, 57,500 and 799,022 weighted dilutive shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

 

Quarterly and full year-to-date EPS are calculated independently based on the weighted average number of shares outstanding during each quarter.  As a result, the sum of each quarter’s per share amount may not equal the total per share amount for the year-to-date.