Earnings Per Share

3 Months Ended

Mar. 31, 2017

7. ASC 260 Earnings Per Share (“EPS”) requires dual presentation of basic EPS and diluted EPS on the face of the condensed consolidated statements of operations. Basic EPS is computed as net income divided by the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects potential dilution that could occur if securities or other contracts, which, for the Company, consists of options to purchase shares of the Company’s common stock, are exercised.

The components of basic and diluted earnings per share were as follows:

	Three Months Ended March 31,
	2017		2016
Numerator:
Net income attributable to AVD	$	3,452	$	2,794
Denominator (in thousands):
Weighted averages shares outstanding-basic		28,947		28,808
Dilutive effect of stock options and grants		707		499
		29,654		29,307

For the three months ended March 31, 2017 and 2016, no stock options were excluded from the computation of diluted earnings per share.