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EARNINGS PER SHARE

3 Months Ended

Jun. 30, 2022

EARNINGS PER SHARE

EARNINGS PER SHARE

4. EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income or loss applicable to common stock by the weighted average number of common shares outstanding during the period, without considering any dilutive items. Nonvested shares of restricted stock are included in the computation of basic EPS because the holder has voting rights and shares in non-forfeitable dividends during the vesting period. Diluted EPS is computed by dividing net income applicable to common stock by the weighted average number of common shares and common stock equivalents for items that are dilutive, net of shares assumed to be repurchased using the treasury stock method at the average share price for the Company’s common stock during the period. Common stock equivalents arise from the assumed exercise of outstanding stock options. For the three months ended June 30, 2022 and 2021, there were no stock options excluded in computing diluted EPS.

In March 2022, the Company’s Board of Directors adopted a stock repurchase program (the “March 2022 repurchase program”). Under the March 2022 repurchase program, the Company was authorized to repurchase up to $5.0 million of the Company’s outstanding shares of common stock, in the open market, based on prevailing market prices, or in privately negotiated transactions, over a period beginning on March 21, 2022 and continuing until the earlier of the completion of the authorized level of repurchases or September 9, 2022, depending upon market conditions. As of June 30, 2022, the Company had repurchased 211,010 shares at a total cost of $1.5 million under the March 2022 repurchase program at an average price of $7.08 per share.

In June 2021, the Company’s Board of Directors adopted a stock repurchase program (the “June 2021 repurchase program”). Under the June 2021 repurchase program, the Company could repurchase up to $5.0 million of the Company’s outstanding shares of common stock, in the open market based on prevailing market prices, or in private negotiated transactions, during the period from June 21, 2021 until December 21, 2021. Under the June 2021 repurchase program, a total of 249,908 shares were repurchased at a total cost of $1.7 million and an average price per share of $6.89.

The following table presents a reconciliation of the components used to compute basic and diluted EPS for the periods indicated:


		Three Months Ended June 30,
		2022			2021
Basic EPS computation:
Numerator-net income		$	4,652,000		$	5,755,000
Denominator-weighted average common shares outstanding			22,027,874			22,344,785
Basic EPS		$	0.21		$	0.26
Diluted EPS computation:
Numerator-net income		$	4,652,000		$	5,755,000
Denominator-weighted average common shares outstanding			22,027,874			22,344,785
Effect of dilutive stock options			9,446			13,979
Weighted average common shares and common stock equivalents			22,037,320			22,358,764
Diluted EPS		$	0.21		$	0.26