Note 3: Earnings Per Share

Basic earnings per share ("EPS") excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the earnings of the Corporation.

As of March 31, 2020 and 2019, there were outstanding options to purchase 554,500 shares and 497,750 shares of the Corporation’s common stock, respectively. Of those shares, as of March 31, 2020 and 2019, there were 135,000 shares and 497,750 shares, respectively, which were excluded from the diluted EPS computation as their effect was anti-dilutive. As of March 31, 2020 and 2019, there were outstanding restricted stock awards of 225,500 shares and 9,000 shares, respectively. The outstanding restricted stock had a dilutive effect for the quarter and nine months ended March 31, 2020. There was no dilutive effect for the comparable quarter last year; however, there was a dilutive effect in the first nine month of fiscal 2019.

The following table provides the basic and diluted EPS computations for the quarter and nine months ended March 31, 2020 and 2019, respectively.


	For the Quarter Ended				For the Nine Months Ended
	March 31,				March 31,
(In Thousands, Except Earnings Per Share)	2020		2019		2020		2019
Numerator:
Net income (loss) – numerator for basic earnings per share and diluted earnings per share - available to common stockholders	$	1,145	$	(151)	$	6,105	$	3,630

Denominator:
Denominator for basic earnings per share:
Weighted-average shares		7,469		7,507		7,478		7,481

Effect of dilutive shares:
Stock options		71		—		87		60
Restricted stock		50		—		41		14

Denominator for diluted earnings per share:
Adjusted weighted-average shares and assumed conversions		7,590		7,507		7,606		7,555

Basic earnings (loss) per share	$	0.15	$	(0.02)	$	0.82	$	0.49
Diluted earnings (loss) per share	$	0.15	$	(0.02)	$	0.80	$	0.48