INCOME PER COMMON SHARE

9 Months Ended

Sep. 30, 2016

NOTE H — INCOME PER COMMON SHARE

Basic income per common share has been computed by dividing net income by the weighted-average number of shares of the Company’s common stock outstanding during the relevant period. Diluted income per common share adjusts net income and basic income per common share for the effect of all potentially dilutive shares of the Company’s common stock. The calculations of basic and diluted income per common share for the three and nine month periods ended September 30, 2016 and 2015 are as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
	(in thousands, except per share amounts)
Net income – basic and diluted	$	6,452	$	5,104	$	973	$	1,272
Weighted-average shares outstanding – basic		14,266		13,912		14,129		13,824
Effect of dilutive securities:
Stock options and restricted stock		365		395		365		418

Weighted-average shares outstanding – diluted		14,631		14,307		14,494		14,242

Basic income per common share	$	0.45	$	0.37	$	0.07	$	0.09

Diluted income per common share	$	0.44	$	0.36	$	0.07	$	0.09

The computation of diluted income per common share for the three September 30, 2016 excludes options to purchase 523,375 shares. The computation of diluted income per common share for the nine months ended September 30, 2016 excludes options to purchase 1,543,387 shares and 89,164 restricted shares. The computation of diluted income per common share for the three and nine months ended September 30, 2015 excludes options to purchase 682,900 shares and 1,732,076 shares, respectively. These shares were excluded due to their antidilutive effects.