Note 5 – Earnings per Share Data

The following table sets forth the computation of basic and diluted earnings per share for the quarters and nine months ended June 30, 2017 and 2016:


	Quarter Ended June 30,				Nine Months Ended June 30,
	2017		2016		2017		2016
Net Income	$	2,588,000	$	2,114,000	$	7,397,000	$	5,319,000

Common Shares:
Weighted average common shares outstanding		14,400,000		14,333,000		14,390,000		14,321,000
Effect of dilutive stock options		299,000		217,000		290,000		170,000

Diluted shares outstanding		14,699,000		14,550,000		14,680,000		14,491,000

Basic:
Net earnings per share	$	0.18	$	0.15	$	0.51	$	0.37

Diluted:
Net earnings per share	$	0.18	$	0.15	$	0.50	$	0.37

On July 11, 2016, the Company’s Board of Directors approved a three-for-two split of the Company’s common and Class B stock to be effected in the form of a 50% stock dividend. As a result, shareholders received one additional share of common or Class B stock for every two shares they held of the respective class of stock as of the record date. These shares were distributed on August 1, 2016, to shareholders of record as of the end of business on July 22, 2016. All share and per share data (except par value) have been adjusted to reflect the effect of the stock split for all periods presented. The number of shares of common and Class B stock issuable upon exercise of outstanding stock options were proportionately increased in accordance with terms of the respective plans. The number of authorized shares, as reflected on the condensed consolidated balance sheets, was not affected by the stock split and, accordingly, has not been adjusted.

Basic earnings per share are based on the weighted-average number of shares outstanding. Diluted earnings per share are based on the sum of the weighted average number of shares outstanding plus common stock equivalents. Weighted-average shares issuable upon the exercise of stock options included in the diluted earnings per share calculation for the quarter and nine months ended June 30, 2017 were 459,000 and 469,000, respectively, which equates to 299,000 and 290,000 dilutive common stock equivalents, respectively. Weighted-average shares issuable upon the exercise of stock options included in the diluted earnings per share calculation for the quarter and nine months ended June 30, 2016 were 496,000 and 488,000, respectively, which equates to 217,000 and 170,000 dilutive common stock equivalents, respectively. There were no anti-dilutive shares for the quarters and nine months ended June 30, 2017 and June 30, 2016.