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, 2018 and 2017:


	Quarter Ended June 30,				Nine Months Ended June 30,
	2018		2017		2018		2017
Net Income	$	2,682,000	$	2,588,000	$	8,791,000	$	7,397,000


Common Shares:
Weighted average common shares outstanding		14,492,000		14,400,000		14,477,000		14,390,000
Effect of dilutive stock options		232,000		299,000		247,000		290,000

Diluted shares outstanding		14,724,000		14,699,000		14,724,000		14,680,000


Basic:
Net earnings per share	$	0.19	$	0.18	$	0.61	$	0.51

Diluted:
Net earnings per share	$	0.18	$	0.18	$	0.60	$	0.50

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.

The 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, 2018 were 367,000 and 382,000, respectively, which equates to 232,000 and 247,000 dilutive common stock equivalents, respectively. The 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. There were no anti-dilutive shares for the quarters and nine months ended June 30, 2018 and June 30, 2017.