8.	EARNINGS PER SHARE

Net income per share of class A common stock and class B common stock is computed using the two-class method. Basic net income per share is computed by allocating undistributed earnings to common shares and using the weighted-average number of common shares outstanding during the period.

Diluted net income per share is computed using the weighted-average number of common shares and, if dilutive, the potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method.

The liquidation rights and the rights upon the consummation of an extraordinary transaction are the same for the holders of class A common stock and class B common stock. Other than share distributions and liquidation rights, the amount of any dividend or other distribution payable on each share of class A common stock will be equal to one-sixth (1/6

) of the amount of any such dividend or other distribution payable on each share of class B common stock. As a result, the undistributed earnings for each period are allocated based on the contractual participation rights of the class A and class B common stock as if the earnings for the period had been distributed.

The Company excluded 864,849 and 535,383 shares of class A common stock options for the three-month periods ended June 30, 2016 and 2015, respectively, and 81,643 and 56,732 shares of class B common stock options for the three-month periods ended June 30, 2016 and 2015, respectively, from the diluted net income per share computation because the exercise or grant price exceeded the fair market value of the common stock on such date.

	For the Three Months Ended June 30, 2016						For the Three Months Ended June 30, 2015
	Class A Common Stock			Class B Common Stock			Class A Common Stock			Class B Common Stock
	(In thousands, except per share data)
Numerator for net income per share - basic:
Net income	$	2,260		$	2,298		$	2,028		$	2,036
Allocation of distributed and undistributed income to unvested restricted stock shareholders		(19	)		(20	)		(14	)		(14	)
Net income attributable to common shareholders	$	2,241		$	2,278		$	2,014		$	2,022
Denominator for net income per share - basic:
Weighted average common shares outstanding - basic		20,711			3,508			20,790			3,478
Net income per share – basic	$	0.11		$	0.65		$	0.10		$	0.58
Numerator for net income per share - diluted:
Net income attributable to common shareholders for basic computation	$	2,241		$	2,278		$	2,014		$	2,022
Denominator for net income per share - diluted:
Weighted average common shares outstanding - basic		20,711			3,508			20,790			3,478
Weighted average effect of dilutive securities – stock options		281			57			239			44
Denominator for diluted earnings per share – adjusted weighted average shares		20,992			3,565			21,029			3,522
Net income per share – diluted	$	0.11		$	0.64		$	0.10		$	0.57

The Company excluded 811,429 and 506,565 shares of class A common stock options for the six-month periods ended June 30, 2016 and 2015, respectively, and 72,740 and 50,502 shares of class B common stock options for the six-month periods ended June 30, 2016 and 2015, respectively, from the diluted net income per share computation because the exercise or grant price exceeded the fair market value of the common stock on such date.

	For the Six Months Ended June 30, 2016						For the Six Months Ended June 30, 2015
	Class A Common Stock			Class B Common Stock			Class A Common Stock			Class B Common Stock
	(In thousands, except per share data)
Numerator for net income per share - basic:
Net income	$	4,994		$	5,071		$	3,765		$	3,780
Allocation of distributed and undistributed income to unvested restricted stock shareholders		(43	)		(44	)		(27	)		(27	)
Net income attributable to common shareholders	$	4,951		$	5,027		$	3,738		$	3,753
Denominator for net income per share - basic:
Weighted average common shares outstanding - basic		20,711			3,498			20,791			3,478
Net income per share – basic	$	0.24		$	1.44		$	0.18		$	1.08
Numerator for net income per share - diluted:
Net income attributable to common shareholders for basic computation	$	4,951		$	5,027		$	3,738		$	3,753
Denominator for net income per share - diluted:
Weighted average common shares outstanding - basic		20,711			3,498			20,791			3,478
Weighted average effect of dilutive securities – stock options		291			59			240			45
Denominator for diluted earnings per share – adjusted weighted average shares		21,002			3,557			21,031			3,523
Net income per share – diluted	$	0.24		$	1.41		$	0.18		$	1.07