7.	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

th) 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.

For the

three

months ended

September 30, 2016,

156,610

options of class A shares and

118,830

options of class B shares have been excluded from the diluted net income per share computation because the exercise or grant price exceeded the fair market value. For the

three

months ended

September 30, 2016,

an additional

351,620

options of class A shares were excluded as their inclusion would be anti-dilutive.

	For the Three Months Ended September 30, 2017						For the Three Months Ended September 30, 2016
	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	$	2,062		$	2,091		$	2,345		$	2,384
Allocation of distributed and undistributed income to unvested restricted stock shareholders		(15	)		(15	)		(21	)		(21	)
Net income attributable to common shareholders	$	2,047		$	2,076		$	2,324		$	2,363
Denominator for net income per share - basic:
Weighted average common shares outstanding - basic		20,788			3,514			20,716			3,511
Net income per share – basic	$	0.10		$	0.59		$	0.11		$	0.67
Numerator for net income per share - diluted:
Net income attributable to common shareholders for basic computation	$	2,047		$	2,076		$	2,324		$	2,363
Denominator for net income per share - diluted:
Weighted average common shares outstanding – basic		20,788			3,514			20,716			3,511
Weighted average effect of dilutive securities – stock options		952			106			352			45
Denominator for diluted earnings per share – adjusted weighted average shares		21,740			3,620			21,068			3,556
Net income per share – diluted	$	0.09		$	0.57		$	0.11		$	0.66

For the

nine

months ended

September 30, 2016,

the Company had

506,250

options of class A shares and

56,728

options of class B shares, respectively, which have been excluded from the diluted net income per share computation because the exercise or grant price exceeded the fair market value. For the

nine

months ended

September 30, 2017

and

2016,

an additional

91,385

and

204,170

options of class A shares and

15,231

and

47,429

of Class B shares were excluded as their inclusion would be anti-dilutive, respectively.

	For the Nine Months Ended September 30, 2017						For the Nine Months Ended September 30, 2016
	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	$	8,151		$	8,275		$	7,339		$	7,454
Allocation of distributed and undistributed income to unvested restricted stock shareholders		(63	)		(64	)		(64	)		(64	)
Net income attributable to common shareholders	$	8,088		$	8,211		$	7,275		$	7,390
Denominator for net income per share - basic:
Weighted average common shares outstanding – basic		20,759			3,514			20,712			3,503
Net income per share – basic	$	0.39		$	2.34		$	0.35		$	2.11
Numerator for net income per share - diluted:
Net income attributable to common shareholders for basic computation	$	8,088		$	8,211		$	7,275		$	7,390
Denominator for net income per share - diluted:
Weighted average common shares outstanding – basic		20,759			3,514			20,712			3,503
Weighted average effect of dilutive securities – stock options		778			81			305			54
Denominator for diluted earnings per share – adjusted weighted average shares		21,537			3,595			21,017			3,557
Net income per share – diluted	$	0.38		$	2.28		$	0.35		$	2.08