Note 3 - Income Taxes

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

3. INCOME TAXES

The effective tax rate for the

three

-month period ended

March 31, 2018

decreased to

18.5%

compared to

34.7%

for the same period in

2017

mainly due to the reduction in the corporate tax rate from

35%

to

21%

due to the Tax Cut and Jobs Act (the “Tax Act”) that was enacted on

December 22, 2017.

In addition, the Company had increased tax benefits of

$350,000

from the exercise of options and dividends paid to non-vested shareholders partially offset by

$67,000

of additional tax expense from non-deductible recapitalization expenses.