NOTE

- EARNINGS PER COMMON SHARE

The following table presents the amounts used to compute basic and diluted earnings per common share, as well as the effect of dilutive potential common shares on weighted average shares outstanding (in thousands, except per share data):

	Three Months Ended					Nine Months Ended
	March 31					March 31
	2017			2016		2017		2016

BASIC EARNINGS PER SHARE

Net income (loss)	$	(531	)	$	522	$	2,304	$	8,054

Weighted average shares outstanding during the period, net of treasury shares (a)		25,155			24,807		25,056		24,648
Weighted average vested restricted stock units outstanding		37			22		37		25
Weighted average shares outstanding in the Deferred Compensation Plan during the period		260			251		253		245
Weighted average shares outstanding		25,452			25,080		25,346		24,918

Basic earnings (loss) per share	$	(0.02	)	$	0.02	$	0.09	$	0.32

DILUTED EARNINGS PER SHARE

Net income (loss)	$	(531	)	$	522	$	2,304	$	8,054

Weighted average shares outstanding

Basic		25,452			25,080		25,346		24,918
Weighted average stock warrants outstanding		--			--		28		--
Effect of dilutive securities (b): Impact of common shares to be issued under stock incentive plans, and contingently issuable shares, if any		--			620		535		576

Weighted average shares outstanding (c)		25,452			25,700		25,909		25,494

Diluted earnings (loss) per share	$	(0.02	)	$	0.02	$	0.09	$	0.32

(a)

Includes shares accounted for like treasury stock included in the Company’s non-qualified deferred compensation plan. (See Note

10.)

(b)

Calculated using the “Treasury Stock” method as if dilutive securities were exercised and the funds were used to purchase common shares at the average market price during the period.

(c)

Options to purchase

1,032,250

common shares at

March

31,

2016,

and options to purchase

1,683,883

common shares and

1,391,300

common shares at

March

31,

2017

and

2016,

respectively were not included in the computation of the

three

month and

nine

month periods for diluted earnings per share, respectively, because the exercise price was greater than the average fair market value of the common shares. For the

three

months ended

March

31,

2017,

the effect of dilutive securities was

not

included in the calculation of diluted earnings per share because there was a net operating loss for the period.