Earnings Per Share

12 Months Ended

Dec. 31, 2018

Note 8 – Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding.

The following table sets forth the computation of basic and diluted earnings per share:



	Years Ended December 31,
(In thousands, except per share amounts)	2018		2017		2016
Numerator:
Net income	$	87,651	$	80,459	$	48,283
Denominator:
Weighted-average shares outstanding - basic	18,374		18,154		17,991
Effect of dilutive shares	285		393		232
Weighted-average shares outstanding - diluted	18,659		18,547		18,223
Basic earnings per share:	$	4.77	$	4.43	$	2.68
Diluted earnings per share:	$	4.70	$	4.34	$	2.65

Certain options to purchase shares were excluded from the calculation of diluted weighted-average shares outstanding because the exercise price was greater than the average market price of our capital stock during the year. For 2018, 36,642 shares were excluded. No shares were excluded in 2017 and 2016.