Earnings Per Share

3 Months Ended

Sep. 30, 2014

Earnings (Loss) Per Common Share

Earnings Per Share

9.Earnings Per Share

Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding during the period.  Other obligations, such as stock options, are considered to be potentially dilutive common shares.  Diluted EPS assumes the issuance of potential dilutive common shares outstanding during the period and adjusts for any changes in income and the repurchase of common shares that would have occurred from the assumed issuance, unless such effect is anti-dilutive.  The calculation of diluted shares also takes into effect the average unrecognized non-cash stock-based compensation expense and additional adjustments for tax benefits related to non-cash stock-based compensation expense.

Options to purchase 269,783 and 163,359 shares of common stock outstanding in the three months ended September 30, 2014 and 2013, respectively, were not included in the computation of diluted EPS because the effect would have been anti-dilutive.