Note 5 - Earnings Per Share ("EPS")

12 Months Ended

Dec. 31, 2015

5. Earnings per Share (“EPS”)

Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not considered outstanding for purposes of calculating basic earnings per share. Diluted EPS is calculated by dividing net income by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, stock appreciation rights (“SAR’s”), restricted shares, and restricted stock units using the treasury stock method.

The following table provides share information used in the calculation of the Company's basic and diluted earnings per share (in thousands):

	Years Ended December 31,
	2015		2014		2013
Shares used in the calculation of basic earnings per share		14,934		14,678		14,087
Effect of dilutive securities:
Stock options, SARs, and RSAs		387		591		739
Diluted shares used in the calculation of earnings per share		15,321		15,269		14,826

Stock options to purchase 197,691 shares, 129,540 shares, and 21,326 shares for 2015, 2014, and 2013, respectively, were excluded from the computation of diluted EPS as their effect would have been anti-dilutive.

At December 31, 2015, 2014, and 2013, 62,825 shares, 30,700 shares, and 52,339 shares of issued and outstanding unvested restricted stock, respectively, were excluded from the basic earnings per share.