EARNINGS PER SHARE

12 Months Ended

Jun. 30, 2021

EARNINGS PER SHAREBasic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares after considering the additional dilution related to common stock options and restricted stock. In computing diluted earnings per share, the outstanding common stock options are considered dilutive using the treasury stock method.

The Company’s restricted stock awards are treated as outstanding for earnings per share calculations since these shares have full voting rights and are entitled to participate in dividends declared on common shares, if any, and undistributed earnings. As participating securities, the shares of restricted stock are included in the calculation of basic and diluted EPS using the two-class method. For the periods presented, the amount of earnings allocated to the participating securities was not material.

The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per share amounts):


	Year Ended June 30,
	2021		2020		2019

Net income as reported	$	12,868	$	2,266	$	214

Weighted average common shares outstanding	16,593		16,249		16,116
Effect of dilutive stock options	435		182		7
Weighted average diluted common shares outstanding	17,028		16,431		16,123

Net income per common share
Basic	$	0.78	$	0.14	$	0.01
Diluted	$	0.76	$	0.14	$	0.01

Employee stock options excluded from computation of diluted income per share amounts because their effect would be anti-dilutive	—		206		1,173