NOTE

–

Net Income

Per Share:

The Company’s basic net income per share is computed based on the weighted average number of shares of common stock outstanding for the period. Diluted net income per share includes the effect of the Company’s outstanding stock options, stock appreciation rights, unvested shares of restricted stock and performance shares, if the inclusion of these items is dilutive.

The following table presents a reconciliation of basic and diluted net income per share for the

three

and

six

months ended

June 30, 2019

and

2018:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Net income used in the computation of basic and diluted net income per share (in thousands)	$	2,781	$	3,817	$	5,157	$	6,267

Weighted average shares outstanding - basic		14,952,802		14,956,221		14,940,072		14,888,940
Common stock equivalents		334,555		603,183		334,934		619,577
Weighted average shares outstanding - diluted		15,287,357		15,559,404		15,275,006		15,508,517
Per Share Data:
Basic
Net income	$	0.19	$	0.26	$	0.35	$	0.42
Diluted
Net income	$	0.18	$	0.25	$	0.34	$	0.40

Awards to purchase approximately

316,095

shares of common stock with a weighted average exercise price of

$20.95

per share were outstanding during the

three

months ended

June 30, 2019,

but were

not

included in the computation of diluted EPS because the awards’ exercise prices were greater than the average market price of the common shares.

There were

awards to purchase shares of common stock outstanding during the

three

months ended

June 30, 2018

excluded from the computation of diluted EPS because the award’s exercise prices were greater than the average market price of the common shares.

Awards to purchase approximately

329,095

shares of common stock with a weighted average exercise price of

$20.97

per share were outstanding during the

six

months ended

June 30, 2019,

but were

not

included in the computation of diluted EPS because the awards’ exercise prices were greater than the average market price of the common shares.

There were

awards to purchase shares of common stock outstanding during the

six

months ended

June 30, 2018

excluded from the computation of diluted EPS because the award’s exercise prices were greater than the average market price of the common shares.