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 unvested 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

nine

months ended

September 30, 2019

and

2018

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net income used in the computation of basic and diluted net income per share (in thousands)	$	3,921	$	6,122	$	9,078	$	12,389

Weighted average shares outstanding - basic		14,947,552		15,010,660		14,942,565		14,929,513
Dilutive common stock equivalents		319,298		489,234		329,722		576,129
Weighted average shares outstanding - diluted		15,266,850		15,499,894		15,272,287		15,505,642
Net income per share:
Basic	$	0.26	$	0.41	$	0.61	$	0.83
Diluted	$	0.26	$	0.39	$	0.59	$	0.80

Awards to purchase approximately

568,471

and

192,000

shares of common stock with weighted average exercise prices of

$19.02

and

$23.17

per share were outstanding during the

three

months ended

September 30, 2019

and

2018

, respectively, 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.

Awards to purchase approximately

408,854

and

192,000

shares of common stock with weighted average exercise prices of

$20.07

and

$23.17

per share were outstanding during the

nine

months ended

September 30, 2019

and

2018

, respectively, 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.